The Economic Consequences of Audit Firms’ Quality Control System Deficiencies
研究了美国公众公司会计监督委员会检查中发现的审计事务所质量控制缺陷对审计质量和盈利能力的影响，发现绩效相关的缺陷会降低审计质量，大型事务所的缺陷还会导致审计效率下降。
This study seeks to determine the role of audit firms’ quality control (QC) system deficiencies, as measured by the Public Company Accounting Oversight Board (PCAOB) inspection program, on audit quality and profitability. Using a unique data set of firmwide QC deficiencies identified by the PCAOB during its inspections of audit firms, I find a negative association between QC deficiencies, mainly performance related, and audit quality. Furthermore, audits conducted by larger audit firms with more organization-level deficiencies appear less profitable, evidenced by more hours worked on the engagements, leading to lower fees per hour. These results appear to be partly explained by deficiencies in the tone at the top (a proxy for culture) and the audit methodology. Further evidence suggests that a lack of remediation of QC system deficiencies has a negative influence on audit quality. This paper was accepted by Suraj Srinivasan, accounting.