Auditor attributes and its association with financial distress: An Australian context

Abstract

This study investigates the effects of four pivotal auditor attributes underpinning auditor quality (i.e., auditor brand, non-audit services, audit tenure, and audit fee) on the likelihood of Australian firms’ financial distress. Findings indicate that all four auditor attributes are negatively associated with firm financial distress. Results from this study have consequently clear implications for regulators, capital market participants, management, auditors, and scholars.