Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/338478 
Year of Publication: 
2022
Citation: 
[Journal:] China Journal of Accounting Studies (CJAS) [ISSN:] 2169-7221 [Volume:] 10 [Issue:] 3 [Year:] 2022 [Pages:] 345-366
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
The purpose of this study is to compare audit effectiveness and audit efficiency between companies that have integrated auditing of internal control over financial reporting (ICFR) and financial statements and companies that have separate auditing. We analyse a sample of Chinese public companies that disclosed their ICFR audit reports from 2011 to 2015. Using the full sample, sub-samples, and a propensity score matching (PSM) sample, we consistently find that companies having integrated auditing exhibit higher financial reporting quality measured by excess non-operating income. The findings regarding audit efficiency are mixed, with limited evidence indicating that an integrated auditor is potentially able to complete two audits without further delay. Overall, our results seem to suggest that integrated auditing is superior to separate auditing in that it enhances audit effectiveness and might improve audit efficiency. Such superiority might be due to knowledge spillover when two related audit services are jointly provided.
Subjects: 
Internal control over financial reporting
integrated auditing
separate auditing
financial reporting quality
audit report lag
China
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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