State and local governments are exempt from the auditing regulations of the Securities and Exchange Commission (SEC). Nevertheless, state governments expend considerable resources on financial, legal compliance, and operational audits. The objective of this paper is to identify the relationships...

While financial statement auditing dominates the market for corporate auditing, internal controls and operational auditing appear to be emphasized in governmental markets. The size of the governmental audit budget (beyond the minimum level prescribed by generally accepted auditing standards) is...

In recent years, policy makers have expressed concern about the risks posed by audit market concentration (i.e., high market shares for the dominant Big 4 audit firms) for audit quality. In this paper, we examine the relation between concentration at the local (i.e., metropolitan statistical...