Auditor Locality, Audit Quality and Audit Pricing

• Main Authors: Choi, Jong-Hag, Kim, Jeong-Bon, Qiu, Aini, ZANG, Yoonseok
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2007
• Subjects: Accounting; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/88
• Institution: Singapore Management University

Using a large sample of U.S. audit client firms over the 2001-2004 period, this paper investigates whether and how the locality of auditor or the geographic proximity between auditors and clients affects audit quality and audit pricing. We use the magnitude of abnormal accruals as a proxy for audit...