New clients, audit quality, and audit partner industry expertise: Evidence from Taiwan

機構典藏 > College of Business and Management > Graduate Institute & Department of Accounting > Journal Article > Item 987654321/112889

Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/112889

Title:	New clients, audit quality, and audit partner industry expertise: Evidence from Taiwan
Authors:	Liu, L. L.;X. Xie;Y. S. Chang;D. A. Forgione
Keywords:	Audit quality;auditor industry expertise;auditor tenure;new client acceptance decision
Date:	2017-06-30
Issue Date:	2018-03-08 12:10:16 (UTC+8)
Abstract:	New client acceptance decisions are critical for auditors. Audit quality can be negatively affected by limited knowledge of the new client's operations and finances. This may be mitigated for auditors with industry specialization. We examine whether new clientele negatively affect audit quality at the individual level and how the association with audit quality varies across auditors with different levels of industry specialization. Our study fills a gap in the literature by directly addressing the effects of new clients on audit quality for specialist and non-specialist auditors, as well as portfolio-concentration experts, and sheds light on the nature of risks associated with new client acceptance decisions. We find both industry specialists and portfolio-concentration experts can maintain their audit quality when accepting new clients, while there is a decline in quality for auditors who are neither industry specialists nor portfolio-concentration experts.
Relation:	International Journal Auditing 21(3),P.288-303
DOI:	10.1111/ijau.12095
Appears in Collections:	[Graduate Institute & Department of Accounting] Journal Article

Files in This Item:

File	Description	Size	Format
index.html		0Kb	HTML	163	View/Open
New clients audit quality and audit partner industry expertise Evidence from Taiwan..pdf		343Kb	Adobe PDF	3	View/Open