Audit Quality and Earnings Management: Empirical Study of Taiwan Banking Industry

• Main Authors: Yang Han, 韓陽
• Other Authors: Yi-Hsing Liao
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/st8z23

碩士 === 中原大學 === 會計研究所 === 102 === Banking is a regulatory industry, thus it may amplify the need for auditor industry specialization. This study aims to examine the effects of auditor size and industry specialization on earnings management surrogated by discretionary provision for banks. For my empirical tests, I include both listed and unlisted clients when calculating the audit partner size measures because unlisted clients are an important source of clientele for audit partners. I also use three methods to measure audit size and industry specialization. I find a positive association between CPA1 audit size/industry specialization and earnings quality. However, I do not find any significant association between CPA2 audit size and earnings quality.