I examine the effect of auditors’ industry specialization at the asset level. Focusing on insurance companies whose assets comprise investment in financial securities across a wide range of industries, I provide initial evidence that audit firms’ specialization in a security’s industry is...

We study the impact of recognizing fair value changes in net income rather than other comprehensive income on firms’ investment portfolio holdings. Using the adoption of Accounting Standards Update 2016-01 for a sample of property and casualty insurance companies as our setting, we find that...