This study examines whether the perceived independence and financial expertise of audit committee members affect external auditors' exposure to legal liability. We use an experiment in which potential jurors make judgments about auditor independence and legal liability for a case involving an...

Abstract: This study examines whether the perceived independence and financial expertise of audit committee members affect external auditors' exposure to legal liability. We use an experiment in which potential jurors make judgments about auditor independence and legal liability for a case...

We examine whether personality differences between the CEO and CFO influence audit fees. Audit fees should reflect engagement risk associated with a client. We use personality differences between the CEO and CFO as a proxy for potential poor communication, reluctance to share information, and...

The Sarbanes-Oxley Act (2002) required that firms disclose whether their audit committee has at least one independent financial expert. This study examines whether the independence and expertise of audit committee members lower the exposure of external auditors to legal liability. We use an...

In order to reduce costs, audit firms have begun transferring audit tasks to offshore locations in countries such as India. Consequently, new audit associates no longer perform these tasks. They are, however, asked to review them. If gaining experience completing audit tasks is an important...

Using an experiment, this study investigates whether including additional audit-procedure and/or accounting-estimate details in the audit report influences how openly managers communicate with their auditors. Extant research has focused primarily on the benefits of various changes to the...