In this study, I examine the effect of auditor education level on the relationship between auditor busyness and audit quality using Turkish listed firms. Prior studies regarding auditor busyness have not considered how auditor busyness affects audit quality in the case of auditors who are less...

We study how informed, strategic trading affects audit quality and investment efficiency. With the auditor's legal liability payment based on the decrease in the market price after an audit failure, informed trading provides a hedge to the auditor against legal liability risk. This weakens...

We investigate how a high degree of audit market concentration and auditor reputation affect audit quality. Using audit adjustments to student loan loss provisions in government audits to construct a new measure for excessive audit conservatism, we show that an audit market monopoly leads to...

Despite regulatory concerns over opinion shopping (OS) behavior, there exists little systematic evidence on the prevalence and consequences of OS to avoid a going concern opinion (GCO) in today's audit environment. Using 11,628 distressed sample firms over the period 2004–2012 and Lennox's...

This study examines the impact of the enhanced auditor's report (ISA 701) in New Zealand on audit effort (audit fees and audit delay); audit quality (absolute abnormal accruals); client disclosures (inventory) and investors (value relevance). ISA 701 requiries an enhanced auditor's report. A...

Although researchers commonly acknowledge that public-company audits should add value by improving the precision of financial information via reduced estimation errors, prior literature correctly notes that there is little direct archival evidence to support this assertion. Moreover, regulatory...

This study examines the role of an individual auditor's cognitive ability in delivering high-quality audits. Our results from analyzing archival data from Sweden show that audit partners' IQ scores obtained from psychological tests are positively associated with going-concern audit reporting...

The elimination of goodwill amortization in 2001 brought about significant change in how companies are required to account for goodwill. This change in accounting also brought with it new challenges for auditors, namely evaluating the reasonableness of management's assumptions related to...

We examine the engagements of audit partners in leadership roles to determine how their direct audit work reveals “tone at the top.” Although leadership partners are likely strong performers who have proven to be capable auditors, the administrative tasks associated with these roles could...

We examine whether audit partners with prior non-public accounting industry experience conduct higher quality and more efficient audits. We further analyze whether the sequencing and nature of this experience matters by splitting audit partners with prior industry experience into those who...