5. Does Gopal V. This paper A sample of 1. They use two methods 1. Clients of specialist Big 6 Krishnan examines 24114 firm to proxy for auditor auditors have lower levels auditor (2003) the year industry expertise; one is of discretionary accruals industry observations the auditor market share in than clients of expertise between representing an industry and the other nonspecialist auditors; constrain audit 4422 firms one is an share 2. industry industry’s Auditors’ earnings industry audited by in the portfolio of expertise can, to some auditor’s expertise Big 6 client industries; extent, mitigate and auditors 2. In terms of earnings earnings earnings during the management, they adopt management; period from the cross-sectional 3. If the auditor both 1989 to 1998 variation of the Jones belongs to a Big 6 auditor in America. (1991) model (DeFond and an industry specialist, and Jiambalvo) to estimate it can further improve the the absolute reliability of accounting client’s discretionary accruals. statements by constraining earnings management. 6. Audit Chijoke This paper A sample of They adopt the Binary 1. The audit tenure partner Oscar tests the 50 listed Logit Model estimation negatively associates with tenure and Mgbame, companies in method to test the audit quality, though the audit Emmanuel between 2010 in the association between audit result is not significant; quality: an Eragbhe, auditor context of tenure and audit quality 2. The other explanatory empirical Nosakhare tenure and Nigeria. which is represented by variables, such as Board analysis Peter audit the likelihood of Independence, Director Osazuwa quality in cooperating with the Big Ownership and Board size (2012) the context audit firms. are negatively related to of Nigeria. audit quality; 3. Returns on Assets exerts a positive effect on audit quality.
5. Does Big 6 auditor industry expertise constrain earnings Gopal V. Krishnan (2003) This paper examines the between audit industry expertise and earnings A sample of 24114 firm year observations representing 4422 firms audited by Big 6 auditors during the period from 1989 to 1998 in America. 1. They use two methods to proxy for auditor industry expertise; one is the auditor market share in an industry and the other one is an industry’s share in the auditor’s portfolio of client industries; 2. In terms of earnings management, they adopt the cross-sectional variation of the Jones (1991) model (DeFond and Jiambalvo) to estimate the client’s absolute discretionary accruals. 1. Clients of specialist auditors have lower levels of discretionary accruals than clients of nonspecialist auditors; 2. Auditors’ industry expertise can, to some extent, mitigate earnings management; 3. If the auditor both belongs to a Big 6 auditor and an industry specialist, it can further improve the reliability of accounting statements by constraining earnings management. 6. Audit partner tenure and audit quality: an empirical analysis Chijoke Oscar Mgbame, Emmanuel Eragbhe, Nosakhare Peter Osazuwa (2012) This paper tests the between auditor tenure and audit quality in the context of Nigeria. A sample of 50 listed companies in 2010 in the context of Nigeria. They adopt the Binary Logit Model estimation method to test the association between audit tenure and audit quality which is represented by the likelihood of cooperating with the Big audit firms. 1. The audit tenure negatively associates with audit quality, though the result is not significant; 2. The other explanatory variables, such as Board Independence, Director Ownership and Board size are negatively related to audit quality; 3. Returns on Assets exerts a positive effect on audit quality.