The Auditor-client Contractual Relationship: An Economic Analysis |
Contents
Corporate Contracting Relationships and the Demand for Audit Services | 7 |
On the Nature of Audit Services | 17 |
Auditor Independence and the Intertemporal Pricing | 33 |
Copyright | |
6 other sections not shown
Common terms and phrases
AICPA assumed attest falsely audit clients audit firms audit output audit quality audit services audited financial statements auditor concentration auditor industry auditor inputs auditor opportunism auditor-client relationship auditor's choice auditors and clients Benston bilateral monopoly bondholders brand name mechanism capital market capture ceteris paribus changing auditors Chapter cheating ci(n client firms collateral bond competition among auditors contracting for audit costly to observe costs of changing current owners current shareholders decision decision problem disclosure Dopuch and Simunic effect engagement letters Envelope Theorem equation equilibrium ex ante example exchange of audit expected financial statements firm value firm-specific firm's free rider problem function future economic interest future economic profit given client horizon impair auditor independence incumbent auditor industry clients industry-level learning-by-doing advantages information asymmetry low-balling managers market for audit number of auditors Palmon predictions present value problem public accounting firms regulation specialized assets testable implications total costs transactions costs