Auditor concentration of regulated industry-an examlpe of the banking industry in Taiwan

• Main Authors: Yi-Ling Chen, 陳宜伶
• Other Authors: Ling-Tai Lynette Chou
• Format: Others
• Language: zh-TW
• Published: 2001
• Online Access: http://ndltd.ncl.edu.tw/handle/09163404502278434113

碩士 === 國立政治大學 === 會計學系 === 89 === With deregulation in the banking industry, newly established commercial banks enlarged the CPA’s audit market. The banking industry is highly regulated by laws and has multiple operating activities related with cash. Therefore, the audit processes are different from other industries. Based on the research of Eichensecher & Danos in 1981, the CPA-firm concentration was a positive function of the degree of client-industry regulation and capital market activity. Hogan & Jeter in 1999 concluded that levels of concentration had increased over time. Auditor concentration levels are higher in regulated industries, in more concentrated industries and in industries experiencing rapid growth, but lower in industries with a high risk of litigation. The purpose of this study is to answer the question whether auditor concentration levels in the banking industry are different from those in other industries. By using regression, the firms listed in Taiwan Stock Exchange for the period from 1992 to 1999 are investigated. Based on this research, the following conclusions are reached: 1.The relationship between the level of regulation on client''s industry and auditor concentration is not significant. 2.The relationship between time factor and auditor concentration is positive. 3.The interaction of regulation and time factors is positively related with auditor concentration.