| 论文简介 |
This study examines the relation between audit failures experienced by individual auditors and the quality of (other) audits performed by these same auditors. Employing the Chinese setting where the identities of engagement auditors are revealed in audit reports, we find that those auditors who have performed failed audits also deliver lower quality on other audit engagements, with this “contagion” effect spreading along both the longitudinal and lateral dimensions. This phenomenon exists in CPA firms organized as partnerships or limited liability companies. However, we find little evidence that an audit failure also implicates audit quality for “non-failed” auditors who are same-office colleagues of a “failed” auditor. We further uncover that the contagion effect is attenuated for female auditors, auditors holding a master degree, and auditors with longer auditing experience. Our results underscore the usefulness of disclosing the identity and personal characteristics of individual auditors to investors and regulators. |
(创新港)
