Percieved Value of Mandatory Audits to Small Companies

|Perceived value of mandatory audits of small companies | |
|Author(s):       |Shifei Chung, (Assistant Professor, Department of Accounting & Finance, Rowan University, Glassboro, New       |
|                 |Jersey, USA), Ramesh Narasimhan, (Associate Professor, Department of Accounting, Law & Taxation, Montclair     |
|                 |State University, Montclair, New Jersey, USA)                                                                   |
|Citation:         |Shifei Chung, Ramesh Narasimhan, (2001) "Perceived value of mandatory audits of small companies", Managerial   |
|                 |Auditing Journal, Vol. 16 Iss: 3, pp.120 - 123                                                                 |
|Keywords:         |Accounting standards, External audit, Hong Kong, Small firms                                                   |
|Article type:     |Research paper                                                                                                 |
|DOI:             |10.1108/02686900110385551 (Permanent URL)                                                                       |
|Publisher:       |MCB UP Ltd                                                                                                     |
|Abstract:         |As a territory of the UK (until 1 July 1997), Hong Kong followed the UK accounting and auditing standards quite|
|                 |closely, in most cases mirroring the requirements. However, there was a departure regarding the elimination of |
|                 |the statutory audit of small private companies in the UK in 1994, but this was not followed in Hong Kong. An   |
|                 |audit is not required for small private companies in the USA either. This study evaluates the perceived value   |
|                 |of the small companies’ audit in the opinion of two interest groups that are most affected by this requirement:|
|                 |small private limited companies and small audit firms....