The Relationship between Industry Specialist and Audit Quality-Multiple Measurement of Industry Specialist

• Main Author: 黃隆偉
• Other Authors: 方俊儒
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/46990072529660534982

碩士 === 國立彰化師範大學 === 會計學系 === 100 === Current literature indicated that industry specialization is conducive to audit quality. For a financial distressed company, industry specialist auditor is more like to issue a going concern opinion than that of nonspecialist. However, measurement of industry specialist among current studies is different. Thus it is difficult to compare these results. Neal &; Riley(2004)indicated that weighted market share approach could synthesize the characteristics of industry market share approach and industry portfolio share approach. Therefore, this study examines whether the effects of a industry specialist auditor tend to issue going concern opinion by using different measurement of industry specialist auditor is consistent or not. The empirical results suggest that these measures produce inconsistent results. However, this study finds that base on clients’ sales combined with the first partner level, industry specialist auditor is more likely to issue going concern opinion to a financial distressed company than that of nonspecialist. Besides, this study finds that when the scale of industy is too small, weighted market share approcah cannot overcome the shortcomings of industry market share approach and industry portfolio share approach.