Singaporean Audit Quality and the Complexity of FRS 36 Disclosures Requirements

International Review of Business Research Papers, Vol 6, iss. 2 pp. 81-94

14 Pages Posted: 12 Jun 2014

See all articles by Tyrone M. Carlin

Tyrone M. Carlin

Southern Cross University; The University of Sydney Business School

Nigel Finch

Saki Partners

Khairil Faizal Khairi

Universiti Sains Islam Malaysia (USIM), Malaysia

Date Written: July 22, 2010

Abstract

Theories of audit quality hypothesize higher quality audits associated with larger audit firms. The relationship between size and quality is derived from DeAngelo (1981) which is widely cited in the literature as the basis for pooling big and small auditors when testing for audit quality differences among auditors. This study addresses this concern empirically by investigating the influence of audit quality on the use of the yearly goodwill impairment testing. Specifically, this study focuses on compliance with the requirements under FRS 36 among the Singapore firms whose 2005, 2006 and 2007 financial accounts have been audited by Big-4 or non Big-4 auditors. Consequently, this study constructed an appropriate methodology that able to distinguish audit quality between Big-4 and non Big-4 audit firms and attempt to question the homogenous audit quality assumption. The results of the study, using six analytical frames reveal that compliance level and disclosure quality are systematically failed to comply with even basic elements of the FRS 36 disclosure requirements in relation to goodwill impairment testing.

Keywords: Financial Reporting Standard, Audit

Suggested Citation

Carlin, Tyrone M. and Finch, Nigel and Khairi, Khairil Faizal, Singaporean Audit Quality and the Complexity of FRS 36 Disclosures Requirements (July 22, 2010). International Review of Business Research Papers, Vol 6, iss. 2 pp. 81-94. Available at SSRN: https://ssrn.com/abstract=2448637

Tyrone M. Carlin

Southern Cross University ( email )

Lismore, New South Wales 2480
Australia

The University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia
+ 61 2 9036 7230 (Phone)
+61 2 9351 7471 (Fax)

HOME PAGE: http://sydney.edu.au/business/staff/tyronec

Nigel Finch

Saki Partners ( email )

Australia

Khairil Faizal Khairi (Contact Author)

Universiti Sains Islam Malaysia (USIM), Malaysia ( email )

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia
+6067986427 (Phone)

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