The interim reporting process provides decision-useful information to investors and market participants. However the legal circumstances of external interim auditor reviews differ worldwide. A mandatory review rule in the US as opposed to a contrary decision of the German legislator raises the...

We examine whether the provision of non-audit services (NAS) by incumbent auditors is associated with a reduction in the extent of "news-based" earnings conservatism (i.e., the differential extent to which earnings reflect bad news on a timely basis). Reduced earnings conservatism is expected to...