Mandatory Audit Engagement Partner Signature, Audit Quality and Market Perception: Evidence from UK

Persistent Link:
http://hdl.handle.net/10150/243960
Title:
Mandatory Audit Engagement Partner Signature, Audit Quality and Market Perception: Evidence from UK
Author:
Guo, Yunyan
Issue Date:
May-2012
Publisher:
The University of Arizona.
Rights:
Copyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.
Abstract:
U.S. standard setters are considering mandating individual audit engagement partners to sign their name on the audit opinion, in the hope that such a mandate would help investors and improve audit quality. However, it is unclear whether such a mandate would improve audit quality without an increase in audit partner’s legal liability and how the market would react to such a mandate. In this paper, we examine both market perception and audit quality effects of mandatory audit partner signature in the United Kingdom, a country has similar legal and accounting environment as U.S. with no tradition of partner signatures. By comparing multiple measures of audit quality prior and after the adoption of mandatory audit partner signature, we are unable to detect any material change in audit quality. Also, there is no evidence showing that the market reacts positively to the policy change.
Type:
text; Electronic Thesis
Degree Name:
B.S.B.A.
Degree Level:
bachelors
Degree Program:
Honors College; Accounting
Degree Grantor:
University of Arizona

Full metadata record

DC FieldValue Language
dc.language.isoenen_US
dc.titleMandatory Audit Engagement Partner Signature, Audit Quality and Market Perception: Evidence from UKen_US
dc.creatorGuo, Yunyanen_US
dc.contributor.authorGuo, Yunyanen_US
dc.date.issued2012-05-
dc.publisherThe University of Arizona.en_US
dc.rightsCopyright © is held by the author. Digital access to this material is made possible by the University Libraries, University of Arizona. Further transmission, reproduction or presentation (such as public display or performance) of protected items is prohibited except with permission of the author.en_US
dc.description.abstractU.S. standard setters are considering mandating individual audit engagement partners to sign their name on the audit opinion, in the hope that such a mandate would help investors and improve audit quality. However, it is unclear whether such a mandate would improve audit quality without an increase in audit partner’s legal liability and how the market would react to such a mandate. In this paper, we examine both market perception and audit quality effects of mandatory audit partner signature in the United Kingdom, a country has similar legal and accounting environment as U.S. with no tradition of partner signatures. By comparing multiple measures of audit quality prior and after the adoption of mandatory audit partner signature, we are unable to detect any material change in audit quality. Also, there is no evidence showing that the market reacts positively to the policy change.en_US
dc.typetexten_US
dc.typeElectronic Thesisen_US
thesis.degree.nameB.S.B.A.en_US
thesis.degree.levelbachelorsen_US
thesis.degree.disciplineHonors Collegeen_US
thesis.degree.disciplineAccountingen_US
thesis.degree.grantorUniversity of Arizonaen_US
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