The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any … association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion shopping and pay an … abnormal audit fee only when their degree of accounting quality is low. To examine the issue, we group firms on the basis of …

Advanced audit data analytics tools allow auditors to analyze the entire population of accessible client transactions …. Though this approach has measurable benefits for audit efficiency and effectiveness, auditors caution that it does not … experimentally examine whether the audit testing methodology (audit data analytics versus traditional sampling) and the type of …

) proprietary data on audit clients' internal control deficiencies (both material weaknesses and less-severe deficiencies) and … deficiencies in the audits of internal controls documented by PCAOB inspectors. We find evidence using both audit and control …

We examine the relation between low quality internal controls and audit fee premiums. Using a novel dataset of audit … hours and audit fees we find, consistent with the audit risk model, that auditors increase their effort (hours) due to low …

average threshold at which the audit office started to issue going concern opinions in the past. If they perceive the office … reaction to auditor changes. I introduce a novel measure of auditor conservatism that is closely related to the audit offices … most conservative non-Big 4 audit offices in the period after the financial crisis as over-conservative. That is, in the …

, resulting from the provision non-audit services, but also because of the mere fact of being hired and paid by the audited … prohibitions and rotation requirements. More recent proposals have also included breaking up audit firms and the empowerment of … restrict the type of services potentially provided to the audit client. Third, policymakers must pay closer attention to the …

United States of America improves the audit quality for listed companies. The empirical analysis includes the companies … Modified Jones model to estimate signed discretionary accruals and unsigned discretionary accruals as a proxy for audit quality …. It is found that Public Company Accounting Oversight Board improves audit quality and the relationship between abnormal …

exploit a regulatory exemption that permits companies to exclude acquired operations from an internal control audit. Using … internal control audit. This negative reaction is larger when more of the company's operations are excluded from audit and when …