Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2139740
Does signing auditors’ communist party membership shape audit quality? Evidence from China
Fei Hou
Wenshuo Song
Lanlan Sun
Hao Xiong
Sažetak
In this article, we investigate the effect of signing auditors’ communist
party membership on audit quality. Relying on a sample of
Chinese listed firms from the period 2001 to 2019, we find that firms
with signing auditors who have communist party membership conduct
less earnings management, indicating that signing auditors with
party membership provide high level of audit quality. Moreover, the
above relationship is more pronounced in small audit firms. We also
find that firms who are audited by signing auditors with party status
have lower likelihood of financial statements and loss avoidance.
Further analyses suggest that signing auditors with party status can
earn audit fee premium. The positive relationship between signing
auditors with party membership and audit quality is more pronounced
in non-specialists auditors and high client importance.
Ključne riječi
Signing auditors; communist party membership; large auditors; audit quality
Hrčak ID:
306706
URI
Datum izdavanja:
30.4.2023.
Posjeta: 278 *