Audits conducted under the 1984 Single Audit Act go beyond the traditional financial statement audit by placing substantial additional emphasis on the review and evaluation of internal controls and testing of compliance with laws and regulations. The General Accounting Office (GAO),...

We evaluate the hypothesis that client monitoring is priced in the seasoned governmental bond market above and beyond other independent measures of local administration quality and the Big 8/Non-Big 8 dichotomy. Our results are generally consistent with the hypothesis

State and local governments are exempt from the auditing regulations of the Securities and Exchange Commission (SEC). Nevertheless, state governments expend considerable resources on financial, legal compliance, and operational audits. The objective of this paper is to identify the relationships...

While financial statement auditing dominates the market for corporate auditing, internal controls and operational auditing appear to be emphasized in governmental markets. The size of the governmental audit budget (beyond the minimum level prescribed by generally accepted auditing standards) is...