On the effort-saving effect of audit committee–auditor interlocking

Han，Xiaomei1; Wu，Liansheng2; Xing，Qiuhang3

2023-05-01

10.1016/j.jaccpubpol.2023.107059

Journal of Accounting and Public Policy   Impact Factor & Quartile

0278-4254

1873-2070

Using unique data on audit hours from China, this paper investigates the effort-saving effect of the audit committee–auditor interlocking (AClk). We find that AClk is negatively associated with audit effort without any deterioration in audit quality. The results suggest that AClk has an effort-saving effect through information sharing between interlocked audit committee members and auditors. However, auditors retain the effort-saving benefits of AClk without sharing them with their client firms. Further analysis shows that the effort-saving effect of AClk is more pronounced for client firms whose auditors have industry expertise, for client firms that share the same individual auditor, or for client firms that share audit committee members with financial expertise.

Audit committee–auditor interlocking Audit effort Audit fees Audit quality

SSCI

English

Corresponding

National Natural Science Foundation of China[71932001];National Natural Science Foundation of China[72072090];

Business & Economics ; Public Administration

Business, Finance ; Public Administration

WOS:001090150400001

ELSEVIER SCIENCE INC

ECONOMICS BUSINESS

2-s2.0-85146723898

Scopus

1.Nanjing University of Science and Technology,China
2.Southern University of Science and Technology,China
3.Peking University,China

Han，Xiaomei,Wu，Liansheng,Xing，Qiuhang. On the effort-saving effect of audit committee–auditor interlocking[J]. Journal of Accounting and Public Policy,2023,42(3).

Han，Xiaomei,Wu，Liansheng,&Xing，Qiuhang.(2023).On the effort-saving effect of audit committee–auditor interlocking.Journal of Accounting and Public Policy,42(3).

Han，Xiaomei,et al."On the effort-saving effect of audit committee–auditor interlocking".Journal of Accounting and Public Policy 42.3(2023).