The Impact of PCAOB-Type Regulations on Auditors under Different Legal Systems

66 Pages Posted: 4 Dec 2015 Last revised: 10 Jan 2022

See all articles by Minlei Ye

Minlei Ye

University of Toronto

Dan A. Simunic

University of British Columbia (UBC) - Sauder School of Business

Date Written: November 20, 2021

Abstract

This paper analyzes the impact of Public Company Accounting Oversight Board (PCAOB)-type regulatory oversight and legal liability on audit quality and social surplus. We show the conditions under which regulatory oversight can improve audit quality and social surplus, as compared to the impact of legal systems. Moreover, we demonstrate that regulatory oversight is not likely to substitute effectively for a legal system. This is the first study that analyzes the possible effects of an audit regulator on auditors under different legal systems, and our results enhance understanding of the complex relationship between regulatory oversight, a legal system, and social surplus.

Keywords: Regulatory oversight, auditing standards, audit quality, audit value

JEL Classification: M42; M48

Suggested Citation

Ye, Minlei and Simunic, Dan A., The Impact of PCAOB-Type Regulations on Auditors under Different Legal Systems (November 20, 2021). 2016 Canadian Academic Accounting Association (CAAA) Annual Conference, Rotman School of Management Working Paper No. 2697268, Available at SSRN: https://ssrn.com/abstract=2697268 or http://dx.doi.org/10.2139/ssrn.2697268

Minlei Ye (Contact Author)

University of Toronto ( email )

Toronto, Ontario M5S 3G8
Canada

Dan A. Simunic

University of British Columbia (UBC) - Sauder School of Business ( email )

2053 Main Mall
Vancouver, BC V6T 1Z2
Canada
416-486-5361 (Phone)
416-486-6158 (Fax)

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