Factors influencing compliance with GAAS reporting standards on private sector engagements

Abstract

Examines the influence of various audit firm and client characteristics on compliance with Generally Accepted Auditing Standards’ (GAAS) reporting standards for private sector audits performed by small audit firms. Because prior studies in this area have focused on public sector audits, an important contribution of this study is the use of an observable quality measure as the dependent variable on audits performed in the private sector. Obtains data for the study from the quality reviews of firms licensed to practise in the State of Arkansas during the years 1989‐1991. Suggests that audit fees, the complexity of the engagement and membership in the state Certified Public Accountants’ society are positively related to compliance with GAAS reporting standards on private sector engagements performed by small audit firms. In addition, firm size is negatively related to compliance with GAAS reporting standards on private sector engagements performed by small audit firms.

Citation

Bryan, B.J. (1996), "Factors influencing compliance with GAAS reporting standards on private sector engagements", Managerial Auditing Journal, Vol. 11 No. 6, pp. 36-41. https://doi.org/10.1108/02686909610125159