We examine whether and how the addition of mandatory paragraphs that highlight Key/Critical audit matters (KAMs) in the auditor's report affects users' information acquisition process using eye-tracking technology. We experimentally manipulate the presence of KAMs, their number (one or three...

This study examines whether audit firms hire former Public Company Accounting Oversight Board (PCAOB) employees in response to negative PCAOB inspection reports, and whether such hiring leads to reductions in future inspection deficiencies and an increase in audit quality. Using a large sample...

We investigate the impact on strategic alliance value when auditors have greater knowledge and experience in auditing contractual alliances. Although common and economically significant, contractual alliances often fail due to uncertainty, lack of trust, and poor culture matches between alliance...

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...

This research aims to reveal whether independent auditor's (as the real person and the legal entity) qualifications (audit firm size, audit opinion, audit gender, audit firm specialization, audit firm rotation, geographical difference) have any effect on earnings management via discretionary...

An analytic framework is provided for incorporating different user perspectives on materiality into the audit process. The framework serves as a tool for disaggregating materiality to specific accounts based on materiality criteria for accounts and account combinations. To improve audit...

We investigate whether auditor independence is compromised by either the mix of audit and non audit services (NAS), or simply unusually large NAS or audit fees. The results help reconcile apparently conflicting evidence in prior studies linking NAS and indicators of earnings management, as well...

This paper analyzes the auditor choices for a sample of 2,333 predominantly small and mid-sized Finnish firms. Finland requires virtually all commercial enterprises to have a financial statement audit, but allows the smallest firms to choose from four types of audit firms: first tier...

This paper extends the traditional view of audit failures related to the going-concern (GC) assumption to two circumstances scarcely analyzed in the audit literature: the earnings overstatement that characterizes firms without a going-concern uncertainty (GCU) in their audit reports and the...

Audit firms and regulators have both commented extensively on the potential for new sources of data to transform the audit process. We examine whether information on social media could aid auditors’ going concern deliberations and find that more negative social media sentiment, measured using...