Time: 3:00 PM on April 11, 2023

Zoom conference number: 692 0931 4623

Reported by: Professor Lasse Niemi, Department of Accounting, Business School, Aalto University, Finland

Reported by:

Professor Lasse Niemi, professor of the Accounting Department of the Business School of Aalto University, Finland, and head of the Team leader of audit research, mainly focuses on audit, financial accounting and taxation, and has published many articles in the Journal of Accounting Research, Contemporary Accounting Research and other international top journals.

Introduction to report content:

Many regulations are adjusted based on the size of the organization, as compliance costs are influenced by economies of scale. In the auditing industry, this is reflected in the audit quality inspection method based on the size of accounting firms. This study utilized Finland's unique institutional environment to test the effectiveness of mixed inspections of small and medium-sized firms. Mixed inspections are private inspections supervised by independent inspection agencies, and their compliance costs are lower than those performed by independent full-time inspection agencies. Our research results indicate that mixed checks can diagnose low audit quality and promote subsequent improvements in audit quality, affecting the personal financial condition of auditors. Our results support the use of a hybrid inspection system for this level of audit market, as it benefits stakeholders and reduces compliance costs.

(Undertaken by: Accounting Department, Research and Academic Exchange Center)