Auditor choice in the Belgian nonprofit sector: a behavioral perspective
AbstractThis study investigates auditor choice in Belgian nonprofit organizations from a behavioral perspective. We investigate whether auditor choice in favor of an auditor with a high (versus low) level of sector specialization is associated with the importance that nonprofit organizations attach to six auditor attributes: competence/integrity/deontology, working relationship with management, audit fee, practical execution of the audit, client oriented analysis and suggestions, and sector expertise. It is important to understand the criteria underlying this choice as it has been revealed in the extant literature that auditor sector specialization improves audit quality and financial statement information. We find that nonprofit organizations attaching higher value to sector expertise and client oriented analysis and suggestions are significantly more likely to choose an auditor with a higher level of sector specialization. From this finding we derive a number of recommendations for the audit profession and for policy makers.
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Bibliographic InfoPaper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2011/36.
Length: 35 page
Date of creation: Dec 2011
Date of revision:
auditor choice; auditor sector specialization; nonprofit organizations; behavioral study; Belgium.;
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