Audit firm business model, incentives, and audit markets

Sub-themes: PIE/non-PIE/OMB segment, auditor commercialism and professionalism, partner performance management and compensation, joint audits, auditor-client matching, intermediary model

Projects

2017B01 - Does the private owner-managed firm audit market serve a different purpose? (Prof. dr. Suijs)

This study is designed to examine whether economic forces and regulation (institutions) affect audit different conditional on whether these audits are executed for Public interest entities, privately owned business or owner-managed business.

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2017B06 - How is auditor commercialism related to audit quality and efficiency? (Prof. Ciconte)

This study will (1) examine whether a tradeoff actually exists between auditors’ commercial and professional motivations and (2) whether audit firms’ quality control mechanisms create conditions in which the two sets of motivations are (or can be) even mutually reinforcing.

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2019B03 - The allocation of lead auditors to clients: large-scale evidence on the determinants and consequences of allocation decisions in audit offices (Prof. dr. Cardinaels)

We will conduct the first large scale archival research to investigate how audit firms/audit offices allocate lead auditors to their clients, and whether such decisions affect the performance of lead auditors.

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2019A01 - Economic consequences of joint audit (Prof. dr. Schatt)

This research synthesis will present and discuss: (1) institutional aspects of joint audit: the genesis of their use in France (where it is mandatory) and in other countries, and the current interest in the UK and in The Netherlands.

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2017C02 - The (future) auditing (partner) business model

What do we already know from research about the impact of a combination of audit and non-audit services (1) within one firm and (2) for one client on audit quality in general and on the specific audit engagement? Additional focal points are knowledge spillovers, audit firm quality culture and multidisciplinary talent pool (e.g., attracting within firm expertise for audit purposes), the trade-off between independence and the auditor’s knowledge base, and different auditee market segments (e.g., public interest entities versus owner-managed-businesses).

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2020B01 - The auditor selection process: From tender to relationship management (Dr. Hardies)

The process of selecting and appointing an auditor is complex. A robust, objective and transparent auditor selection process is, however, essential to preserve auditor independence and ensure audit quality.

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