Home > Research > Publications & Outputs > The importance of audit firm characteristics an...
View graph of relations

The importance of audit firm characteristics and the drivers of auditor change in UK listed companies

Research output: Contribution to journalJournal article

Published

Standard

The importance of audit firm characteristics and the drivers of auditor change in UK listed companies. / Beattie, Vivien; Fearnley, Stella.

In: Accounting and Business Research, Vol. 25, No. 100, 1995, p. 227-239.

Research output: Contribution to journalJournal article

Harvard

APA

Vancouver

Author

Beattie, Vivien ; Fearnley, Stella. / The importance of audit firm characteristics and the drivers of auditor change in UK listed companies. In: Accounting and Business Research. 1995 ; Vol. 25, No. 100. pp. 227-239.

Bibtex

@article{7a87f9841fdc4be0a0083b277bedc4e4,
title = "The importance of audit firm characteristics and the drivers of auditor change in UK listed companies",
abstract = "This paper explores the importance of audit firm characteristics and the factors motivating auditor change based on questionnaire responses from 210 listed UK companies (a response rate of 70%). Twenty-nine potentially desirable auditor characteristics are identified from the extant literature and their importance elicited. Exploratory factor analysis reduces these variables to eight uncorrelated underlying dimensions: reputation/quality; acceptability to third parties: value for money: ability to provide non-audit services: small audit firm: specialist industry knowledge; non-Big Six large audit firm: and geographical proximity. Insights into the nature of {\textquoteleft}the Big Six factor{\textquoteright} emerge. Two thirds of companies had recently considered changing auditors; the main reasons cited being audit Ice level, dissatisfaction with audit quality and changes in top management. Of those companies that considered change. 73% did not actually do so. the main reasons cited being fee reduction by the incumbent and avoidance of disruption. Thus audit fee levels are both a key precipitator of change and a key factor in retaining the status quo.",
author = "Vivien Beattie and Stella Fearnley",
year = "1995",
doi = "10.1080/00014788.1995.9729912",
language = "English",
volume = "25",
pages = "227--239",
journal = "Accounting and Business Research",
issn = "0001-4788",
publisher = "Routledge",
number = "100",

}

RIS

TY - JOUR

T1 - The importance of audit firm characteristics and the drivers of auditor change in UK listed companies

AU - Beattie, Vivien

AU - Fearnley, Stella

PY - 1995

Y1 - 1995

N2 - This paper explores the importance of audit firm characteristics and the factors motivating auditor change based on questionnaire responses from 210 listed UK companies (a response rate of 70%). Twenty-nine potentially desirable auditor characteristics are identified from the extant literature and their importance elicited. Exploratory factor analysis reduces these variables to eight uncorrelated underlying dimensions: reputation/quality; acceptability to third parties: value for money: ability to provide non-audit services: small audit firm: specialist industry knowledge; non-Big Six large audit firm: and geographical proximity. Insights into the nature of ‘the Big Six factor’ emerge. Two thirds of companies had recently considered changing auditors; the main reasons cited being audit Ice level, dissatisfaction with audit quality and changes in top management. Of those companies that considered change. 73% did not actually do so. the main reasons cited being fee reduction by the incumbent and avoidance of disruption. Thus audit fee levels are both a key precipitator of change and a key factor in retaining the status quo.

AB - This paper explores the importance of audit firm characteristics and the factors motivating auditor change based on questionnaire responses from 210 listed UK companies (a response rate of 70%). Twenty-nine potentially desirable auditor characteristics are identified from the extant literature and their importance elicited. Exploratory factor analysis reduces these variables to eight uncorrelated underlying dimensions: reputation/quality; acceptability to third parties: value for money: ability to provide non-audit services: small audit firm: specialist industry knowledge; non-Big Six large audit firm: and geographical proximity. Insights into the nature of ‘the Big Six factor’ emerge. Two thirds of companies had recently considered changing auditors; the main reasons cited being audit Ice level, dissatisfaction with audit quality and changes in top management. Of those companies that considered change. 73% did not actually do so. the main reasons cited being fee reduction by the incumbent and avoidance of disruption. Thus audit fee levels are both a key precipitator of change and a key factor in retaining the status quo.

U2 - 10.1080/00014788.1995.9729912

DO - 10.1080/00014788.1995.9729912

M3 - Journal article

VL - 25

SP - 227

EP - 239

JO - Accounting and Business Research

JF - Accounting and Business Research

SN - 0001-4788

IS - 100

ER -