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- Title
What Drives Auditor Selection?
- Authors
Almer, Elizabeth Dreike; Philbrick, Donna R.; Rupley, Kathleen Hertz
- Abstract
This study provides evidence on the factors that currently impact audit committee members' selection of external auditors. Using a two-stage approach, we survey and interview public company audit committee members (ACMs), and find evidence that management continues to provide input into the decision process even as SOX regulations require audit committees to take responsibility for the auditor selection decision. ACMs view management as an important information source when they assess the proposing audit partner's reputation for accessibility, timeliness, and ability to liaise with the firm's national technical office, as well as the proposing audit firm's technical and industry expertise. Results of this study can help firms be more competitive in the audit bidding process, inform policy makers when considering whether to impose further audit committee regulations, and aid academics in ensuring an up to date understanding of the audit committee's role in the auditor selection process.
- Subjects
AUDITORS; EMPLOYEE selection; AUDIT committees; SURVEY methodology; UNITED States. Sarbanes-Oxley Act of 2002; GOVERNMENT accounting; EMPLOYMENT
- Publication
Current Issues in Auditing, 2014, Vol 8, Issue 1, pA26
- ISSN
1936-1270
- Publication type
Article
- DOI
10.2308/ciia-50779