This paper takes stock of the literature that appeared on the relation between audit and non-audit services. Press, regulators and academics alike have raised concerns about how audit quality is impacted if audits are performed by firms that offer advisory and audit services. I examine the...

To ensure that audit committees provide sufficient oversight over the auditing process and quality of financial reporting, legislators have imposed stricter requirements on the independence of audit committee members. Although many audit committees appear to be “fully” independent, anecdotal...

Classical agency theory argues that economic incentives can have a strong impact on opportunistic reporting behavior. On the other hand, behavioral literature suggests that agents also adhere to descriptive norms established by peers. Most studies examine these effects in isolation, ignoring the...