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Education, Experience and Audit Effort
BI Norwegian Business School.
Umeå universitet, Samhällsvetenskapliga fakulteten, Handelshögskolan vid Umeå universitet, Företagsekonomi.
2018 (engelsk)Inngår i: Auditing, ISSN 0278-0380, E-ISSN 1558-7991, Vol. 37, nr 3, s. 91-115Artikkel i tidsskrift (Fagfellevurdert) Published
Abstract [en]

This paper examines how audit effort, measured by the estimated number of audit hours used to perform the clients' audits, is associated with engagement partners' formal education, continuing professional education (CPE), and professional experience. Although the literature provides considerable evidence for the determinants of audit fees, our understanding of how audit effort is related to these partner characteristics is limited. The aim of this paper is to shed light on partner-specific factors that may influence how much audit effort they and their team members exert. Using a sample of 1,738 unique partners and 178,770 client-year observations, we find evidence that auditors with a master's degree exert more effort than those with a bachelor's degree. We also find a positive relation between audit effort and CPE. The relation between audit effort and professional experience is nonlinear: the least experienced auditors put in the least effort, moderately experienced auditors exert the most effort, while the effort level of the most experienced auditors is in between. We also document that the accuracy of going concern modified audit reports is higher for more knowledgeable auditors.

sted, utgiver, år, opplag, sider
American Accounting Association , 2018. Vol. 37, nr 3, s. 91-115
Emneord [en]
audit effort, engagement partner, formal education, continuing professional education, professional experience
HSV kategori
Forskningsprogram
företagsekonomi
Identifikatorer
URN: urn:nbn:se:umu:diva-139556DOI: 10.2308/ajpt-51896ISI: 000441542700005Scopus ID: 2-s2.0-85058100784OAI: oai:DiVA.org:umu-139556DiVA, id: diva2:1142100
Forskningsfinansiär
The Jan Wallander and Tom Hedelius Foundation, P2014-0088:1
Merknad

Errata Auditing: A Journal of Practice & Theory 2018 37 (4): p. 261 DOI: 10.2308/ajpt-10643

Tilgjengelig fra: 2017-09-18 Laget: 2017-09-18 Sist oppdatert: 2023-03-24bibliografisk kontrollert

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Svanström, Tobias

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