155166 - Effects of audit committee chair.pdf (2.2 MB)
Effects of audit committee chair characteristics on auditor choice, audit fee and audit quality
journal contributionposted on 2023-05-21, 16:10 authored by Azizkhani, M, Hossain, S, Nguyen, Mai
We investigate whether the characteristics of audit committee (AC) chairs are associated with decisions about auditor choice, audit fees and audit quality. Using hand-collected Australian data, firms with AC chairs who have longer tenure and multiple AC memberships across several boards are found to be more likely to choose Big 4 and/or industry specialist auditors, pay higher audit fees and have lower discretionary accruals. Those AC chairs with higher business qualifications are more likely to hire a Big 4 auditor, pay higher audit fees and have lower discretionary accruals, while AC chairs with professional qualifications are more likely to hire a Big 4 and/or industry specialist auditor. In contrast, firms with AC chairs who are executive directors are less likely to hire a Big 4 auditor and have higher discretionary accruals. Our findings contribute to the literature by documenting that various characteristics of AC chairs are important for enhancement of auditor selection and audit quality.
Publication titleAccounting & Finance
PublisherJohn Wiley & Sons, Inc
Place of publicationAustralia
Rights statement© 2023 The Authors. Accounting & Finance published by John Wiley & Sons Australia. This is an open access article under the terms of the Creative Commons Attribution 4.0 International (CC BY 4.0) License, https://creativecommons.org/licenses/by/4.0/ which permits use, distribution and reproduction in any medium, provided the original work is properly cited.