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An Examination of the Effect of Regulatory Actions on Client Retention

An Examination of the Effect of Regulatory Actions on Client Retention Research into the significance of auditor credibility shows that firms distinguish the services of a more credible auditor. Further, demand for levels of auditor credibility is shown to vary across firms purchasing audit services. This study extends the line of enquiry regarding the effect of auditor credibility by examining the reaction of client firms to changes in their auditors credibility. Also, the firm characteristics associated with a reaction to a change in credibility are examined. The results suggest that clients of the Big Eight firms react differently than clients of smaller audit firms to the change in credibility. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Auditing Wiley

An Examination of the Effect of Regulatory Actions on Client Retention

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References (31)

Publisher
Wiley
Copyright
Copyright © 1997 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1090-6738
eISSN
1099-1123
DOI
10.1111/1099-1123.00011
Publisher site
See Article on Publisher Site

Abstract

Research into the significance of auditor credibility shows that firms distinguish the services of a more credible auditor. Further, demand for levels of auditor credibility is shown to vary across firms purchasing audit services. This study extends the line of enquiry regarding the effect of auditor credibility by examining the reaction of client firms to changes in their auditors credibility. Also, the firm characteristics associated with a reaction to a change in credibility are examined. The results suggest that clients of the Big Eight firms react differently than clients of smaller audit firms to the change in credibility.

Journal

International Journal of AuditingWiley

Published: Mar 1, 1997

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