Perceived value of mandatory audits of small companies

Shifei Chung, Ramesh Narasimhan

Research output: Contribution to journalArticleResearchpeer-review

8 Citations (Scopus)

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 languageEnglish
Pages (from-to)120-123
Number of pages4
JournalManagerial Auditing Journal
Volume16
Issue number3
DOIs
StatePublished - 1 Apr 2001

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Small companies
Perceived value
Audit
Hong Kong
Audit firms
Private companies
Surprise
Interest groups
Auditing standards
Accounting standards

Keywords

  • Accounting standards
  • External audit
  • Hong Kong
  • Small firms

Cite this

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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 journalArticleResearchpeer-review

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