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Evidencia Empírica sobre Inductores del Cambio de Auditor: Especial Referencia a la Situación Financiera de la Empresa

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Author(s): Emiliano Ruiz Barbadillo | Nieves Gómez Aguilar

Journal: Revista de Contabilidad : Spanish Accounting Review
ISSN 1138-4891

Volume: 6;
Issue: 12;
Start page: 139;
Date: 2003;
Original page

Keywords: change of auditors | financial imbalance | instigating factors behind change of auditors.

ABSTRACT
The objective of our paper is to analyze which are the factors that cause Spanish companies to change auditors. Using the results of previous papers and applying a logistic regression model, we have analyzed four groups of factors that could explain the change of auditors. The growth of the company, agency costs, changes in the financial structure and disagreements between the auditor and the client which may have been caused by the financial imbalance of the company 01' by receiving expert advice. The results obtained highlight that only the financial situation of the company and the expert advice received are important factors in that change. In light of the results concerning the company's financial situation, we have looked into whether companies with financial problems change auditor s more frequently and for different reasons than successful ones. The results confirm a greater need for change of auditors in financially imbalanced companies and could be justified through the hypothesis of deep pockets, cost controls, change in management and the concealment of information. Finally, we point out that for the group of financially imbalanced companies the change of auditors' model is different to the rest This is because company growth, agency costs and the audit advice are significant variables in the company's decision to change auditors or not.
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