Audit Quality (Big 4 Auditor)
Proxy: Dummy (1 = Big 4, 0 = Non Big 4)
Definition & Description
A dummy variable measuring audit quality based on the global reputation of the affiliated Public Accounting Firm.
How to Use (Panel Data)
Often serves as a proxy for auditor independence and expertise.
Full Explanation Article
Big 4 auditors are considered capable of detecting and rejecting client accounting manipulation.
Widely used in earnings management research.
Related Reference Journals
- [1]DeAngelo, L. E. (1981). Auditor Size and Audit Quality.
Research Ideas
Does auditor reputation (Big 4) suppress tax avoidance practices?
Frequently Asked Questions (FAQ)
What is the difference between this proxy and regular accounting variables?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Where does the data come from to calculate this proxy?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.
Can this proxy be used for all industry sectors?
For detailed information about this proxy, please refer to the article above. NgepetData can automatically extract the required data from your PDF Annual Report.