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Factors associated with auditor changes: a Singapore study

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  • E-Sah Woo
  • Hian Koh

Abstract

The increasing concern over auditor independence makes auditor changes an important area of research. The purpose of this study is to identify the factors associated with auditor changes. The sample comprises 54 auditor-change SES (Stock Exchange of Singapore) companies and 54 non-auditor-change SES companies, matched by year and country of incorporation over a 10-year period from 1986 to 1995. Descriptive statistics and logit analysis are used to analyse the data and 16 auditor-change variables. The findings provide support to the belief that auditor changes are more likely in cases where firms engage smaller audit firms, change their management composition, experience a lower diffusion of ownership, experience an increase in income manipulation opportunities, have higher leverage, have many subsidiaries, or have more rapid growth. Further analysis also indicates that firm characteristics can explain the direction of auditor changes.

Suggested Citation

  • E-Sah Woo & Hian Koh, 2001. "Factors associated with auditor changes: a Singapore study," Accounting and Business Research, Taylor & Francis Journals, vol. 31(2), pages 133-144.
    • Handle: RePEc:taf:acctbr:v:31:y:2001:i:2:p:133-144
    DOI: 10.1080/00014788.2001.9729607
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    References listed on IDEAS

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    2. Susana Escaloni & Mercedes Mareque, 2021. "Audit Report Lag. Differential Analysis between Spanish SMEs and Non-SMEs," Sustainability, MDPI, vol. 13(22), pages 1-21, November.
    3. Stuart, Iris & Shin, Yong-Chul & Cram, Donald P. & Karan, Vijay, 2013. "Review of choice-based, matched, and other stratified sample studies in auditing research," Journal of Accounting Literature, Elsevier, vol. 32(1), pages 88-113.
    4. Panagiotis Dimitropoulos, 2016. "Audit Selection in the European Football Industry under Union of European Football Associations Financial Fair Play," International Journal of Economics and Financial Issues, Econjournals, vol. 6(3), pages 901-906.
    5. Mansour Saaydah, 2021. "Factors Causing Discretionary Auditor Change in the Insurance Industry: Evidence from Jordan," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 344-362.
    6. Malcolm Anderson, 2002. "Accounting History publications 2001," Accounting History Review, Taylor & Francis Journals, vol. 12(3), pages 505-512.

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