A basic study of agency-cost source and municipal use of internal versus external control

References

• Abbott , L. J. and Parker , S. 2000 . Auditor selection and audit committee characteristics . Auditing: A Journal of Practice and Theory , 19 ( Fall ) : 47 – 66 .
   Google Scholar
• Abdel-Khalik , A. R. 1993 . Why do private companies demand auditing? A case for organizational loss of control . Journal of Accounting, Auditing, and Finance , 8 ( Winter ) : 31 – 52 .
   Google Scholar
• Abernethy , M. A. and Chua , W. F. 1996 . A field study of control system redesign: The impact of institutional processes on strategic choice . Contemporary Accounting Research , 13 ( Fall ) : 569 – 606 .
   Google Scholar
• Adams , M. B. 1994 . Agency theory and the internal audit . Managerial Auditing Journal , 9 ( 8 ) : 8 – 12 .
   Google Scholar
• Anderson , D. , Francis , J. R. and Stokes , D. J. 1993 . Auditing, directorships and the demand for monitoring . Journal of Accounting and Public Policy , 12 ( Winter ) : 353 – 375 .
   Google Scholar
• Association of Certified Fraud Examiners (ACFE) . 2002 . Report to the Nation: Occupational Fraud and Abuse , Austin , TX : ACFE .
   Google Scholar
• Baber , W. R. 1983 . Toward understanding the role of auditing in the public sector . Journal of Accounting and Economics , 5 ( December ) : 213 – 227 .
   Google Scholar
• Bandyopadhyay , S. P. and Kao , J. L. 2001 . Competition and big 6 brand name reputation: Evidence from the Ontario municipal audit market . Contemporary Accounting Research , 18 ( Spring ) : 27 – 64 .
   Google Scholar
• Banker , R. D. , Cooper , W. W. and Potter , G. 1992 . A perspective on research in governmental accounting . Accounting Review , 67 ( July ) : 496 – 510 .
   Google Scholar
• Carey , P. , Simnett , R. and Tanewski , G. 2000 . Voluntary demand for internal and external auditing by family businesses . Auditing: A Journal of Practice and Theory , 19 ( Supplement ) : 37 – 52 .
   Web of Science ®Google Scholar
• Chow , C. W. 1982 . The demand for external auditing: Size, debt, and ownership influences . Accounting Review , 57 ( April ) : 272 – 291 .
   Google Scholar
• Committee of Sponsoring Organizations of the Treadway Commission (COSO) . 1994 . Internal Control—Integrated Framework , Jersey City , NJ : AICPA .
   Google Scholar
• Copley , P. A. , Gaver , J. J. and Gaver , K. M. 1995 . Simultaneous estimation of the supply and demand of differentiated audits: Evidence from the municipal audit market . Journal of Accounting Research , 33 ( Spring ) : 137 – 155 .
   Google Scholar
• Cox , G. W. and Munger , M. C. 1989 . Closeness, expenditures, and turnout in the 1982 US House elections . American Political Science Review , 83 ( March ) : 217 – 231 .
   Google Scholar
• Craswell , A. T. , Francis , J. R. and Taylor , S. L. 1995 . Auditor brand name reputations and industry specialization . Journal of Accounting and Economics , 20 ( December ) : 297 – 322 .
   Google Scholar
• DeAngelo , L. E. 1981 . Auditor size and audit quality . Journal of Accounting and Economics , 3 ( December ) : 183 – 189 .
   Google Scholar
• DeFond , M. L. 1992 . The association between changes in client firm agency costs and auditor switching . Auditing: A Journal of Practice and Theory , 11 ( Spring ) : 16 – 31 .
   Google Scholar
• Evans , J. H. and Patton , J. M. 1987 . Signaling and monitoring in public-sector accounting . Journal of Accounting Research , 25 ( Supplement ) : 130 – 158 .
   Google Scholar
• Filer , J. E. , Kenny , L. W. and Morton , R. B. 1993 . Redistribution, income, and voting . American Journal of Political Science , 37 ( February ) : 63 – 87 .
   Google Scholar
• Francis , J. R. and Wilson , E. R. 1988 . Auditor changes: A joint test of theories relating to agency costs and auditor differentiation . Accounting Review , 63 ( October ) : 663 – 682 .
   Google Scholar
• Gul , F. A. , Lynn , S. G. and Tsui , J. S.L. 2002 . Audit quality, management ownership, and the informativeness of accounting earnings . Journal of Accounting, Auditing, and Finance , 17 ( Winter ) : 25 – 49 .
   Google Scholar
• Hackenbrack , K. , Jensen , K. L. and Payne , J. L. 2000 . The effect of a bidding restriction on the audit services market . Journal of Accounting Research , 39 ( Autumn ) : 355 – 374 .
   Google Scholar
• Jensen , K. L. and Payne , J. L. 2003 . Management trade-offs of internal control and external auditor expertise . Auditing: A Journal of Practice and Theory , 22 ( September ) : 99 – 119 .
   Google Scholar
• Jensen , M. C. and Meckling , W. H. 1976 . Theory of the firm: Managerial behavior, agency costs, and ownership structure . Journal of Financial Economics , 3 ( October ) : 305 – 360 .
   Web of Science ®Google Scholar
• Kinney , W. R. 2000 . Information Quality Assurance and Internal Control , Irwin McGraw-Hill Publishing .
   Google Scholar
• Knechel , W. R. 2001 . Auditing: Assurance & Risk , 2nd , South-Western College Publishing .
   Google Scholar
• Leighley , J. E. and Nagler , J. 1992 . Individual and systematic influences on turnout: Who votes? . Journal of Politics , 54 ( August ) : 718 – 739 .
   Google Scholar
• Maddala , G. S. 1983 . Limited-Dependent and Qualitative Variable in Econometrics , Cambridge University Press .
   Google Scholar
• Maddala , G. S. 1991 . A perspective on the use of limited-dependent and qualitative variables models in accounting research . Accounting Review , 66 ( October ) : 788 – 807 .
   Google Scholar
• Marks , B. R. and Raman , K. K. 1986 . State audit budgets and market assessments of credit risk . Journal of Accounting and Public Policy , 5 ( Winter ) : 233 – 250 .
   Google Scholar
• Marks , B. R. and Raman , K. K. 1987 . Some additional evidence on the determinants of state audit budgets . Auditing: A Journal of Practice and Theory , 1 ( Fall ) : 106 – 117 .
   Google Scholar
• O'Keefe , T. B. , King , R. D. and Gaver , K. M. 1994 . Audit fees, industry specialization, and compliance with GAAS reporting standards . Auditing: A Journal of Practice and Theory , 13 ( Fall ) : 41 – 55 .
   Google Scholar
• Patterson , S. C. and Caldeira , G. A. 1983 . Getting out the vote: Participation in gubernatorial elections . American Political Science Review , 77 ( September ) : 675 – 689 .
   Google Scholar
• Raman , K. K. and Wilson , E. R. 1994 . Governmental audit procurement practices and seasoned bond prices . Accounting Review , 69 ( October ) : 517 – 538 .
   Google Scholar
• Simons , R. 1995 . Levers of Control , Harvard Business School Press .
   Google Scholar
• Simunic , D. A. 1980 . The pricing of audit services: Theory and evidence . Journal of Accounting Research , 18 ( Spring ) : 161 – 190 .
   Web of Science ®Google Scholar
• www.census.gov United States Census Bureau Website (Census). (2000).
   Google Scholar
• Verba , S. and Nie , N. H. 1972 . Participation in America: Political Democracy and Social Equality , Harper and Row .
   Google Scholar
• Verba , S. , Schlozman , K. L. , Brady , H. and Nie , N. H. 1993 . Citizen activity: Who participates? What do they say? . American Political Science Review , 87 ( June ) : 303 – 318 .
   Google Scholar
• Watts , R. L. and Zimmerman , J. L. 1983 . Agency problems, auditing, and the theory of the firm: Some evidence . Journal of Law and Economics , 26 ( October ) : 613 – 633 .
   Google Scholar
• Williamson , O. E. 1975 . Markets and Hierarchies , Free Press .
   Google Scholar
• Williamson , O. E. 1985 . The Economic Institutions of Capitalism , Free Press .
   Google Scholar
• Wolfinger , R. E. and Rosenstone , S. J. 1980 . Who Votes? , Yale University Press .
   Google Scholar
• Yeoh , E. and Jubb , C. A. 2001 . Governance and audit quality: Is there an association? , Australia : University of Melbourne . Working paper
   Google Scholar
• Zimmerman , J. L. 1977 . The municipal accounting maze: An analysis of political incentives . Journal of Accounting Research , 15 ( Supplement ) : 107 – 144 .
   Web of Science ®Google Scholar