Performance management is an on-going process, which has an essential component part, performance measurement, which involves the identification, supervision and communication of performance results, through the relation to a set of performance indicators. Based on the assessment results,...

In this paper we investigate why auditors fail to report material weaknesses in internal controls (ICMWs) in advance of misstated audited financial statements. To address this question, we analyze Public Company Accounting Oversight Board (PCAOB) proprietary data on audit clients' internal...

Regulations implemented by the SEC in 2003 and 2004 simultaneously shortened the financial statement filing deadlines and increased the preparation time required for both the financial statements and the related audit of accelerated filers (AFs). However, there were indirect, unintended negative...

The enactment of the Sarbanes-Oxley Act (SOX) of 2002 established several reforms to improve corporate governance and financial reporting practices for companies listed in US capital markets. Given the important role played by foreign firms in US capital markets, the present article discusses...

We investigate whether audit fees and auditors' opinions on internal controls are associated with whistleblowing allegations externally filed to regulatory agencies. We find that firms subject to whistleblowing allegations have significantly higher audit fees, regardless of the substance of...

The Public Company Accounting Oversight Board (PCAOB) inspection process identifies deficiencies related to how firms conduct audits. Our work extends prior research by examining the type of internal control audit deficiencies (entity-level or application-level). Internal control audit...

This study examines whether managers make voluntary changes in accounting principle in response to a material weakness (MW). We find that managers are more likely to report voluntary changes in the same year as and year following a MW disclosure, a result largely driven by companies with a...

We examine the relation between nonaudit fees and SOX 404 opinions on the effectiveness of a client's internal control over financial reporting. We find a negative association between nonaudit fees and the auditor's propensity to issue an adverse SOX 404 opinion during 2004-2006 (when AS2 was...

We investigate potential differences in audit reporting outcomes between Circular A-133 audits performed by governmental auditors vs. those performed by certified public accounting (CPA) firms. Specifically, we investigate the association between auditor type and the likelihood of...

Prior research has investigated various factors affecting auditor performance when examining the internal control system of an entity. However, one factor that remains relatively unexplored is the geographic distance between auditors and their municipal clients. This study explores whether...