The purpose of this paper is to provide a descriptive analysis of companies' previously uncorrected financial statement misstatements using disclosures recently mandated by Staff Accounting Bulletin No. 108 (SAB 108). We analyze 355 companies that disclose and correct 792 misstatements in their...

Recent environmental changes have led to novice auditors performing tasks traditionally performed by experienced auditors. Yet, our knowledge of novice auditor task responsibilities has not been updated, and research exploring novice judgments does not constitute a large subset of published...

This study examines U.S. auditors' observations of the PCAOB inspection process, and its impact on their work, in order to understand the current U.S. regulatory audit climate. Using 20 interviews with experienced auditors, we consider behavioral factors (e.g., perceived power of and trust in...

We investigate the role of audit committee economic incentives in judgments involving the resolution of detected misstatements. The results reveal a positive association between audit committee short-term stock option compensation and the likelihood that managers are allowed to waive income...

This study examines local characteristics associated with non-Big 4 local market leadership and the impact of non-Big 4 local market leadership on competition. We identify non-Big 4 local market leaders by collecting accounting firm rankings from business publications for 46 of the largest...