What Determines Audit Independence and Expertise in Russia? Firm-Level Evidence

Ichiro Iwasaki and 一郎 岩﨑

No 27_v2, RRC Working Paper Series from Russian Research Center, Institute of Economic Research, Hitotsubashi University

Abstract: Using a unique dataset of joint-stock companies, we explore the corporate audit system in transition Russia. In comparison with companies in Western and Asian Pacific states, Russian firms have a weaker audit system in terms of the independence and expertise of the audit committee and the external auditor. Board composition, foreign investment, and affiliation with a business group are highly important factors determining audit committee composition and audit firm choice as well as a combination of the two auditing bodies. However, each of these factors has a clearly distinct impact. Moreover, empirical evidence suggests that government ownership, company size, fund procurement activities, and overseas advancement significantly affect audit independence and expertise in Russia.

Keywords: audit independence and expertise; board composition; business integration; foreign investment; Russia (search for similar items in EconPapers)
Pages: 33 pages
Date: 2013-02
Note: This version: Feb, 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:rrcwps:27_v2

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