|
|
|
|
||||
|
||||
Client Engagement Risks and the Auditor Search PeriodSamer KhalilAmerican University of Beirut - New York Office Jeffrey R. CohenBoston College - Department of Accounting Kenneth B. SchwartzBoston College May 31, 2011 Accounting Horizons, Forthcoming Abstract: This paper investigates whether client engagement risks lengthen the client acceptance phase for audit firms and result in a longer auditor search period for their clients. Using a sample of auditor resignations over the period 2003-2008, we document that the auditor search period is longer for firms associated with client business risk (financial distress) and audit risk (internal control weaknesses or management integrity issues), while it is shorter for firms representing reduced auditor business risk (auditor industry specialization). These findings highlight the importance of client risk assessment and explain audit firms’ response to perceived client risks.
Number of Pages in PDF File: 27 Keywords: Client acceptance, auditor search period, audit risk JEL Classification: M41 Accepted Paper SeriesDate posted: May 31, 2011 ; Last revised: July 25, 2011Suggested CitationContact Information
|
|
||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo8 in 0.312 seconds
