In this paper, I examine possible reasons behind observed differences in audit committee composition and activity. The governance structures of audit committees appear to be sensitive in meeting the monitoring and litigation risk needs of the parent firm. However, boards with stronger CEOs also have a higher probability of placing insiders and interested directors on their audit committees than...

This study examines the impact of the implementation of the Code of Corporate Governance for Listed Companies in China (the Code) in 2002 on constraining earnings management in Chinese listed firms. We find the magnitudes of both discretionary accruals and related-party transactions in Chinese listed firms decrease significantly after the promulgation of the 2002 Code, and moreover, the Code is...

Michael McKee Department of Economics, College of Business Administration, University of Tennessee at Knoxville, Knoxville, TN 37996 Abstract This paper examines the process by which firms are selected for a sales tax audit and the determinants of subsequent firm compliance behavior, focusing upon the Gross Receipts Tax in New Mexico. A two–stage selection model is used to estimate the State’s ...

With a unique dataset of joint-stock companies, this paper describes the corporate audit structure in Russia and empirically analyses its determinants. When compared to the international standard, Russian firms have a weak audit structure in terms of the independence and expertise of the board of auditors and the accounting auditor. We found that board composition, affiliation with a business g...

Considerable differences exist between Germany and AngloAmerican countries in the development of the statutory audit, the emergence of professional associations of auditors, and the legal and organizational forms of audit firms. This paper examines historical developments in Germany from the late 19th century, to the formal regulation of auditing and the audit profession in 1931. Its main objec...

In this study, we investigate the problems and obstacles of implementing the risk-based auditing in Iran. We set four hypotheses and used questionnaire containing 45 questions to collect the required data. The questionnaires were distributed between Iranian certified public accountants who were partners or directors of audit firms and audit organizations member of Iranian certified public accou...