audits performed by the sanctioned auditors.We employ two earnings management indicators as proxies for audit quality: loss … this measure of audit quality is observed only for smaller fines. The discretionary accrual approach to earnings management …

The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any … association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion shopping and pay an … abnormal audit fee only when their degree of accounting quality is low. To examine the issue, we group firms on the basis of …

modified audit opinions (MAOs) between 1992 and 2009. We argue that there are two reasons for this phenomenon: strong earnings … roles of audit opinions. We find that firms’ financial constraints eased after receiving MAOs, which suggests that MAOs have …

This article emphasizes the significance of researching the cross effect of using jointly external audit quality and … examine the effect of external audit quality and ownership structure on the discretionary accruals for the whole sample. We … provides empirical evidence on the cross effect of external audit quality variables and capital concentration on earnings …

information risks of goodwill impairments and express their concerns about financial reporting quality in their audit opinions … impairments and the type of audit opinion received in the same financial period. Our findings are as follows. First, the … between goodwill impairments and modified audit opinions is driven primarily by earnings management risks. Third, this …

This study examines the interaction of audit firm characteristics with two core earnings management tools … equity issues and acquisitions, reveals that CS substitutes for CACM for clients of Big 4 and industry-specialized audit … firms. By contrast, CS complements CACM for clients of non-Big 4 and non-specialized audit firms. The level of auditor …

companies. We find evidence that increased enforcement intensity leads to temporary increases in audit fees and more … conservative accruals. However cross-sectional analysis across market segments reveals that audit fees increase primarily in the …

This paper examines whether former auditors on the audit committee constrain earnings management in the banking … industry. Given the complexity and the size of banking organizations, it can be argued that the audit committees of large banks … between earnings management and the presence of audit committee directors with professional auditing experience. Specifically …

(commonly referred to as “Form AP”) and related amendments to its auditing standards regarding the identification of audit … engagement partner and other accounting firms who take part in a public company audit (PCAOB 2015). The rules require disclosure … of Certain Audit Participants. The PCAOB argued that disclosing audit partner identity would create greater …