This study examines the economic consequences of going concern audit reports (GCARs) in nonprofit charitable organizations (NPOs) using a sample of public charities that received initial GCARs between 1998 and 2003. I find that GCARs are negatively correlated with subsequent government grants....

This study examines the extent of downward auditor switches from Big 4 audit firms by nonprofit organizations (NPOs) after enactment of the Sarbanes-Oxley Act (SOX). Although SOX provisions do not directly apply to nonprofit organizations, capacity constraints and client realignments due to SOX...

I investigate the effects of a financial statement audit on the governance practices of organizations. I find that obtaining an audit causes organizations to implement governance mechanisms such as conflict-of-interest policies, whistleblower policies, and formal approval of the CEO's...

The purpose of this paper is to identify, analyze and evaluate the potential factors that influence the determinants of the fee/price of the NGOs financial statements audit in Kosovo based and tested, generally, traditional determinants and known in economic literature on this issue. In our...

I investigate how financial audit regulation in the charitable sector affects donor behavior. I propose that audit mandates alleviate the moral-hazard concerns of small and dispersed donors dealing at arm's length. My empirical strategy relies on variation in size-based exemption thresholds...

I provide evidence that an unexpectedly large number of not-for-profit organizations report total revenues just shy of revenue thresholds that trigger state-mandated audited financial statements from those organizations. This result is consistent for seventeen of the nineteen states examined. It...

This study is designed to investigate the role of proactive forensic auditing techniques in preventing fraudulent activities among NGOs in the eThekwini region. The population of this study comprised 87 knowledgeable staff in the field of fraud risk management and auditing selected from 30 NGOs....

I provide evidence on the effects of financial audit mandates in the charitable sector, in particular their influence on donor behavior. My empirical strategy relies on variation in size-based exemption thresholds across states and differences in size driven by the nature of charities’...

In the model there are two types of financial auditors with identical technology, one of which is endowed with a prior reputation for honesty. We characterize conditions under which there exists a 'two-tier equilibrium' in which 'reputable' auditors refuse bribes offered by clients for fear of...

In the model there are two types of financial auditors with identical technology, one of which is endowed with a prior reputation for honesty. We characterize conditions under which there exists a "two-tier equilibrium" in which "reputable" auditors refuse bribes offered by clients for fear of...