This paper studies the impact of public audit oversight on financial reporting credibility. We analyze changes in … market responses to earnings news after public audit oversight is introduced, exploiting that the regime onset depends on … news following public audit oversight. Corroborating these findings, we find an increase in volume responses to 10-K …

firms over an extended period. We analyze the effects on audit quality as well as economic tradeoffs related to partner … partner experience, client size, and competitiveness of the local audit market. More generally, our findings are consistent … special circumstances, such as audit firm switches and early partner rotations, and show that they are more disruptive than …

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 …