Effects of country-level legal, extra-legal and political institutions on auditing: A cross-country analysis of the auditor specialization premium

  • Bin Srinidhi*
  • , Chee Yeow Lim
  • , Mahmud Hossain
  • *Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

15 Scopus citations

Abstract

In this cross-country study of the specialist auditor premium, which spans the US and 12 other countries, we provide evidence that country-level institutional strength increases average audit fees, but reduces the incremental demand for specialist auditors. This finding supports the hypothesis that strong institutions and the demand for specialist knowledge act as substitutes in providing the requisite assurance of financial statements.

Original languageEnglish
Pages (from-to)34-46
Number of pages13
JournalJournal of Contemporary Accounting and Economics
Volume5
Issue number1
DOIs
StatePublished - Jun 2009
Externally publishedYes

Keywords

  • Audit specialization
  • Extra-legal institutions
  • Legal protection
  • Political economy

ASJC Scopus subject areas

  • Accounting

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