Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
This study uses data from 298 Singapore publicly listed firms to examine the association between earnings management and two audit value attributes: auditor independence and auditor specialisation. We find firms engaging a specialist auditor had significantly lower levels of abnormal accruals than t...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Inderscience Enterprises
2006
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| Online Access: | http://hdl.handle.net/20.500.11937/37306 |
| Summary: | This study uses data from 298 Singapore publicly listed firms to examine the association between earnings management and two audit value attributes: auditor independence and auditor specialisation. We find firms engaging a specialist auditor had significantly lower levels of abnormal accruals than those using non-specialists. This supports the view industry specialisation better enables an auditor to constrain a client's earnings management. Our findings indicate the lack of a universal association between audit value attributes and earnings management. Results imply recent action of Singapore policymakers to strengthen rules governing audit independence as related to non-audit services may have been premature. |
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