Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Association between Auditor Industry Specialization and Firms' Disclosure of Internal Control Weaknesses

The Association between Auditor Industry Specialization and Firms' Disclosure of Internal Control... In this paper, we examine the association between auditor industry specialization and the disclosure of internal control weaknesses (ICWs) by firms that filed first‐time Section 404 reports with the Securities and Exchange Commission (SEC). Using both univariate and logistic regression analyses, we find that firms audited by industry specialist auditors are more likely to report ICWs than firms audited by non‐specialist auditors. Our results therefore provide further evidence that industry specialist auditors are quality differentiated. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Auditing Wiley

The Association between Auditor Industry Specialization and Firms' Disclosure of Internal Control Weaknesses

Loading next page...
 
/lp/wiley/the-association-between-auditor-industry-specialization-and-firms-MgRm1be70X
Publisher
Wiley
Copyright
© 2011 Blackwell Publishing Ltd
ISSN
1090-6738
eISSN
1099-1123
DOI
10.1111/j.1099-1123.2011.00430.x
Publisher site
See Article on Publisher Site

Abstract

In this paper, we examine the association between auditor industry specialization and the disclosure of internal control weaknesses (ICWs) by firms that filed first‐time Section 404 reports with the Securities and Exchange Commission (SEC). Using both univariate and logistic regression analyses, we find that firms audited by industry specialist auditors are more likely to report ICWs than firms audited by non‐specialist auditors. Our results therefore provide further evidence that industry specialist auditors are quality differentiated.

Journal

International Journal of AuditingWiley

Published: Jul 1, 2011

References