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Lennox, Clive S. - 2012

This article reviews global practices on auditor rotation and discusses the pros and cons of mandatory rotation. While … many studies have examined auditor tenure and rotation, I argue that the literature has not yet answered the question as to … whether mandatory rotation is desirable. The reason for this impasse is that there are major obstacles preventing us from …

Persistent link: https://www.econbiz.de/10013099043

The Demand for Audit in Private Firms : Recent Large-Sample Evidence from the UK

Dedman, Elisabeth - 2013

Although theory suggests that companies would rationally select into audit even if it were not a legal requirement, many countries impose mandatory audits. This is arguably due to an audit having elements of a public good, which may result in not enough audits being purchased without regulatory...

Persistent link: https://www.econbiz.de/10013087925

Opening up the ‘Black Box’ of Audit Firms : The Effects of Audit Partner Ownership on Audit Adjustments

Lennox, Clive S. - 2020

Audit firms need to provide high quality audits but they also need to please their clients. We argue that these conflicting incentives become manifest when comparing the incentive effects of equity ownership on engagement quality (EQ) reviewers and audit engagement partners. We predict that EQ...

Persistent link: https://www.econbiz.de/10012824024

Did the PCAOB’s Restrictions on Auditors’ Tax Services Improve Audit Quality?

Lennox, Clive S. - 2015

In 2005-2006, the PCAOB imposed restrictions on auditors' tax services in order to strengthen auditor independence and …

Persistent link: https://www.econbiz.de/10013026962

Do PCAOB Inspections Improve the Quality of Internal Control Audits?

DeFond, Mark L. - 2015

We test whether PCAOB inspections help remediate auditors' deficiencies in detecting and reporting material internal control weaknesses. After PCAOB inspectors report higher rates of internal control audit deficiencies, we find that auditors respond by increasing their issuance of adverse...

Persistent link: https://www.econbiz.de/10013026965

Selection Models in Accounting Research

Lennox, Clive S. - 2011

This study explains the challenges associated with the Heckman (1979) procedure to control for selection bias, assesses the quality of its application in accounting research, and offers guidance for better implementation of selection models. A survey of 75 recent accounting articles in leading...

Persistent link: https://www.econbiz.de/10013118851

Cooking the Books Using Different Ingredients : An Examination of Earnings Frauds That Also Involve Misreported Cash Flows

Lennox, Clive S. - 2020

Prior studies examine how fraud firms manipulate accruals in order to overstate their earnings. We document that some fraud firms also manipulate operating cash flows in order to fraudulently overstate earnings. More importantly, we predict that these earnings-cash flow frauds (ECF) are harder...

Persistent link: https://www.econbiz.de/10012835178

Tax Aggressiveness, R&D Spending, and Firms’ Claims for R&D Tax Deductions : Evidence from China

Lennox, Clive S.; Li, Wanfu; Lin, Bin; Wang, Zi-Tian - 2015

In China, submitting a claim for R&D tax deductions increases the likelihood that a firm will be scrutinized by the tax authorities. We argue that tax aggressive firms are keen to avoid the oversight of the tax authorities and so they are less likely to submit claims for R&D tax deductions...

Persistent link: https://www.econbiz.de/10014137417

Losing Our Way? A Critical Examination of Path Analysis in Accounting Research

Lennox, Clive S.; Payne-Mann, Carmen - 2023

Many scholars view path analysis as a tool to disentangle direct and indirect causal effects. Path analysis has become increasingly popular in the accounting literature with the number of papers using this methodology surging over the past decade. We provide two criticisms of the way path...

Persistent link: https://www.econbiz.de/10014346801

The Hiring of Accounting and Finance Officers from Audit Firms : How Did the Market React?

Geiger, Marshall A. - 2011

This study investigates the market's reaction to companies hiring accounting and finance officers directly from their external audit firms - the auditor to - client hiring practice referred to as the ‘‘revolving door.'' The Sarbanes-Oxley Act (SOX) eliminated this hiring practice, reflecting...

Persistent link: https://www.econbiz.de/10013121113