Business, Management and Accounting
4 years ago

Mandatory Audits Improve Quality for Some, Worsen for Others

1 view
Journal of Accounting Auditing & Finance
The Effects of Mandated versus Voluntary Auditing Policy on the Quality of Auditing
Uri Ronnen

Paper Summary

The article explores how different auditing policies affect the quality of audits. It uses a model to predict the impact of regulations on auditing quality and firm choices. The findings show that mandated auditing leads to a wider gap in audit quality between auditors, with some firms receiving better audits and others receiving worse ones. This helps us understand the effects of certain regulations on auditing quality.

Related papers

Business, Management and Accounting
3 years ago

Audit Quality Compromised as Auditors Compete for New Clients

Earnings Management
Corporate Governance
Mechanism Design
3 views
Business, Management and Accounting
4 years ago

Audit Watchdog Weeds Out Subpar Auditors, Boosts Investor Confidence

Earnings Management
Corporate Governance
Mechanism Design
3 views
Business, Management and Accounting
4 years ago

Auditors Uncover Bias in Accounting Estimates, Raising Transparency Concerns

Earnings Management
Management Control
3 views