Recent research suggests inspections by auditing oversight bodies may lead to unintended consequences by incentivizing auditors to anticipate and manage inspection risk at the engagement level. Our study focuses on the account level, where detailed planning judgments are made, and provides...

After the global 2018 financial crisis, regulatory bodies proposed alternative auditor selection processes to enhance auditor independence such as mandatory audit firm rotation or mandatory tendering (i.e., rotation which allows for the current auditor to be reappointed). However, these...

Auditor errors are of concern since they reflect deviations from expectations, plans or goals and can thereby potentially impair audit quality. Audit firms have powerful mechanisms in place to prevent errors from occurring, such as the review process. However, all errors cannot be prevented; thus,...