Chinese auditors use to address clients in audit reports connote differential financial misstatement risk. Specifically, we … compromised auditor independence, lower audit quality, and higher financial misstatement risk. We find significantly greater … client misstatement risk weakens when the audit firm is a Top 10 accounting firm in China, is an industry specialist, is …

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 …

severe the corruption is in a province, the more irregularities in government accounts are found by local audit institutions …. Also, post-audit rectification effort is negatively related to the corruption level in that province, indicating that … auditing can contribute to curbing corruption, which is also helpful for understanding the role of China’s local audit …

is rare. China provides a unique setting in which to test the economic consequences of the forms of address used in audit … reports. From 2003 to 2011, about 60% of auditors surveyed addressed their clients by their real names in audit opinions …, while the others used honorifics. Based on a sample of Chinese audit opinions, I report the following findings. First, the …

on financial misstatement holds only for 985 Project universities, low individual-level (audit-firm-level) client …

., has received a request from the SEC for the audit workpapers of one of their Chinese clients, Great Lead Software. If … achieve multiple learning objectives including: Identify audit deficiencies in a globalized setting, identify auditor …

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 …

auditors issue more adverse audit opinions to clients and charge higher fees following the rich listing events. Moreover, we … accumulation is more questionable, auditors choose more stringent audit reporting to better defend themselves from regulatory … scrutiny; for clients without such attributes, auditors primarily rely on increasing audit fees to cope with any post …

This paper examines the association between abnormally long audit report lag and future stock price crash. Audit report … lag is defined as the period between a company's fiscal year end and the audit report date, and is informative about audit … efficiency. Although a substantial body of literature investigates the determinants of audit report lag, scant empirical evidence …