Auditor client specific knowledge and internal control weakness: some evidence on the role of auditor tenure and geographic distance Chen, Yangyang, Gul, Ferdinand A., Truong, Cameron and Veeraraghavan, Madhu 2016, Auditor client specific knowledge and internal control weakness: some evidence on the role of auditor tenure and geographic distance, Journal of contemporary accounting and economics, vol. 12, no. 2, pp. 121-140, doi: 10.1016/j.jcae.2016.03.001. Attached Files Name Description MIMEType Size Downloads Title Auditor client specific knowledge and internal control weakness: some evidence on the role of auditor tenure and geographic distance Author(s) Chen, Yangyang Gul, Ferdinand A. orcid.org/0000-0001-8260-1472 Truong, Cameron Veeraraghavan, Madhu Journal name Journal of contemporary accounting and economics Volume number 12 Issue number 2 Start page 121 End page 140 Total pages 20 Publisher Elsevier Place of publication Amsterdam, The Netherlands Publication date 2016-08 ISSN 1815-5669 2352-3298 Keyword(s) internal control weakness client specific knowledge auditor tenure auditor–client geographic distance Summary In this paper we draw on the audit quality and cluster theory literature to examine whether auditor tenure and auditor's geographic proximity to the client (proxies for auditor client specific knowledge) are associated with the incidence of Section 404 internal control weakness (ICW) under the Sarbanes-Oxley Act (2002). Using a large sample of 24,217 firm-year observations for the period 2004-2012, we show that firms with long auditor tenure and in closer geographic proximity to auditors have lower incidence of ICW. Furthermore, we find that the positive association between auditor-client geographic distance and ICW is weaker for firms with longer auditor tenure. Our results suggest that auditor rotation policies could deprive the auditor of client specific knowledge, especially for auditors located further away from their clients. Our results are robust to propensity score matching method and endogenous effects. Language eng DOI 10.1016/j.jcae.2016.03.001 Field of Research 150199 Accounting, Auditing and Accountability not elsewhere classified 1501 Accounting, Auditing And Accountability 1402 Applied Economics 1502 Banking, Finance And Investment Socio Economic Objective 970115 Expanding Knowledge in Commerce HERDC Research category C1 Refereed article in a scholarly journal ERA Research output type C Journal article Copyright notice ©2016, Elsevier Persistent URL http://hdl.handle.net/10536/DRO/DU:30084576 Document type: Journal Article Collections: Department of Accounting 2018 ERA Submission Related Links Link Description Connect to published version Go to link with your DU access privileges     Unless expressly stated otherwise, the copyright for items in DRO is owned by the author, with all rights reserved. Versions Version Filter Type Fri, 01 Jul 2016, 10:22:03 EST Mon, 03 Oct 2016, 15:22:21 EST Tue, 04 Oct 2016, 04:00:08 EST Tue, 04 Oct 2016, 05:08:43 EST Thu, 13 Oct 2016, 12:52:14 EST Thu, 13 Oct 2016, 12:56:50 EST Thu, 13 Oct 2016, 14:27:16 EST Sat, 28 Apr 2018, 02:30:13 EST Filtered Full Citation counts:   Cited 2 times in TR Web of Science Cited 0 times in Scopus Search Google Scholar Access Statistics: 224 Abstract Views, 10 File Downloads  -  Detailed Statistics Created: Mon, 03 Oct 2016, 15:22:21 EST

Every reasonable effort has been made to ensure that permission has been obtained for items included in DRO. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.au.