Author(s)

Jingyi Zhou ¹, Mengyuan Xie ²

Affiliation(s)

¹ School of Accounting, Guangdong University of Finance, Guangzhou, China
² School of Economics and Management, Zhaoqing University, Zhaoqing, China

Corresponding Author

Mengyuan Xie

ABSTRACT

The "similarity" of internal control deficiencies identification criteria is a new research perspective reflecting the quality of internal control identification criteria and the results of criteria identification. Using the data on auditors' industry expertise and hand-curated texts of internal control deficiencies identification standards of A-share listed companies in China from 2013 to 2022, this study explores the impact of auditors' industry expertise on the industry "similarity" of internal control deficiencies identification standards. It is found that there is an "inhibitory effect" of auditor's industry specialization on the phenomenon of "similarity" in the industry of internal control deficiencies identification criteria.

KEYWORDS

Auditor Industry Expertise; Criteria for Determining Internal Control Deficiencies; Peer Effect

CITE THIS PAPER

Jingyi Zhou, Mengyuan Xie, Auditors' Industry Expertise and Internal Control Deficiency Identification Criteria Industry Similarity. Accounting, Auditing and Finance (2025) Vol. 6: 1-7. DOI: http://dx.doi.org/10.23977/accaf.2025.060201.

REFERENCES

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[5] DiMaggio, P. J., and Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 48(2), 147-160.
[6] Chen, T. (2023). Common Auditors and Internal Control Similarity: Evidence from China. The British Accounting Review, 55(2), 101173.
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[8] Fung, S. Y. K., Gul, F. A., and Krishnan, J. (2012). City-level Auditor Industry Specialization, Economies of Scale, and Audit Pricing. The Accounting Review, 87(4), 1281-1307.

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