Many European countries have been carried out a modernization projects in public sector financial reporting since the last two decades. Consequence of a stronger demand for complex, reliable and relevant economic information on government is governments´ efforts towards better accountability....

Are “full audits” cost-effective in improving financial reporting quality compared to “reviews,” which are based primarily on analytical procedures and inquiries? The answer is important because independent verification cost-effectiveness is being challenged globally and recent advances...

Over the past two decades, the regulatory landscape for non-GAAP reporting has evolved significantly. Despite a temporary decline in the frequency of non-GAAP reporting following Regulation G, the incidence of non-GAAP disclosure has continued to increase steadily, leading to a current all-time...

We examine how Big N auditors' changing incentives impact their comment-letter lobbying on U.S. GAAP over the first thirty-four years of the FASB (1973-2006). In particular, we focus on the influence of auditors' lobbying incentives arising from two basic factors: managing expected litigation...

Due to empirical research, tax and accounting compliance costs are a considerable burden for private businesses. However, cost estimates may be biased due to survey nonresponse and questionnaire framing effects. This paper investigates the impact of both aspects on the estimated cost burden. I...

Tax uncertainty often negatively affects investment. Advance tax rulings (ATRs) are commonly used to provide tax certainty. We analyze ATRs from the taxpayers' and tax authorities' perspectives. Investors request ATRs if the fee does not exceed a certain threshold. We integrate this finding into...

A major tax leak scandal has engulfed PwC Australia in 2023. The PwC Internal Investigation and the PwC Internal Governance Review are being conducted as a result. Ten Accountability Concerns arise about those internal reviews.Accountability Concern (1): Too little was done too...

Using a data set compiled through textual analysis of SEC filings and manual collection, we show that (i) firms with principal-versus-agent (PA) exposures face heightened compliance risk and audit fees, although there is no evidence that they have lower revenue quality; (ii) investors attach...

At the beginning of the 1990s UK accounting standards were described as a ‘laughing stock’. By the millennium they were widely acclaimed and in some respects world-leading. This paper explores some of the key technical advances in this period, and the political processes employed to secure...

Key audit matters (KAM) are supposed to enhance the informational value of the audit report. Since the audit report is the primary communication channel between the auditor and the financial statement users, understanding the determinants of KAM disclosure is crucial. Our cross-country study...