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Audit demand is generally considered to be a direct reflection of the level of agency conflicts. This study examines the CEO 's value perception towards auditing as additional driver for both auditor reputation demand (appointing a Big 4 auditor or not) and audit effort demand in private firms. Examining the CEO 's value perception in a multidimensional way, the regression results indicate that the CEO 's functional value perception towards auditing positively affects the demand for audit effort , while the CEO 's social value perception towards auditing negatively affects the demand for audit effort but positively affects the demand for auditor reputation .
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Corten et al. (2017) studied this question.
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