The Effect of Auditing Regulations Changes on Audit Quality in the Australian Auditing Market

Abstract

This study explores the impact of significant Australian audit regulations (ASX CGC 2003, CLERP 9, ASX CGC 2010) on auditors' opinions and earnings management. It draws from auditors' views in publicly listed firms. Findings show ASX CGC 2003 reforms mitigate earnings management, while ASX CGC 2010 positively influences auditors' opinions. These insights, reinforced by sensitivity analyses, underline the study's necessity and propose implications for policy modifications, relevant to auditors, investors, and academia.