We examine whether tax audit regimes become more efficient if (i) there are audited financial statements and (ii) tax … auditors have access to the internal statutory audit report revealing information about statutory audit adjustments. Our … ambiguous effect, and for mediumpowered tax auditor incentives and firms that place a high weight on book income, tax audit …

decides whether to audit the firm. Real-world regulations suggest larger penalties for detected non-compliance under a two …

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 …

Because mandatory audit firm rotation (MAR) limits the economic rents earned from a client, regulators regard MAR as a … the audit market and decreases the market shares of the Big 4 audit firms. However, especially the expectation regarding … the effects of MAR on the audit market is very controversial. This paper uses an analytical model that accounts for the …

investments and their associated joint fixed costs, the investment decision and production of audit services must be analyzed over … a client portfolio, rather than on an audit-by-audit basis. We analyze this problem. The analyses yield some important … implications for the market for audit services and also lead to four testable hypotheses concerning the relations between audit …

model predictions in the context of partner industry expertise for the U.S. operations of the Big 4 audit firms. We find …, consistent with the model, a positive association between partner industry specialization and audit fees, even for simple audits …

the client market to provide high audit effort. A negligence liability rule relies on auditing standards to provide a … incentives, with lower audit effort than without legal liability. If the damage payment is low, noncompliance is less costly …, because with compliance, reputational concerns cause the auditor to provide higher, costly audit effort than the standard. In …

which (1) learning is an important focus of a particular process and (2) the audit firm actively stimulates learning during … a particular process. We distinguish learning while performing on the audit engagement, learning related to the audit … engagement, and learning outside the audit engagement. We subsequently review the auditing literature, classify papers that …

In this paper we argue that audit firms rationally consider the potential reactions of their rivals when deciding how … [1990]), we hypothesize that competing with the same audit firms across different industries within a geographical region … rivals. As we characterize the audit market as a differentiated Bertrand oligopoly, pricing is a main strategic choice …

information about statutory audit adjustments. We extend the standard tax compliance game by a statutory auditor to analyze the … information on statutory audit adjustments increases firms' tax compliance, raises tax revenues, and decreases tax audit frequency … instrument to combat tax evasion and increase tax audit efficiency. However, we also highlight the limitations of this approach …