The auditor ratification vote provides shareholders with an opportunity to voice their opinions about the company's choice of auditor, but historically, less than two percent of shareholders express dissent in their vote. Motivated by regulatory attention on the importance of shareholder...

A vignette study of 567 client acceptance decisions by 67 Dutch auditors showed that the prospect of acquiring additional assignments significantly increases the likelihood that auditing partners accept an audit assignment from a new client, thereby violating a rule of the auditing profession....