skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

The differential impact of distracted auditors in managing portfolio of financially distressed audit clients on audit quality: the role of professional skepticism

Future business journal, 2024-12, Vol.10 (1), p.36-19 [Peer Reviewed Journal]

The Author(s) 2024 ;The Author(s) 2024. This work is published under http://creativecommons.org/licenses/by/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License. ;ISSN: 2314-7202 ;EISSN: 2314-7210 ;DOI: 10.1186/s43093-024-00321-9

Full text available

Citations Cited by
  • Title:
    The differential impact of distracted auditors in managing portfolio of financially distressed audit clients on audit quality: the role of professional skepticism
  • Author: Bedeir, Reem Essam
  • Subjects: Audit fees ; Audit quality ; Auditing ; Auditing profession ; Auditors ; Business and Management ; Chartered accountants ; Distracted auditors ; Distraction events ; Earnings restatement ; Portfolio management ; Professional skepticism ; Skepticism ; Total accruals ; Workloads
  • Is Part Of: Future business journal, 2024-12, Vol.10 (1), p.36-19
  • Description: This study hypothesizes that distracted auditors affect audit quality. As a result of resources scarcity, auditors pay more attention to financially distressed audit clients rather than non-financially distressed audit clients at the same audit client portfolio which eventually leads to differences in audit quality. In this context, earnings restatement of audit clients is used as a distraction event of auditors. Distracted auditor is measured by the percentage of the audit fees of financially distressed audit clients to total audit fees and audit quality is proxied by total accruals. The data is obtained from firms listed on the US stock market over eleven years between 2010 and 2020. The results indicate that financially distressed audit clients of distracted auditors receive higher audit quality than non-financially distressed audit clients of the same audit client portfolio. Further analysis suggests that this difference in audit quality between financially distressed audit clients and non-financially distressed audit clients decreases with skeptical auditors. This study introduces a new comprehensive approach to measure professional skepticism using KAMs disclosure. The results are robust to different measurements of distracted auditors, audit quality and professional skepticism. Overall, the empirical analyses suggest that distracted auditors have a decreasing differential impact on audit quality by professional skepticism.
  • Publisher: Berlin/Heidelberg: Springer Berlin Heidelberg
  • Language: English
  • Identifier: ISSN: 2314-7202
    EISSN: 2314-7210
    DOI: 10.1186/s43093-024-00321-9
  • Source: SpringerOpen
    Directory of Open Access Journals
    ProQuest Central
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait