The Effects of Audit Selection and Usage of CPA Attestation on Tax Evasions: A Self-selection Analysis

• Main Authors: Hung, Sheng-Min, 洪聖閔
• Other Authors: Chen, Ming-Chin
• Format: Others
• Language: en_US
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/89123182670447593455

碩士 === 國立政治大學 === 會計研究所 === 93 === This study uses the business income tax dada in Taiwan to empirically examine the relationships between audit selection, tax evasion, and the usage of CPA-attestation. Tobit model with self-selection is used in this study. Empirical results provide evidence that tax agencies in Taiwan employ a systematic audit selection process, subject to the constraints of audit budgets. Additionally, firms using CPA-attestation are less likely to be selected for audit. The results also provide evidence that some important characteristics of firms, such as size, financial position, profitability, and the usage of CPA-attestation, may influence the amount of tax evasion. Finally, we find that the effect of CPA-attestation on tax evasion may vary with different sizes of firms using CPA-attestation. Hence, the policy and tax regulations associated with the usage of CPA-attestation may need to be re-evaluated.