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Tax Aggressiveness And Auditor Resignation, Yoonseok Zang, Beng Wee Goh, Chee Yeow Lim, Terry Shevlin
Tax Aggressiveness And Auditor Resignation, Yoonseok Zang, Beng Wee Goh, Chee Yeow Lim, Terry Shevlin
Research Collection School Of Accountancy
We examine the relation between client tax aggressiveness and auditor‟s resignation decision. Consistent with the agency view of tax avoidance which suggests that client tax aggressiveness can increase litigation and reputational risk to auditors and increase the potential conflict with managers, we find a positive association between our proxies for tax aggressiveness and the likelihood that an auditor resigns from an audit engagement. Further, this association is stronger when external monitoring of the client firm is less effective, when there is greater potential for agency problems in the client firm, and when the economic importance of the fees received from …
Tax Aggressiveness And Auditor Resignation, Yoonseok Zang, Beng Wee Goh, Chee Yeow Lim, Terry Shevlin
Tax Aggressiveness And Auditor Resignation, Yoonseok Zang, Beng Wee Goh, Chee Yeow Lim, Terry Shevlin
Research Collection School Of Accountancy
We examine the relation between client tax aggressiveness and auditor‟s resignation decision. Consistent with the agency view of tax avoidance which suggests that client tax aggressiveness can increase litigation and reputational risk to auditors and increase the potential conflict with managers, we find a positive association between our proxies for tax aggressiveness and the likelihood that an auditor resigns from an audit engagement. Further, this association is stronger when external monitoring of the client firm is less effective, when there is greater potential for agency problems in the client firm, and when the economic importance of the fees received from …