Browsing by Subject "Audit regulation"

Now showing 1 - 3 of 3
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    Analysis of the effects of changes in Spanish auditing regulation on auditquality and its differential effect depending on the type of auditor
    (2019) Cabal-García, Elena; De-Andrés-Suarez, Javier; Fernández-Méndez, Carlos
    The objective of this paper is to provide evidence on the effect of the reforms of the Spanish auditing legislation, enacted in 2002, 2010 and 2015, on audit quality. More specifically, we study whether the reforms had a differential effect depending on the type of auditor. To this end, the auditors were classified according to their size. We analyzed the specific case of non-financial listed Spanish companies which are considered as Public Interest Entities (PIEs). The main results indicate that none of the reforms caused an improvement in financial reporting quality. This could mean that legal reforms per se are not sufficient to achieve the intended objectives in countries with weak legal enforcement, as is the case of Spain. Because of this, it may be necessary to implement mechanisms to encourage auditors to apply the new rules.
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    El efecto de la rotación de socio en la calidad de la auditoría
    (2018) Gómez Aguilar, Nieves; Biedma López, Estíbaliz; Ruiz Barbadillo, Emiliano
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    Open Access
    Implementing mandatory audit firm rotation: Effects on audit and non-audit fees
    (Universidad de Murcia, Servicio de Publicaciones, 2024) Basioudis, Ilias G.; Cuellar-Fernández, Beatriz; Garcia-Lacalle, Javier
    The 2014 reform of the European Union (EU) regulation on auditing includes mandatory audit firm rotation and a significant limitation of the provision of non-audit services by the audit firm to their existing clients. This paper analyses the changes in audit fees, and non-audit fees, as well as in their proportion, when there is a switch of audit firms, before and after the new regulation. The analysis is carried out for the Spanish listed companies from 2011 to 2018 using two types of analyses, descriptive/comparative and multivariate, panel data, regressions. As expected, the new EU regulation has resulted in a significant increase in audit firm switches. The results show that, when there is a change of audit firm, the incoming firm offers a significant discount to the new client with the outgoing firm. This is the case before and after the reform, and for both voluntary and mandatory switches after the reform. In addition, the reform has led to a reduction of non-audit fees, which is especially evident after a voluntary audit firm switch. We conclude that audit firms seem to be willing to take on the additional cost of auditing a new company to gain clients.