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 ...

The recent famous financial frauds have demonstrated that in many cases the auditor was either responsible for or an accomplice in their manifestation. Thus, the auditor plays an important role in ensuring a true and fair view regarding the financial position and performance of the company. International standards on auditing indicate that the financial auditor’s main objective is to serve the ...

This article is designed to explore the theme: “Psychological Contract, Auditor Deviation, and Audit Quality Which reviewed from point of view non-public accountants. theme was lifted results research conducted at a company in Surabaya, East Java, Indonesia. Moreover, this study aims examine relationship between psychological contracts, Dysfunctional Behavior, Quality. taken place Non-Big categ...

.•\bstract—Theoretical research suggests that large auditors have more incentive to issue accurate reports compared to small auditors (DeAngelo. 1981; Dye, 1993). Controiling for the client characteristics of large and small auditors, this paper shows that large auditors issue reports that are more accurate and more informative signals of financial distress. These findings are consistent with t...

An outlier is defined as an observation that is significantly different from the other data in its set. An auditor will employ many techniques, processes and tools to identify these entries, and data mining is one such medium through which the auditor can analyze information. The enormous amount of information contained within transactional processing systems' logs means that auditors must empl...

This study investigates the nature and extent to which managerial attitudes influence fraud risk perceptions, observations and experiences of audit partners. Using a sample of 5,603 client acceptance and audit continuance assessments at a Big Four audit firm in the Netherlands, this study finds that: (1) manager integrity, honesty, and ethics are considered by audit partners to be of highest im...

Auditors may encounter misstatements during the course of an audit, each of which requires a binary materiality assessment. We propose a fuzzy expert system approach that assesses materiality as a continuous characteristic by allowing a misstatement to possess a degree of materiality between 0 and 1. This potentially allows the auditor more flexibility and precision in materiality assessment, a...

We examine whether the provision of non-audit services by auditors is negatively correlated with firm value and the quality of earnings. Because of concerns regarding the effect of non-audit services on auditor independence, the Securities and Exchange Commission recently issued revised auditor independence rules requiring firms to disclose in their annual proxy statement the amount of fees pai...