| Research Title |
Auditor Expertise, Complexity of Revenue Recognition, and Audit Quality |
| Date of Distribution |
27 November 2023 |
| Conference |
| Title of the Conference |
20th Asian Academic Accounting Association Annual Conference 2023 |
| Organiser |
Asian Academic Accounting Association |
| Conference Place |
Pullman Khon Kaen Raja Orchid Hotel |
| Province/State |
KHON KAEN, THAILAND |
| Conference Date |
26 November 2023 |
| To |
28 November 2023 |
| Proceeding Paper |
| Volume |
2567 |
| Issue |
1 |
| Page |
68-79 |
| Editors/edition/publisher |
Asian Academic Accounting Association |
| Abstract |
This research explores whether auditor expertise affects audit quality and whether the complexity of accounting treatments for revenue recognition in particular industries moderate the effect of auditor expertise on audit quality. Using data from the Thai stock market spanning over 2013 to 2021, the results show that auditor expertise has a significantly negative relationship with discretionary accruals implying that the auditor expertise improves audit work, as predicted. However, the complexity of accounting practices implemented in curtain types of industry does not moderate the effect of auditor expertise. Our additional analysis further shows that higher audit fees lead to higher discretionary accruals supporting the notion that premium audit fees signal economic bonding giving bargaining power to engagement clients. This study contributes to this research stream by documenting that if the auditor is specialized and skillful – so-called auditor expertise, more complex transactions or accounting practice does not diminish the auditor specialization and audit performance accordingly. The findings of this study also has an implication for practitioners and regulators by (1) indicating that the specialist auditors can improve audit quality but such specialization does not improve audit performance when auditing clients that operate in a high complexity environment causing high inherent risk (2) signaling that firms that paid premium audit fees to auditors tend to have power of bargaining over auditors. |
| Author |
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| Peer Review Status |
มีผู้ประเมินอิสระ |
| Level of Conference |
นานาชาติ |
| Type of Proceeding |
Full paper |
| Type of Presentation |
Oral |
| Part of thesis |
true |
| Presentation awarding |
false |
| Attach file |
|
| Citation |
0
|
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Publication
Journal Publication
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