Business, Management and Accounting
3 years ago

Audit Firm Size Matters for Quality, Longer Audits Deteriorate Standards

GATR Global Journal of Business Social Sciences Review
Audit Firm Tenure, Audit Firm Size and Audit Quality
Padri Achyarsyah, Molina Molina

Paper Summary

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The study looked at how long an audit firm has been working with a client and how big the audit firm is affect the quality of the audit. They found that the length of time an audit firm works with a client doesn't really impact the quality of the audit, but bigger audit firms tend to have better quality audits. This is because larger firms have more training for their staff and better systems in place. This research helps us understand how the relationship between audit firms and their clients can affect the quality of audits in the financial market.