Did PwC lose reputation post audit failure at Satyam Computer Services? Evidence from the Indian audit market
Document Type
Article
Source of Publication
International Journal of Accounting and Finance
Publication Date
1-1-2015
Abstract
Safeguarding reputation is one major incentive for large auditors to maintain high audit quality. We investigate the phenomenon of reputation by studying the impact of an audit failure on the reputation of a large audit firm in India. Specifically, we analyse the events surrounding the high profile audit failure of Satyam Computer Services and its resultant impact on the audit practice of PricewaterhouseCoopers (PwC) and its affiliates in India. The results of our analysis indicate that following the audit failure there was a high propensity for clients of PwC firms to switch to other firms. We interpret this behaviour as indicative of a loss of reputation for PwC due to the Satyam audit failure.
DOI Link
ISSN
Publisher
Inderscience Publishers
Volume
5
First Page
48
Last Page
61
Disciplines
Business | Computer Sciences
Recommended Citation
Mohapatra, Partha Sarathi; Graham, Allan; and Nandialath, Anup, "Did PwC lose reputation post audit failure at Satyam Computer Services? Evidence from the Indian audit market" (2015). All Works. 1257.
https://zuscholars.zu.ac.ae/works/1257
Indexed in Scopus
no
Open Access
no