Tax Aggressiveness and Auditor Resignation

• Main Authors: ZANG, Yoonseok, GOH, Beng Wee, LIM, Chee Yeow, Shevlin, Terry
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2013
• Subjects: Tax aggressiveness; auditor resignation; agency cost; external monitoring; auditor independence; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1125; https://ink.library.smu.edu.sg/context/soa_research/article/2124/viewcontent/SSRN_id2277336.pdf
• Institution: Singapore Management University

We examine the relation between client tax aggressiveness and auditor‟s resignation decision. Consistent with the agency view of tax avoidance which suggests that client tax aggressiveness can increase litigation and reputational risk to auditors and increase the potential conflict with managers, we...