This study examines the tradeoffs that an entrepreneur makes in an initial public stock offering between the incremental costs and benefits of selecting a Big 6 audit firm. The benefit of hiring a Big 6 auditor is assumed to be reduced underpricing, consistent with Beatty (1989) and Balvers, et...

This article reports a study of the way in which users of external financial reports view those reports in a less developed country with a moderately sophisticated capital market. Most users consider that they make at least moderate use of corporate annual reports. What different user groups say...

This paper identifies widespread noncompliance with SEC regulations requiring prompt disclosure of auditor changes and investigates whether late filers and their auditors simply lack SEC expertise or have other reasons to delay reporting the auditor change. Some direct evidence in support of a...

This article analyzes the impacts that three alternative damage apportionment rules have an owner?s financial reporting decision, an auditor?s audit quality choice, and investors? pricing decisions within the context of a perfectly competitive securities market and owner solvency constraints....

Objective – This study examined the governance of accounting rules and tax rules on the level of tax burdens paid by SMEs in Malaysia. According to the tax gap theory, taxpayers utilize the different rules between accounting and tax which is known as the dual reporting system in their tax...

We examine whether companies voluntarily disclose additional information about tax loss carryforwards when the recoverability is more uncertain. With this study, we aim to explain part of the huge cross-sectional variation in the tax footnote. To assess disclosure behavior, we hand-collect data...

Tax evasion is a serious and growing problem in the United States. From 2008 through 2010, the Internal Revenue Service estimated underreported taxes at $264 billion. Servers, who receive a large portion of their income through tips, do not always comply with tax laws when reporting their tip...

Financing terrorist organizations and activities must be fought on at least four fronts within public accounting in the United States: the SEC Audit Requirements, PCAOB Auditing Standards, the AICPA Code of Professional Conduct, and state licensing statutes. This article examines the ethical and...

The most difficult thing to understand may be income tax, this paper explores the concept of value added tax (VAT) with respect to the most controversial treatment of basic food items. This paper does not pretend to cover everything about VAT, but some specifics that addresses the imperatives...

This paper examines the effect of auditors with government experience on audit quality using 1,067 firm*year observations between 2008 and 2015 from Borsa İstanbul firms. We use three measures of audit quality to test the effect of auditors with government experience. Government-experienced...