We utilize a single period model to investigate the tradeoffs that management might make when faced with the necessity of disclosing the quality of the internal control over financial reporting (henceforth ICOFR) and the outcomes that would result from such tradeoffs. Our analysis indicates that...

This study examines whether differences in proxies for audit-quality between Big 4 and non-Big 4 audit firms could be a reflection of their respective clients' characteristics. In our analyses, we use three audit-quality proxies: discretionary accruals, the ex ante cost of equity capital, and...

This study uses a very simple but intuitive model to examine how audit quality is determined. It concludes that audit quality is higher if two forces have opposite effects on an auditor's conservatism are balanced and significant. A force that makes an auditor less conservative is the benefit...

This study investigates whether and how judge ideology affects auditors' litigation risk. Using the appointing president's political affiliation to measure federal judge ideology, we document that audit fees charged to auditees locating in jurisdictions of circuit courts with more Democratic...