This paper studies the impact of public audit oversight on financial reporting credibility. We analyze changes in … filings after the new regime. Our results show that public audit oversight can enhance reporting credibility and that this … market responses to earnings news after public audit oversight is introduced, exploiting that the regime onset depends on …

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 …

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

exploits the random variation arising from certain aspects of the audit selection process to estimate the impacts of these EITC …

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 …

events on themarket for tax planning, in particular the longstanding link between audit and tax services. Whilethe effects … audit fees paid to the auditors of firms in the S&P500 decline from approximately one in 2001 to one-fourth in 2004. At the … of the longstanding link between audit and tax services, such that firms are shifting theirpurchase of tax services away …

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 …

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

The audit market's unique combination of features-its role in capital market transparency, mandated demand, and …) mandatory audit firm rotation. To do so, we first estimate publicly traded firms' demand for auditing services, treating … could result in audit fee increases between $0.3-0.5 billion per year. Such losses are substantial; by comparison, total …