We provide evidence that the financing decisions of companies that are audited by a Big Six auditor are less affected by information asymmetry. Specifically, these companies enjoy greater financial flexibility and depend less on favorable market conditions for their equity issuance decisions than those not audited by a Big Six firm. As a consequence, their debt ratios are less affected either b...

This paper reviews literatures related to auditor independence and audit quality. The review is structured based on the four main threats to auditor independence, namely client importance, nonaudit services, auditor tenure, and client’s affiliation with CPA firms. For each of the threats, we discuss findings related to the incentives, perception, and behavior of the auditor and the client, the ...

Although the published literature on auditor independence is extensive, an accepted comprehensive theory, framework or model of auditor independence risk does not exist. This paper develops a formal model of auditor independence risk that may be used to begin a more rigorous investigation of auditor independence and various factors that are thought to affect this risk. The sensitivity of the mo...

Under mandatory rotation, the switching cost may be most influential factor to considered for experienced audit rotations. This study attempts explore impacts of rotation mechanism on company information disclosure and signaling strategies by examining partner firm activities company. Are companies that experience more likely engage industry specialist auditors with better industry-specific kno...

Auditor appointment can be regarded as a matter of pursued audit quality and is driven by several factors. The adoption of an effective auditor procurement process increases the likelihood that a company will engage the right auditor at a fair price. In this study, three techniques derived from artifi cial intelligence (AI) are used to propose models capable of discriminating between cases wher...

We present Data Auditor, a tool for exploring data quality and data semantics. Given a rule or an integrity constraint and a target relation, Data Auditor computes pattern tableaux, which concisely summarize subsets of the relation that (mostly) satisfy or (mostly) fail the constraint. This paper describes 1) the architecture and user interface of Data Auditor, 2) the supported constraints for ...