While non-U.S. auditors audit a significant proportion of U.S.-based clients, until recently, lenders were largely … involve component auditors. We also find that cost of debt is greater when the component auditor has GAAP-related audit … component auditors are not from the same Big 4 audit networks. These findings are consistent with the notion that lenders …

We find that even though ethnic minority audit partners (those of Asian, Black, or Hispanic origin) represent a low … proportion of U.S. audit partners, audit partner ethnicity is significantly related to several important audit phenomena …. Consistent with the homophily principle, ethnic minority audit partners are likely to be assigned to clients whose senior …

Though Section 203 of the Sarbanes-Oxley Act (SOX) calls for the rotation of the audit partner every five years, we do … not know whether investors value audit partner rotation. This is an important issue since many in the auditing profession … believe that mandatory rotation of the audit partner is unnecessary and may in fact impair audit quality. We identify a sample …

ability, i.e., ability in transforming corporate resources to revenues, and audit fees and going concern opinion. We use the …-level attributes, both audit fees and the likelihood of issuing a going concern opinion are decreasing in managerial ability …

in their compensation structure. We examine client firm credit ratings to test alternative hypotheses of abnormal audit … fees. We predict and find both cross-sectional and time series variation in our results. Excess audit fees are associated … contractions – when audit failure and ratings inflation are more likely consequential – certification agents protect their …