Naslov
Industry specialization of audit firms in Croatia

Autori
Sever Mališ, Sanja ; Brozović, Mateja

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
Zbornik radova 5. Međunarodnog znanstvenog simpozija "Gospodarstvo istočne Hrvatske - vizija i razvoj" / Mašek Tonković, Anka - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2016, 534-542

Skup
5. Međunarodni znanstveni simpozij "Gospodarstvo istočne Hrvatske - vizija i razvoj"

Mjesto i datum
Osijek, Hrvatska, 02.06.2016. - 04.06.2016

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
audit firms; auditor industry specialization; audit market; Croatia; statutory audit

Sažetak
The increasing complexity in financial reporting, judgmental audit areas and undermined user confidence in reported financial information result in the need for more experienced auditors with industry- specific knowledge. Prior research showed that auditor industry specialization is positively associated with audit quality, suggesting that industry knowledge improves audit risk assessment and audit-planning decisions. In other words, audit firms that are industry specialists invest time and financial resources in developing personnel and technology in specific industries to improve audit quality. Moreover, auditors that invest in gaining specific industry expertise and have larger market shares in a certain industry are able to split the knowledge-developing costs and achieve economies of scale. The aim of this paper is to investigate if industry specialization among audit firms exists in Croatia or audit firms adopt a different approach, providing services to a wide range of clients and gaining general audit knowledge. The research was conducted on a population of companies in Croatia that were the subject of statutory audit in the year 2014. Industry specialists were determined using the within- industry market share approach, in which an auditor is considered to be industry specialist if it has a significant market share (20% or more) in the industry, based on the total revenue of its clients. According to the research results, we identified six audit firms as industry specialists, which include all Big Four audit firms, as it was expected. Therefore, it can be concluded that there are signs of industry specialization of large audit firms in Croatia.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA