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The Impact of Client Characteristics on the Selection of the Audit Firm: An Empirical Study on the Egyptian Listed Companies

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Last updated: 04 Jan 2025

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Abstract

Auditor selection can be regarded as a matter of audit quality. This Research aims to identify the factors which affect the choice of the Audit Firm in case of an emerging capital market as Egypt. It provides empirical evidence on the association between the Audit Firm selection and their client firms' characteristics based on a sample of 101 firms listed in the Egyptian Stock of Exchange for the year ended 2013. Our findings indicate that certain firm's characteristics affect the choice of the Audit Firm. Actually, Firms' Size, Profitability, Foreign shareholdings, and the existence of a Foreign Board Member have significant positive influences on the selection of the Audit Firm. On contrast, firms' leverage, age, and ownership concentration are found to be non- significant to firm's choice of the external auditor in case of Egypt.

DOI

10.21608/caf.2015.127780

Keywords

client characteristics, auditor choice, Audit quality, Big Four, Egypt

Authors

First Name

Dalia mohamed khaire

Last Name

el madbouly

MiddleName

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Affiliation

Faculty of Commerce, Damanhour University

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Orcid

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Volume

35

Article Issue

3

Related Issue

19015

Issue Date

2015-09-01

Receive Date

2014-03-06

Publish Date

2015-09-01

Page Start

1

Page End

24

Print ISSN

1110-4716

Online ISSN

2682-4825

Link

https://caf.journals.ekb.eg/article_127780.html

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https://caf.journals.ekb.eg/service?article_code=127780

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8

Publication Type

Journal

Publication Title

التجارة والتمويل

Publication Link

https://caf.journals.ekb.eg/

MainTitle

The Impact of Client Characteristics on the Selection of the Audit Firm: An Empirical Study on the Egyptian Listed Companies

Details

Type

Article

Created At

22 Jan 2023