Group audits and earnings informativeness

Johannes Impink, Alexey Lyubimov, Ashna Prasad

Research output: Contribution to journalArticleResearchpeer-review

3 Citations (Scopus)


The Public Company Accounting Oversight Board (PCAOB) has cited investors as the main stakeholder group requesting greater disclosure about the involvement of auditors other than the group auditor. This study investigates the following: 1) whether (any) differences in investor perceived earnings quality of group audits are associated with the component auditor belonging to the same network as the group auditor and; 2) whether this association is affected by the location of the client. We find that earnings informativeness is lower for group audits conducted by audit firms related by a global network. However, this finding is pertinent only to non-US-domiciled companies. We also find that since the escalation of PCAOB scrutiny, the earnings informativeness of non-U.S. companies has increased.

Original languageEnglish
Pages (from-to)245-467
Number of pages23
JournalInternational Journal of Auditing
Issue number2
Publication statusPublished - Jul 2020


  • Component Auditors
  • Earnings Informativeness
  • Group Audits

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