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What Determines Audit Independence and Expertise in Russia? Firm-Level Evidence

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  • Iwasaki, Ichiro
  • 岩﨑, 一郎

Abstract

Using a unique dataset of joint-stock companies, we explore the corporate audit system in transition Russia. In comparison with companies in Western and Asian Pacific states, Russian firms have a weaker audit system in terms of the independence and expertise of the audit committee and the external auditor. Board composition, foreign investment, and affiliation with a business group are highly important factors determining audit committee composition and audit firm choice as well as a combination of the two auditing bodies. However, each of these factors has a clearly distinct impact. Moreover, empirical evidence suggests that government ownership, company size, fund procurement activities, and overseas advancement significantly affect audit independence and expertise in Russia.

Suggested Citation

  • Iwasaki, Ichiro & 岩﨑, 一郎, 2013. "What Determines Audit Independence and Expertise in Russia? Firm-Level Evidence," RRC Working Paper Series 27_v2, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
  • Handle: RePEc:hit:rrcwps:27_v2
    Note: This version: Feb, 2013
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/25471/RRC_WP_No27.pdf
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    Cited by:

    1. Ichiro Iwasaki, 2018. "Corporate Governance System and Regional Heterogeneity: Evidence from East and West Russia," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 25(3), pages 391-420, September.
    2. Iwasaki, Ichiro & Kim, Byung-Yeon, 2018. "Firm Failure in Russia during Economic Crises and Growth : A Large Survival Analysis," RRC Working Paper Series 76, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    3. Tatiana Dolgikh, 2017. "Does the Auditor Have a Direct Influence on the Financial Statement Quality?," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2017(2), pages 73-90.
    4. Iwasaki, Ichiro & 岩﨑, 一郎, 2016. "The Evolution of Corporate Governance in the Global Financial Crisis : The Case of Russian Industrial Firms," CEI Working Paper Series 2016-7, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.

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