Recently, some firms have decoupled their audit and tax service providers in an effort to improve the perceived credibility of their financial statements. Many firms, however, continue to rely on their current auditor for tax services. Therefore, we examine whether investors assign a lower...

Despite the obvious impact of the CFO and the CEO on a firm's financial statements, there is limited empirical evidence on whether and how the personal characteristics of senior management are associated with earnings management. We provide empirical evidence on the relation between earnings...

This study addresses the role of audit committees and auditors in the reporting of internal control deficiencies after the passage of the Sarbanes Oxley Act (SOX). We find that a higher number of meetings of the audit committee, lesser proportion of quot;financial expertsquot; in the audit...

The issue of whether audit pricing reflects the effectiveness of the audit committee is of fundamental interest to auditors, managers, and others. Auditors are expected to price the effectiveness of the audit committee because it relates to the control risk and thus, the overall audit risk. This...

The Sarbanes-Oxley Act mandates the disclosure of whether at least one member of the audit committee is a financial expert. However, the final version of the rule adopted by the SEC defined experts to include both accounting and non-accounting experts. Did the SEC do the right thing? Are the...

The issue of whether audit pricing reflects the risk of corporate governance failure is of fundamental interest to auditors, managers, and others. Auditors are expected to price corporate governance risk because it relates to the control risk and thus, the overall audit risk. This study examines...