中国内资会计师事务所合并效果研究——基于国际“四大”审计收费溢价的分析

近年来,我国注册会计师行业管理部门颁布了一系列政策法规,大力鼓励内资事务所进行合并以实现行业做大做强的目的。本文比较分析了2002-2008年内资事务所和"四大"审计收费情况,发现经历第一轮合并浪潮后审计收费溢价仍在不断增加。针对这一现象,我们深入挖掘了其内在原因,总结了经验教训,并结合相关部门2009年以来一系列最新措施,对已经拉开帷幕的新一轮的内资事务所合并提出了对策建议。     

Sustainability assurance provider participation in standard setting

This paper examines the participation of accounting firms in the development of sustainability standards by the Securities and Exchange Commission (SEC) and the Sustainability Accounting Standards Board (SASB). This study shows that the Big Four accounting firms have an active role in both the submission of comment letters on sustainability to the SEC and participation in the industry working groups (IWG) for the SASB. The SASB participation reveals that individuals located within the US and at international affiliates are participating at earlier career stages. In addition, this paper leverages LinkedIn data, identifying the career path of the individuals subsequent to their participation with the IWG, to determine how large accounting firms are retaining the skills and knowledge necessary for this field. Since the Big Four firms are market leaders in sustainability assurance, the finding that Big Four firms can retain individuals with financial assurance backgrounds differently than individuals with other backgrounds speaks to the unique skill set that financial assurance develops. This suggests that the career opportunities for interested financial assurance individuals within the sustainability sphere remain robust within the Big Four environment.     

The interaction between national and organizational cultures in accounting firms

This paper reports the results of an empirical study of the interaction between national and organizational cultures at the firm level. Using Hofstede's Value Survey Module, the concept of culture was operationalized in six accounting firms in The Netherlands. Three of these firms were local offices of international “Big Eight” accounting firms with a strong U.S.-orientation in their organizational philosophies and policies, whereas the other three firms were Dutch in origin and organization. All six firms work virtually entirely with Dutch employees. We were specifically interested in any influences of the U.S. culture upon the Big Eight firms. For two Hofstede's four cultural dimensions, i.e. Uncertainty Avoidance and Masculinity, significant effects of the U.S. culture upon the organizational cultures of the Big Eight firms were found. Further analysis showed that these results may rather be due to (self-)selection than to socialization mechanisms.     

AUDITOR CONCENTRATION AND MARKET SHARES IN THE US: 1988–1999 A DESCRIPTIVE NOTE

This paper examines from a historical perspective the effects of the Big Eight and Big Six accounting firm mergers on concentration measures and market share percentages of major accounting firms in the US large company audit market. Concentration ratios and Herfindahl indices reflect an increasingly concentrated audit market, though individual firms differ in their success at capturing market shares in the three exchanges examined, as well as in their ability to capture newly listed companies or companies switching auditors over the 1988 to 1999 period.     

Mutual supervision or conspiracy? The incentive effect of multiple large shareholders on audit quality requirements

Multiple large shareholders may choose to mutual supervise or conspire, thereby affecting the firm's strategy and transactional operations. This paper examines the impact of firms with multiple large shareholders on demand for high-quality audits. Compared with firms with a single large shareholder, firms with multiple large shareholders increase audit cost and increase the probability of hiring a Big Four accounting firm. After a series of robustness checks, this result holds. Furthermore, we find that the shareholding ratio of the largest shareholder tends to increase audit cost and increase the probability of hiring the Big Four. The absolute controlling and non-controlling shareholders tend to increase audit cost and increase the probability of hiring the Big Four. The state-owned firms and large firms with multiple large shareholders tend to increase audit cost and increase the probability of hiring the Big Four. This paper helps to enrich the research on external audit supervision and moral hazard research from the perspective of ownership structure.     

Auditor Independence: A Nonparametric Test of Differences Across the Big‐5 Public Accounting Firms

This small sample study provides additional evidence on the unsettled question of auditor independence: Does the provision of non‐audit services by an auditor compromise independence resulting in a poor quality audit? We also examine whether these findings vary across the “Big‐5” public accounting firms. Most prior studies addressing this question, using parametric approaches and various measures of audit quality, have reported conflicting results. Contrary to these studies, we use a non‐parametric approach and the probability of GAAP violation as a new measure of audit quality to address this question. Using data from a sample of Fortune 500 companies for the year 2000, we find that firms whose auditors provide substantial non‐audit services tend to have a higher propensity to violate GAAP. At the firm‐level analysis, we find that these results are more likely driven by few of the Big‐5 public accounting firms. For the remaining firms, the association between non‐audit services and quality of audit could not be established, primarily because of small sample size and lack of power in the test. Our main finding is consistent with other recent studies that provide evidence that the rendering of significant non‐audit services by auditors creates conflict of interest resulting in poor quality audits. Furthermore, our result of differences in these levels of association among the Big‐5 accounting firms represents a new finding, and suggests that there is a need for controlling them separately in research studies examining auditor independence.     

The Value of Management Letters to Unlisted Companies

This paper reports the results of research on the value of management letters to unlisted companies. The aims of the research were: (1) to identify the issues raised in management letters; (2) to assess the value of management letters to unlisted companies; and (3) to assess the value of management letters to auditors. Within these aims we investigated whether the size of the audit firm (Big 5, Top 20, or other) or the length of audit tenure had any effect on the contents of management letters or their value to unlisted companies. We conclude that the issues most frequently raised in management letters related to internal control and accounting systems but that other issues, such as taxation and general business advice, are often included. There was little difference in the contents of management letters issued by Big 5 audit firms and other firms. Unlisted companies generally considered that the advice given in management letters was valuable. Again, there was little difference between clients of Big 5 audit firms and other firms. Similarly, the length of audit tenure had no statistically significant effect. Finally, auditors considered that the most important benefit of the management letter to themselves was its potential for enhancing clients’ perceptions of the auditor. The potential for reducing costs was relatively unimportant. These results were similar both for Top 20 and non-Top 20 audit firms.     

Determinants and consequences of voluntary switches to Chinese auditors in Hong Kong

Hong Kong market regulators have permitted 12 large Chinese accounting firms to audit the financial statements of Chinese firms that cross list in Hong Kong (i.e., H-share firms) since 2010. This paper examines the characteristics of H-share firms that voluntarily replaced their Hong Kong (HK) auditors with Chinese auditors, and the market reaction to auditor switches following this policy. We find that 38 out of 147 H-share firms voluntarily switched to Chinese auditors during 2011–2013. Switching firms are larger in size and are less likely to use Big4; they also have less need for external financing, a longer cross listing history, and a lower percentage of foreign revenue. We also find that investors negatively react to the auditor switches from HK non-Big4 to China non-Big4, but do not react to the auditor switches from HK Big4 to China Big4. This suggests that investors perceived lower audit quality for China non-Big4.     

Does the market dole out collective punishment? An empirical analysis of industry,geography, and Arthur Andersen’s reputation

Arthur Andersen’s reputation was tarnished following news that its Houston office had shredded documents related to the auditing of energy giant Enron. Earlier studies documented widespread spillover of the reputation effect, suggesting a strong commonality in Big 5 audit practices. We examine whether the market is more discriminating in its assessments. We focus on the roles industry specialization of auditors and the geography of clients’ audit offices play in accounting for the contagion. Our results are supportive of investors who differentiate audit practices by industry and who account for the location of the specific office where the audit work is done. We find that losses suffered by energy firms or firms located close to Houston are equivalent to approximately 90% of the aggregate abnormal losses suffered by Big 5 clients. Our evidence suggests the possibility of more localized impact of accounting scandals and supports accounting regulations targeted at individual industries.     

An analysis of Key Issues arising from Professor A. J. Briloff’s Paper entitled, “Garbage In/Garbage Out: A Critique of Fraudulent Financial Reporting: 1987–1997 (The COSO Report, 1999) The SEC Accounting Regulatory Process (AAERs)"

This paper examines the COSO Report (1999) in light of concerns raised by Professor Briloff in his critique (Briloff, 2001). I identify a number of limitations of using AAERs in research including the possibility that these releases reflect prevailing SEC agendas and therefore may not be representative of the population of financial statement frauds. I also question the sampling process used in the COSO Report which does not appear to capture many of the “high-profile" frauds of recent years. I evaluate three possible explanations for why Big 5 CPA firms are under-represented in the fraud sample used in that report: differences in audit quality; self-selection by the large audit firms away from risky firms; and the considerable financial resources of Big 5 firms discouraging the SEC from prosecuting them in all but the most blatant audit abuses for inadequacies. Following on from Professor Briloff’s remarks and earlier research, I also explore the broader issue of auditor independence.     

Incorporating big data in audits: Identifying inhibitors and a research agenda to address those inhibitors

With corporate investment in Big Data of $34 billion in 2013 growing to $232 billion through 2016 (Gartner 2012), the Big 4 accounting firms are aiming to be at the forefront of Big Data implementations. Notably, they see Big Data as an increasingly essential part of their assurance practice. We argue that while there is a place for Big Data in auditing, its application to auditing is less clear than it is in the other fields, such as marketing and medical research. The objectives of this paper are to: (1) provide a discussion of both the inhibitors of incorporating Big Data into financial statement audits; and (3) present a research agenda to identify approaches to ameliorate those inhibitors.     

Has the new world order taught the big four to manage client portfolio risk? Examining extreme loss occurrences before and after Sarbanes Oxley

This paper analyzes ongoing efforts by the large public accounting firms to manage their legal liability. For this purpose, the paper focuses on extreme financial losses from the audits of U.S. publicly traded clients incurred by Big Four firms. The possibility that this form of legal liability has changed as a result of the new world order brought to the accounting profession by the Sarbanes-Oxley Act of 2002 (SOX) is the paper's main premise. This paper finds a major decline in the severity of these cases. However, the results show that firms have not necessarily improved the management of this risk. The drivers of extreme legal liability continue to be client continuance decisions and larger clients.     

Changing gender domination in a Big Four accounting firm: Flexibility, performance and client service in practice

Traditionally, accounting has been described as a gendered profession. Recently, accounting firms, and especially the Big Four, have made very public commitments to promote greater gender equality. Yet they struggle to retain women, especially at more senior levels. Drawing on a recent empirical field study of managers in one of the Big Four accounting firms (pseudonym Sky Accounting), we explore the effects of a flexible work initiative that was developed with the aim of creating “the best professional workplace for women”. The paper addresses the flexibility program as a key organizational practice that was specifically designed to enhance the progression and retention of talented women at senior levels. We show how the initiative that was designed to challenge the status quo was, in practice, translated into a mechanism that actually reinforced gender barriers. In order to theorize our findings, we draw on contemporary theoretical approaches to gender from both accounting and organization theory and suggest several critical reflections on the dynamics of bringing about change in relation to gender inequality.     

Job offers of multi-national accounting firms: the effects of emotional intelligence,extra-curricular activities,and academic performance

This study investigates the effects of academic performance, extracurricular activities (ECA) and emotional intelligence (EI) of potential accounting-major graduates on the outcomes of their respective interviewing activities and the number of final job offers given by the multinational Big 5 public accounting firms. The following outcomes are identified: (a) the number of initial job interviews is affected by both a graduate's academic performance and level of participation in ECA; (b) the number of subsequent job interviews is affected by both the number of initial job interviews as well as the level of a graduate's EI; (c) the number of final job offers is affected by the graduate's level of EI and both the number of initial and subsequent job interviews. The results indicate the relevance of EI in the job search process and will also be useful for accounting educators to plan their curricula more effectively to enhance the job placement of their graduates with the Big 5 firms.     

我国审计市场制度安排与审计质量需求——中天勤客户流向的案例分析

本文分析了中天勤会计师事务所原来的63家客户的走向。作者的主要发现是:上市公司在选择会计师事务所时,对地域因素考虑较多,同时,经办的注册会计师与上市公司选择同一家事务所的比例相对比较高。这些现象都与高质量审计市场的特征存在一定的差异。此外,作者还发现国际五大在承接原中天勤客户的行为上,存在一些值得关注的现象。     

Where Do Clients Go when an Accounting Firm Goes Bankrupt?: The Case of Laventhol & Horwath

A chronicle is provided of some of the significant events in the life and death of the seventh-largest accounting firm in the United States, Laventhol & Horwath (L&H). In examining the success of individual firms in acquiring L&H's large audit clients, we ascertain whether Big Six firms were the beneficiaries of L&H's demise. A by-product of this examination is that public accounting firms should be wary of growth, per se . Specifically, more attention to their client selection standards is needed.     

Disability and accounting firms: Evidence from the UK

An accumulation of interpretative studies in a range of international contexts has considered gender, race and social class in accounting employment. However, no work has considered accounting firms’ attitudes towards employing disabled people. This omission is surprising given the passing of successive disability rights legislation in the United States since 1918 and the United Kingdom (UK) since 1944 and consequent changes in public expectations regarding equal employment opportunities for disabled people. This paper examines the UK accounting profession's response to changes in disability legislation. Using a survey administered to UK firms and an analysis of the Big Four firms’ 2003 UK annual reviews, we report that firms’ have a minimal understanding of disability, that disability is not a significant component of firms’ personnel policies, that firms lag behind other organizations in their attitudes to disability, and images of disability are wholly absent from firms’ annual reviews. We discuss these findings in the context of prior accounting research which considers gender, race and social class, which is used to develop a research agenda.     

Informal mentoring relationships and the career processes of public accountants

Research has shown that informal mentoring relationships benefit the protégé, mentor and employing organisation. As such they have been of interest to public accounting firms. The functioning of these relationships in Big Eight/Big Five accounting firms has been investigated in the USA and more recently in Ireland. The career outcome of most interest has been turnover intentions. This paper reports the results of a questionnaire study of mentoring relationships in the Australian state of Queensland. The receipt of mentoring support by accountants is found to be associated with not only lower turnover intentions, but also higher job satisfaction, and lower intentions of female accountants to seek part-time employment. The impact of the organisational context in which these relationships are initiated and cultivated is also investigated. The size of the accounting firm and the national culture of the country in which the firm operates, appear to have some bearing on mentoring experiences.     

Issues concerning the employment and employability of disabled people in UK accounting firms: An analysis of the views of human resource managers as employment gatekeepers

In this paper we consider attitudes of human resource managers towards the employment and employability of disabled people in United Kingdom (UK) accounting firms. Only one study [Duff, A., Ferguson, R.J., in press. Disability and accounting firms: Evidence from the UK. Critical Perspectives on Accounting] has considered the employment of disabled people in accounting firms, despite a growing number of studies considering gender, race and social class in accounting employment. This dearth of evidence is unexpected given the passing of disability rights legislation in the UK in 1995 and the United States of America in 1990. Our investigation utilizes nine semi-structured interviews with human resource managers (or their equivalent) in large and medium-sized UK accounting firms. Three participants are from the Big Four firms, which dominate the market for accounting and auditing services. Views were elicited regarding: (i) drivers of disability awareness, (ii) the role of partners, (iii) how firms view disability, (iv) impairments firms view as a problem, and (v) job applications. Participants’ responses indicate an awareness of existing legislation governing disability issues, in particular, the UK's Disability Discrimination Act, 1995. However, there is evidence that accounting firms restrict their understanding of disability to legal definitions. The study identifies specific impairments which firms see as impediments to employment and critically assesses firms’ perceptions of the employability of disabled people.