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亞洲地區審計品質研究回顧
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Review of Studies on Audit Quality in Asia
1. Purpose and Contribution
This study reviews empirical research on audit quality in Asia markets. We restrict our
review to papers published in the A+ and A tier 1 accounting journals, ranked by the Ministry
of Science and Technology, from 2000 to 2015. The first part of this study introduces major
capital markets and audit markets in Asia. The second part reviews the definitions and
proxies of audit quality widely used in the literature. The third and fourth parts review the
cross-country and single country audit quality research from the perspectives of audit
demand, audit supply as well as the effects of regulatory intervention. The results indicate
that among the single country research, China audit market studies are ranked number one
followed by Taiwan studies. As to the research topics, most cross-countries studies focus on
the topics related to audit demand. Single country studies, however, either examine the
effects of the regulation changes or take advantage of the unique data set resulting from
specific requirements in a given country to test the audit theory. This study concludes by
assessing the challenges and limitations of cross-country research, analyzing the factors that
make single-country research popular, and providing future research avenues in audit quality
for Asian countries.
2. Capital Markets and Audit Markets in Asia
We introduce the capital markets and audit markets in China, Hong Kong, India,
Indonesia, Israel, Japan, Malaysia, Pakistan, Philippines, Singapore, South Korea, Taiwan,
Thailand, and Turkey. In these countries, accounting standards may be set by the
government, CPA association, or independent foundation. However, the auditing standards
are usually set by CPA associations. Most countries adopt or converge to International
Financial Reporting Standards (IFRS). Although India Bombay Stock Exchange has the
largest number, more than 5,000 of listed companies, none of the audit studies reviewed in
this paper investigates this market alone. Similarly, Japan Tokyo Exchange has the highest
total market value in Asia, whereas only two studies analyze Japanese audit market. It
appears that there is a gap between the size of the capital market and the focus of the single
country audit study.
Hsiao-Lun Lin
, Associate Professor, Department of Accountancy, National Taipei University
Chan-Jane Lin
, Professor, Department of Accounting, National Taiwan University