Several reforms of the Sarbanes Oxley Act were designed to strengthen the vigilance exercised by audit committee members in their oversight of independent financial-statement audits of U.S. public companies. After SOX, a shift occurred in the audit committee labor market such that more...

We argue that conflicting estimates of auditors' industry leadership premia documented in prior research reflect model misspecification. We show that leadership measures can be expected to identify different auditors as leaders depending on the basis (assets, fees or auditee counts) used to...