In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as financial...

Advanced audit data analytics tools allow auditors to analyze the entire population of accessible client transactions. Though this approach has measurable benefits for audit efficiency and effectiveness, auditors caution that it does not incrementally increase the level of assurance expressed...

We examine whether public disclosure of Deloitte 2007 PCAOB Part II report, which identifies quality control deficiencies related to audits of income tax accounts, affects Deloitte's auditor-provided tax services (APTS). Using a difference-in-differences model, we document a 17 percent lower...

This study investigates the association between the line of service (audit, tax, advisory) of Big Four office managing partners (OMPs) and both non-audit service fees and audit quality. Given that audit quality has been shown to vary across offices and because changes in office-level leadership...

In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as a financial...

This study examines whether auditors use their own going-concern opinion (GCO) errors (i.e., endogenous, results-based audit-quality signals) as audit-quality signals, and whether they use those signals to make adjustments in their subsequent office-wide audit quality. We argue (along with the...

This paper considers the use of an emerging technology based on formal evidential reasoning to help audit quality assurers conduct higher quality inspections of audit engagements. Although the ideas should be relevant to the inspection process in general, we focus on PCAOB stated objectives and...