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Auditor independence, auditor specialisation and earnings management: further evidence from Singapore


  • Rusmin
  • J-L.W. Mitchell Van Der Zahn
  • Greg Tower
  • Alistair M. Brown


This study uses data from 298 Singapore publicly listed firms to examine the association between earnings management and two audit value attributes: auditor independence and auditor specialisation. We find firms engaging a specialist auditor had significantly lower levels of abnormal accruals than those using non-specialists. This supports the view industry specialisation better enables an auditor to constrain a client's earnings management. Our findings indicate the lack of a universal association between audit value attributes and earnings management. Results imply recent action of Singapore policymakers to strengthen rules governing audit independence as related to non-audit services may have been premature.

Suggested Citation

  • Rusmin & J-L.W. Mitchell Van Der Zahn & Greg Tower & Alistair M. Brown, 2006. "Auditor independence, auditor specialisation and earnings management: further evidence from Singapore," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 3(2), pages 166-193.
  • Handle: RePEc:ids:ijaape:v:3:y:2006:i:2:p:166-193

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    Cited by:

    1. Rusmin Rusmin, 2010. "Auditor quality and earnings management: Singaporean evidence," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(7), pages 618-638, July.


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