Geographic Proximity between Auditor and Client: How does it Impact Audit Quality?

• Main Authors: CHOI, Jong-Hag, KIM, Jeong-Bon, QIU, Aini, ZANG, Yoonseok
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Auditor locality; geographic proximity; audit quality; diversification.; Accounting; Business Law, Public Responsibility, and Ethics; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/857; https://ink.library.smu.edu.sg/context/soa_research/article/1856/viewcontent/SSRN_id1982959.pdf
• Institution: Singapore Management University

Using a large sample of audit client firms, this paper investigates whether and how the geographic proximity between auditor and client affects audit quality proxied by accrual-based earnings quality. We define an auditor as a local auditor (1) if the auditor’s practicing office is located in the sa...