Client Engagement Risks and the Auditor Search Period
This paper investigates whether client engagement risks lengthen the client acceptance phase for audit firms and result in a longer auditor search period for their clients. Using a sample of auditor resignations over the period 2003–2008, we document that the auditor search period is longer for firm...
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| Veröffentlicht in: | Accounting horizons 2011-12, Vol.25 (4), p.685-702 |
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| container_title | Accounting horizons |
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| creator | Khalil, Samer K Cohen, Jeffrey R Schwartz, Kenneth B |
| description | This paper investigates whether client engagement risks lengthen the client acceptance phase for audit firms and result in a longer auditor search period for their clients. Using a sample of auditor resignations over the period 2003–2008, we document that the auditor search period is longer for firms associated with client business risk (financial distress) and audit risk (internal control weaknesses or management integrity issues), while it is shorter for firms representing reduced auditor business risk (auditor industry specialization). These findings highlight the importance of client risk assessment and explain audit firms' response to perceived client risks. |
| doi_str_mv | 10.2308/acch-50062 |
| format | Article |
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| fulltext | fulltext |
| identifier | ISSN: 0888-7993 |
| ispartof | Accounting horizons, 2011-12, Vol.25 (4), p.685-702 |
| issn | 0888-7993 1558-7975 |
| language | eng |
| recordid | cdi_proquest_miscellaneous_940980937 |
| source | EBSCOhost Business Source Complete |
| subjects | Accounting firms Audit engagements Audit offices Audit risk Auditing Auditors Business Customers Employment duration Engagement Enterprises Hypotheses Mental stress Nonaudit services Portfolio management Resignations Risk Risk assessment Studies U.S.A |
| title | Client Engagement Risks and the Auditor Search Period |
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