Department of Economics and Business Economics

From joint to single audits: – audit quality differences and auditor pairings

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From joint to single audits : – audit quality differences and auditor pairings. / Holm, Claus; Thinggaard, Frank.

In: Accounting and Business Research, Vol. 48, No. 3, 2018, p. 321-344.

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Holm, Claus ; Thinggaard, Frank. / From joint to single audits : – audit quality differences and auditor pairings. In: Accounting and Business Research. 2018 ; Vol. 48, No. 3. pp. 321-344.

Bibtex

@article{d7e5140966fa4122afc4d8ca7ea2f578,
title = "From joint to single audits: – audit quality differences and auditor pairings",
abstract = "This study analyses audit quality differences between audits by a single big audit firm and joint audits with either one or two big audit firms. We exploit the unique situation in Denmark beginning on 1 January 2005, at which time a long-standing mandatory joint audit system for listed companies was replaced by a voluntary joint audit system. First, we report the results of a survey of Danish CFOs’ views on and their experiences with the choice of single or joint audits and their perceptions of audit quality. Second, based on data from themandatory joint audit abolition year and the following two years, we test the audit quality differences using abnormal accruals. Most CFOs perceive that audit quality by a single big four audit firm is the same as it is in joint audits with either one or two big four audit firms. The results of our empirical analysis are in line with the perceptions. We find no evidence of audit quality differences between audits made by a single big four firm and those conducted by either of the two combinations of joint audits.",
keywords = "joint audits, audit pairings, audit quality, auditor choice",
author = "Claus Holm and Frank Thinggaard",
year = "2018",
doi = "10.1080/00014788.2017.1381910",
language = "English",
volume = "48",
pages = "321--344",
journal = "Accounting and Business Research",
issn = "0001-4788",
publisher = "Routledge",
number = "3",

}

RIS

TY - JOUR

T1 - From joint to single audits

T2 - – audit quality differences and auditor pairings

AU - Holm, Claus

AU - Thinggaard, Frank

PY - 2018

Y1 - 2018

N2 - This study analyses audit quality differences between audits by a single big audit firm and joint audits with either one or two big audit firms. We exploit the unique situation in Denmark beginning on 1 January 2005, at which time a long-standing mandatory joint audit system for listed companies was replaced by a voluntary joint audit system. First, we report the results of a survey of Danish CFOs’ views on and their experiences with the choice of single or joint audits and their perceptions of audit quality. Second, based on data from themandatory joint audit abolition year and the following two years, we test the audit quality differences using abnormal accruals. Most CFOs perceive that audit quality by a single big four audit firm is the same as it is in joint audits with either one or two big four audit firms. The results of our empirical analysis are in line with the perceptions. We find no evidence of audit quality differences between audits made by a single big four firm and those conducted by either of the two combinations of joint audits.

AB - This study analyses audit quality differences between audits by a single big audit firm and joint audits with either one or two big audit firms. We exploit the unique situation in Denmark beginning on 1 January 2005, at which time a long-standing mandatory joint audit system for listed companies was replaced by a voluntary joint audit system. First, we report the results of a survey of Danish CFOs’ views on and their experiences with the choice of single or joint audits and their perceptions of audit quality. Second, based on data from themandatory joint audit abolition year and the following two years, we test the audit quality differences using abnormal accruals. Most CFOs perceive that audit quality by a single big four audit firm is the same as it is in joint audits with either one or two big four audit firms. The results of our empirical analysis are in line with the perceptions. We find no evidence of audit quality differences between audits made by a single big four firm and those conducted by either of the two combinations of joint audits.

KW - joint audits

KW - audit pairings

KW - audit quality

KW - auditor choice

U2 - 10.1080/00014788.2017.1381910

DO - 10.1080/00014788.2017.1381910

M3 - Journal article

VL - 48

SP - 321

EP - 344

JO - Accounting and Business Research

JF - Accounting and Business Research

SN - 0001-4788

IS - 3

ER -