Francis and Yu (2009) and Choi, Kim, Kim, and Zang (2010) report evidence that Big 4 audits are of higher quality when the engagement office is of larger size: specifically, client earnings quality is higher and auditors in larger offices are more likely to issue going concern audit reports. We...

Francis and Yu (2009) and Choi, Kim, Kim, and Zang (2010) report evidence that Big 4 audits are of higher quality when the engagement office is of larger size: specifically, client earnings quality is higher and auditors in larger offices are more likely to issue going concern audit reports. We...

Audit reports in China record the names of two signing auditors. Through co-signed audit reports, we observe auditor groups within large Chinese accounting firms. We find that these auditor groups are very stable over time. They act like autonomous units within accounting firms. They control...