We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation is costly. The optimal audit standard falls short of the first-best audit quality, and is increasing in the riskiness of firms and in the amount of funding they seek. The model...

This study examines the effects of a joint audit on auditor's report consensus and accuracy. We investigate whether a joint audit, particularly the report issued, improves an audit's quality. We measure the audit's quality using the degree of auditor consensus in the auditor's report. We also...

We investigate the strategic decision making of audit firms in a tendering process. In particular, we are interested in how audit firms behave to acquire audit clients and which audit quality is ensured. Our main findings are manifold. First, if two big audit firms are competing, we do not...

In this paper, we provide empirical evidence for the impact of disciplinary sanctions imposed on Spanish auditing firms and their engagement partners. The disciplinary sanctions resulted from external investigations, which revealed misapplications of auditing standards. In particular, we...

Although researches have extensively studied the relationship between audit quality and financial reporting, little has been said about the consequences to auditors of financial reporting failure in terms of impairment of the audit information role. Based in Taiwan’s unique setting, we...

Utilizing the Finnish setting, this paper examines the association between industry specialization of an individual audit partner and the quality of earnings reported for privately-held companies. Rules in Finland require that the name(s) of the audit engagement partner(s) appear in audit...

Audit quality is a much studied issue. Recently, various auditing researchers have looked at the idea that audit quality may be systematically related to the auditor being male or female. Although this seams a genuine research question, the approach adopted by these researchers (incorporating...

In this study we investigate the association between audit quality and information asymmetry between informed and uninformed traders. We employ three proxies for information asymmetry - absolute price differences, absolute volatility differences, and absolute differences in the long/short ratio...

The purpose of this paper is to examine the value relevance of the perceived audit quality in terms of who audits, as well as the audit outcomes in terms of the auditor's opinion and accruals quality, in the pricing of debt capital for privately-held firms by examining a large sample of...