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GÖNÜLLÜ DENETİM FİRMASI DEĞİŞİKLİĞİNİN DENETİM KALİTESİNE ETKİSİ

Year 2018, Volume: 20 - Special Issue of MODAV 15. International Conference on Accounting, 678 - 700, 27.12.2018

Alpaslan Yaşar , Neriman Yalçın

Abstract

Bu çalışmanın amacı, gönüllü denetim kuruluşu değişikliklerinin bağımsız denetim kalitesi üzerindeki etkilerini incelemektir. Bağımsız denetim kalitesinin göstergesi olarak ihtiyari tahakkukların kullanıldığı çalışma, 2011-2016 yılları arasında Borsa İstanbul’da (BİST) işlem gören imalat sanayi şirketleri örnekleminde en küçük kareler regresyon yöntemi kullanılarak gerçekleştirilmiştir. Araştırmanın temel sonucu, gönüllü denetim kuruluşu değişikliğinin denetim kalitesini negatif olarak etkilediğini göstermiştir. Ayrıca, gönüllü değişiklik sonrasında, hem 4 büyüklerce hem de 4 büyükler dışındakilerce denetlenen şirketlerde, pozitif ihtiyari tahakkuklarda artış ve dolayısıyla denetim kalitesinde düşüş gerçekleşmiştir. Diğer taraftan, 4 büyüklerden 4 büyüklere gönüllü denetim kuruluşu değişikliğinde, denetim kalitesinde artış; diğer denetim kuruluşlarından 4 büyüklere gönüllü denetim kuruluşu değişikliği durumunda ise denetim kalitesinde azalış görülmüştür.

Keywords

Denetim kalitesi Gönüllü denetim firması değişikliği Dört büyükler

References

  • Bartov, E., D. Givoly and C. Hayn. 2002. “The Rewards to Meeting or Beating Earnings Expectations”, Journal of Accounting and Economics, 33(2).
  • Becker, C.L., M. L. DeFond, J. Jiambalvo and K.R. Subramanyam. 1998. “The Effect of Audit Quality on Earnings Management”, Contemporary Accounting Research, 15 (1).
  • Beneish, M.D. 1997. “Detecting GAAP Violation: Implications for Assessing Earnings Management Among Firms With Extreme Financial Performance”, Journal of Accounting and Public Policy, 16(3).
  • Cai, C., S. Zhao and Y. Huang. 2005. “Toward The Effect of Audit Quality on Earnings Management-Empirical Evidence From Manufacturing Enterprises Listed in Shangai Stock Market”, Journal of Modern Accounting and Auditing, 1(2).
  • Cameran, M., A. Prencipe and M. Trombetta. 2015. “Mandatory Audit Firm Rotation and Audit Quality”, European Accounting Review, 25(1).
  • Carcello, J. V. and A.L. Nagy. 2004. “Audit Firm Tenure and Fraudulent Financial Reporting”, Auditing: A Journal of Practice & Theory, 23(2).
  • Carey, P. and R. Simnett. 2006. “Audit Partner Tenure and Audit Quality”, Accounting Review, 81(3).
  • Chen, C. Y., C. J. Lin and Y.C. Lin. 2008. “Audit Partner Tenure, Audit Firm Tenure, and Discretionary Accruals: Does Long Auditor Tenure Impair Earnings Quality?”, Contemporary Accounting Research, 25(2).
  • Chi, W., H. Huang, Y. Liao and H. Xie. 2009. “Mandatory Audit Partner Rotation, Audit Quality, and Market Perception: Evidence from Taiwan”, Contemporary Accounting Research, 26(2).
  • Corbella, S., C. Florio, G. Gotti and S. A. Mastrolia. 2015. “Audit Firm Rotation, Audit Fees and Audit Quality: The Experience of Italian Public Companies”, Journal of International Accounting, Auditing and Taxation, 25.
  • Davis, L. R., B. S. Soo and G.M. Trompeter. 2009. “Auditor Tenure and the Ability to Meet or Beat Earnings Forecasts”, Contemporary Accounting Research, 26(2).
  • DeAngelo, L.E. 1981. “Auditor Size and Audit Quality”, Journal of Accounting and Economics, 3 (3).
  • Dechow, P.M. 1994. “Accounting Earnings and Cash Flows as Measures of Firm Performance: The Role of Accounting Accruals”, Journal of Accounting and Economics, 18(1).
  • Dechow, P.M., R. G. Sloan and A.P. Sweeney. 1995. “Detecting Earnings Management”, The Accounting Review, 70(2).
  • DeFond, M.L. and J. Jiambalvo. 1994. “Debt Covenant Violation and Manipulation of Accruals”, Journal of Accounting and Economics, 17(2).
  • Francis, J., L.E. Maydew and H.C. Sparks. 1999. “The Role of Big 6 Auditors in The Credible Reporting of Accruals”, Auditing: A Journal of Practice & Theory, 18(2).
  • Francis, J. and D. Wang. 2008. “The Joint Effect of Investor Protection and Big 4 Audits on Earnings Quality Around the World”, Contemporary Accounting Research, 25 (1).
  • Geiger, M. A. and K. Raghunandan. 2002. “Auditor Tenure and Audit Reporting Failure”, Auditing: A Journal of Practice & Theory, 21(1).
  • Ghosh, A. and D. Moon. 2005. “Auditor Tenure and Perceptions of Audit Quality”, The Accounting Review, 80(2).
  • Jackson, A. B., M. Moldrich and P. Roebuck. 2008. “Mandatory Audit Firm Rotation and Audit Quality”, Managerial Auditing Journal, 23(5).
  • Jeong, S.W. and J. Rho. 2004. “Big Six Auditors and Audit Quality: The Korean Evidence”, The International Journal of Accounting”, 39(2).
  • Johnson, V., I. K. Khurana and J.K. Reynolds. 2002. “Audit-Firm Tenure And The Quality of Financial Reports”, Contemporary Accounting Research, 19(4).
  • Jones, J.J. 1991. “Earnings Management During Import Relief Investigations”, Journal of Accounting Research, 29(2).
  • Kim, J.R., R. Chung, R. and M. Firth. 2003. “Auditor Conservatism, Asymmetric Monitoring and Earnings Management”, Contemporary Accounting Research, 23(2).
  • Kim, J. B. and C.H. Yİ. 2009. “Does Auditor Designation by the Regulatory Authority Improve Audit Quality? Evidence from Korea”, Journal of Accounting and Public Policy, 28(3).
  • Kim, H., H. Lee and J.E. Lee. 2015. “Mandatory Audit Firm Rotation and Audit Quality”, The Journal of Applied Business Research, 31(3).
  • Kothari, S.P., A. J. Leone and C. E. Wasley. 2005. “Performance Matched Discreationary Accruals Measures”, Journal of Accounting and Economics, 39(1).
  • Kwon, S. Y., Y. Lim and R. Simnett. 2014. “The Effect of Mandatory Audit Firm Rotation on Audit Quality and Audit Fees: Empirical Evidence from the Korean Audit Market”, Auditing: A Journal of Practice & Theory, 33(4).
  • Lennox, C. 2014. Auditor tenure and rotation. In The Routledge Companion to Auditing, edited by D. Hay, W. R. Knechel and M. Willikens. Oxon, UK: Routledge.
  • Mansi, S., W. Maxwell and D. Miller. 2004. “Does Auditor Quality and Tenure Matter To Investors? Evidence from the Bond Market”, Journal of Accounting Research, 42(4).
  • Mohrrmann, U. 2017, “What are the Drivers of Audit Quality after an Auditor Change? Evidence from Voluntary and Mandatory Switches”, Available at SSRN: http://papers.ssrn.com/sol3/ papers.cfm?abstract_id=2589486 (Access Date: 29.06.2018).
  • Myers, J., L.A. Myers and T. C. Omer. 2003. “Exploring the Term of Auditor-Client Relationship and the Quality of Earnings: A Case for Mandatory Auditor Rotation?”, The Accounting Review, 78(3).
  • Noh, J.W. 2009. “The Effects of Mandatory Auditor Change on Audit Quality”, Korean Accounting Review, 34 (4).
  • Ocak, M. 2016. “Kâr Yönetimi, Bağımsız Denetim Görüşü ve Denetim Firması Değişimi Arasındaki İlişkiler: Borsa İstanbul İmalat Sektörüne Yönelik Bir Araştırma”, Business and Economics Research Journal, 7(3).
  • Park, J., M. Lee and J. Won. 1999. “Audit Quality Analysis Using Discretionary Accruals”, Accounting and Auditing Research, 35.
  • Sloan, R.G. 1996. “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?”, The Accounting Review, 71(3).
  • Tsipouridou, M. and C. Spathis. 2012. “Earnings Management and the Role of Auditors in an Unusual IFRS Context: The Case of Greece”, Journal of International Accounting, Auditing and Taxation, 21(1).
  • Warfield, T.D., J.J. Wild and K.L. Wild. 1995. “Managerial Ownership, Accounting Choices and Informativeness of Earnings”, Journal of Accounting and Economics, 20(1).
  • Yaşar, A. 2011. “Bağımsız Dış Denetim Kalitesinin Kâr Yönetimi Üzerine Etkisi: İMKB’de Kayıtlı İşletmeler Üzerine Bir Uygulama”, Çukurova Üniversitesi Sosyal Bilimler Enstitüsü, Yayınlanmamış Doktora Tezi.
  • Yaşar, A. 2013. “Big Four Auditor’s Audit Quality and Earnings Management: Evidence from Turkish Stock Market”, International Journal of Business and Social Science, 4 (17

THE EFFECT OF VOLUNTARY AUDIT FIRM SWITCH ON AUDIT QUALITY

Year 2018, Volume: 20 - Special Issue of MODAV 15. International Conference on Accounting, 678 - 700, 27.12.2018

Alpaslan Yaşar , Neriman Yalçın

Abstract

The purpose of this study is to examine the effects of voluntary audit firm switches on audit quality. The study, which used discretionary accruals as a measure of audit quality, was conducted using the least square regression method in the sample of manufacturing industry companies traded in Istanbul Stock Exchange (ISE) between 2011-2016. The main result of the study shows that audit quality is negatively affected by voluntary audit firm switches. In addition, after voluntary audit firm changes, positive discretionary accruals and hence audit quality decreased in companies both the companies audited by big four and non-big four audit firms. On the other hand, we find that increase in audit quality in the case of voluntary audit firm change among the big four audit firms; decrease in audit quality in the case of voluntary audit firm change from non-big four audit firms to big four audit firms.

Keywords

Audit quality Voluntary audit firm switch Big fours

References

  • Bartov, E., D. Givoly and C. Hayn. 2002. “The Rewards to Meeting or Beating Earnings Expectations”, Journal of Accounting and Economics, 33(2).
  • Becker, C.L., M. L. DeFond, J. Jiambalvo and K.R. Subramanyam. 1998. “The Effect of Audit Quality on Earnings Management”, Contemporary Accounting Research, 15 (1).
  • Beneish, M.D. 1997. “Detecting GAAP Violation: Implications for Assessing Earnings Management Among Firms With Extreme Financial Performance”, Journal of Accounting and Public Policy, 16(3).
  • Cai, C., S. Zhao and Y. Huang. 2005. “Toward The Effect of Audit Quality on Earnings Management-Empirical Evidence From Manufacturing Enterprises Listed in Shangai Stock Market”, Journal of Modern Accounting and Auditing, 1(2).
  • Cameran, M., A. Prencipe and M. Trombetta. 2015. “Mandatory Audit Firm Rotation and Audit Quality”, European Accounting Review, 25(1).
  • Carcello, J. V. and A.L. Nagy. 2004. “Audit Firm Tenure and Fraudulent Financial Reporting”, Auditing: A Journal of Practice & Theory, 23(2).
  • Carey, P. and R. Simnett. 2006. “Audit Partner Tenure and Audit Quality”, Accounting Review, 81(3).
  • Chen, C. Y., C. J. Lin and Y.C. Lin. 2008. “Audit Partner Tenure, Audit Firm Tenure, and Discretionary Accruals: Does Long Auditor Tenure Impair Earnings Quality?”, Contemporary Accounting Research, 25(2).
  • Chi, W., H. Huang, Y. Liao and H. Xie. 2009. “Mandatory Audit Partner Rotation, Audit Quality, and Market Perception: Evidence from Taiwan”, Contemporary Accounting Research, 26(2).
  • Corbella, S., C. Florio, G. Gotti and S. A. Mastrolia. 2015. “Audit Firm Rotation, Audit Fees and Audit Quality: The Experience of Italian Public Companies”, Journal of International Accounting, Auditing and Taxation, 25.
  • Davis, L. R., B. S. Soo and G.M. Trompeter. 2009. “Auditor Tenure and the Ability to Meet or Beat Earnings Forecasts”, Contemporary Accounting Research, 26(2).
  • DeAngelo, L.E. 1981. “Auditor Size and Audit Quality”, Journal of Accounting and Economics, 3 (3).
  • Dechow, P.M. 1994. “Accounting Earnings and Cash Flows as Measures of Firm Performance: The Role of Accounting Accruals”, Journal of Accounting and Economics, 18(1).
  • Dechow, P.M., R. G. Sloan and A.P. Sweeney. 1995. “Detecting Earnings Management”, The Accounting Review, 70(2).
  • DeFond, M.L. and J. Jiambalvo. 1994. “Debt Covenant Violation and Manipulation of Accruals”, Journal of Accounting and Economics, 17(2).
  • Francis, J., L.E. Maydew and H.C. Sparks. 1999. “The Role of Big 6 Auditors in The Credible Reporting of Accruals”, Auditing: A Journal of Practice & Theory, 18(2).
  • Francis, J. and D. Wang. 2008. “The Joint Effect of Investor Protection and Big 4 Audits on Earnings Quality Around the World”, Contemporary Accounting Research, 25 (1).
  • Geiger, M. A. and K. Raghunandan. 2002. “Auditor Tenure and Audit Reporting Failure”, Auditing: A Journal of Practice & Theory, 21(1).
  • Ghosh, A. and D. Moon. 2005. “Auditor Tenure and Perceptions of Audit Quality”, The Accounting Review, 80(2).
  • Jackson, A. B., M. Moldrich and P. Roebuck. 2008. “Mandatory Audit Firm Rotation and Audit Quality”, Managerial Auditing Journal, 23(5).
  • Jeong, S.W. and J. Rho. 2004. “Big Six Auditors and Audit Quality: The Korean Evidence”, The International Journal of Accounting”, 39(2).
  • Johnson, V., I. K. Khurana and J.K. Reynolds. 2002. “Audit-Firm Tenure And The Quality of Financial Reports”, Contemporary Accounting Research, 19(4).
  • Jones, J.J. 1991. “Earnings Management During Import Relief Investigations”, Journal of Accounting Research, 29(2).
  • Kim, J.R., R. Chung, R. and M. Firth. 2003. “Auditor Conservatism, Asymmetric Monitoring and Earnings Management”, Contemporary Accounting Research, 23(2).
  • Kim, J. B. and C.H. Yİ. 2009. “Does Auditor Designation by the Regulatory Authority Improve Audit Quality? Evidence from Korea”, Journal of Accounting and Public Policy, 28(3).
  • Kim, H., H. Lee and J.E. Lee. 2015. “Mandatory Audit Firm Rotation and Audit Quality”, The Journal of Applied Business Research, 31(3).
  • Kothari, S.P., A. J. Leone and C. E. Wasley. 2005. “Performance Matched Discreationary Accruals Measures”, Journal of Accounting and Economics, 39(1).
  • Kwon, S. Y., Y. Lim and R. Simnett. 2014. “The Effect of Mandatory Audit Firm Rotation on Audit Quality and Audit Fees: Empirical Evidence from the Korean Audit Market”, Auditing: A Journal of Practice & Theory, 33(4).
  • Lennox, C. 2014. Auditor tenure and rotation. In The Routledge Companion to Auditing, edited by D. Hay, W. R. Knechel and M. Willikens. Oxon, UK: Routledge.
  • Mansi, S., W. Maxwell and D. Miller. 2004. “Does Auditor Quality and Tenure Matter To Investors? Evidence from the Bond Market”, Journal of Accounting Research, 42(4).
  • Mohrrmann, U. 2017, “What are the Drivers of Audit Quality after an Auditor Change? Evidence from Voluntary and Mandatory Switches”, Available at SSRN: http://papers.ssrn.com/sol3/ papers.cfm?abstract_id=2589486 (Access Date: 29.06.2018).
  • Myers, J., L.A. Myers and T. C. Omer. 2003. “Exploring the Term of Auditor-Client Relationship and the Quality of Earnings: A Case for Mandatory Auditor Rotation?”, The Accounting Review, 78(3).
  • Noh, J.W. 2009. “The Effects of Mandatory Auditor Change on Audit Quality”, Korean Accounting Review, 34 (4).
  • Ocak, M. 2016. “Kâr Yönetimi, Bağımsız Denetim Görüşü ve Denetim Firması Değişimi Arasındaki İlişkiler: Borsa İstanbul İmalat Sektörüne Yönelik Bir Araştırma”, Business and Economics Research Journal, 7(3).
  • Park, J., M. Lee and J. Won. 1999. “Audit Quality Analysis Using Discretionary Accruals”, Accounting and Auditing Research, 35.
  • Sloan, R.G. 1996. “Do Stock Prices Fully Reflect Information in Accruals and Cash Flows about Future Earnings?”, The Accounting Review, 71(3).
  • Tsipouridou, M. and C. Spathis. 2012. “Earnings Management and the Role of Auditors in an Unusual IFRS Context: The Case of Greece”, Journal of International Accounting, Auditing and Taxation, 21(1).
  • Warfield, T.D., J.J. Wild and K.L. Wild. 1995. “Managerial Ownership, Accounting Choices and Informativeness of Earnings”, Journal of Accounting and Economics, 20(1).
  • Yaşar, A. 2011. “Bağımsız Dış Denetim Kalitesinin Kâr Yönetimi Üzerine Etkisi: İMKB’de Kayıtlı İşletmeler Üzerine Bir Uygulama”, Çukurova Üniversitesi Sosyal Bilimler Enstitüsü, Yayınlanmamış Doktora Tezi.
  • Yaşar, A. 2013. “Big Four Auditor’s Audit Quality and Earnings Management: Evidence from Turkish Stock Market”, International Journal of Business and Social Science, 4 (17
There are 40 citations in total.

Details

Primary Language English
Journal Section MAIN SECTION
Authors

Alpaslan Yaşar

Neriman Yalçın

Publication Date December 27, 2018
Submission Date June 15, 2018
Published in Issue Year 2018 Volume: 20 - Special Issue of MODAV 15. International Conference on Accounting

Cite

APA Yaşar, A., & Yalçın, N. (2018). THE EFFECT OF VOLUNTARY AUDIT FIRM SWITCH ON AUDIT QUALITY. Muhasebe Bilim Dünyası Dergisi, 20, 678-700.
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