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Voluntary audit, investment, and financing decisions in Latin American small and medium enterprises

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  • Briozzo, Anahi
  • Albanese, Diana

Abstract

We study the effects of voluntarily contracting an external audit in a sample of small and medium-sized enterprises in the four largest Latin American countries: Argentina, Brazil, Colombia, and Mexico. The evidence shows that, for companies exempt from mandatory auditing, audited financial statements positively affect the access to bank financing, fixed assets investment, and the percentage of working capital financed with suppliers. The results contribute to an active policy debate on the role of the voluntary audit regime for small and medium enterprises.

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  • Briozzo, Anahi & Albanese, Diana, 2020. "Voluntary audit, investment, and financing decisions in Latin American small and medium enterprises," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 38(C).
    • Handle: RePEc:eee:jiaata:v:38:y:2020:i:c:s1061951820300033
    DOI: 10.1016/j.intaccaudtax.2020.100302
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