Audit Specialization and Audit Quality: The Role of Client’s Business Strategy

Abstract

This study examines how client business strategies moderate the relationship between specialist industry auditors and audit quality. The results show that auditor specialization negatively affects the audit quality, and client’s business strategy negatively affects (weakens) the negative relationship between auditor specialization with auditor quality. These test results support the hypothesis of reduced knowledge gap.


 


 


Keywords: audit specialization, audit quality, business strategy

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