Auditors and Corporate Governance : Evidence from the Public Sector
Journal
Kyklos
ISSN
0023-5962
ISSN-Digital
1467-6435
Type
journal article
Date Issued
2013-05
Author(s)
Abstract
Corporate auditors review and evaluate financial statements. Audit quality depends on auditor expertise and independence. To enhance auditor independence the selection process and auditor rotation requirements have been debated intensively. The available empirical evidence is not conclusive and suffers from serious endogeneity problems. I propose learning from the public sector where auditors play a similar role and present empirical evidence on the impact of auditor expertise, term length and rotation requirements on government performance at the US state level. I find evidence indicating that greater auditor expertise and rotation requirements have a positive effect on state credit ratings.
Language
English
Keywords
corporate governance
auditor
mandatory auditor rotation
public auditor
HSG Classification
contribution to scientific community
HSG Profile Area
SEPS - Economic Policy
Refereed
No
Publisher
Wiley-Blackwell
Publisher place
Oxford
Volume
66
Number
02
Start page
275
End page
300
Pages
26
Subject(s)
Division(s)
Eprints ID
220858