Client Relationship-Building and Audit Quality
Download or Read eBook Client Relationship-Building and Audit Quality PDF written by Joshua Ronen and published by . This book was released on 2019 with total page 51 pages. Available in PDF, EPUB and Kindle.
Author | : Joshua Ronen |
Publisher | : |
Total Pages | : 51 |
Release | : 2019 |
ISBN-10 | : OCLC:1304293127 |
ISBN-13 | : |
Rating | : 4/5 (27 Downloads) |
Book Synopsis Client Relationship-Building and Audit Quality by : Joshua Ronen
Book excerpt: This paper presents a model of auditor-client relationship-building. Existing literature suggests that quasi-rents rising from long auditor tenure have a negative effect on auditor independence. In contrast to this conventional wisdom, our paper shows a positive effect of quasi-rents resulting from relationship-building on auditor independence. Prohibiting relationship-building takes away this benefit, and increases the likelihood of an auditor accepting an inaccurate, higher report. This is the first study analyzing the impact of client relationship-building initiated by auditors on audit quality.