Are the most capable auditors in the Big 4 firms?
Millán Tapia, Ana (Universitat Autònoma de Barcelona)
Ortín Ángel, Pedro
Sundgren, Stefan (Umeå School of Business and Economics)
Universitat Autònoma de Barcelona. Departament d'Economia d'Empresa

Imprint: Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa 2016
Description: 60 p.
Abstract: The CPA exam provides an evaluation of the auditors' professional competences at the early stages of their careers. Using information from the results generated in Sweden, the paper shows that i) auditors at Big 4 firms are younger when they take the exam, ii) younger auditors and auditors at Big 4 firms perform better in the exam iii) there is a positive association between the results in the CPA exam and wage increases after having received the CPA certification and the association is stronger at Big 4 firms. This evidence is consistent with a theoretical model where Big 4 audit firms attract and retain the more capable auditors of each cohort, based on the imperfect information about the capabilities of the auditors that they have.
Rights: L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: Creative Commons
Language: Anglès.
Series: Documents de treball
Series: Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia de l'Empresa) ; 16/1
Document: workingPaper
Subject: Auditors ; Salaris ; Personal ; Administració ; CPA Exam ; Compensation ; Unobserved capabilities ; Big 4 ; Professional careers

Adreça alternativa: https://hdl.handle.net/2072/259660


60 p, 843.4 KB

The record appears in these collections:
Research literature > Working papers

 Record created 2016-03-11, last modified 2019-07-20



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