This paper examines how audit oversight by a public-sector regulator affects investors' assessments of reporting … credibility. We analyze whether market responses to unexpected earnings releases increase following the introduction of the Public … Company Accounting Oversight Board (PCAOB), as predicted by theory if the new regime enhances reporting credibility. To …

survey of state tax administrators. The survey results indicate that most state tax audit programs are small and rely … tax agencies might benefit from greater sharing of information, especially in some audit classes. Second, Oregon state and … IRS audit assessments are strongly positively correlated, as expected. Third, we estimate the shadow values associated …

firms over an extended period. We analyze the effects on audit quality as well as economic tradeoffs related to partner … tenure and rotation with respect to audit hours and fees. On average, we find no evidence for audit quality declines over the … economic consequences. We find increases in audit fees and decreases in audit hours over the tenure cycle, which differ by …

auditor. We estimate that the ratio of tax fees to audit fees paid to the auditors of firms in the S&P …decoupling of the longstanding link between audit and tax services, such that firms are shifting their …market for tax planning, in particular the longstanding link between audit and tax services. While …

enforcement authority only after a costly audit. I derive the optimal fine for the underlying offense, the optimal fine for … misrepresenting one's wealth level, and the optimal audit probability. I demonstrate that the optimal fine for misrepresenting wealth … equals the fine for the offense divided by the audit probability, and therefore generally exceeds the fine for the offense …

firms are not obliged to express reservations they may have about the fundamental accuracy of the reports they audit. This …

In many regulated markets, private, third-party auditors are chosen and paid by the firms that they audit, potentially …