November 1, 2025Auditing A Journal of Practice & TheoryOpen Access

The Impact of Clients’ Indirect-Effect Illegal Acts on Auditors’ Market Shares

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Authors

HHHilary Hughes PSPadmakumar Sivadasan

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Implication

Analysis reveals that auditors' market share grows unaffected by client fines, suggesting a need for revised auditing standards regarding indirect effects.

Key Points

Market share growth rates were unaffected by regulatory fines on clients, highlighting a disconnect in auditor expectations.
Auditors serving fined clients experienced reduced market share growth, implying market penalties for associations with guilt.
Existing auditing standards do not require detection of clients' indirect illegal acts, potentially misguiding investors' expectations.
Recommendations for amending auditing standards have arisen to clarify auditors' responsibilities in relation to indirect illegal act detections.

Cite This Study

Hughes et al. (2025) studied this question.

synapsesocial.com/papers/69254371c0ce034ddc3587fd https://doi.org/10.2308/ajpt-2024-068

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Implication

Analysis reveals that auditors' market share grows unaffected by client fines, suggesting a need for revised auditing standards regarding indirect effects.

The Impact of Clients’ Indirect-Effect Illegal Acts on Auditors’ Market Shares

Discussion

Member takes

Implication

Key Points

Cite This Study

The Impact of Clients’ Indirect-Effect Illegal Acts on Auditors’ Market Shares

Discussion

Member takes

Implication

Key Points

Cite This Study

Also Consider

Also Consider