Do Audit Committees and Auditors Coordinate Effort? Evidence from Risk Areas, Materiality, and Meetings
成果类型：
Article
署名作者：
Livne, Gilad; Tsipouridou, Maria; Wood, Anthony
署名单位：
University of Bristol; Aristotle University of Thessaloniki; University of Exeter
刊物名称：
ACCOUNTING REVIEW
ISSN/ISSBN：
0001-4826
DOI：
10.2308/TAR-2020-0441
发表日期：
2020
页码：
349-372
关键词：
摘要：
We provide evidence on effort coordination and information sharing between audit committees and external auditors. We use four effort measures: the risk areas reported by both the auditor and committee, auditorreported materiality, and committee meetings. We find that the number of risks reported by the auditor (committee) is positively related to the number of risks reported by the committee (auditor) and that lower materiality is associated with more risks that the committee discloses. The evidence also suggests that although risk areas are sticky, the committee identifies new risks faster, whereas the auditor focuses on shared risks. Next, our analysis indicates that audit process standardization influences reporting quality in a nonlinear manner. Finally, although audit fees tend to rise with auditor effort, they are unrelated to the committee's effort. Our findings endorse the service perspective on auditing by emphasizing the collaborative nature of the audit process over individual actors' self -interests.
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