IDEAS home Printed from https://ideas.repec.org/a/cmj/seapas/y2014i4p545-554.html
   My bibliography  Save this article

Effects Of The New Regulation And Corporate Governance Of The Audit Profession

Author

Listed:
  • Melinda Timea FÜLÖP

    (Babeș-Bolyai University, Faculty of Economics and Business Administration)

  • Mirela-Oana PINTEA

    (Babeș-Bolyai University, Faculty of Economics and Business Administration)

Abstract

Financial scandals of the last decade have had a negative effect upon the trust and perception of investors regarding auditor responsibility, firm performance and their part in fraud and error detection. The audit firms play an important role in the capital markets by verifying that auditors provide reliable information to the decision makers. The characteristic elements of the new economy require economic entities new performance standards that go beyond economics. These works’ aim is to explore the implication of the new regulation and corporate governance on the audit profession and audit quality. This study contributes to the literature as it provides a better understanding on how the auditor and audit firms react toward the additional requirements.

Suggested Citation

  • Melinda Timea FÜLÖP & Mirela-Oana PINTEA, 2014. "Effects Of The New Regulation And Corporate Governance Of The Audit Profession," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 4, pages 545-554, July.
    • Handle: RePEc:cmj:seapas:y:2014:i:4:p:545-554
    as

    Download full text from publisher

    File URL: http://seaopenresearch.eu/Journals/articles/SPAS_4_63.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dulacha G. Barako & Phil Hancock & H. Y. Izan, 2006. "Factors Influencing Voluntary Corporate Disclosure by Kenyan Companies," Corporate Governance: An International Review, Wiley Blackwell, vol. 14(2), pages 107-125, March.
    2. Bushman, Robert & Chen, Qi & Engel, Ellen & Smith, Abbie, 2004. "Financial accounting information, organizational complexity and corporate governance systems," Journal of Accounting and Economics, Elsevier, vol. 37(2), pages 167-201, June.
    3. Chau, Gerald & Gray, Sidney J., 2010. "Family ownership, board independence and voluntary disclosure: Evidence from Hong Kong," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 19(2), pages 93-109.
    4. Jenny Goodwin‐Stewart & Pamela Kent, 2006. "Relation between external audit fees, audit committee characteristics and internal audit," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 46(3), pages 387-404, September.
    5. Stephen Owusu-Ansah & Stergios Leventis, 2006. "Timeliness of corporate annual financial reporting in Greece," European Accounting Review, Taylor & Francis Journals, vol. 15(2), pages 273-287.
    6. Citron, David B. & Taffler, Richard J. & Uang, Jinn-Yang, 2008. "Delays in reporting price-sensitive information: The case of going concern," Journal of Accounting and Public Policy, Elsevier, vol. 27(1), pages 19-37.
    7. Sarens, Gerrit & De Beelde, Ignace & Everaert, Patricia, 2009. "Internal audit: A comfort provider to the audit committee," The British Accounting Review, Elsevier, vol. 41(2), pages 90-106.
    8. María-Teresa Méndez-Picazo & Miguel-Ángel Galindo-Martín & Domingo Ribeiro-Soriano, 2012. "Governance, entrepreneurship and economic growth," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(9-10), pages 865-877, December.
    9. Francis, Jere R., 2004. "What do we know about audit quality?," The British Accounting Review, Elsevier, vol. 36(4), pages 345-368.
    10. Cédric Lesage & Heidi Wechtler, 2012. "An Inductive Typology of Auditing Research," Post-Print hal-00710745, HAL.
    11. Paul Collier & Mahbub Zaman, 2005. "Convergence in European Corporate Governance: the audit committee concept," Corporate Governance: An International Review, Wiley Blackwell, vol. 13(6), pages 753-768, November.
    12. Brenda A. Porter, 2009. "The audit trinity: the key to securing corporate accountability," Managerial Auditing Journal, Emerald Group Publishing, vol. 24(2), pages 156-182, January.
    13. Jan Barton, 2005. "Who Cares about Auditor Reputation?," Contemporary Accounting Research, John Wiley & Sons, vol. 22(3), pages 549-586, September.
    14. Phillips, Robert & Freeman, R. Edward & Wicks, Andrew C., 2003. "What Stakeholder Theory is Not," Business Ethics Quarterly, Cambridge University Press, vol. 13(4), pages 479-502, October.
    15. Cã‰Dric Lesage & Heidi Wechtler, 2012. "An Inductive Typology of Auditing Research," Contemporary Accounting Research, John Wiley & Sons, vol. 29(2), pages 487-504, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mirela-Oana PINTEA & Melinda Timea FÜLÖP, 2014. "Corporate Governance And Performance In The Context Of Sustainable Development," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 519-526, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. George Silviu CORDOȘ & Melinda Times FÜLÖP, 2014. "Audit Reporting And Corporate Governance: Links And Implications," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 3, pages 146-154, April.
    2. Maroun, Warren & Solomon, Jill, 2014. "Whistle-blowing by external auditors: Seeking legitimacy for the South African Audit Profession?," Accounting forum, Elsevier, vol. 38(2), pages 109-121.
    3. Hichem Khlif & Kamran Ahmed & Mohsen Souissi, 2017. "Ownership structure and voluntary disclosure: A synthesis of empirical studies," Australian Journal of Management, Australian School of Business, vol. 42(3), pages 376-403, August.
    4. Mélanie Roussy & Alexandre Perron, 2018. "New Perspectives in Internal Audit Research: A Structured Literature Review," Accounting Perspectives, John Wiley & Sons, vol. 17(3), pages 345-385, September.
    5. Cristina Alexandrina Stefanescu, 2013. "How Do Ownership Features Affect Corporate Governance Disclosure ? - The Case of Banking System," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 9(2), pages 37-51, April.
    6. Lu, Yun & Ntim, Collins G. & Zhang, Qingjing & Li, Pingli, 2022. "Board of directors’ attributes and corporate outcomes: A systematic literature review and future research agenda," International Review of Financial Analysis, Elsevier, vol. 84(C).
    7. Ghafran, Chaudhry & O'Sullivan, Noel, 2017. "The impact of audit committee expertise on audit quality: Evidence from UK audit fees," The British Accounting Review, Elsevier, vol. 49(6), pages 578-593.
    8. Karim Jamal, 2008. "Mandatory Audit of Financial Reporting: A Failed Strategy for Dealing with Fraud," Accounting Perspectives, John Wiley & Sons, vol. 7(2), pages 97-110, May.
    9. Sarhan, Ahmed A. & Ntim, Collins G. & Al-Najjar, Basil, 2019. "Antecedents of audit quality in MENA countries: The effect of firm- and country-level governance quality," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 35(C), pages 85-107.
    10. Rupjyoti Saha & K. C. Kabra, 2020. "Corporate Governance and Voluntary Disclosure: A Synthesis of Empirical Studies," Business Perspectives and Research, , vol. 8(2), pages 117-138, July.
    11. Lennox, Clive & Pittman, Jeffrey, 2010. "Auditing the auditors: Evidence on the recent reforms to the external monitoring of audit firms," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 84-103, February.
    12. Cuadrado-Ballesteros, Beatriz & Rodríguez-Ariza, Lázaro & García-Sánchez, Isabel-María, 2015. "The role of independent directors at family firms in relation to corporate social responsibility disclosures," International Business Review, Elsevier, vol. 24(5), pages 890-901.
    13. Melinda-Timea FÜLÖP & Mirela-Oana PINTEA, 2015. "The Link Between Corporate Governance And Performance - Evidence From Romania," Management Intercultural, Romanian Foundation for Business Intelligence, Editorial Department, issue 33, pages 81-90, April.
    14. Araniyar C. Isukul & John J. Chizea, 2017. "Corporate Governance Disclosure in Developing Countries: A Comparative Analysis in Nigerian and South African Banks," SAGE Open, , vol. 7(3), pages 21582440177, July.
    15. Timothy B. Bell & Monika Causholli & W. Robert Knechel, 2015. "Audit Firm Tenure, Non‐Audit Services, and Internal Assessments of Audit Quality," Journal of Accounting Research, Wiley Blackwell, vol. 53(3), pages 461-509, June.
    16. Ionica Oncioiu & Anca-Gabriela Petrescu & Florentina-Raluca Bîlcan & Marius Petrescu & Melinda Timea Fülöp & Dan Ioan Topor, 2020. "The Influence of Corporate Governance Systems on a Company’s Market Value," Sustainability, MDPI, vol. 12(8), pages 1-15, April.
    17. Niamh M. Brennan & Jill Solomon, 2008. "Corporate governance, accountability and mechanisms of accountability: an overview," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 21(7), pages 885-906, September.
    18. Elisabeth Albertini, 2017. "What We Know About The Environmental Policy: An Inductive Typology Of The Research," Post-Print hal-02148591, HAL.
    19. Cristina Bota-Avram, 2011. "Some Arguments That Justify The Audit Trinity’S Approach In The Context Of Corporate Governance," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 6(1), pages 5-18, April.
    20. Azhaar Lajmi & Marjène Gana, 2011. "Structure de Propriété et Qualité de l'Audit Externe : Cas des Entreprises Belges Cotées," Post-Print hal-00650542, HAL.

    More about this item

    Keywords

    Regulation; Corporate governance; Audit;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cmj:seapas:y:2014:i:4:p:545-554. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serghie Dan (email available below). General contact details of provider: https://seaopenresearch.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.