This study examines whether the provision of non-audit services by a firm's own auditors provides value to the firm. We examine the future return on assets and sales growth as a function of the expenditures by the client firms on non-audit services, reasoning that if such payments are intended...

This study draws on both audit quality and trust theories to examine the effects of financial restatements on the auditor-client trust relationship, as evidenced by changes in audit fees of the auditor's other non-restating office-level clients in the year following the restatement announcement....

Using a sample of U.S. firms spanning 2001-2008, we examine whether female directors or nonexecutive female directors or female audit committee members affect auditor choice and audit effort measured by audit fees. After correcting for selectivity bias and controlling for other known board, firm...

This paper shows that politically connected non-Big 4/5 auditors are associated with lower levels of audit quality (proxied by the level of abnormal non-core earnings and the proportion of modified audit opinions) than firms with no political connections. We also show that more economically...

We examine whether and how individual auditors affect audit outcomes using a large set of archival Chinese data. We analyze about 800 individual auditors and find that they exhibit significant variation in audit quality. The effects that individual auditors have on audit quality are both...