Auditor's Regional Expertise and Audit Quality——Analysis based on the perspective of nonlocal auditors
Local knowledge can have different impacts on a company's operational management,information disclosure,financial risks,etc.Existing literature has identified the impact of local expertise and geographic distance on audit quality.This paper uses a sample of nonlocal auditors from 2018 to 2022 to study the impact of auditors'regional expertise on audit quality.Research has found that auditors with regional expertise can significantly improve audit quality.Mechanism testing shows that auditors'regional expertise mainly improves audit quality by improving risk identification capabilities and reducing agency costs.Further analysis reveals that the effect of auditors'regional expertise on improving audit quality is more pronounced in environments where regional tacit knowledge is more important,namely,in the central and western regions,enterprises with lower marketization levels,and higher asset liability ratios.Against the backdrop of the government encouraging inter regional factor mobility and creating a unified market,this paper encourages auditors to establish regional expertise to promote information exchange between regions,help break down knowledge barriers between regions,and promote the establishment of a unified national market.
NETL
NSTL
万方数据
