Business, Management and Accounting
8 years ago

Audit partner quality impacts financial decision-making more than firm size.

1 view
On the nature of auditing: The audit partner effect : Research on the effect of individual audit partners on audit quality and the information dynamics of accounting data
van Joost P. Buuren

Paper Summary

The article explores whether audit quality depends on individual audit partners or on the audit firm as a whole. The researchers studied data from Dutch municipalities and European listed companies to see if audit quality varies among large audit firms. They found that there are significant differences in audit quality among these firms, suggesting that firm size is not a reliable indicator of audit quality. This indicates that audit quality is influenced by the capabilities and efforts of individual audit partners, rather than just the firm's control and governance structures.

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