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Audit Partner Identification and Audit Quality

Authors: Kyungha Kari Lee;

Audit Partner Identification and Audit Quality

Abstract

This paper studies the effect of identifying the engagement partner of an audit on audit quality using an analytical model that focuses on individual partners' incentives and the partnership's choice of internal quality control. The model evaluates two distinct information settings: one where clients can observe only the partnership's past audit performance and the other where clients can also observe individual partners' past performances. Comparing the model outcomes between the two settings, the analysis shows that while partner identification increases individual partners' incentives to provide high quality audits for a given level of internal quality control within the partnership, it may also decrease the partnership's incentives to maintain good internal controls that actual audit quality suffers. This paper also shows that the level of external audit oversight is critical in determining whether partner identification enhances audit quality.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Average
Average
Average
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