Auditor choice and its impact on financial reporting quality: A case of banking industry of Pakistan

IF 5.5 Q1 MANAGEMENT Asia Pacific Management Review Pub Date : 2022-12-01 DOI:10.1016/j.apmrv.2021.12.001

Umar Farooq Khalil

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引用次数: 3

Abstract

The aim of the paper is to investigate the effect of Auditor Choice i.e. Big-Four Affiliates and NonBig-Four Affiliates on the Quality of Financial Reporting of Banking Industry in Pakistan from year 2011–2018. Two issues have been noticed in Pakistani audit market, firstly, banks pay higher audit fee to Big-4 Affiliates and secondly NonBig-4 Affiliates have lower share in local audit market. This paper has tried answer these issues. Financial Reporting Quality, proxied by discretionary accrual and is estimated through Cross-sectional Modified Jones Model (1995). Furthermore, Multivariate Regression is used to find the difference between Financial Reporting Quality. The result indicates that there is no significant difference between Financial Reporting Quality of banks audited by Big-4 Affiliates and NonBig-4 Affiliates. Therefore, it is concluded that Banking Industry in Pakistan can acquire quality audit services at lower audit fee and secondly, NonBig-4 Affiliates must be given fair opportunity in the local audit market in Pakistan.

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审计师选择及其对财务报告质量的影响:以巴基斯坦银行业为例

本文的目的是研究审计师选择的影响，即四大关联公司和非四大关联公司对2011-2018年巴基斯坦银行业财务报告质量的影响。巴基斯坦审计市场已经注意到两个问题，一是银行向四大关联公司支付较高的审计费用，二是非四大关联公司在当地审计市场的份额较低。本文试图回答这些问题。财务报告质量，以可自由支配的应计利润为代表，并通过修正的横截面琼斯模型(1995)进行估计。此外，使用多元回归来发现财务报告质量之间的差异。结果表明，四大会计师事务所审计的银行财务报告质量与非四大会计师事务所审计的银行财务报告质量无显著差异。因此，本文得出结论:巴基斯坦银行业可以以较低的审计费用获得高质量的审计服务;其次，非四大分支机构必须在巴基斯坦当地审计市场获得公平的机会。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asia Pacific Management Review MANAGEMENT-

CiteScore

8.00

自引率

4.50%

发文量

期刊介绍： Asia Pacific Management Review (APMR), peer-reviewed and published quarterly, pursues to publish original and high quality research articles and notes that contribute to build empirical and theoretical understanding for concerning strategy and management aspects in business and activities. Meanwhile, we also seek to publish short communications and opinions addressing issues of current concern to managers in regards to within and between the Asia-Pacific region. The covered domains but not limited to, such as accounting, finance, marketing, decision analysis and operation management, human resource management, information management, international business management, logistic and supply chain management, quantitative and research methods, strategic and business management, and tourism management, are suitable for publication in the APMR.