Does external auditor influence tax management? An examination of the effect on effective tax rates using a specialist or non-specialist auditor classification
by Ines Hbaieb Hakim; Mohamed Ali Omri
International Journal of Technology, Policy and Management (IJTPM), Vol. 13, No. 4, 2013

Abstract: This study addresses whether an external auditor affects tax management as measured by Effective Tax Rates (ETR). We adopt a panel data methodology over the period 2001-2010. Consistent with our hypothesis, we find that hiring an auditor's specialisation results in substantial savings of corporate tax, compared with the hiring a non-specialist auditor. Compared to non-specialist audit firms, the result suggests that specialist audit firms transferred an additional tax expertise to their clients and reduces their ETR. This finding could be of assistance to Tunisian companies, since they can rely on a higher assurance tax economy after hiring an auditors' specialisation.

Online publication date: Tue, 30-Sep-2014

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