One of the important attributes of high quality accounting information is its ability to aid financial statement users in forming expectations about the firm's future earnings. Prior research finds that accounting financial expertise of the audit committee is associated with higher financial...

On January 6, 2003, the Public Company Accounting Oversight Board (PCAOB) opened its Washington, D.C. office. Three days later, the PCAOB held its first open board meeting, affirming its position as the first external regulator of the auditing profession. The PCAOB was established six months...

Both practitioners and academics are increasingly focusing their attention on the riskiness of firms' tax planning activities. In this study, we examine how external auditors respond to tax risk, measured using the volatility of firms' annual cash and GAAP effective tax rates. Consistent with...

In 2010, the Internal Revenue Service (IRS) announced the requirement to disclose uncertain tax positions (UTP) on a new schedule (Schedule UTP) to be filed with federal corporate income tax returns. Schedule UTP could increase firm's tax burden by providing a roadmap of tax planning strategies...

We examine the effect of high-quality information technology (IT) on management's capital investment decisions. Evaluating capital investment decisions with contemporary investment efficiency and long-term measures of investment effectiveness, we document a positive relation between high-quality...