The disclosure of non-GAAP (pro forma) earnings numbers by managers in the post-SOX era continues to attract attention from regulators, media, and researchers. However, there is limited empirical evidence on how auditors view clients that emphasize pro forma earnings over GAAP earnings. We study...

This study examines Big N auditors' client risk management strategy in response to the risk of upward (i.e., income-increasing) earnings management in the post-SOX era. Specifically, we empirically study the relation between clients' signed discretionary accruals and subsequent audit pricing and...

The objective of this study is to examine the relation between attributes of earnings forecasts issued by managers and audit fees. Although there is an extensive literature on managers' disclosure of earnings forecasts, there is a paucity of research on how auditors incorporate information from...

For more than twenty-five years auditing research has examined whether knowledge spillovers or synergies exist from the joint provision of audit and non-audit services as well as whether the audit client benefits from knowledge spillovers. However, empirical evidence on knowledge spillover...

We examine the auditor perception of recognized vs. disclosed obligations as they relate to two key decisions auditors make: determining audit fees and whether to issue a going concern opinion. We study two pairs of obligations – capital leases and operating leases and on-balance sheet and...