This paper examines whether the clients of a merged audit firm have shortened report lag, increased audit fees, or reduced audit quality following the merger. These questions are important for a balanced investigation of a firm merger because regulators focus more on the downside of a merger...

This study investigates whether a failed auditor suffers from reduced audit fees from clients who continue to employ him and whether the reduced audit fees are more pronounced when the failed auditor is not a market leader. The subject audit firm Deloitte Touche Tohmatsu (Deloitte), Hong Kong,...

This paper provides evidence to show that opinion shopping motivates auditor change within the Big 5 category (lateral auditor switches), after controlling for auditee complexity, auditee's sales growth and audit fee change. By focussing on lateral switches, this study provides a more robust...

This paper uses US data to provide evidence regarding the relationship between earnings informativeness and different levels of insider shareholding including insider entrenchment. At medium levels of insider shareholding (convergence of interests e.g., 5 percent and 25 percent), there is a...

This paper uses the relationship between a going-concern modified audit opinion and client bankruptcy as an audit quality indicator to investigate factors that could affect audit quality. The setting is important because while stakeholders often view bankruptcies without a preceding...

This paper examines whether separating tax service of auditors from audit service improves audit quality. To some critics, the separation is the only solution to the independence problem created by the joint provision of both services by auditors. However, opponents argue that auditors are...