This study examines the impact of the enhanced auditor's report (ISA 701) in New Zealand on audit effort (audit fees and audit delay); audit quality (absolute abnormal accruals); client disclosures (inventory) and investors (value relevance). ISA 701 requiries an enhanced auditor's report. A...

We investigate whether Public Company Accounting Oversight Board (PCAOB) inspections affect the quality of internal control audits. Our research design improves on prior studies by exploiting both cross-sectional and time-series variation in the content of PCAOB inspection reports, while also...

One of the key reforms aimed at improving audit quality has been the introduction of public oversight over the auditing profession by national public oversight bodies (POBs). The foundation of their strategy is inspections of audit firms. However, little is known about the impact of inspections...

Researchers and regulators have continuously debated whether mandatory audit firm rotation improves or impairs audit quality. Theoretically, rotation might improve auditor independence, but may impair auditor competence, because the new auditor lacks client-specific knowledge. In 2014, the...

Recent research suggests inspections by auditing oversight bodies may lead to unintended consequences by incentivizing auditors to anticipate and manage inspection risk at the engagement level. Our study focuses on the account level, where detailed planning judgments are made, and provides...

We review the empirical literature on the determinants and consequences of auditor-provided tax services (APTS) and provide some directions for future research. We first review the evolution of APTS fees disclosures and related regulations in select jurisdictions, followed by a summary of...

UK listed firms are used to investigate if auditor attributes (fixed effects for audit firms, audit offices, and audit partners) add incrementally to baseline models with client controls in explaining audit outcomes (earnings quality and going concern reports). We document that accounting firm...

A widely held assumption in policy making and empirical research is that increasing the strength of public enforcement improves financial reporting quality and audit quality. This paper provides a more nuanced view. In a model with a manager who can manage earnings, a strategic auditor, and an...

The present paper aims to provide empirical evidence regarding the impact of shareholder activism on earnings management. Specifically, it is focused on investigating the moderating role of an external governance mechanism such as external audit quality. Based on a sample of French companies...

Prior studies examining the interactions of auditors and analysts have generally focused on how auditors influence analysts' forecasts or audit clients' behavior relative to those forecasts without considering how analysts might influence auditors. However, auditing standards encourage auditors...