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
Publisher
Wiley-Blackwell Publishing Ltd.
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
Language
English
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