This study examines the role of the local auditor office in the comparability and quality of their clients' earnings. I construct of sample of firm-pairs in which each observation consists of two firms in the same industry-year. Accounting comparability is inferred by the closeness of total...

This study examines whether social and human capital influence the compensation of individual auditors in the small audit firm market. We employ a sample of Italian auditors and use measures from the network and auditing literatures to capture their professional connections, representing social...

This paper examines the effect of auditors with government experience on audit quality using 1,067 firm*year observations between 2008 and 2015 from Borsa İstanbul firms. We use three measures of audit quality to test the effect of auditors with government experience. Government-experienced...

Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thereby improve financial reporting. We assess three dimensions of audit quality—efficiency,...

Major accounting scandals and audit failures (such as Enron and WorldCom) during the turn of the century seriously impaired the public’s confidence and trust in audited financial statements. This had cast a shadow on auditor independence, integrity and professional conduct, and led to the...

This study aims to investigate whether or not audit quality is influenced by auditor type (governmental vs. private auditors) and by auditor size (Big auditors vs. non-Big auditors). A sample of 2241 firm-year observations from Tehran Stock Exchange (TSE) companies during the period 2002 to 2007...

We examine audit fees and returns to auditor reputation for Israeli entrepreneurs making initial public offerings (IPOs) of equity in U.S. capital markets. We find that the cost of audit quality in terms of audit fees is higher, and the benefit of audit quality in terms of IPO proceeds is lower...

With the creation of the Public Company Accounting Oversight Board (PCAOB), audit firm oversight shifted away from self-regulation to independent regulation. The inspections program is the central feature of the PCAOB. We examine whether PCAOB inspections are able to distinguish actual audit...

This paper analyzes the relationship between a firm's demand for different quality auditors and opportunities for earnings management.In our model, the firm simultaneously chooses the bias it introduces into its pre-audited earnings and the quality of its auditor. We show that firms that choose...

The aim of this paper is to examine the impact of auditor reputation (i.e. size of audit firm) on auditor independence. Questionnaire and interview survey were employed to seek the perceptions of senior managers of Malaysian audit firms, banks and public listed companies. Consistent with prior...