Title

A continuous relation between audit firm size and audit opinions : evidence from China

Document Type

Journal article

Source Publication

International Journal of Auditing

Publication Date

7-1-2008

Volume

12

Issue

2

First Page

111

Last Page

127

Keywords

Audit firm size, audit quality, audit opinion, China's audit market

Abstract

This study documents a continuous relation between audit firm size and the issuing of modified opinions in China using a panel data set of audit firms and listed firms from 2001 to 2003. The relation is robust after controlling for a set of confounding factors and dealing with endogeneity issues. It is also robust when we exclude audit firms involving foreign partners or private client firms from our sample. Our results indicate that the audit firm size effect suggested in other studies is applicable to audit markets that have not yet been dominated by a few very large audit firms as well as audit markets where client firms are partially state-owned entities.

DOI

10.1111/j.1099-1123.2008.00374.x

Print ISSN

10906738

E-ISSN

10991123

Publisher Statement

Copyright © 2008 Blackwell Publishing Ltd

Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Li, C., Song, F. M., & Wong, S. M. L. (2008). A continuous relation between audit firm size and audit opinions: Evidence from China. International Journal of Auditing, 12(2), 111-127. doi: 10.1111/j.1099-1123.2008.00374.x