Does office size matter in client acceptance decisions? Evidence from big 4 accounting firms?
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Office size does matter in client acceptance decisions for Big 4 accounting firms. Larger Big 4 offices are less likely to accept clients with high audit risk, especially during periods of temporary capacity constraints caused by external demand shocks . Additionally, national industry specialists are more likely to accept clients with higher financial risk, while large Big 4 offices are less likely to accept clients with higher audit risk . Furthermore, larger Big 4 offices have been found to have fewer client restatements, indicating higher audit quality . These findings suggest that office size plays a role in auditors' risk tolerance and the ability to deliver high-quality audits.
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| Papers (4) | Insight |
|---|---|
194 Citations | The answer to the query is not provided in the paper. The paper discusses the association between Big 4 office size and client restatements, but it does not specifically address client acceptance decisions. |
Open access•Posted Content 1 Citations | The paper provides evidence that large Big 4 offices are less likely to accept clients with higher audit risk. Therefore, office size does matter in client acceptance decisions. |
Open access•Posted Content 1 Citations | Yes, office size does matter in client acceptance decisions for Big 4 accounting firms. Large Big 4 offices are less likely to accept clients with higher audit risk. |
2 Citations | The paper provides evidence that large Big 4 audit firm offices are less likely to accept clients with high audit risk, particularly during the post-SOX 404/pre-AS5 period. However, the association between office size and risk consideration attenuates during the post-AS5/financial crisis period. |
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