Effects of the new regulations of the audit profession on the audit firms’ strategies

4.62
Hdl Handle:
http://hdl.handle.net/10547/294283
Title:
Effects of the new regulations of the audit profession on the audit firms’ strategies
Authors:
Eldaly, Mohamed Khaled
Abstract:
The audit firms play an important role in the capital markets by verifying that auditors provide reliable information to the decision makers. However, trust in auditing firms has been questioned following Enron‘s failure and accounting scandals at WorldCom and other companies. As a result, Arthur Anderson failed and the number of big audit firms fell to four firms and no one knows who might be next. Defond and Francis (2005) believe that a critical trigger occurred when Deloitte & Touch issued a “clean” peer review report on Arthur Andersen in December 2001, just a few weeks before Andersen publicly announced that it had shredded documents related to Enron audit. The credibility and integrity of the profession‘s self-regulation program was immediately in doubt. To protect public interests and to restore confidence in the capital markets, the USA government issued the Sarbanes-Oxley Act (SOX) in 2002. Similarly, the Financial Reporting Council in the UK provided the Professional Oversight Board with similar mission. This thesis aims to explore the role of independent audit regulators in promoting confidence in the audit profession, and analyse the big four firms’ strategies that react toward these regulatory changes in the audit markets. The lack of studies in this area supports the use of grounded theory as a research methodology. 24 semi-structured interviews were conducted with the top management level of the audit regulators and big four firms’ partners. This study contributes to the literature as it provides a better understanding of the satisfaction of the big four audit firms toward the new independent regulators, and how these firms react toward the additional requirements of the independent inspectors.
Affiliation:
Business and Management Research Institute, University of Bedfordshire
Citation:
Eldaly, M.K. (2012) 'Effects of the new regulations of the audit profession on the audit firms’ strategies' PhD Thesis. University of Bedfordshire
Publisher:
University of Bedfordshire
Issue Date:
Nov-2012
URI:
http://hdl.handle.net/10547/294283
Type:
Thesis or dissertation
Language:
en
Description:
Submitted for the degree of Doctor of Philosophy (PhD) University of Bedfordshire
Appears in Collections:
PhD e-theses

Full metadata record

DC FieldValue Language
dc.contributor.authorEldaly, Mohamed Khaleden_GB
dc.date.accessioned2013-06-20T10:28:31Z-
dc.date.available2013-06-20T10:28:31Z-
dc.date.issued2012-11-
dc.identifier.citationEldaly, M.K. (2012) 'Effects of the new regulations of the audit profession on the audit firms’ strategies' PhD Thesis. University of Bedfordshireen_GB
dc.identifier.urihttp://hdl.handle.net/10547/294283-
dc.descriptionSubmitted for the degree of Doctor of Philosophy (PhD) University of Bedfordshireen_GB
dc.description.abstractThe audit firms play an important role in the capital markets by verifying that auditors provide reliable information to the decision makers. However, trust in auditing firms has been questioned following Enron‘s failure and accounting scandals at WorldCom and other companies. As a result, Arthur Anderson failed and the number of big audit firms fell to four firms and no one knows who might be next. Defond and Francis (2005) believe that a critical trigger occurred when Deloitte & Touch issued a “clean” peer review report on Arthur Andersen in December 2001, just a few weeks before Andersen publicly announced that it had shredded documents related to Enron audit. The credibility and integrity of the profession‘s self-regulation program was immediately in doubt. To protect public interests and to restore confidence in the capital markets, the USA government issued the Sarbanes-Oxley Act (SOX) in 2002. Similarly, the Financial Reporting Council in the UK provided the Professional Oversight Board with similar mission. This thesis aims to explore the role of independent audit regulators in promoting confidence in the audit profession, and analyse the big four firms’ strategies that react toward these regulatory changes in the audit markets. The lack of studies in this area supports the use of grounded theory as a research methodology. 24 semi-structured interviews were conducted with the top management level of the audit regulators and big four firms’ partners. This study contributes to the literature as it provides a better understanding of the satisfaction of the big four audit firms toward the new independent regulators, and how these firms react toward the additional requirements of the independent inspectors.en_GB
dc.language.isoenen
dc.publisherUniversity of Bedfordshireen_GB
dc.subjectN420 Accounting Theoryen_GB
dc.subjectauditingen_GB
dc.subjectaccountingen_GB
dc.subjectaccounting informationen_GB
dc.subjectaudit regulationen_GB
dc.subjectfinancial institutionsen_GB
dc.subjectfinancial regulationen_GB
dc.titleEffects of the new regulations of the audit profession on the audit firms’ strategiesen
dc.typeThesis or dissertationen
dc.contributor.departmentBusiness and Management Research Institute, University of Bedfordshireen_GB
dc.type.qualificationnamePhDen_GB
dc.type.qualificationlevelPhDen
dc.publisher.institutionUniversity of Bedfordshireen_GB
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