The purpose of this paper is to integrate research on audit markets, fees and production. We present a model of the components that determine audit fees and production [hours]. We observe that, overall, knowledge is concentrated on certain aspects of the model and it is not well-integrated. In...

This paper studies whether and how Big-4 firms provide higher quality audits than non-Big-4 firms. Specifically, we first examine a Big-4 effect and then explore three sources of the Big-4 effect. To test the Big-4 effect, we use a unique dataset of individual audit partners for a large sample...

We investigate the audit fee response to CEO behavioral integrity (BI). BI refers to the perceived congruence between an individual's words and deeds (Simons 2002). Because low word-deed congruence should result in more explanations when communicating, we use variation in explanations beyond...

This paper studies whether and how Big-4 firms provide higher quality audits than non-Big-4 firms. Specifically, we first examine a Big-4 effect and then explore three sources of the Big-4 effect. To test the Big-4 effect, we use a unique dataset of individual audit partners for a large sample...

Accounting scholars theorize that audit price is a function of a client's audit and business risk. Existing research finds that the functional expertise of Chief Executive Officers (CEOs) in finance improves financial reporting quality (Matsunaga, Wang, and Yeung 2013), increases profitability,...

This study examines whether influenza (flu), a potential threat to the conduct of public company audits in the U.S., is associated with audit outcomes. Because the peak months of flu season overlap with audit busy season, audit offices most impacted by the flu may be adversely affected. The...

We use large detailed data on individual auditor employment to examine the antecedents of turnover decisions and subsequent career paths of diverse individuals in public accounting – namely women and racial minority groups (Asian, Black, and Hispanic). Consistent with the principle of...

We identify endogenously formed same-race audit pairings based on the estimated race of audit partners and auditee executives in the nonprofit sector and show that these pairings occur at a significantly greater than random frequency. Using within auditor-year variation, we find that same-race...

The Financial Reporting Enforcement Panel (FREP) has been examining financial reporting of companies listed in the regulated market in Germany since 1.7.2005. The paper analyzes the enforcement disclosure quality between 2006 and 2008 by comparing the published activity reports of the panel with...

We provide evidence on the long standing concern on auditor conflicts of interest from providing non-audit services (NAS) to audit clients by using rarely explored NAS fee data from 1978-80 Using this earlier setting, we find cross-sectional evidence of improved earnings quality when auditors...