Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 3, 2011 erstellt
Description:
Using a matched sample of 1,806 firm-year observations from Germany and the United States over the sample period of 2005 to 2010, this paper examines audit practice differences between both countries. Our empirical results show qualitative similar results with regard to audit tenure effects on audit quality in Germany and the United States. The results imply that the increased process of accounting and audit harmonization worldwide have led to quite some similarities in auditing practices, respectively audit regulations. However, our empirical results also imply that beside specific audit regulation requirements, the auditing practices in Germany and the United States still differ significantly. In particular, we are able to detect generally higher levels of earnings management for German companies than their matched counterparts from the United States. Our results are robust to a variety of sensitivity tests