Is audit quality homogenous among the Big 4? Contrary evidence from Malaysia

Tyrone M. Carlin, Nigel Finch, Nur Hidayah Laili

Research output: Contribution to journalConference paperResearchpeer-review

Abstract

Audit quality can be defined as relating to the probability that financial statements contain no material omissions or misstatements. Previous research on the subject of audit quality relies on the assumption that large audit firms (Big 4) are homogenous in providing higher audit quality than small audit firms (non-Big 4). This paper examines the audited disclosures made during the transition period under FRS 136 of a sample of large Malaysian listed corporations who each have engaged Big 4 auditors. The results find a large cross sectional variation in the quality of disclosures between audit firms, providing contrary evidence to the homogenous Big 4 audit quality assumption.

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Malaysia
Audit quality
Big 4
Audit firms
Disclosure
Financial statements
Auditors

Cite this

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title = "Is audit quality homogenous among the Big 4? Contrary evidence from Malaysia",
abstract = "Audit quality can be defined as relating to the probability that financial statements contain no material omissions or misstatements. Previous research on the subject of audit quality relies on the assumption that large audit firms (Big 4) are homogenous in providing higher audit quality than small audit firms (non-Big 4). This paper examines the audited disclosures made during the transition period under FRS 136 of a sample of large Malaysian listed corporations who each have engaged Big 4 auditors. The results find a large cross sectional variation in the quality of disclosures between audit firms, providing contrary evidence to the homogenous Big 4 audit quality assumption.",
author = "Carlin, {Tyrone M.} and Nigel Finch and Laili, {Nur Hidayah}",
year = "2009",
language = "English",
journal = "Proceedings of the 38th Annual Meeting of the Western Decision Sciences Institute",
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publisher = "Western Decision Sciences Institute",

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Is audit quality homogenous among the Big 4? Contrary evidence from Malaysia. / Carlin, Tyrone M.; Finch, Nigel; Laili, Nur Hidayah.

In: Proceedings of the 38th Annual Meeting of the Western Decision Sciences Institute, 2009.

Research output: Contribution to journalConference paperResearchpeer-review

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AU - Finch, Nigel

AU - Laili, Nur Hidayah

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AB - Audit quality can be defined as relating to the probability that financial statements contain no material omissions or misstatements. Previous research on the subject of audit quality relies on the assumption that large audit firms (Big 4) are homogenous in providing higher audit quality than small audit firms (non-Big 4). This paper examines the audited disclosures made during the transition period under FRS 136 of a sample of large Malaysian listed corporations who each have engaged Big 4 auditors. The results find a large cross sectional variation in the quality of disclosures between audit firms, providing contrary evidence to the homogenous Big 4 audit quality assumption.

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JO - Proceedings of the 38th Annual Meeting of the Western Decision Sciences Institute

T2 - Proceedings of the 38th Annual Meeting of the Western Decision Sciences Institute

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