Do Social Ties between External Auditors and Audit Committee Members Affect Audit Quality?

doi:10.2308/accr-51696

CORC > 上海财经大学 > 上海财经大学

	Do Social Ties between External Auditors and Audit Committee Members Affect Audit Quality?
	He, Xianjie 1; Pittman, Jeffrey A.2; Rui, Oliver M.3; Wu, Donghui 4
刊名	ACCOUNTING REVIEW
	2017-09
卷号	92 期号:5 页码:61-87
关键词	social ties external auditors audit committee
ISSN号	0001-4826
DOI	10.2308/accr-51696
英文摘要	We examine whether social ties between engagement auditors and audit committee members shape audit outcomes. Although these social ties can facilitate information transfer and help auditors alleviate management pressure to waive correction of detected misstatements, close interpersonal relations can undermine auditors' monitoring of the financial reporting process. We measure social ties by alma mater connections, professor-student bonding, and employment affiliation, and audit quality by the propensity to render modified audit opinions, financial reporting irregularities, and firm valuation. Our evidence implies that social ties between engagement auditors and audit committee members impair audit quality. In additional results consistent with expectations, we generally find that this relation is concentrated where social ties are more salient, or firm governance is relatively poor and agency conflicts are more severe. Implying reciprocity stemming from social networks, we also report some suggestive evidence that audit fees are higher in the presence of social ties between an engagement auditor and the audit committee. Collectively, our analysis lends support to the narrative that the negative implications-namely, worse audit quality and higher audit fees-of these social ties may outweigh the benefits.
WOS研究方向	Business & Economics
语种	英语
出版者	AMER ACCOUNTING ASSOC
WOS记录号	WOS:000411487900003
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/915]
专题	上海财经大学
通讯作者	He, Xianjie
作者单位	1.Shanghai Univ Finance & Econ, Shanghai, Peoples R China; 2.Mem Univ Newfoundland, St John, NF, Canada; 3.China Europe Int Business Sch, Shanghai, Peoples R China; 4.Chinese Univ Hong Kong, Hong Kong, Hong Kong, Peoples R China
推荐引用方式 GB/T 7714	He, Xianjie,Pittman, Jeffrey A.,Rui, Oliver M.,et al. Do Social Ties between External Auditors and Audit Committee Members Affect Audit Quality?[J]. ACCOUNTING REVIEW,2017,92(5):61-87.
APA	He, Xianjie,Pittman, Jeffrey A.,Rui, Oliver M.,&Wu, Donghui.(2017).Do Social Ties between External Auditors and Audit Committee Members Affect Audit Quality?.ACCOUNTING REVIEW,92(5),61-87.
MLA	He, Xianjie,et al."Do Social Ties between External Auditors and Audit Committee Members Affect Audit Quality?".ACCOUNTING REVIEW 92.5(2017):61-87.