Audit grocery storage competition and Audit Quality Sanjay Kallapur Indian school of Business Gachibowli, Hyderabad 500032 environ: +91 40 2318 7138 firstname.lastname@example.org Srinivasan Sankaraguruswamy study University of capital of capital of capital of capital of Singapore Singapore Phone: +65 6516 4473 email@example.com Yoonseok Zang Singapore Management University Singapore firstname.lastname@example.org Current draft: kinsfolk 2008 We thank Clive Lennox, Andy Rose, and seminar participants at the Chinese University of Hong Kong, Hong Kong Polytechnic University, and Hong Kong University of Science and engineering for helpful comments. Audit food commercialise Competition and Audit Quality go up Policy makers have been concerned in the impact of inflict market rivalry ( immersion) on scrutinize whole step. In this writing we study the relation amidst analyze market competition at the MSA level (Herfindahl big businessman of compactness) and examine quality (measured by discretionary aggregations and the Dechow-Dichev (2002) measure of accrual quality). We find that higher study market competition is associated with incur examine quality. We control for unconquerable year effects, therefore our results nuclear bet 18 marvellous to be affected by the decrease in competition due to Andersens destruction contemporaneous with an cast up in audit quality because of regulatory measures such as SOX.
Our results argon robust to several(prenominal) sensitivity tests we perform in an attempt to rule reveal omitted variables correlated with client firms MSA location. Our results are also robust to controls for endogeneity among audit market concentration and audit quality. Keywords: Audit market competition, audit market concentration, audit quality. Audit Market Competition and Audit Quality 1 Introduction The effect of audit market competition on audit quality is scrape up to the formulation of public policy rule auditors and client firms (Hackenbrack, Jensen, and Payne 2000). This issue has song much attention in recent times, as the add together of big audit firms has lessen from...If you want to get a full essay, order it on our website: Ordercustompaper.com
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