Group audits: Are audit quality and price associated with the Lead auditor’s decision to accept responsibility? |
| |
| Institution: | 1. University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249-0631, United States;2. University of Kansas, United States;3. University of Alabama, United States;1. University of Texas at San Antonio, One UTSA Circle, San Antonio, TX 78249-0631, United States;2. University of Kansas, United States;3. University of Alabama, United States;1. University of Wisconsin – Milwaukee, Lubar School of Business, P.O. Box 742, Milwaukee, WI 53201, USA;2. East Carolina University, 3412 Bate Building, Greenville, NC 27858, USA;1. Villanova University, USA;2. The University of Alabama, USA;1. Mercer University, United States;2. University of Nevada, Las Vegas, United States;3. Norwegian School of Economics (NHH), Norway;1. School of Accountancy, College of Business and Analytics Southern Illinois University Carbondale, IL 62901-4619, United States;2. Turner School of Accounting University of North Carolina Charlotte Belk College of Business 9201 University City Blvd., Charlotte, NC 28223, United States |
| |
| Abstract: | Lead auditors frequently rely on work performed by Other auditors, especially when auditing clients with operations in multiple countries. The PCAOB has expressed concern that the quality of such group audits may differ depending on whether the Lead auditor accepts or declines responsibility for work done by Other auditors. The PCAOB also has been concerned with the venue through which Lead auditors and Other auditors disclose their participation in group audits, including disclosure of whether Lead auditors accept or decline responsibility. To investigate these issues, we employ a sample consisting entirely of group audit engagements. We identify Lead auditors taking responsibility from PCAOB Form 2, filed by Other auditors of U.S. registrants for fiscal years 2009 to 2017. We identify Lead auditors not accepting responsibility from audit report disclosures during the same period. The results suggest that Lead auditors accepting responsibility charge higher audit fees but provide audits of no higher quality, and possibly of even lower quality. These results are robust to various additional analyses. Our research contributes to the ongoing debate over how the participation of Other auditors affects audit quality. |
| |
| Keywords: | Group audits Lead auditor Audit fee Audit quality Other auditor Divided responsibility |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
