Using a large sample of privately held Korean companies that are not required to obtain an external audit, this paper examines the value of voluntary external audits of financial statements with respect to the cost of debt. We find that private companies with an external audit pay a...

We analyze how variation in federal level legal liability associated with judge ideology affects the likelihood of firms receiving going-concern modified audit opinions. With auditors trading off between Type I and Type II reporting errors, the threshold value (of client bankruptcy probability)...

This paper analyzes the impact of Public Company Accounting Oversight Board (PCAOB)-type regulatory oversight on audit quality, audit value, and the audit market under different legal systems. Conventional wisdom suggests that regulatory oversight may be just a simple addition to a legal system...