Abstract
As a territory of the UK (until 1 July 1997), Hong Kong followed the UK accounting and auditing standards quite closely, in most cases mirroring the requirements. However, there was a departure regarding the elimination of the statutory audit of small private companies in the UK in 1994, but this was not followed in Hong Kong. An audit is not required for small private companies in the USA either. This study evaluates the perceived value of the small companies’ audit in the opinion of two interest groups that are most affected by this requirement: small private limited companies and small audit firms. Results indicate that both groups of respondents consider the audit to be a valuable experience. While this result is not unexpected from the partners/proprietors of small audit firms, who benefit most from the mandatory audit requirement, it is a surprise from the small companies’ perspective.
| Original language | English |
|---|---|
| Pages (from-to) | 120-123 |
| Number of pages | 4 |
| Journal | Managerial Auditing Journal |
| Volume | 16 |
| Issue number | 3 |
| DOIs | |
| State | Published - 1 Apr 2001 |
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Keywords
- Accounting standards
- External audit
- Hong Kong
- Small firms
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Perceived value of mandatory audits of small companies. / Chung, Shifei; Narasimhan, Ramesh.
In: Managerial Auditing Journal, Vol. 16, No. 3, 01.04.2001, p. 120-123.Research output: Contribution to journal › Article
TY - JOUR
T1 - Perceived value of mandatory audits of small companies
AU - Chung, Shifei
AU - Narasimhan, Ramesh
PY - 2001/4/1
Y1 - 2001/4/1
N2 - As a territory of the UK (until 1 July 1997), Hong Kong followed the UK accounting and auditing standards quite closely, in most cases mirroring the requirements. However, there was a departure regarding the elimination of the statutory audit of small private companies in the UK in 1994, but this was not followed in Hong Kong. An audit is not required for small private companies in the USA either. This study evaluates the perceived value of the small companies’ audit in the opinion of two interest groups that are most affected by this requirement: small private limited companies and small audit firms. Results indicate that both groups of respondents consider the audit to be a valuable experience. While this result is not unexpected from the partners/proprietors of small audit firms, who benefit most from the mandatory audit requirement, it is a surprise from the small companies’ perspective.
AB - As a territory of the UK (until 1 July 1997), Hong Kong followed the UK accounting and auditing standards quite closely, in most cases mirroring the requirements. However, there was a departure regarding the elimination of the statutory audit of small private companies in the UK in 1994, but this was not followed in Hong Kong. An audit is not required for small private companies in the USA either. This study evaluates the perceived value of the small companies’ audit in the opinion of two interest groups that are most affected by this requirement: small private limited companies and small audit firms. Results indicate that both groups of respondents consider the audit to be a valuable experience. While this result is not unexpected from the partners/proprietors of small audit firms, who benefit most from the mandatory audit requirement, it is a surprise from the small companies’ perspective.
KW - Accounting standards
KW - External audit
KW - Hong Kong
KW - Small firms
UR - http://www.scopus.com/inward/record.url?scp=84986018635&partnerID=8YFLogxK
U2 - 10.1108/02686900110385551
DO - 10.1108/02686900110385551
M3 - Article
AN - SCOPUS:84986018635
VL - 16
SP - 120
EP - 123
JO - Managerial Auditing Journal
JF - Managerial Auditing Journal
SN - 0268-6902
IS - 3
ER -