Many businesses are now moving to e-business and implementing computerized accounting information systems. This phenomenon has given impact to audit profession in performing IT audit, financial reports audit and tracing electronic source documents. Computer-Assisted-Auditing Techniques and Tools (CAATTs) are audit technologies that allow IT audit work to be performed efficiently, effectively an...

An information usefulness approach to decision making points out that only the information is regarded as useful that will bring valuable messages to investors and lead to stock price adjustments. This study examines the effectiveness of audit committees in improving earnings quality and informativeness, particularly among family-owned firms. Earnings informativeness was measured through the re...

Moizer (1997) summarises the evidence on audit firm reputation in financial communities, noting that there is considerable evidence that Big Six firms are differentiated from other firms. These audit firms are the same group of firms we refer to as “professional accountancy firms” in the context of their more general role in providing a range of accountancy services. In this paper, we argue tha...

Objective: The purpose of this study is to examine the effect of Auditors’ Individual Differences on their Professional Commitment. Also, the mediation effect of Ethical Climate Fit has been examined. Methods: According to the Social Cognitive Theory, two criteria of Internal Locus of Control and Self-Efficacy were used as Auditors’ Individual Differences. To measure the Internal Locus of Cont...

This paper studies how a client's bankruptcy risk, together with its accounting quality and corporate governance, affect audit pricing. We use the unusual economic conditions of the 1998 Asian financial crisis as a stress test of the effect of these factors on audit pricing in Hong Kong. We find that audit fees are highly sensitive to a client firm's financial condition, corporate governance, a...

Prior research has examined audit pricing for publicly held firms and provided some evidence of a Big 8 premium in pricing. We investigate audit pricing among private firms for the first time, and we compare audit pricing for private and listed clients. The relatively great degree of dispersion in auditor choice (between Big 5 and non-Big 5 auditors) in our large sample of privately held audit ...

Disclosure theory argues that better information quality reduces audit risk, by decreasing information asymmetry in the market and consequently, information risk for firms. Extant literature on voluntary disclosure analyzes the relationships between Corporate Social Responsibility (CSR) and audit risk, finding that auditors charge lower fees and issue less going concern opinions to firms with g...

Prior research has examined audit pricing for publicly held firms and provided some evidence of a Big 8 premium in pricing. We investigate audit pricing among private firms for the first time, and we compare audit pricing for private and public clients. We present evidence of a pricing premium, on average, for non-Big 5 auditors among large private clients after controlling for other effects. W...