Previous research (Bell, Landsman and Shackelford, Journal of Accounting Research, 2001) provides survey evidence that, for the clients of a large audit firm, audit clients with higher perceived business risk bear the expected costs of this risk with higher audit fees. We examine this relation...

This study examines the association between audit committee characteristics and the combination of risk management and audit committee activities by industrial Saudi listed firms. Since none of the sample firms has established a stand-alone risk management committee and the functions of...

Prior research finds that companies committing fraud exhibit large inconsistencies between reported revenue growth and growth in revenue-related nonfinancial measures (e.g., number of stores, employees, patents). However, prior research also suggests that auditors, on average, are not adept at...

The Public Company Accounting Oversight Board (PCAOB) recently suggested that auditors' lack of specific fraud planning documentation has led auditors to devote insufficient attention to fraud risks in subsequent audit work. Guided by Support Theory, we experimentally investigate how the...

Auditor resignations are considered more negative signals than auditor dismissals, but firms' self-reported distinction between the two may not offer a complete or reliable representation of the nature of the auditor change. 8-K regulations require the disclosure of the adjournment of an audit...

Nonfinancial measures (NFMs), such as employee headcount and production space, are operational measures that are not included on the face of the financial statements but are often disclosed elsewhere in the annual report or 10-K (e.g., in Management's Discussion and Analysis). Professional...

Relying on their history of legal infractions to measure individuals' risk tolerance, we examine the association between engagement partners' risk appetites and audit quality in the U.S. Criminology and economics research links criminal activity with enduring personality traits that capture an...

This study investigates whether audit market competition influences the risk profile of audit offices' client portfolios and whether an audit office's client risk profile affects the association between audit market competition and audit quality. Economic theory suggests that market competition...

We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks between audited business units and matched non-audited units within the same company. This design allows us to isolate the importance of an internal audit while holding constant...

Purpose:We explore the application of the business risk audit (BRA) approach within non-Big-4 audit firms, in the United States, United Kingdom and Canada. We focus on the motivation for adopting this approach for non-Big-4 audit firms in the three countries, and the advantages, disadvantages...