ERRATUM
Free Access
Erratum
First published: 14 June 2021
In the article by Contessotto et al. (2021), the fifth row in Table 2 was inadvertently deleted. The correct Table 2 is as follows:
| Panel A | Panel B | Panel C | Panel D | |
|---|---|---|---|---|
| LOGHRS | LOGHRS | LOGAF | LOGAF | |
| Co-eff. | Co-eff. | Co-eff. | Co-eff. | |
| (t-stat) | (t-stat) | (t-stat) | (t-stat) | |
| TEAMINDEXP | −0.001 (0.64) | −0.003 (1.51) | ||
| TEAMCSE | 0.114*** (2.76) | 0.147*** (2.91) | ||
| BALTEAMINDEXP | −0.002 (0.73) | 0.001 (0.26) | ||
| BALTEAMCSE | 0.071*** (2.68) | 0.107*** (3.47) | ||
| PARTINDEXP | 0.001 (0.55) | −0.004 (1.58) | ||
| PARTCSE | 0.046 (1.63) | 0.054* (1.83) | ||
| TEAMGENEXP | −0.128 (1.44) | −0.134 (1.52) | −0.053 (0.52) | −0.070 (0.67) |
| MEDFIRMTEN | −0.118 (1.46) | −0.131 (1.58) | −0.110 (1.20) | −0.130 (1.39) |
| LONGFIRMTEN | −0.146* (1.78) | −0.154* (1.92) | −0.144 (1.57) | −0.155 (1.70) |
| INTEXP | 0.182*** (2.80) | 0.186*** (2.86) | 0.087 (1.28) | 0.087 (1.26) |
| GROUP | 0.117 (1.55) | 0.108 (1.42) | 0.141 (1.64) | 0.137 (1.56) |
| LISTED | 0.056 (0.66) | 0.061 (0.74) | 0.162* (1.73) | 0.135 (1.42) |
| NAUDITRPTS | 0.116 (1.57) | 0.125 (1.64) | 0.168** (2.25) | 0.167** (2.21) |
| OPINION | 0.152** (2.34) | 0.160** (2.44) | 0.213*** (3.05) | 0.230*** (3.27) |
| NRISKS | 0.040*** (3.00) | 0.039*** (2.96) | 0.024 (1.75) | 0.024 (1.75) |
| SIZE | 0.144*** (6.64) | 0.146*** (6.96) | 0.176*** (7.27) | 0.173*** (6.96) |
| INVRECTA | 0.195 (1.39) | 0.194 (1.40) | 0.245 (1.51) | 0.225 (1.40) |
| LEV | 0.130*** (3.49) | 0.123*** (3.58) | 0.066 (1.76) | 0.066 (1.73) |
| NAS | −0.041 (1.76) | −0.040 (1.76) | −0.070 (01.01) | −0.054 (0.84) |
| ROA | −0.050 (0.95) | −0.047 (0.91) | −0.100* (1.93) | −0.082 (1.54) |
| LOSS | −0.084 (1.29) | −0.082 (1.25) | −0.059 (0.73) | −0.045 (0.63) |
| TEAMSIZE | 0.715*** (6.61) | 0.671*** (6.10) | 0.739*** (5.84) | 0.679*** (5.16) |
| LOC | −0.079 (0.92) | −0.070 (0.68) | 0.074 (0.71) | 0.093 (0.91) |
| FIRM | −0.100 (1.46) | −0.099 (1.48) | 0.012 (0.15) | 0.033 (0.64) |
| INTERCEPT | 1.714*** (3.95) | 1.741*** (3.95) | 5.916*** (11.32) | 6.065*** (11.19) |
| INDUSTRY | Yes | Yes | Yes | Yes |
| n | 229 | 229 | 229 | 229 |
| Adj. R2 | 0.697 | 0.698 | 0.684 | 0.693 |
- Note. Two-tailed tests are reported. Variables: LOGHRS: the natural log of total audit hours; LOGAF: the natural log of the audit fee; TEAMINDEXP: average proportion of time spent in the industry sector across the audit team; TEAMCSE: average of the number of years auditors in the current year audit team have worked on the client; BALTEAMINDEXP: The average proportion of time the audit team (excluding the partner) has spent auditing clients in the engagements' industry sector in the current and up to three prior years; BALTEAMCSE: average of the number of years auditors (excluding the partner) in the current year audit team have worked on the client; PARTINDEXP: the average proportion of time the partner has spent auditing clients in an industry sector in the current and up to three prior years; PARTCSE: The number of prior years (up to a maximum of three prior years) the partner has worked on the client; TEAMGENEXP: the log of the average auditing experience of all team members; MEDFIRMTEN: a dummy variable coded 1 if audit firm tenure is between 3 and 5 years, 0 otherwise; LONGFIRMTEN: a dummy variable coded 1 if audit firm tenure is 6 or more years, 0 otherwise; INTEXP: a dummy variable coded 1 if the audit team used internal experts on the engagement, 0 otherwise; GROUP: a dummy variable coded 1 if the company is part of a group, 0 otherwise; LISTED: a dummy variable coded 1 for engagements on companies listed on the ASX, 0 otherwise; NAUDITRPTS: the log of the number of audit reports issued for the client in the current year; OPINION: a dummy variable coded 1 if the audit report is modified, 0 otherwise; NRISKS: number of risks at the account level as identified in the audit file; SIZE: the natural log of assets; INVRECTA: the ratio of inventory and receivables divided by total assets; LEV: the ratio of total debt to total assets; NAS: the ratio of NAS fees to total fees (audit fees and NAS fees); ROA: return on total assets calculated as before tax profit/total assets in current year; LOSS: a dummy variable coded 1 if the client made an operating loss before tax in the current and prior year, 0 otherwise; TEAMSIZE: the log of the number of auditors in the team; LOC: dummy variable coded 1 if the audit is undertaken by a big city auditor, 0 otherwise; FIRM: a dummy variable coded 1 for one firm, 0 for the second firm; INDUSTRY: industry fixed effects.
- * p < 0.10.
- ** p < 0.05.
- *** p < 0.01.
We apologise for the error.
