Does the Identity of Engagement Auditor s Affect Audit Clients’ Real Activities Manipulation? Evidence fr om China

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (without host publication)peer-review

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Author(s)

  • Yi SI
  • B L QI
  • G L TIAN
  • M G H WU

Related Research Unit(s)

Detail(s)

Original languageEnglish
Publication statusPublished - 2 Aug 2014

Conference

Title2014 American Accounting Association Annual Meeting
PlaceUnited States
CityAtlanta
Period2 - 6 August 2014

Abstract

In this study, we explor e whether and how the identify of engagement auditor s affects audit clients’ r eal activities manipulation (RAM) . Based on a hand­ collected dataset between year s 1999 and 2012 fr om China in which auditor identity and other demogr aphic information ar e r equir ed to be publicly disclosed, we compute abnormal cash flows, abnormal pr oduction costs, and abnormal expenditur es to pr oxy for RAM. We find that significant var iations exist in RAM and individual auditor s have economically significant influences over RAM. Mor e specifically, size of audit firms, length of auditor tenur es, and style of auditor s (which can be par tly explained by auditor s’ demogr aphics such as age, gender , education backgr ound, political affiliation, and auditing exper ience) do affect RAM differ ently. Our findings contr ibute to the gr owing liter atur e on the impor tance of auditor identity disclosur e affecting audit quality.

Citation Format(s)

Does the Identity of Engagement Auditor s Affect Audit Clients’ Real Activities Manipulation? Evidence fr om China. / SI, Yi; QI, B L; TIAN, G L et al.
2014. Paper presented at 2014 American Accounting Association Annual Meeting, Atlanta, Georgia, United States.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (without host publication)peer-review