 Does the PCAOB international inspection program improve audit quality for non-US-listed foreign clients?Simon Yu Kit Fung (), K.K. Raman and Zhu, Xindong (Kevin) Journal of Accounting and Economics, 2017, vol. 64, issue 1, 15-36 Abstract: We examine whether the Public Company Accounting Oversight Board (PCAOB) international inspection program improves audit quality for a sample of non-US-listed foreign public client companies from 55 countries audited by foreign (i.e., non-US) auditors. For a sample of non-US-listed clients of PCAOB-registered foreign auditors, we find that initial PCAOB inspections improve audit quality, over and above the threat of such inspections, for foreign auditors’ non-US-listed foreign clients. Our findings document the benefits of PCAOB international inspections for foreign investors in non-US-listed foreign companies which could increase the acceptability of the PCAOB international inspection program abroad. Keywords: PCAOB international inspection program; Foreign auditors; Non-US-listed foreign public companies; Audit quality; Positive externality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:64:y:2017:i:1:p:15-36 DOI: 10.1016/j.jacceco.2017.04.002 Access Statistics for this article Journal of Accounting and Economics is currently edited by J. L. Zimmerman, S. P. Kothari, T. Z. Lys and R. L. Watts More articles in Journal of Accounting and Economics from Elsevier |
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