This study examines the effect of real activities manipulation (RAM) on auditors' decision of issuing going concern opinions for financially distressed companies. It draws on the theory that auditors perceive RAM as a potential litigation risk and a signal of client firms using other earnings...

The purpose of this study is to examine how external auditors react to clients' earnings management through classification shifting. It draws on the argument that auditors perceive earnings management as a reflection of managers' opportunism and potential litigation risk. Using audit fees, audit...

The debate concerning the recent regulation in the United States mandating accounting firms to disclose engagement partners' identity is ongoing. We examine the impact of the Public Company Accounting Oversight Board's (PCAOB) requirement of disclosing engagement partners' names on Form AP on...

This paper investigates the impact of political corruption on auditor behavior in the United States. We find that U.S. firms headquartered in more corrupt regions pay higher audit fees, have longer audit report lags, and are more likely to receive a going concern audit opinion. Political...

This study examines how auditors react to clients’ engagement in classification shifting which refers to the intentional misallocation of line items within the income statement. We find that classification shifting is positively associated with audit fees, audit report lags, the issuance of a...

Topics concerning government contracts have recently attracted much attention from researchers and the public because of the U.S. government’s significant spending on goods and services. In this study, we investigate whether audit fees are associated with audit clients’ government contracts....