Artikel
Audit mode change, corporate governance and audit effort
This study investigates changes in audit strategy in China following the introduction of risk-based auditing standards rather than an internal control-based audit mode. Specifically, we examine whether auditors are implementing the risk-based audit mode to evaluate corporate governance before distributing audit resources. The results show that under the internal control-based audit mode, the relationship between audit effort and corporate governance was weak. However, implementation of the risk-based mode required by the new auditing standards has significantly enhanced the relationship between audit effort and corporate governance. Since the change in audit mode, the Big Ten have demonstrated a significantly better grasp of governance risk and allocated their audit effort accordingly, relative to smaller firms. The empirical evidence indicates that auditors have adjusted their audit strategy to meet the regulations, risk-based auditing is being achieved to a degree, reasonable and effective corporate governance helps to optimize audit resource allocation, and smaller auditing firms in particular should urgently strengthen their risk-based auditing capability. Overall, our findings imply that the mandatory switch to risk-based auditing has optimized audit effort in China.
- Language
-
Englisch
- Bibliographic citation
-
Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 8 ; Year: 2015 ; Issue: 4 ; Pages: 315-335 ; Amsterdam: Elsevier
- Classification
-
Management
Auditing
Corporate Finance and Governance: Government Policy and Regulation
Firm Organization and Market Structure
- Subject
-
Audit effort
Risk-based audit mode
Corporate governance
- Event
-
Geistige Schöpfung
- (who)
-
Cao, Limei
Li, Wanfu
Zhang, Limin
- Event
-
Veröffentlichung
- (who)
-
Elsevier
- (where)
-
Amsterdam
- (when)
-
2015
- DOI
-
doi:10.1016/j.cjar.2015.05.002
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Cao, Limei
- Li, Wanfu
- Zhang, Limin
- Elsevier
Time of origin
- 2015
Other Objects (12)
How audit effort affects audit quality: An audit process and audit output perspective
Corporate governance and audit quality in Nigerian banks
Investigating corporate governance key players in the light of audit quality and audit fees
Abschlussprüfung und corporate governance : vom financial Audit zum Business-Audit vor dem Hintergund der Erwartungslücke
Corporate governance and audit fees: Evidence from a developing country
Corporate governance, internal audit function and accountability in statutory corporations
Governance-Management, Band 2.. Standard & Audit
Audit services, non-audit services, and audit firm tenure : Three perspectives on audit quality
Audit services, non-audit services, and audit firm tenure: Three perspectives on audit quality
Audit committee characteristics and corporate governance disclosure: evidence from Vietnam listed companies
Audit mandates, audit firms, and auditors
Audit Report
How audit effort affects audit quality: An audit process and audit output perspective
Corporate governance and audit quality in Nigerian banks
Investigating corporate governance key players in the light of audit quality and audit fees
Abschlussprüfung und corporate governance : vom financial Audit zum Business-Audit vor dem Hintergund der Erwartungslücke
Corporate governance and audit fees: Evidence from a developing country
Corporate governance, internal audit function and accountability in statutory corporations
Governance-Management, Band 2.. Standard & Audit
Audit services, non-audit services, and audit firm tenure : Three perspectives on audit quality
Audit services, non-audit services, and audit firm tenure: Three perspectives on audit quality
Audit committee characteristics and corporate governance disclosure: evidence from Vietnam listed companies
Audit mandates, audit firms, and auditors
Audit Report
How audit effort affects audit quality: An audit process and audit output perspective
Corporate governance and audit quality in Nigerian banks
Investigating corporate governance key players in the light of audit quality and audit fees
Abschlussprüfung und corporate governance : vom financial Audit zum Business-Audit vor dem Hintergund der Erwartungslücke
Corporate governance and audit fees: Evidence from a developing country
Corporate governance, internal audit function and accountability in statutory corporations
Governance-Management, Band 2.. Standard & Audit
Audit services, non-audit services, and audit firm tenure : Three perspectives on audit quality
Audit services, non-audit services, and audit firm tenure: Three perspectives on audit quality
Audit committee characteristics and corporate governance disclosure: evidence from Vietnam listed companies
Audit mandates, audit firms, and auditors