We examine whether firm-level political risk influences auditor behavior. Using Hassan, Hollander, van Lent, and Tahoun's (2019) text-based political risk measure as well as a novel measure based on government subsidies targeted to individual firms, we find that firms subject to higher levels of...

In this paper we provide evidence for the effects of social norms on audit pricing by studying companies belonging to the alcohol, firearms, gambling, military, nuclear power, and tobacco industries, which are often described as “sin” companies. We hypothesize that the disparities between...