We examine whether the December 2007 PCAOB disciplinary order against Deloitte affected Deloitte's switching risk, audit fees, and audit quality relative to the other Big 4 firms over a three-year period following the censure. Our findings suggest that the PCAOB censure was associated with a...

We examine the relation between nonaudit fees and SOX 404 opinions on the effectiveness of a client's internal control over financial reporting. We find a negative association between nonaudit fees and the auditor's propensity to issue an adverse SOX 404 opinion during 2004-2006 (when AS2 was...

A critical issue in international financial management is that of "balancing the government's books" (The Economist 1994, p. 73). Since governmental commitments to maintaining or improving citizens' well-being are subject to re­source constraints, the Governmental Accounting Standards Board...

This study addresses whether an auditor change (a resignation or a dismissal) mitigates information asymmetry as measured by market liquidity or trading activity. For auditor dismissals our results show no effect on our sample firms' market liquidity or trading activity. By contrast, for auditor...

High disclosure standards are perceived to be the cornerstone of the U.S. securities markets. However. the Securities and Exchange Commission (SEC) prohibits the quantification of unproved reserves by U.S. oil and gas firms (based on the argument that it would mislead unsophisticated individual...

Current practice regarding materiality in government audits under generally accepted auditing standards varies widely. In this empirical study, we investigate whether government auditors agree on an appropriate base for calculating materiality and what percentages they apply. In a government...

Since 1979, yields on new issues of long-term municipal debt have risen sharply both absolutely and in relation to yields on long-term corporate and U.S. Treasury debt. In contrast, yields on short-term municipal debt have risen only moderately and offer a relative bargain. Consequently, there...

Corporate attempts at "managing" earnings have often involved the use of managerial judgment as to the appropriate event in the earnings cycle that is the critical one. In the municipal context, numerous opportunities exist to postpone or accelerate the outflow of liquid financial resources on a...

In this paper, we respond to the critique of our article (Boone and Raman, 2001) by Ronen (2001). Our position is that Ronen s (2001) criticisms are not well-founded and that our study extends prior research by providing additional evidence about the ex post effects of Statement of Financial...

In this paper, we examine the value-relevance of local government accounting measures of financial condition from the perspective of the citizenry. The Governmental Accounting Standards Board (GASB) has identified citizens as a primary user group for governmental accounting information, albeit...