This study examines whether recent auditor downgrade activity is associated with subsequent changes in clients' discretionary accruals. The market for audit services has undergone dramatic change in recent years, resulting in a substantial increase in the number of clients realigning to smaller...

The pricing of initial audit engagements has long been of interest to regulators because of audit quality concerns speculated to arise with lowball pricing tactics. However, there has been very little empirical investigation specifically aimed at understanding the link between audit fees and...