Audit firm's characteristics and assurance services' provision : an empirical study

Abstract EN

  This study examines the relationship between audit firm's characteristics (size, technology level, and industry specialization) and assurance services' provision in Egypt.

The ability of audit firm's to provide and offer the assurance services is related to audit firm's characteristics (size, technology level, and industry specialization).

The current study adopts the quantitative research approach by the logistic regression model, for analyzing the size, technology level, and industry specialization to assurance services' provision.

The study sample is all audit firms which audit the listed traded companies of all sectors in the Egyptian stock exchange for the period from 2013 to 2017, which are 67 audit firms that include audit firms with foreign partners and local audit firms without foreign partners.

Results show that the relationship between level of technology and assurance services' provision is highly significant.

There is a positive relationship between technology level and assurance service provision; using and adopting advanced software packages and audit tools lead audit firms to provide assurance services' other than audit of financial statements.

There is no significance interaction between size and industry specialization of audit firm with assurance services' provision.

The three independent variables were different in value and significance with the assurance services provision.