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...

We show that companies that misstate their financial statements successfully engage in auditor shopping to conceal the misreporting. In other words, their misstatements would have been discovered sooner had they made an opposite ‘replace or retain' auditor decision. The auditor shopping...

Using the timeliness of misstatement discovery as a proxy for audit quality, we examine the association between audit firm tenure and audit quality in a setting that alleviates the endogeneity problem endemic to this line of research. We find that longer audit firm tenure leads to less timely...

We examine whether short sellers are interested in, and capable of, identifying firms with an upcoming revelation of Internal Control Material Weaknesses (ICMW). We show that short sellers accumulate positions in firms that are about to disclose ICMW under Section 404 of the Sarbanes-Oxley Act...