Engagement partners participating in auditing standard setting and audit quality

TsingZai C. Wu, Hua-Wei Huang, Chun-Chan Yu and Ching-Hui Wu

Asia-Pacific Journal of Accounting & Economics, 2020, vol. 27, issue 5, 591-611

Abstract: In this study, we investigate whether engagement partners who participate in the national auditing standard setting can provide better audit quality, and explore the underlying cause in the context of Taiwan, where the name of engagement partners can be identified in audit reports. The empirical results indicate that firms audited by incumbent Auditing Standards Committee (ASC) member auditors are associated with lower discretionary accruals and a lower probability of having small profits. The results support the view that concerns about the impairments of increased reputational capital may be the most likely cause that explains the ASC member auditors’ better audit quality. This study also provides the benefits that can arise from the identification of engagement partners.

Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2017.1404922 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:raaexx:v:27:y:2020:i:5:p:591-611

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2017.1404922

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().