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Effects of audit committee chair characteristics on auditor choice, audit fee and audit quality

Citation

Azizkhani, M and Hossain, S and Nguyen, Mai, Effects of audit committee chair characteristics on auditor choice, audit fee and audit quality, Accounting & Finance pp. 1-33. ISSN 0810-5391 (2023) [Refereed Article]


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Copyright Statement

2023 The Authors. Accounting & Finance published by John Wiley & Sons Australia. This is an open access article under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) License, https://creativecommons.org/licenses/by/4.0/ which permits use, distribution and reproduction in any medium, provided the original work is properly cited.

DOI: doi:10.1111/acfi.13058

Abstract

We investigate whether the characteristics of audit committee (AC) chairs are associated with decisions about auditor choice, audit fees and audit quality. Using hand-collected Australian data, firms with AC chairs who have longer tenure and multiple AC memberships across several boards are found to be more likely to choose Big 4 and/or industry specialist auditors, pay higher audit fees and have lower discretionary accruals. Those AC chairs with higher business qualifications are more likely to hire a Big 4 auditor, pay higher audit fees and have lower discretionary accruals, while AC chairs with professional qualifications are more likely to hire a Big 4 and/or industry specialist auditor. In contrast, firms with AC chairs who are executive directors are less likely to hire a Big 4 auditor and have higher discretionary accruals. Our findings contribute to the literature by documenting that various characteristics of AC chairs are important for enhancement of auditor selection and audit quality.

Item Details

Item Type:Refereed Article
Keywords:audit committee chair, gender, financial expertise, multiple audit committee membership, audit fees, auditor choice, audit quality
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, auditing and accountability
Research Field:Accounting theory and standards
Objective Division:Commercial Services and Tourism
Objective Group:Financial services
Objective Field:Finance services
UTAS Author:Azizkhani, M (Dr Masoud Azizkhani)
UTAS Author:Nguyen, Mai (Dr Mai Nguyen)
ID Code:155166
Year Published:2023
Deposited By:Accounting
Deposited On:2023-01-31
Last Modified:2023-03-22
Downloads:4 View Download Statistics

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