This study addresses the impact of certain audit committee characteristics identified by the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees (BRC) on the likelihood of financial misstatement. We examine 41 firms which issued fraudulent reports and 88 firms...

This study examines the association between audit committee characteristics and the relative magnitude of non-audit service (NAS) and audit service fees, using data gathered under the recent SEC fee disclosure rules. Issues related to non-audit service fees have been of concern to practitioners,...

This study examines the association between audit committee characteristics and audit fees, using data gathered under the recent SEC fee disclosure rules. We hypothesize that audit fees will be higher in the presence of an active and independent audit committee. Our base our hypothesis upon two...

In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as financial...

PCAOB AS 3101 requires the auditor to communicate in the audit report any critical audit matters (CAMs) identified during the planning or performance of the audit. One of the most common type of CAMs (revenue CAMs) relates to core earnings, which is fundamental to valuing a corporation (Penman 2001;...

On Sunday, February 26, 2017, PricewaterhouseCoopers (PwC) erred on live television when Brian Cullinan, PwC's U.S. Board Chairman and Managing Partner of PwC's Southwest region, handed to the announcers the wrong envelope for Best Picture at the 2017 Academy of Motion Picture Arts and Sciences...

After a lengthy and protracted debate, the Public Company Accounting Oversight Board (PCAOB) adopted new rules and related amendments to its auditing standards regarding the engagement partner and other accounting firms that took part in the audit (PCAOB 2015). The rules require disclosure of...

PCAOB AS 3101 requires the auditor to communicate any critical audit matters (CAMs), identified during the planning or performance of the audit, in the audit report. Prior research has investigated the informativeness of CAM disclosures using short window, event study methodologies centered...

The Public Company Accounting Oversight Board (PCAOB) annually inspects BigFour auditors. The PCAOB summarizes its findings (labeled ‘audit deficiencies’) in publiclyavailable reports on its website. While the PCAOB claims that its inspection findings and processare designed to increase...

The creation of a specialized executive position that oversees sustainability activities represents a distinct shift in the structure of top management teams and their approach for addressing sustainability concerns. However, little is known about these management team members, namely the...