Please use this identifier to cite or link to this item: http://hdl.handle.net/1959.14/85528
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- Title
- Factors associated with the choice of a quality auditor when audit tendering is compulsory
- Related
- Accounting Association of Australia and New Zealand Conference (1 - 3 July 2007 : Gold Coast, Qld.)
- Related
- 2007 AFAANZ conference : papers
- Related
- http://www.afaanz.org/openconf/afaanz/paper.php?p=209.doc
- Publisher
- Gold Coast, Qld : Accounting and Finance Association of Australia and New Zealand
- Date
- 2007
- FoR/RFCD Code(s)
-
150100 Accounting, Auditing and Accountability
- Author/Creator
- Boon, Kym
- Author/Creator
- McKinnon, Jill
- Author/Creator
- Ross, Philip
- Description
- This paper uses data from the Australian local government context to investigate the factors that are associated with the choice of a quality auditor when audit tendering is compulsory. Three auditor choice decisions are examined: (i) appointment of a Big N or non-Big N auditor, (ii) appointment of a specialist or non-specialist auditor, and (iii) appointment of a new auditor (rotation) or reappointment of the incumbent audit firm (retention). The study uses annual report and other publicly available data for 125 local councils in the Australian state of New South Wales (NSW) over the ten year period 1993-2003. Appointment decisions are examined for two successive tenders (in the fiscal years 1995 and 2001). As expected, the study finds size, political visibility, location and audit risk to be associated with appointment of a quality audit firm. Political visibility, location, growth, incumbent auditor and audit partner change are found to be associated with auditor rotation/retention decisions. Local councils in NSW used the compulsory audit tendering opportunity to increasingly align themselves with a specialist auditor. Councils that were more politically visible were also found to be more highly aligned with a specialist auditor. The results are not consistent with competitive tendering leading to choice of a lower quality auditor.
- Description
- 67 page(s)
- Subject Keyword
- 150100 Accounting, Auditing and Accountability
- Subject Keyword
- auditor choice
- Subject Keyword
- audit quality
- Subject Keyword
- Big N audit firm
- Subject Keyword
- specialist audit firm
- Subject Keyword
- local government (municipal) audit
- Resource Type
- conference paper
- Organisation
- Macquarie University. Dept. of Accounting and Finance
- Identifier
- http://hdl.handle.net/1959.14/85528
- Identifier
- mq-rm-2007002171
- Language
- eng
- Reviewed
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