Audits conducted under the 1984 Single Audit Act go beyond the traditional financial statement audit by placing substantial additional emphasis on the review and evaluation of internal controls and testing of compliance with laws and regulations. The General Accounting Office (GAO),...

We evaluate the hypothesis that client monitoring is priced in the seasoned governmental bond market above and beyond other independent measures of local administration quality and the Big 8/Non-Big 8 dichotomy. Our results are generally consistent with the hypothesis