We analyze whether and how mandatory audit partner rotation affects the audit adjustments for the rotated partner’s remaining clients. We argue mandatory audit partner rotation can affect audit production of remaining clients through two channels. First, it can cause audit partners to acquire...

We examine whether individualism reduces financial reporting comparability using audit partner individualism in the U.S. We argue that individualistic audit partners are more likely to have non-holistic thinking styles and to resist conformity pressure from peers, thereby lowering their...

We provide causal evidence on the agency cost explanation of the demand for high quality auditing. Using brokerage house closures/ mergers as a natural experiment to identify exogenous increases in agency costs arising from information asymmetry, we find that after experiencing exogenous...