The Relation between Client Importance in Audit Firms and Corporate Tax Avoidance

• Main Authors: YANG,YU-PING, 楊喻評
• Other Authors: HUNG, SHENG-MIN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/msxz39

碩士 === 東吳大學 === 會計學系 === 105 === The aim of this study is to explore the relation between client importance and corporate tax avoidance, measured by audit firms and auditors level. I further examine whether the relationship between clients importance and corporate tax avoidance in Big4 audit firms is different from non-Big4 audit firms. The study shows that at the level of audit firms, the more important the clients are, the higher level the tax avoidance will be, regardless of the proportion of the audit fees, non-audit fees and total fees. It also shows the same results at the major auditor level, but it will reduce major auditors’ incentive to the tax avoidance of the important clients in the big4 audit firms. If the secondary auditors is used as the bias for measuring the client importance, client importance is only positively related to the corporate tax avoidance in the proportion of non-audit fees. Then, in the case of big4 audit firms, it can also reduce major auditor for the tax avoidance of the important clients. The empirical results also indicate that auditor is the main decision unit in the audit firm, and the major auditors is also an individual who has a direct relationship with the audit quality.