We examine whether auditors are sensitive to their clients' compliance with environmental regulations. Under current auditing standards, auditors' responsibilities with respect to the detection and reporting of violations of environmental regulations by their clients are limited and quite vague....

The extant auditing literature documents an inconsistent relationship between audit fees and market concentration. In this paper, we argue that the impact of market concentration on audit fees is auditor and auditee specific. Based on the fact that the audit services to an auditee are generally...

The market for audit services has been the subject of extensive academic research since the 1970’s. The prevailing view is that audit markets are characterized by tiers of suppliers (Big 4 vs. non-Big 4, and industry specialists vs. non-specialists) where the upper-tier suppliers produce and...

This paper derives the impacts of legal system characteristics and auditing standards on auditor behavior (audit quality), and analyzes the determination of optimal auditing standards under different legal regimes. Legal regimes are characterized by differences in the uncertainty concerning the...

We study the effects of cross-listings on audit fees. We first develop a model in which legal environments play a crucial role in determining the auditor's legal liability. Our model and analysis predict that auditors charge higher fees for firms that are cross-listed in countries with stronger...