This paper estimates a dynamic model of clients' decisions to switch audit firm and misstate earnings as a function of auditor tenure. Adapting the conditional choice probability framework of Hotz and Miller (1993), which simplifies the estimation to a conditional logit, we find that dynamic...

The main role of the external auditor in the classical corporate governance scheme is to verify the accounting information provided by the firms’ managers. Lengthy audit engagements are viewed as a main threat to preserve auditor independence, and therefore regulators have established...

This study analyses the impact of audit committee independence on auditor dismissal decisions and the successor auditor choice. We pay special attention to those changes that take place after firms receive a qualified audit report. These changes may be considered the observable consequence of...

In an attempt to improve the quality of political and democratic processes, governmental organizations could decide to introduce performance auditing. However, earlier studies suggest that performance auditing can actually damage the quality of these processes, especially when it leads to...

The historical development and size of China's audit market provides an opportunity to investigate important questions regarding the functioning of the market for audit services that are difficult, if not impossible, to test in other globally established markets. The purpose of this study is to...

The historical development and size of China's audit market provides an opportunity to investigate important questions regarding the functioning of the market for audit services that are difficult, if not impossible, to test in other globally established markets. The purpose of this study is to...

Ever since the major corporate collapses of Enron in the United States and HIH Insurance in Australia, the public accounting profession has come under global scrutiny. Both collapses had one thing in common, the auditor firm, Arthur Anderson. Many lessons were learned from these failures which...

The overall complexity and estimation uncertainty inherent in financial statements have increased in recent decades; however, the related reports and services have changed very little, including the format of the balance sheet and income statement, the content in the auditor's report, and the...

This paper investigates the associations between audit pricing and multidimensional characteristics of local governments by using a sample of Greek municipalities. The Greek institutional setting is interesting because it is politically pluralistic. Moreover, independent auditors appointed...

The purpose of this study is to explore some of the challenges constraining public sector audit from acting as an effective accountability tool in PPP arrangements in Nigeria and to proffer solutions. This is a conceptual paper and relies on extensive review of literature. We find, among others,...