Publication: A longitudinal study of audit quality differences among independent auditors
Loading...
Date
2019
Authors
Manh Dung Tran
Khairil Faizal Khairi
Nur Hidayah Laili
Journal Title
Journal ISSN
Volume Title
Publisher
Emerald publishing
Abstract
Purpose
The purpose of this paper is to investigate the differences of audit quality of financial statements among auditors, including Big 4 and non-Big 4 auditors.
Design/methodology/approach
By employing cross-sectional analysis of compliance (a proxy of audit quality) of goodwill impairment testing of listed firms in the context of Hong Kong, the variation of audit quality of financial statements of auditees has been shown.
Findings
Audit quality of Big 4 auditors is viewed to be higher than that of non-Big 4 audit firms and the homogeneity of audit quality among Big 4 auditors is not long accepted, but variation.
Practical implications
Even though unqualified opinions have been given on the auditors’ reports, the quality of financial statements audit is a skeptical issue because of the high level of non-compliance of goodwill impairment testing under International Financial Reporting Standards.
Originality/value
This study does emphasize the higher audit quality of financial statements of Big 4 auditors than that of non-Big 4 auditors and stresses the variation of audit quality among Big 4 auditors.
Keywords: Hong Kong, Goodwill, Audit quality, HKAS 36
Description
Journal of Economics and Development
Vol. 21 No. 2, 2019 pp. 234-246
Emerald Publishing Limited
e-ISSN: 2632-5330 p-ISSN: 1859-0020
DOI 10.1108/JED-10-2019-0040
Keywords
Hong Kong,, Goodwill,, Audit quality,, HKAS 36
Citation
Tran, M.D., Khairi, K.F. and Laili, N.H. (2019), "A longitudinal study of audit quality differences among independent auditors", Journal of Economics and Development, Vol. 21 No. 2, pp. 234-246. https://doi.org/10.1108/JED-10-2019-0040