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A Paper fromManagement School Accounting Faculty Was Accepted By International Top Journal The Accounting Reviewand Published Online


Recently, a paper named ¡°The Contagion Effect ofLow-quality Audits at the Level of Individual Auditors¡± was accepted andpublished online by the international top journal ¡°The Accounting Review¡±, which is one of the mostsupreme 3 journals in accounting research area and also within the UT-Dallas 24top journals list for assessing and ranking research skills of top 100 businessschools. Additionally, it is the first time for our school to publish originalresearch achievements in these top journals.

This paper was completed by Doctor Liuchuang Li, DoctorBaolei Qi, Professor Gaoling Tian from Xi¡¯an Jiaotong University and ProfessorGuochang Zhang from The Hong Kong University of Science and Technology, whichexploring an auditor¡¯spersonalinfluence on his auditing quality and thecontagion effect phenomenon.

Doctor Liuchuang Li and Doctor Baolei Qi are nowlecturers in accounting faculty. Both of them got their doctorate under theinstruction of Professor Gaoliang Tian. These years, Professor Tian has payedprogressive attention to graduated-students cultivation and made greatbreakthrough in auditing research area. As a result, his research group haspublished several papers in international top journal such as Journal of Banking & Finance¡¢Contemporary Accounting Research¡¢Journal of International Financial Management &Accountingetc.

Abstract:

This studyexamines the relation between the audit failures of individual auditors and thequalityof other audits performed by these same auditors. Employing a Chinesesetting where auditreports reveal the identities of engagement auditors, wefind that auditors who have performedfailed audits also deliver lower qualityaudits on other audit engagements, with this ¡°contagion¡±effect spreading bothover time and to other audits performed by these same auditors in the sameyear.However, we find little evidence that an audit failure also casts doubt on thequality ofaudits performed by ¡°non-failed¡± auditors who are same-officecolleagues of a ¡°failed¡± auditor.We further discover that the contagion effectis attenuated for female auditors, auditors holding a

Master¡¯s degree,and auditors with more auditing experience. Our results underscoretheusefulness of disclosing the identity and personal characteristics ofindividual auditors toinvestors and regulators.