We provide evidence on the long standing concern on auditor conflicts of interest from providing non-audit services (NAS) to audit clients by using rarely explored NAS fee data from 1978-80. Using this earlier setting, we find cross-sectional evidence of improved earnings quality when auditors...

This paper offers new findings about how audit fees vary around auditor dismissals and resignations. For dismissals, we find evidence of lower than normal fees before and after an auditor change, consistent with the view that both incumbent and successor auditors adjust fees downward to retain...

Audit committees play very important roles in financial aspects of governance as they help ensure audit quality while at the same time protecting the interest of investors. This paper attempts an x-ray of the factors that tend to diminish the importance of Audit Committees in corporate...

Between 1982 and 1987, the Australian audit market experienced an increase in price competition resulting from changes in professional rules governing advertising and marketing practices as well as the introduction of widespread audit tendering. Because these changes are generally assumed to...

This study empirically evaluates the impact of the Private Securities Litigation Reform Act of 1995 (PSLRA) and the Sarbanes Oxley Act of 2002 upon the (equity) risk of the largest US firms, the backbone of the US economy. Drawing from the literature, hypotheses are developed and empirically...

Policymakers and regulators have been concerned about the impact of audit market concentration resulting from decline in the number of audit firms due to mergers and the demise of Arthur Andersen. In this paper we find a positive association between audit market concentration (Herfindahl index)...

Supply chain management has emerged as one of the more important topics in managerial accounting. The importance of information exchange between parties involved in supply chains has also been well documented. By addressing the value of audits in this setting, this theoretical paper serves to...

For much of the past decade, the audit profession has been enjoined to enter new and novel fields of assurance services. This call implies the importation of constructs from traditional attest financial audits into new domains to provide elevated levels of assurance for information-users and...

We have studied E-business audit as a specialized service rendered in an information technology intensive environment. A service model is used to research the E-business audit context. Here auditing is viewed as a specialized technical service conducted in the context of E-business technologies,...

The “not documented, not done” requirements of PCAOB Auditing Standard 3 substantially increased auditors’ obligations to document their risk assessments. This study examines a potentially unintended consequence of such a requirement on auditors who have pressure to reach lenient,...