Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086964 | Journal of Accounting and Economics | 2009 | 23 Pages |
Abstract
Prior studies suggest that auditors with short tenure are associated with lower earnings quality because of the lack of client-specific knowledge and/or low balling. In this study, we examine whether industry specialization of auditors and low balling affect the association between auditor tenure and earnings quality. We find that the association between shorter auditor tenure and lower earnings quality is weaker for firms audited by industry specialists compared to non-specialists. In addition, we do not find results consistent with the low balling explanation.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Ferdinand A. Gul, Simon Yu Kit Fung, Bikki Jaggi,