We conjecture that a greater opportunity for audit partners to share personal industry knowledge with each other within audit offices benefits audit quality. Using recently available Form AP data, we analyze each partner’s client portfolio and construct measures of the extent to which partners...

We contribute to the emerging literature on component auditor usage by building a dataset at the level of individual foreign subsidiaries of U.S. multinational audit clients. In contrast to extant research that studies component auditor usage only at the parent level, we measure audit quality at...

In this study we predict and provide evidence that distressed firms that rely more heavily on major customers for sales have a comparatively higher incidence of receiving going concern opinions (GCOs). Moreover, we find that the effect of increased reliance on major customers is driven by firms...

Regulators around the world are concerned about the potentially harmful effects of high audit market concentration on audit pricing and quality. However, results in the overall literature have failed to reach consensus on this issue. We contribute to this debate by arguing that the audit market...

We examine whether information technology expertise on audit committees impacts the reliability and timeliness of financial reporting. We find a reduction in the likelihood of material restatements and information technology-related material weaknesses (which account for 55 percent of all...

We hypothesize and find that financial reporting quality at the foreign subsidiaries of US multinational corporations (MNCs) is higher when the MNC’s principal auditor engages a component auditor to audit the foreign subsidiary on its behalf. An important innovation of this study is that we...

Over the past several decades, the scope of public companies' operations has become increasingly global. This has led to concern over the ability of audit firms to conduct high-quality audits across geographically dispersed foreign operations. We contribute to the growing body of research in...

Regulators around the world are concerned about the potentially harmful effects of high audit market concentration on audit pricing and quality. However, results in the overall literature have failed to reach consensus on this issue. We contribute to this debate by arguing that the audit market...