An Empirical Study of the Relationship between Auditor Sanction and Auditor Reputation in Taiwan

• Main Authors: Pi-Chiao Chien, 簡碧嬌
• Other Authors: Tai-Cheng Shih
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/58767843916256188271

碩士 === 輔仁大學 === 會計學系碩士班 === 97 === The participants of financial market, including investors and debtors, measure operating performance of a business by reading and analyzing its financial report. However, as an old saying goes, ‘Garbage in, garbage out.’ The quality of financial statements is relevant to a great deal of business decision makings, and hence is deeply concerned by the users. Because of information asymmetry, the users seek professional opinion on financial statements from auditors and expect the auditors adding credibility on the audited financial statements. Nevertheless, audit quality is relied on the proficiency and independence of auditors. Auditors will be sanctioned by regulatory authority if they fail to comply with professional and ethical requirements while practicing audits. The severity of auditor sanction depends on the extents of violation. This thesis intends to empirically explore the relationship between auditor sanction and audit quality, proxied by auditor reputation, by examining sanction cases for the period of 1997 to 2008 in Taiwan. Current regulations regarding auditor sanctions and auditor reputation literature are also briefly reviewed in this paper. The author believes the resulting conclusion will provide an insight into the issues regarding accountancy regulations.