The scale and scope of the client portfolio and audit quality at the individual auditor level: evidence from China

References

• Aobdia, D., Lin, C.J., and Petacchi, R., 2015. Capital market consequences of audit partner quality. The Accounting Review, 90 (6), 2143–2176.
   Web of Science ®Google Scholar
• Arruñada, B., 1999. The provision of non-audit services by auditors: let the market evolve and decide. International Review of Law and Economics, 19 (4), 513–531.
   Web of Science ®Google Scholar
• Asthana, S., 2017. Diversification by the audit offices in the US and its impact on audit quality. Review of Quantitative Finance and Accounting, 48 (4), 1003–1030.
   Google Scholar
• Berger, A.N., Hasan, I., and Zhou, M., 2010. The effects of focus versus diversification on bank performance: evidence from Chinese banks. Journal of Banking & Finance, 34 (7), 1417–1435.
   Web of Science ®Google Scholar
• Berger, P.G. and Ofek, E., 1995. Diversification’s effect on firm value. Journal of Financial Economics, 37 (1), 39–65.
   Web of Science ®Google Scholar
• Bills, K.L., Jeter, D.C., and Stein, S.E., 2015. Auditor industry specialization and evidence of cost efficiencies in homogenous industries. The Accounting Review, 90 (5), 1721–1754.
   Web of Science ®Google Scholar
• Bills, K.L., Cunningham, L.M., and Myers, L.A., 2016a. Small audit firm membership in associations, networks, and alliances: implications for audit quality and audit fees. The Accounting Review, 91 (3), 767–792.
   Web of Science ®Google Scholar
• Bills, K.L., Swanquist, Q.T., and Whited, R.L., 2016b. Growing pains: audit quality and office growth. Contemporary Accounting Research, 33 (1), 288–313.
   Web of Science ®Google Scholar
• Blokdijk, H., Drieenhuizen, F., Simunic, D.A., and Stein, M.T., 2006. An analysis of cross-sectional differences in big and non-big public accounting firms’ audit programs. Auditing: A Journal of Practice & Theory, 25 (1), 27–48.
   Web of Science ®Google Scholar
• Burke, J.J., Hoitash, R., and Hoitash, U., 2019. Audit partner identification and characteristics: evidence from US form AP filings. Auditing: A Journal of Practice & Theory, 38 (3), 71–94.
   Web of Science ®Google Scholar
• Cairney, T.D. and Stewart, E.G., 2015. Audit fees and client industry homogeneity. Auditing: A Journal of Practice & Theory, 34 (4), 33–57.
   Web of Science ®Google Scholar
• Carey, P. and Simnett, R., 2006. Audit partner tenure and audit quality. The Accounting Review, 81 (3), 653–676.
   Web of Science ®Google Scholar
• Carrera, M.N., Gutiérrez, I., and Carmona, S., 2003. Specialization and diversification in audit firms: a test of firm’s strategies in the Spanish audit market. Working paper, The University of Manchester, UK.
   Google Scholar
• Chen, C.Y., Lin, C.J., and Lin, Y.C., 2008. Audit partner tenure, audit firm tenure, and discretionary accruals: does long auditor tenure impair earnings quality? Contemporary Accounting Research, 25 (2), 415–445.
   Web of Science ®Google Scholar
• Chen, H., Chen, J.Z., Lobo, G.J., and Wang, Y., 2011. Effects of audit quality on earnings management and cost of equity capital: evidence from China. Contemporary Accounting Research, 28 (3), 892–925.
   Web of Science ®Google Scholar
• Chi, W. and Huang, H., 2005. Discretionary accruals, audit-firm tenure and audit-partner tenure: empirical evidence from Taiwan. Journal of Contemporary Accounting & Economics, 1 (1), 65–92.
   Google Scholar
• Chi, W., Huang, H., Liao, Y., and Xie, H., 2009. Mandatory audit partner rotation, audit quality, and market perception: evidence from Taiwan. Contemporary Accounting Research, 26 (2), 359–391.
   Web of Science ®Google Scholar
• Custodio, C., 2014. Mergers and acquisitions accounting and the diversification discount. The Journal of Finance, 69 (1), 219–240.
   Web of Science ®Google Scholar
• Dechow, P.M., Sloan, R.G., and Sweeney, A.P., 1995. Detecting earnings management. The Accounting Review, 70 (2), 193–225.
   Web of Science ®Google Scholar
• Ferris, S.P., Jagannathan, M., and Pritchard, A.C., 2003. Too busy to mind the business? Monitoring by directors with multiple board appointments. The Journal of Finance, 58 (3), 1087–1111.
   Web of Science ®Google Scholar
• Franco, F., Urcan, O., and Vasvari, F.P., 2010. The value of corporate diversification: a debt market perspective. Working paper.
   Google Scholar
• Goetz, M.R., Laeven, L., and Levine, R., 2013. Identifying the valuation effects and agency costs of corporate diversification: evidence from the geographic diversification of US banks. Review of Financial Studies, 26 (7), 1787–1823.
   Web of Science ®Google Scholar
• Goodwin, J. and Wu, D., 2016. What is the relationship between audit partner busyness and audit quality? Contemporary Accounting Research, 33 (1), 341–377.
   Web of Science ®Google Scholar
• Guan, Y., Su, L.N., Wu, D., and Yang, Z., 2016. Do school ties between auditors and client executives influence audit outcomes? Journal of Accounting and Economics, 61 (2-3), 506–525.
   Web of Science ®Google Scholar
• Gul, F.A., Wu, D., and Yang, Z., 2013. Do individual auditors affect audit quality? Evidence from archival data. The Accounting Review, 88 (6), 1993–2023.
   Web of Science ®Google Scholar
• Gul, F.A., Ma, S.M., and Lai, K., 2017. Busy auditors, partner-client tenure, and audit quality: evidence from an emerging market. Journal of International Accounting Research, 16 (1), 83–105.
   Web of Science ®Google Scholar
• Hann, R.N., Ogneva, M., and Ozbas, O., 2013. Corporate diversification and the cost of capital. The Journal of Finance, 68 (5), 1961–1999.
   Web of Science ®Google Scholar
• He, X., Pittman, J.A., Rui, O.M., and Wu, D., 2017. Do social ties between external auditors and audit committee members affect audit quality? The Accounting Review, 92 (5), 61–87.
   Web of Science ®Google Scholar
• Johnson, L.E., Davies, S.P., and Freeman, R.J., 2002. The effect of seasonal variations in auditor workload on local government audit fees and audit delay. Journal of Accounting and Public Policy, 21 (4-5), 395–422.
   Google Scholar
• Karjalainen, J., 2011. Audit partner specialization and earnings quality of privately-held companies. Social Science Research Network Electronic Paper Series.
   Google Scholar
• Knechel, W.R., Niemi, L., and Zerni, M., 2013. Empirical evidence on the implicit determinants of compensation in Big 4 audit partnerships. Journal of Accounting Research, 51 (2), 349–387.
   Web of Science ®Google Scholar
• Knechel, W.R., Vanstraelen, A., and Zerni, M., 2015. Does the identity of engagement partners matter? An analysis of audit partner reporting decisions. Contemporary Accounting Research, 32 (4), 1443–1478.
   Web of Science ®Google Scholar
• Knechel, W.R., Mao, J., Qi, B., and Zhuang, Z., 2021. Is there a brain drain in auditing? The determinants and consequences of auditors leaving public accounting*. Contemporary Accounting Research, 38 (4), 2461–2495.
   Web of Science ®Google Scholar
• Kothari, S.P., Leone, A.J., and Wasley, C.E., 2005. Performance matched discretionary accrual measures. Journal of Accounting and Economics, 39 (1), 163–197.
   Web of Science ®Google Scholar
• Lewellen, W.G., 1971. A pure financial rationale for the conglomerate merger. The Journal of Finance, 26 (2), 521–537.
   Web of Science ®Google Scholar
• Li, L., Qi, B., Tian, G., and Zhang, G., 2017. The contagion effect of low-quality audits at the level of individual auditors. The Accounting Review, 92 (1), 137–163.
   Web of Science ®Google Scholar
• López, D.M. and Peters, G.F., 2011. Auditor workload compression and busy season auditor switching. Accounting Horizons, 25 (2), 357–380.
   Web of Science ®Google Scholar
• López, D.M. and Peters, G.F., 2012. The effect of workload compression on audit quality. Auditing: A Journal of Practice & Theory, 31 (4), 139–165.
   Web of Science ®Google Scholar
• López, D.M. and Pitman, M.K., 2014. Auditor workload compression and busy season portfolio changes: US evidence. International Journal of Accounting, Auditing and Performance Evaluation, 10 (1), 91–108.
   Google Scholar
• Palepu, K., 1985. Diversification strategy, profit performance and the entropy measure. Strategic Management Journal, 6 (3), 239–255.
   Web of Science ®Google Scholar
• PCAOB (Public Company Accounting Oversight Board), 2015a. Concept release on audit quality indicators, No. 2015-005, July 1.
   Google Scholar
• PCAOB (Public Company Accounting Oversight Board), 2015b. Improving the transparency of audits: rules to require disclosure of certain audit participants on a new PCAOB form and related amendments to auditing standards, No. 2015-008, December 15.
   Google Scholar
• Qiu, T., 2014. Product diversification and market value of large international firms: a macroenvironmental perspective. Journal of International Marketing, 22 (4), 86–107.
   Web of Science ®Google Scholar
• Ragothaman, S., 2012. Watching the watchdogs: an examination of the PCAOB quality control inspection reports on triennially inspected audit firms and the AICPA peer review reports. 2012 Deloitte Foundation / University of Kansas Auditing Symposium.
   Google Scholar
• Sundgren, S., and Svanström, T., 2014. Auditor-in-charge characteristics and going-concern reporting. Contemporary Accounting Research, 31 (2), 531–550.
   Web of Science ®Google Scholar
• Sweeney, J.T. and Summers, S.L., 2002. The effect of the busy season workload on public accountants’ job burnout. Behavioral Research in Accounting, 14 (1), 223–245.
   Google Scholar
• Taylor, S.D., 2011. Does audit fee homogeneity exist? Premiums and discounts attributable to individual partners. Auditing: A Journal of Practice & Theory, 30 (4), 249–272.
   Web of Science ®Google Scholar
• Zerni, M., 2012. Audit partner specialization and audit fees: some evidence from Sweden. Contemporary Accounting Research, 29 (1), 312–340.
   Web of Science ®Google Scholar