Does Big 6 Auditor Industry Expertise Constrain Earnings Management

By Gopal V. Krishnan. 2003

887 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/dd7019bc5092f7c9e287f5f763ae739f93c4861b

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In Accounting

1. Daniel Aobdia
2. Jere R. Francis
3. Ebraheem Saleem Salem Alzoubi
4. C. Lim
5. Ahsan Habib
6. Weili Ge
7. Dechun Wang
8. W. Robert Knechel

In Strategy and Management

1. Daniel Aobdia
2. Ahsan Habib
3. Weili Ge
4. Dechun Wang
5. C. Lim
6. P. Kent
7. J. Stewart
8. Jere R. Francis

Citations in the corpus

• The Association between Big 6 Auditor Industry Expertise and the Asymmetric Timeliness of Earnings (2004, background): “Krishnan (2003) reports that portfolio shares and industry market shares are highly correlated, but industry market shares may be a noisier measure of auditors’ industry expertise.”
• What do we know about audit quality (2004, background): “Meyers et al. (2003) find no evidence that long tenure impairs audit quality and some (weak) evidence that accruals are of higher quality as tenure increases (i.”
• Audit Quality: Insights from the Academic Literature (2013, background): “…in total, or income-increasing accruals alone, and proxies for audit quality including Big N auditors (Francis et al. 1999; Kim et al. 2003), auditor specialization (Krishnan 2003b; Balsam et al. 2003), auditor tenure (Myers et al. 2003) and audit office size (Francis and Yu 2009).”
• Do CFOs Have Style? An Empirical Investigation of the Effect of Individual CFOs on Accounting Practices* (2011, methodology): “Following Krishnan 2003, we first calculate auditor portfolio shares for each Big N auditor, industry (2-digit SIC code), and year using the COMPUSTAT population (1988–2006).”
• Board Characteristics, Audit Committee Characteristics and Abnormal Accruals (2006, neutral): “1999) and auditor industry specialisation (Krishnan 2003).”
• Audit firm industry specialization and the audit report lag (2011, background): “…that industry-focused audit firms’ investment in technologies, physical facilities, personnel, and organization control systems improves the quality of audits for the firms’ focal industries (Krishnan, 2003, 2005; Balsam, Krishnan, & Yang, 2003; Mayhew & Wilkins, 2003; Kwon, Lim, & Tan, 2007).”
• Is Enhanced Audit Quality Associated with Greater Real Earnings Management (2011, background): “Balsam et al. (2003) and Krishnan (2003) find that auditor industry expertise is associated with lower levels of accrual earnings management.”
• Auditor quality and earnings management: Singaporean evidence (2010, background): “) suggest that specialization enables the auditor to provide superior services and credibility; in turn, the auditor will be able to conduct a more effective audit enhancing the ability to detect and constrain earnings management ( Krishnan, 2003b”
• Audit Quality and the Trade-Off between Accretive Stock Repurchases and Accrual-Based Earnings Management (2012, methodology): “Industry-specific auditors more likely identify extraordinary transactions, have more exposure to industry best practices, and have improved ability to identify inherent and control risks (Krishnan 2003).”