Is the Public Oversight of Auditors Effective? The Impact of Sanctions on Loss of Clients, Salary and Audit Reporting
Journal article, Peer reviewed
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OriginalversjonThe European Accounting Review. 2017, 26 (4), 787-818 10.1080/09638180.2016.1203345
This study examines the consequences of sanctions against individual Swedish auditors issued by the Supervisory Board of Public Accountants (SBPA). The results provide no support for individual auditor client loss after receiving a sanction. However, we find that Big 4 auditors have a lower salary after the sanction than before. Finally, we do not find that auditors become more conservative in their reporting after being sanctioned. Collectively, our results support that public oversight sanctions have relatively limited consequences for auditors of private companies.
The accepted and peer reviewed manuscript to the article