Abstract

https://ssrn.com/abstract=1628834
 
 

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Audit Exemption and the Demand for Voluntary Audit: A Comparative Study of the UK and Denmark


Jill Collis


affiliation not provided to SSRN


International Journal of Auditing, Vol. 14, Issue 2, pp. 211-231, July 2010

Abstract:     
This study investigates the sufficiency of turnover as a surrogate for demand for voluntary audit and compares the determinants in the UK and Denmark. Empirical data for the study were drawn from government surveys of the directors of small private companies in both countries, which were based on the same research instrument, Bivariate tests support the hypothesised effects of turnover and a range of firm-specific factors suggested by economic rationality and agency theory. The main contribution of the study is the finding that turnover alone is not a sufficient surrogate for the costs and benefits of audit. The main predictors are turnover and a slightly different combination of management and agency factors in each country. The study provides a model that can be tested in other jurisdictions and its findings should be of interest to the accountancy profession and national regulators planning to introduce or revise audit exemption for small companies.

Number of Pages in PDF File: 21


Date posted: June 23, 2010  

Suggested Citation

Collis, Jill, Audit Exemption and the Demand for Voluntary Audit: A Comparative Study of the UK and Denmark. International Journal of Auditing, Vol. 14, Issue 2, pp. 211-231, July 2010. Available at SSRN: https://ssrn.com/abstract=1628834 or http://dx.doi.org/10.1111/j.1099-1123.2010.00415.x

Contact Information

Jill Collis (Contact Author)
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