This study proposes an alternative measure of discretionary accruals that can be used in testing for intentional earnings management. Prior research has shown the prevalence of measurement error in all models used to estimate discretionary accruals (Healy (1985), DeAngelo (1986), Jones (1991)...

This paper examines the occurrence and outcome of auditor litigation related to financial statement misstatements and the effect of auditor misstatement-based litigation on subsequent auditor behavior. The study is motivated by recent calls to limit auditor legal liability and the need to...

I examine the association between earnings quality and audit firm type using a three-tiered audit firm classification scheme which allows for an explicit examination of the quality of Second-Tier audited earnings. My tests are motivated by the lack of competition in the market for audit...