The effects of audit engagement partner ownership on audit engagements: evidence from Korea
- Authors
- Kim, Jinhee; Kwack, So Yean
- Issue Date
- 3-Feb-2024
- Publisher
- ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
- Keywords
- Audit engagement partner; partner ownership; audit fee and billing rates; audit quality; engagement team
- Citation
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
- Journal Title
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
- URI
- https://scholarworks.bwise.kr/hongik/handle/2020.sw.hongik/32693
- DOI
- 10.1080/16081625.2024.2309379
- ISSN
- 1608-1625
2164-2257
- Abstract
- We examine the relationship between the partnership share ratio of audit engagement partners and 1) audit fees and billing rates, 2) engagement team size, and 3) audit quality. Based on data from Korea for the period 2018-2020, we find that audit engagement partners' partnership share ratio is positively associated with audit fees and billing rates, and negatively associated with engagement team size. Furthermore, the association is more pronounced for engagement partners at Big4 accounting firms. However, we do not observe any association between partnership share ratio and audit quality. This study extends the limited empirical studies examining the effect of profit-sharing in accounting firms on engagement decisions, and nicely answers the call for more research on profit-sharing in accounting firms. Moreover, this study offers insight to policy-makers interested in what incentivizes audit engagement partners in making audit fee and engagement team decisions.1
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Collections - College of Business Administration > Business Administration Major > 1. Journal Articles
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