The Relationship between Audit Industry Specialization and Audit Quality of Complex and Non-Complex Industries: Case Study of Listed Company in the Stock Exchange of Thailand
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Abstract
This research provides different empirical evidence from prior study. The research objective is to investigate of the relationship between audit industry specialization and audit quality. The data were gathered from 549 listed companies for the fiscal year 2017, and then analyzed using multiple regression analysis. The results find that there is positive relation between audit industry specialization and audit quality with non-complex industry samples. However, focusing on complex industry samples, the study finds that audit industry specialization and audit quality are not positive relationship. This study points out that premium audit fee in each audit firm charge to listed companies increase marketing share in audit market. On the other hand, auditors may actually not be “industry specialists” in Thailand context because audit industry specialization do not impact audit quality with complex industry samples. Consequently, declaration of audit firm whether the “audit industry specialization” definition may not be reasonable in Thailand context.
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The articles published in the journals are the authors' opinions, not the opinion of the editorial team or administrative staff. The articles published is copyright of the Journal of Business Administration and Accounting, Khon Kaen University.
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