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|Other Titles:||Effects of Merger of CPA Firms on Auditor Independence|
Wu, Tsing-Zai C.;Tseng, Yee-Chy
Merger of CPA firms;Going-concern opinion;Auditor’s report;Auditor’s independence
|Issue Date:||2016-05-31 16:54:43 (UTC+8)|
Following the development of new audit techniques, new audit regulations and the keen competition of audit market, “growth by merger” becomes a competitive strategy for CPA firms. As the size of a CPA firm is changed due to the merger, the issue of whether auditor independence is affected by mergers has received much attention. The purpose of the study is to examine the effect of the latest three major CPA-firm mergers in Taiwan on auditor independence. Our sample includes the financially distressed companies listed in Taiwan Stock Exchange and Taiwan OTC and their auditors. The auditor’s decision on issuing a going concern opinion is used as the proxy for auditor independence. We do not find consistent evidence for the hypothesis that auditors are apt to issue going concern opinions after the merger due to size increase. We also do not find empirical support for the argument that, compared to big CPA firms, small CPA firms are apt to issue more going concern opinions than big CPA firms after the merger because they become relatively larger size through mergers. More data on mergers of CPA firms are needed to further explore other likely factors for auditor independence.
International Journal of Accounting Studies
|Appears in Collections:||[會計評論] 期刊論文|
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