The effect of China's weak institutional environment on the quality of Big 4 audits

• Main Authors: Ke, Bin, Lennox, Clive S., Xin, Qingquan
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2018
• Subjects: Audit Quality; Big 4; DRNTU::Business::Accounting
• Online Access: https://hdl.handle.net/10356/87856; http://hdl.handle.net/10220/46871
• Institution: Nanyang Technological University

This study examines whether China's weak institutional environment results in lower-quality audits by the Big 4 firms. We find that the Big 4 assign their less experienced partners to companies that are listed only in China compared with clients cross-listed in Hong Kong. The Big 4 are less lik...