We investigate the extent to which a client's innovative effort affects the level of audit effort and whether the innovative-effort efficiency can attenuate the demand for greater audit effort associated with a client's risky research-and-development (R&D) investments. We find that a client...

Economic literature documents that the rate of investment in intangibles has exceeded tangible assets in the U.S. private sector since the mid-1990s. However, whether or how the internally developed intangibles affect auditors' risk assessment and work has received little attention. This study...

Organizations use innovations to adapt, grow their business, and differentiate themselves from their competitors. However, innovations can introduce new risks to the organization that the internal audit function (IAF) should address. We interview and survey internal auditors about how they...

Purpose - Investigates the extent to which a client's innovative effort affects the level of audit effort and whether the innovative-effort efficiency can attenuate the demand for greater audit effort associated with a client's risky research-and-development (R&D)...

This study examines whether and how audit quality affects a firm's technological innovation. Using a sample of 7,482 U.S. firms between 2000 and 2009, we demonstrate that high audit quality is associated with lower innovation output, measured by patent counts and patent citations. The effect...

Examining a drastic evolution of the audit market in China, we find that auditor mergers enhance clients' innovation. This effect is more pronounced when the acquirer in a merger is an international Big 4 auditor or when a merger leads to a greater increase in auditor size, supporting the...

Exploiting the staggered establishment of public audit oversight boards (POBs) worldwide and employing a difference-in-differences methodology, we find that patents and patent citations increase significantly following the implementation of public audit oversight. This is especially so in client...

Prior research documents positive effects of PCAOB oversight on reporting and audit quality. However, to gain a clear understanding of the net benefits of regulation, it is important to also investigate corresponding costs. To this end, we investigate the relation between PCAOB inspection...

This study examines the effects of service innovation on financial performance of proprietorship audit firms in Taiwan. This study divides total sample into three business strategy categories, including conventional, non-conventional, and general firms. Non-conventional firms have the highest...