The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim

The objective of this study is to examine the association between audit firm characteristics and fraudulent financial reporting. This study used matched-sample logistic regression of 122 companies with and without fraudulent financial reporting over a 5-years period from 2006 to 2010 and empirically...

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Main Author:	Iberahim, Safinah
Format:	Thesis
Language:	English
Published:	2013
Online Access:	https://ir.uitm.edu.my/id/eprint/17192/2/TM_SAFINAH%20IBERAHIM%20AC%2013_5.pdf
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id	my-uitm-ir.17192
record_format	uketd_dc
spelling	my-uitm-ir.171922022-04-11T03:49:46Z The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim 2013-06 Iberahim, Safinah The objective of this study is to examine the association between audit firm characteristics and fraudulent financial reporting. This study used matched-sample logistic regression of 122 companies with and without fraudulent financial reporting over a 5-years period from 2006 to 2010 and empirically examines whether the audit tenure, audit fees, audit firm size and auditor industry specialization will influence the audit quality, thus affect the company's financial reporting. The results support prior findings by indicating a negative relation between the audit fees and the likelihood of fraudulent financial reporting. In addition to that, the findings also show that auditor industry specialization is also related to the propensity of fraud in financial reporting. On the other hand, no significant evidence was found for audit tenure and audit firm size, leading us to conclude that these factors are not an important indicator of the quality of financial reporting. This study also found that the company with higher leverage and more loss recognition is most likely to involve in fraudulent financial reporting. The result is robust even after including various controls such as year effect and industry effect. This study concludes that paying high audit fees and engaging an auditor industry specialist, will result in increase of audit quality, thus reducing the likelihood of fraudulent financial reporting. 2013-06 Thesis https://ir.uitm.edu.my/id/eprint/17192/ https://ir.uitm.edu.my/id/eprint/17192/2/TM_SAFINAH%20IBERAHIM%20AC%2013_5.pdf text en public mphil masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
description	The objective of this study is to examine the association between audit firm characteristics and fraudulent financial reporting. This study used matched-sample logistic regression of 122 companies with and without fraudulent financial reporting over a 5-years period from 2006 to 2010 and empirically examines whether the audit tenure, audit fees, audit firm size and auditor industry specialization will influence the audit quality, thus affect the company's financial reporting. The results support prior findings by indicating a negative relation between the audit fees and the likelihood of fraudulent financial reporting. In addition to that, the findings also show that auditor industry specialization is also related to the propensity of fraud in financial reporting. On the other hand, no significant evidence was found for audit tenure and audit firm size, leading us to conclude that these factors are not an important indicator of the quality of financial reporting. This study also found that the company with higher leverage and more loss recognition is most likely to involve in fraudulent financial reporting. The result is robust even after including various controls such as year effect and industry effect. This study concludes that paying high audit fees and engaging an auditor industry specialist, will result in increase of audit quality, thus reducing the likelihood of fraudulent financial reporting.
format	Thesis
qualification_name	Master of Philosophy (M.Phil.)
qualification_level	Master's degree
author	Iberahim, Safinah
spellingShingle	Iberahim, Safinah The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim
author_facet	Iberahim, Safinah
author_sort	Iberahim, Safinah
title	The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim
title_short	The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim
title_full	The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim
title_fullStr	The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim
title_full_unstemmed	The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim
title_sort	association between audit firm characteristics and fraudulent financial reporting: malaysian fraud cases / safinah iberahim
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2013
url	https://ir.uitm.edu.my/id/eprint/17192/2/TM_SAFINAH%20IBERAHIM%20AC%2013_5.pdf
_version_	1783733555138920448

The association between audit firm characteristics and fraudulent financial reporting: Malaysian fraud cases / Safinah Iberahim

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