Does the PCAOB international inspection program improve audit quality for non-US-listed foreign clients?

• 成果类型: Article
• 署名作者: Fung, Simon Yu Kit; Raman, K. K.; Zhu, Xindong (Kevin)
• 署名单位: Deakin University; University of Texas System; University of Texas at San Antonio; City University of Hong Kong
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2017.04.002
• 发表日期: 2017
• 关键词: initiated clawback provisions; earnings management; product quality; Investor protection; nonaudit services; FIRMS; fees; reputation; accruals; INDEPENDENCE

摘要

We examine whether the Public Company Accounting Oversight Board (PCAOB) international inspection program improves audit quality for a sample of non-US-listed foreign public client companies from 55 countries audited by foreign (i.e., non-US) auditors. For a sample of non-US-listed clients of PCAOB-registered foreign auditors, we find that initial PCAOB inspections improve audit quality, over and above the threat of such inspections, for foreign auditors' non-US-listed foreign clients. Our findings document the benefits of PCAOB international inspections for foreign investors in non-US-listed foreign companies which could increase the acceptability of the PCAOB international inspection program abroad. (C) 2017 Elsevier B.V. All rights reserved.