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The Influence Of Nonpublic Audit Concentration On Public Client Audit Outcomes, Emily Hunt
The Influence Of Nonpublic Audit Concentration On Public Client Audit Outcomes, Emily Hunt
Graduate Theses and Dissertations
Nonpublic clients make up a substantial portion of audit firm client portfolios and the demands they place on the audit firm differ from those of public clients. As such, I investigate the influence of nonpublic audit concentration (NPAC) on the quality, timeliness, and cost effectiveness of public client audits. I find that NPAC is unrelated to audit quality and negatively related to the likelihood of late filing financial statements and audit fees for public clients. My study contributes to audit literature that investigates the effect of audit firm portfolio characteristics on audit outcomes by 1) providing a new measure that …
Implications Of Audit Office Resource Allocation Shocks: Evidence From Late 10-K Filings, Stuart Dearden
Implications Of Audit Office Resource Allocation Shocks: Evidence From Late 10-K Filings, Stuart Dearden
Graduate Theses and Dissertations
Prior literature examines consequences (e.g., negative market reactions, higher subsequent audit fees, and debt covenant violations) audit clients face arising from missed regulatory due dates. These clients likely pressure the auditor to provide additional resources to perform the audit. This paper examines whether an audit office resource allocation shock stemming from late-filing clients is associated with the audit quality of the other timely-filing clients in that audit office. I find that timely-filing clients are more likely to subsequently restate their financial statements when there are late-filing clients in the same audit office. Using audit fees as a proxy for auditor …
Does Industry-Level Information Affect Auditors’ Assessment Of Client-Level Risk?, David Rosser
Does Industry-Level Information Affect Auditors’ Assessment Of Client-Level Risk?, David Rosser
Graduate Theses and Dissertations
This study investigates auditors’ consideration of industry-level information in their assessment of client-level risk. Auditing standards suggest that industry-level information is likely to be important in the assessment of client-level risk, but the standards provide few specifics about how auditors should use industry-level information in the risk assessment process. I argue that industry norms serve as a benchmark for evaluating the risk of the client and that deviations from industry norms could indicate increased audit risk. I create measures that capture the extent to which clients deviate from industry norms using proxies for client-level risk factors. In my primary tests, …