Is the Public Oversight of Auditors Effective? The Impact of Sanctions on Loss of Clients, Salary and Audit Reporting

References

• Abbott, L. J., Gunny, K. A., & Zhang, T. C. (2013). When the PCAOB talks, who listens? Evidence from stakeholder reaction to GAAP-deficient PCAOB inspection reports of small auditors. Auditing: A Journal of Practice and Theory, 32(2), 1–31.
   Web of Science ®Google Scholar
• Abdel-khalik, R. (1990). The jointness of audit fees and the demand for MAS: A self-selection analysis. Contemporary Accounting Research, 6(2), 295–322.
   Google Scholar
• Bankley, A. I., Kerr, D. S., & Wiggins, C. E. (2012). A content analysis of CPA firms’ correspondence following PCAOB inspections 2004–2010. Research in Accounting Regulation, 24(2), 74–89.
   Google Scholar
• Beattie, V., & Fearnley, V. (1998). Audit market competition: Auditor change and the impact of tendering. The British Accounting Review, 30(3), 261–289.
   Google Scholar
• Bursell, J. (2010, October 27). Revisorernas löner höjs trots varning. Svenska dagbladet.
   Google Scholar
• Cameron, C., Gelbach, J., & Miller, D. (2006). Robust inference with multi-way clustering (Technical working paper 327). National Bureau of Economic Research. Retrieved from http://www.nber.org/papers/T0327
   Google Scholar
• Cameron, C., & Trivedi, P. (2010). Microeconomics using stata. Revised ed. College Station: Stata Press.
   Google Scholar
• Carcello, J. V. C., Hollingsworth, C., & Mastrolia, S. (2011). The effect of PCAOB inspections on Big 4 audit quality. Research in Accounting Regulation, 23(2), 85–96.
   Google Scholar
• Carson, E., Simnett, R., & Vanstraelen, A. (2013). Auditing the auditors: An international analysis of the effectiveness of national inspection (Working paper). University of New South Wales.
   Google Scholar
• Casterella, J. R., Jensen, K. L., & Knechel, W. R. (2009). Is self-regulated peer review effective at signaling audit quality? The Accounting Review, 84(3), 713–735.
   Web of Science ®Google Scholar
• Chen, S., Sun, S. Y. J., & Wu, D. (2010). Client importance, institutional improvements, and audit quality in China: An office and individual auditor level analysis. The Accounting Review, 85(1), 127–158.
   Web of Science ®Google Scholar
• Choi, J.-H., Kim, C., Kim, J.-B., & Zang, Y. (2010). Audit office size, audit quality and audit pricing. Auditing: A Journal of Practice and Theory, 29(1), 73–97.
   Web of Science ®Google Scholar
• Daugherty, B., Dickins, D., & Tervo, W. A. (2011). Negative PCAOB inspections of triennially inspected auditors and involuntary and voluntary client losses. International Journal of Auditing, 15(3), 231–246.
   Google Scholar
• Daugherty, B., & Tervo, W. A. (2010). PCAOB inspections of smaller CPA firms: The perspective of inspected firms. Accounting Horizons, 24(2), 189–219.
   Web of Science ®Google Scholar
• DeFond, M. L., & Lennox, C. S. (2011). The effect of SOX on small auditor exits and audit quality. Journal of Accounting and Economics, 52(1), 21–40.
   Web of Science ®Google Scholar
• De Fuentes Barbera, C., Illueca Muñoz, M., & Pucheta Martinez, M. C. (2010). Disciplinary sanctions and audit quality: Empirical evidence from an external oversight system (Working paper). Universitat de Valencia.
   Google Scholar
• DeVaro, J., & Valdman, M. (2012). The signaling role of promotions: Further theory and empirical evidence. Journal of Labour Economics, 30(1), 91–147.
   Web of Science ®Google Scholar
• Ehlen, C. R., & Welker, R. B. (1996). Practitioners’ suggestions for improving practice-monitoring. The CPA Journal, 66(7), 20–25.
   Google Scholar
• Elsea, J. E., & Stewart, J. R. (1995). Perceptions of peer and quality review. The CPA Journal, 65(6), 58–60.
   Google Scholar
• European Union (2014/56/EU). Directive 2014/56/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts.
   Google Scholar
• EY. (2013). Transparency report Sweden, 2013.
   Google Scholar
• Francis, J. R., & Yu, M. D. (2009). Big 4 office size and audit quality. Accounting Review, 84(5), 1521–1552.
   Web of Science ®Google Scholar
• Gramling, A., Krishnan, J., & Zhang, Y. (2011). Are PCAOB-identified audit deficiencies associated with a change in reporting decisions of triennially inspected audit firms? Auditing: A Journal of Practice and Theory, 30(3), 59–79.
   Web of Science ®Google Scholar
• Gunny, K., & Zhang, T. C. (2013). PCAOB inspection reports and audit quality. Journal of Accounting and Public Policy, 32(2), 136–160.
   Web of Science ®Google Scholar
• Hilary, G., & Lennox, C. (2005). The credibility of self-regulation? Evidence from the accounting profession's peer review program? Journal of Accounting and Economics, 40(1–3), 211–229.
   Web of Science ®Google Scholar
• Hilbe, J. (1999). Zero-truncated Poisson and negative binomial regression. Stata Technical Bulletin, 37–40.
   Google Scholar
• International Auditing and Assurance Standards Board (IAASB). (2013). Auditor reporting invitation to comment-compilation of responses – Question 12 – Disclosing the name of the engagement partner: IAASB main Agenda (April 15). Supplement to Agenda item 2 – Compilation of responses to ITC – Question 12. New York: IAASB. Retrieved from http://www.ifac.org/auditing-assurance/meetings#past-meetings
   Google Scholar
• Ittonen, K., Vähämaa, E., & Vähämaa, S. (2013). Female auditors and accruals quality. Accounting Horizons, 27(2), 205–228.
   Web of Science ®Google Scholar
• Karjalainen, J., Niskanen, M., & Niskanen, J. (2013). Are female auditors more likely to be independent? Evidence from modified audit opinions (Working paper). University of Eastern Finland.
   Google Scholar
• Knechel, W. R., Niemi, L., & 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., & Payne, J. L. (2001). Additional evidence on audit report lag. Auditing: A Journal of Practice & Theory, 20(1), 137–146.
   Google Scholar
• Knechel, W. R., Rouse, P., & Schelleman, C. (2009). A modified audit production framework: Evaluating the relative efficiency of audit engagements. The Accounting Review, 84(5), 1607–1638.
   Web of Science ®Google Scholar
• Knechel, W. R., Vanstraelen, A., & Zerni, M. (2015). Does the identity of the audit partner matter? An analysis of audit partner reporting decisions. Contemporary Accounting Research. doi:10.1111/1911-3846.12113
   Web of Science ®Google Scholar
• Krishnan, J., & Schauer, P. C. (2000). The differentiation of quality among auditors: Evidence from the not-for-profit sector. Auditing: A Journal of Practice & Theory, 19(2), 9–25.
   Web of Science ®Google Scholar
• Lennox, C. (2000). Do companies successfully engage in opinion shopping? Evidence from the UK. Journal of Accounting and Economics, 29(3), 321–37.
   Web of Science ®Google Scholar
• Lennox, C., & Pittman, J. (2010). Auditing the auditors: Evidence on the recent reforms to the external monitoring of audit firms. Journal of Accounting and Economics, 49(12), 84–103.
   Web of Science ®Google Scholar
• Li, C. (2009). Does client importance affect auditor independence at the office level? Empirical evidence from going-concern opinions. Contemporary Accounting Research, 26(1), 201–230.
   Web of Science ®Google Scholar
• Liu, X., & Simunic, D. (2005). Profit sharing in an audit oligopoly. The Accounting Review, 80(2), 677–702.
   Web of Science ®Google Scholar
• Maijoor, S., & Vanstraelen, A. (2012). Research opportunities in auditing in the EU, revisited. Auditing: A Journal of Practice & Theory, 31(1), 115–126.
   Web of Science ®Google Scholar
• Mátyás, L., & Lovrics, L. (1991). Missing observations and panel data. A Monte-Carlo analysis. Economic Letters, 37, 39–44.
   Web of Science ®Google Scholar
• Offermanns, M., & Vanstraelen, A. (2014). Oversight and inspection of auditing. In D. Hay, W. R. Knechel, & M. Willekens (Eds.), The Routledge companion to auditing (pp. 179–187). Routledge: New York.
   Google Scholar
• Ortín-Ángel, P., & Salas-Fumás, V. (2002). Compensation and span of control in hierarchical organizations. Journal of Labour Economics, 20(4), 848–876.
   Web of Science ®Google Scholar
• PCAOB. (2013). Release no. 2013-009, improving the transparency of audits: Proposed amendments to PCAOB auditing standards to provide disclosure in the auditor's report of certain participants in the audit.
   Google Scholar
• Reynolds, J. K., & Francis, J. R. (2000). Does size matter? The influence of large clients on office-level auditor reporting decisions. Journal of Accounting and Economics, 30(3), 375–400.
   Web of Science ®Google Scholar
• Rogers, W. (1993). Regression standard errors in clustered samples. Stata Technical Bulletin, 13, 19–23.
   Google Scholar
• Shumway, T. (2001). Forecasting bankruptcy more accurately: A simple hazard model. Journal of Business, 74(1), 101–124.
   Web of Science ®Google Scholar
• Smeets, V., & Warzynski, F. (2008). Too many theories, too few facts? What the data tell us about the link between span of control, compensation and career dynamics. Labour Economics, 15(4), 687–703.
   Web of Science ®Google Scholar
• Sundgren, S., & Svanström, T. (2013). Audit office size and audit pricing: Evidence from small- and medium-sized enterprises. Accounting and Business Research, 43(1), 31–55.
   Web of Science ®Google Scholar
• Sundgren, S., & Svanström, T. (2014). Auditor-in-charge characteristics and going concern reporting. Contemporary Accounting Research, 31(2), 531–550.
   Web of Science ®Google Scholar
• Sundgren, S., & Svanström, T. (2015). Implementing a new auditing standard: The case of ISA 570-based going concern reporting in Sweden (Unpublished manuscript). Umeå School of Business and Economics, Umeå.
   Google Scholar
• Sweeney, J. T., & 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
• Van Opijnen, M., Van de Poel, K., & Vanstraelen, A. (2011). Public oversight and audit quality: Evidence from public oversight of audit firms in the Netherlands (Working paper). Maastricht University.
   Google Scholar
• Woodlock, P., & Claypool, G. (2001). Your audit subcommittee: How to cope with the end of the ‘rubber stamp’ era. Journal of Corporate Accounting & Finance, 12(4), 27–39.
   Google Scholar
• Zmijewski, M. (1984). Methodological issues related to the estimation of financial distress prediction. Journal of Accounting Research, 22(Supplement), 59–82.
   Web of Science ®Google Scholar