Abstract

http://ssrn.com/abstract=1304953
 
 

References (80)



 
 

Citations (2)



 


 



The Effects of Audit Partner Pre-Client and Client-Specific Experience on Audit Quality and on Perceptions of Audit Quality


Wuchun Chi


National Chengchi University (NCCU) - Department of Accounting

Linda A. Myers


University of Arkansas

Thomas C. Omer


University of Nebraska at Lincoln - School of Accountancy

Hong Xie


University of Kentucky - Von Allmen School of Accountancy

January 2015


Abstract:     
Building on the model in O’Keefe et al. (1994) where audit quality is a function of general knowledge, client-specific knowledge, and other factors, we examine the effects of pre-client experience (our proxy for general knowledge) and client-specific experience (our proxy for client-specific knowledge) on audit quality and on perceptions of audit quality. We use data from Taiwan, where the names of signing audit partners are disclosed. Using discretionary accruals to proxy for audit quality and the bank loan interest rate spread to proxy for creditor perceptions of audit quality, we find that an audit partner’s pre-client experience enhances audit quality, but the effect of pre-client experience is reduced with longer partner tenure. Moreover, we find that both pre-client experience and client-specific experience improve creditor perceptions of audit quality. Our findings are important because they reveal that there is information in more finely parsed measures of auditor experience and they provide evidence consistent with the beliefs underlying the Public Company Accounting Oversight Board’s proposal to disclose engagement partner names for U.S. audit engagements because the disclosure of engagement partner identity can provide useful information.

Number of Pages in PDF File: 44

Keywords: Auditor Experience, Pre-Client Experience, Audit Quality, Public Companies, Private Companies

JEL Classification: M49, M41, M43, M47, G12


Download This Paper

Date posted: November 21, 2008 ; Last revised: January 8, 2015

Suggested Citation

Chi, Wuchun and Myers, Linda A. and Omer, Thomas C. and Xie, Hong, The Effects of Audit Partner Pre-Client and Client-Specific Experience on Audit Quality and on Perceptions of Audit Quality (January 2015). Available at SSRN: http://ssrn.com/abstract=1304953 or http://dx.doi.org/10.2139/ssrn.1304953

Contact Information

Wuchun Chi
National Chengchi University (NCCU) - Department of Accounting ( email )
No. 64, Sec 2
Chih-Nan Road
Wenshan 116, Taipei
Taiwan
886-2-29393091-81031 (Phone)
886-2-29387113 (Fax)
HOME PAGE: http://www3.nccu.edu.tw/~wchi/
Linda A. Myers (Contact Author)
University of Arkansas ( email )
Fayetteville, AR 72701
United States
Thomas C. Omer
University of Nebraska at Lincoln - School of Accountancy ( email )
307 College of Business Administration
Lincoln, NE 68588-0488
United States
Hong Xie
University of Kentucky - Von Allmen School of Accountancy ( email )
Lexington, KY 40506
United States
(859) 257-4648 (Phone)
(859) 257-3654 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 2,250
Downloads: 677
Download Rank: 21,996
References:  80
Citations:  2

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.344 seconds