We study regulation of the auditing profession in a model where audit quality is unobservable and enforcing regulation … is costly. The optimal audit standard falls short of the first-best audit quality, and is increasing in the riskiness of …

We investigate the strategic decision making of audit firms in a tendering process. In particular, we are interested in … how audit firms behave to acquire audit clients and which audit quality is ensured. Our main findings are manifold. First …, if two big audit firms are competing, we do not observe that each firm tries to acquire all clients. However, if one big …

The majority of audit litigation research has focused on juror judgments. We examine how jurors' negligence judgments … uncertainty and/or aggregated with other, clean accounts. However, attorneys negotiate auditor settlements under the incorrect … impact auditor liability, and that attorneys would benefit from a better understanding of juror decision making …

information about statutory audit adjustments. We extend the standard tax compliance game by a statutory auditor to analyze the … strategic interactions among a firm issuing financial and tax reports, a statutory auditor, and a tax auditor. For medium …-powered tax auditor incentives and firms that place a high weight on book income, we show that granting the tax auditor access to …

partner rotations. In contrast, European regulators ruled in favour of a dual mandatory rotation rule in which both audit firm … and audit partner rotations are required. Employing a unique setting where a dual regime of audit and firm rotations are … required, we assess the net benefit (cost), of audit firm rotation incrementally to partner rotation. Specifically, we analyse …

the mechanisms are mutually exclusive, and if not, how does recommendation and reputation in auditor selection context … create an interplay¬ in the process of auditor selection. We test our hypotheses on network data of Danish public companies …. Findings from the social network study indicate that auditor selection is a sensitive and complex task for boards of directors …

We use a structural application of the discrete choice model to investigate how the introduction of a joint audit … policy would affect audit market structure and consumer surplus. We perform this policy evaluation by identifying demand … fundamentals in a joint audit regime and applying them to a single audit regime. We find that a joint audit requirement has the …

The critical global role of audit firms, combined with the scarcity of qualified staff and downward pressure on fees … allocative inefficiencies of audit firm staffing using data from 165 audit engagements performed by a Big 4 international CPA … firm. Prior research has shown that the technical inefficiency of audit engagements leads to lower billing realization …

shifting. Taken together, our study highlights the effects of audit exemption and the importance of enforcement while also … suggesting that the audit process is value adding for the tax authorities …

to inflate interim payoffs to be able to continue a project that destroys value. An accounting audit mitigates this …