A critical and pervasive component of firm-specific audit firm inspection reports is the inclusion of detailed descriptions of the deficiencies uncovered by inspection teams. Prior research in psychology indicates that people are likely to focus on such anecdotal information without adequately...

We add to the literature on mandatory auditor rotation by examining the Florida government audit environment in which there exist both rotation and non-rotation regimes and in which there exists an independent measure of the joint quality of the audit and of the financial statements of the...

This paper examines whether peer review conducted under the AICPA's self-regulatory regime has been effective at signaling audit quality. In spite of the long-standing debate about self-regulated peer review in the auditing profession, there is a surprising lack of research evidence as to...

This paper examines the role of auditee profitability in pricing new audit engagements. Changes in the auditing environment are noted that suggest that auditors are managing their practices differently than they have in prior years. Audit fees are examined to answer two questions: first, whether...

Many observers are dissatisfied with the accounting profession?s ability to warn the public of upcoming bankruptcy filings. The Chairman of the SEC recently reminded auditors that quot;they are the public?s watchdog in the financial reporting processquot; and that quot;we rely on auditors to put...

The issuance of clean opinions to failing firms has been interpreted by both the financial press and Congress as evidence of serious problems in the auditing profession. Critics of the audit profession believe that audit failures are caused by a lack of overall audit quality and/or problems...

Firms are subject to intra-industry information transfers when one or more of their industry-related peers release an informational event. The information contained in the event not only produces significant price revisions for the announcing firms, but also affects the share prices of their...