Advanced Search
MyIDEAS: Login to save this paper or follow this series

Auditor choice in the Belgian nonprofit sector: a behavioral perspective

Contents:

Author Info

  • Reheul, Anne-Mie

    ()
    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Van Caneghem, Tom

    ()
    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Verbruggen, Sandra

    ()
    (Hogeschool-Universiteit Brussel (HUB), Belgium)

Registered author(s):

    Abstract

    This 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.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: https://lirias.hubrussel.be/bitstream/123456789/5221/1/11HRP36.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2011/36.

    as in new window
    Length: 35 page
    Date of creation: Dec 2011
    Date of revision:
    Handle: RePEc:hub:wpecon:201136

    Contact details of provider:
    Web page: http://research.hubrussel.be
    More information through EDIRC

    Related research

    Keywords: auditor choice; auditor sector specialization; nonprofit organizations; behavioral study; Belgium.;

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Geraldine Broye & Laurent Weill, 2008. "Does leverage influence auditor choice? A cross-country analysis," Applied Financial Economics, Taylor & Francis Journals, vol. 18(9), pages 715-731.
    2. Deis, Donald Jr. & Giroux, Gary, 1996. "The effect of auditor changes on audit fees, audit hours, and audit quality," Journal of Accounting and Public Policy, Elsevier, vol. 15(1), pages 55-76.
    3. Heidi Vander Bauwhede & Marleen Willekens, 2004. "Evidence on (the lack of) audit-quality differentiation in the private client segment of the belgian audit market," European Accounting Review, Taylor & Francis Journals, vol. 13(3), pages 501-522.
    4. Tom Van Caneghem, 2010. "Audit pricing and the Big4 fee premium: evidence from Belgium," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(2), pages 122-139, February.
    5. Hope, Ole-Kristian & Kang, Tony & Thomas, Wayne & Yoo, Yong Keun, 2008. "Culture and auditor choice: A test of the secrecy hypothesis," Journal of Accounting and Public Policy, Elsevier, vol. 27(5), pages 357-373.
    6. Craswell, Allen T. & Francis, Jere R. & Taylor, Stephen L., 1995. "Auditor brand name reputations and industry specializations," Journal of Accounting and Economics, Elsevier, vol. 20(3), pages 297-322, December.
    7. Zhan Shu, Susan, 2000. "Auditor resignations: clientele effects and legal liability," Journal of Accounting and Economics, Elsevier, vol. 29(2), pages 173-205, April.
    8. Lowensohn, Suzanne & Johnson, Laurence E. & Elder, Randal J. & Davies, Stephen P., 2007. "Auditor specialization, perceived audit quality, and audit fees in the local government audit market," Journal of Accounting and Public Policy, Elsevier, vol. 26(6), pages 705-732.
    9. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:hub:wpecon:201136. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Janssens).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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