The Demand for Voluntary Audit in Micro-Companies: Evidence from Finland

Hannu Ojala, Jill Collis*, Juha Kinnunen, Lasse Niemi, Pontus Troberg

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

23 Citations (Scopus)


The purpose of this study is to uncover additional determinants of the demand for voluntary audit in micro-companies by investigating the internal management factors that have not yet been explored in prior literature. The hypotheses are developed from the literature and interviews with owner-managers of such companies, bank lenders and the tax authority. The study is based on archival data relating to some 50,000 Finnish micro-companies over the three-year period following the introduction of audit exemption in 2008. Our results show that the drivers of voluntary audit are: (1) management needs to ensure security of supply from trade creditors, (2) the company is not in financial distress, (3) the company is growing, (4) management has a need for tax reporting credibility, and (5) ownership is dispersed. The results of this research will be of interest to the owners and managers of micro-companies, as well as the accounting and auditing profession.

Original languageEnglish
Pages (from-to)267-277
Issue number3
Early online date2016
Publication statusPublished - Nov 2016
MoE publication typeA1 Journal article-refereed


  • Audit theory
  • External audit
  • Regulation


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