Purpose: The purpose of this study is to examine whether the timing of auditor terminations signals the riskiness of client firms. Design/methodology/approach: This empirical study uses a sample of auditor switches during 2003-2014 to conduct univariate tests and multivariate regression...

We examine the effect of unfavorable PCAOB inspection reports, which contain audit deficiencies related to GAAS and/or GAAP violations, on shareholder voting for the auditor ratification. We further investigate whether shareholders likely vote against ratification for the auditors receiving...

Using a measure of social capital provided by the Northeast Regional Center for Rural Development, we document that, after controlling for auditor effort, firms headquartered in U.S. counties with higher social capital are less likely to have ineffective internal control over financial reporting...

We examine whether and how auditors incorporate rollover risk in assessing a client’s risk. Rollover risk is the risk associated with long-term debt maturing in one year, which has to be refinanced of settled shortly. Debt has two counteracting effects on firms’ riskiness: increased...