This paper assesses the effects of auditor dismissals and resignations on audit fees and, in particular, whether companies pay more or less for their audits around these events. We also test the hypotheses that the fee discount around a dismissal can be explained by the benefits of auditor...

An increasing number of firms have restated previously issued financial statements in recent years. Legislators, regulators, and others speculate that restatements are associated with fees received by auditors for non-audit services (non-audit fees). The current study provides empirical evidence...

Accounting quality in Brazil is higher for companies with a Big N auditor if quality is identified by compliance with disclosure rules or by timeliness of loss recognition. This is in agreement with Holthausen's hypothesis that auditor choice allows companies to opt-out of an environment where...

This paper develops a theory that explains why the government, on behalf of the public it serves, demands audits of public companies. Our theory argues that the government demands audits as a way to minimize private and public transaction costs defined as "the cost of measuring the valuable...

This paper reports the results of experiments designed to examine whether investor selection of auditors enhances auditor independence. The experimental design enables us to explore the effect on independence of different institutional rules over who hires and fires the auditors and to directly...

The purpose of this study is to develop, assess, and provide uses for a measure of auditor accounting information systems (AIS) expertise. A nine-item measure of AIS expertise is developed from a review of expertise studies and pre-tests with accounting students. An assessment of the measure...

Much attention is beginning to be paid to auditor client management negotiation as a result of recent events in the financial world. Gibbins, Salterio and Webb [GSW 2001] developed an accounting specific negotiation model and gathered collaborative data from audit partners. To lay the basis for...

We study clauses in private lending agreements requiring auditors to assure lenders of borrowers' compliance with financial covenants. Auditors are required under general purpose financial reporting to review covenant compliance. However, by informing lenders directly that they have no knowledge...

We investigate whether auditor size is associated with the disclosure of internal control exceptions among Circular A-133 audits of nonprofit healthcare organizations. Our focus on auditor report outcomes within the nonprofit healthcare sector is timely and relevant, given the sector's growth...

We examine auditors' disclosure benchmarking, which we define as auditors' acquisition of non-client financial statement information for the purpose of evaluating a client's financial statement information. Employing a novel dataset that captures auditors' access of non-client annual and...