Does the PCAOB international inspection program improve audit quality for non-US-listed foreign clients?
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 15-36 |
| Journal / Publication | Journal of Accounting and Economics |
| Volume | 64 |
| Issue number | 1 |
| Online published | 25 Apr 2017 |
| Publication status | Published - Aug 2017 |
Link(s)
Abstract
We examine whether the Public Company Accounting Oversight Board (PCAOB) international inspection program improves audit quality for a sample of non-US-listed foreign public client companies from 55 countries audited by foreign (i.e., non-US) auditors. For a sample of non-US-listed clients of PCAOB-registered foreign auditors, we find that initial PCAOB inspections improve audit quality, over and above the threat of such inspections, for foreign auditors’ non-US-listed foreign clients. Our findings document the benefits of PCAOB international inspections for foreign investors in non-US-listed foreign companies which could increase the acceptability of the PCAOB international inspection program abroad.
Research Area(s)
- Audit quality, Foreign auditors, Non-US-listed foreign public companies, PCAOB international inspection program, Positive externality
Citation Format(s)
Does the PCAOB international inspection program improve audit quality for non-US-listed foreign clients? / Fung, Simon Yu Kit; Raman, K.K.; Zhu, Xindong (Kevin).
In: Journal of Accounting and Economics, Vol. 64, No. 1, 08.2017, p. 15-36.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
