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Secrecy culture and audit opinion: Some international evidence
Journal article   Open access   Peer reviewed

Secrecy culture and audit opinion: Some international evidence

T.T.Y. Chen, F.F. Zhang and G.S. Zhou
Journal of International Financial Management & Accounting, Vol.28(3), pp.274-307
2017
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Abstract

We examine whether and how auditors respond to audit risks arising from secrecy culture when making audit opinion decisions. Using a sample of international Big N auditors from 33 countries, we find strong and robust evidence that auditors are more likely to issue modified audit opinions to clients domiciled in countries with a strong secrecy culture. In addition, we find that the association between secrecy culture and auditors' propensity to issue modified audit opinions is less pronounced in countries with strong investor protection than that in countries with weak investor protection.

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Citation topics
6 Social Sciences
6.10 Economics
6.10.63 Corporate Governance
Web Of Science research areas
Business, Finance
ESI research areas
Economics & Business
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