Influential Article Review - A Study on Effective Tax Rates: An Auditor Perspective

Abstract

This paper examines tax. We present insights from a highly influential paper. Here are the highlights from this paper: This study examines how the appointment of tax certified individual auditors is associated with reported effective tax rates of corporate clients. The study uses a unique German institutional setting which makes it possible to track individual auditors that are also certified tax consultants and sign the audit opinion. Empirical results indicate that tax certified individual engagement partners are associated with higher effective tax rates. Further tests reveal that this association also exists for individual parent company financial statements and that it is stronger when tax confirmation services are provided to the audit client. My findings enhance the understanding of the role of individual auditors. For our overseas readers, we then present the insights from this paper in Spanish, French, Portuguese, and German.