We examine the costs and benefits of proactive financial reporting enforcement by the UK Financial Reporting Review Panel. Enforcement scrutiny is selective and varies by sector and over time, yet can be anticipated by auditors and companies. We find evidence that increased enforcement intensity...

This article examines whether enhanced corporate governance, auditing by one of the Big Four and auditors' opinions, are associated with the propensity to engage in earnings management through accounting choices or operational decisions in Brazil. Although there are some studies on earnings...

This paper examines the accounting profession's self-regulation of internal audit outsourcing services. The question of whether public accountants compromise their independence when they provide internal audit services to their attest clients was debated within the accounting and regulatory...

We argue that audit quality has direct and indirect effects on the cost of equity capital. Direct effects are consistent with auditor reputation effects reflecting insurance and/or assurance roles. However, if audit quality is at least in part a reflection of expected assurance levels, then we...