Client, Industry and Country Factors Affecting Choice of Big N Industry Expert Auditors

Author

Michael Ettredge
Soo Young KWON, Korea University
Chee Yeow LIM, Singapore Management UniversityFollow

Publication Type

Conference Paper

Publication Date

9-2005

Abstract

This study investigates client choice of industry specialist auditors from among the Big N (Big 4 or 5) in an international (non-U.S.) setting. We investigate client-specific, industry-level and country-level factors hypothesized to enhance or decrease Big N clients' demand for industry expertise. Using data for 29 countries and 14 broad industries from 1993-2005, we find that international client choice of industry specialist Big N auditors is positively associated with client size, client growth opportunities, and client capital intensity. The choice of industry specialists from among the Big N is more prevalent in countries where levels of investor protection, quality of financial reporting environment, and national economic development are higher. Clients belonging to regulated industries tend to select industry specialists.

Keywords

Global audit market, industry specialization, audit market shares, audit quality, international auditing, Big N auditors

Discipline

Accounting | Business Law, Public Responsibility, and Ethics | Corporate Finance

Research Areas

Corporate Governance, Auditing and Risk Management

Publication

American Accounting Association Annual Meeting

City or Country

San Francisco, California, USA

Citation

Ettredge, Michael; KWON, Soo Young; and LIM, Chee Yeow. Client, Industry and Country Factors Affecting Choice of Big N Industry Expert Auditors. (2005). American Accounting Association Annual Meeting.
Available at: https://ink.library.smu.edu.sg/soa_research/639

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.