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...

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Main Authors: Rusmin, Rusmin, Van Der Zahn, J-L., Tower, Greg, Brown, Alistair
Format: Journal Article
Published: Inderscience Enterprises 2006
Online Access:http://hdl.handle.net/20.500.11937/37306
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author Rusmin, Rusmin
Van Der Zahn, J-L.
Tower, Greg
Brown, Alistair
author_facet Rusmin, Rusmin
Van Der Zahn, J-L.
Tower, Greg
Brown, Alistair
author_sort Rusmin, Rusmin
building Curtin Institutional Repository
collection Online Access
description 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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institution Curtin University Malaysia
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last_indexed 2025-11-14T08:49:30Z
publishDate 2006
publisher Inderscience Enterprises
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spelling curtin-20.500.11937-373062017-09-13T16:05:07Z Auditor independence, auditor specialisation and earnings management: further evidence from Singapore Rusmin, Rusmin Van Der Zahn, J-L. Tower, Greg Brown, Alistair 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. 2006 Journal Article http://hdl.handle.net/20.500.11937/37306 10.1504/IJAAPE.2006.010300 Inderscience Enterprises restricted
spellingShingle Rusmin, Rusmin
Van Der Zahn, J-L.
Tower, Greg
Brown, Alistair
Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
title Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
title_full Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
title_fullStr Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
title_full_unstemmed Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
title_short Auditor independence, auditor specialisation and earnings management: further evidence from Singapore
title_sort auditor independence, auditor specialisation and earnings management: further evidence from singapore
url http://hdl.handle.net/20.500.11937/37306