We examine the association between U.S. audit market structure and both audit price and quality. The significant consolidation of the largest audit firms and its effect on market structure has raised international concern among policy makers. We address this concern by examining the association...

Prior research shows that managers use discretion in estimating Level 3 financial instruments to opportunistically manage capital and earnings. We investigate an earlier decision, subsequent classification changes that result in net transfers into the Level 3 classification, to examine whether...

We examine the relationship between aggressive income-increasing real earnings management (REM) and current and future audit fees. Managers pursue REM activities to influence reported earnings and, as a consequence, alter cash flows and sacrifice firm value. We posit that the implications of REM...

We investigate changes in the level of non-audit services (NAS) provided by incumbent auditors following strengthened auditor independence rules required by the Sarbanes-Oxley Act of 2002 (SOX). On the one hand, the provision of NAS may impair auditor independence. Alternatively, benefits from...