This paper extends prior research on audit risk adjustment by examining the association of audit pricing with internal control problems disclosed under Sections 404 and 302 of the Sarbanes-Oxley Act. While studies of auditors' responses to internal control risk provide mixed evidence, it is...

In this paper we examine the association of audit fees with disclosures regarding internal control effectiveness under Section 302 of the Sarbanes Oxley Act of 2002 (SOX). In contrast to previous studies, we focus on non-accelerated filers, whose eventual compliance with the costly provisions of...

We examine investors’ reaction and the audit market implications of the Holding Foreign Companies Accountable Act (HFCAA), which threatens to delist Chinese issuers whose auditors are not subject to PCAOB inspection. We observe negative market returns for U.S.-listed Chinese issuers,...

This study investigates the determinants, textual properties, and consequences of the newly disclosed U.S. critical audit matters (CAMs). We find that complexity, financial reporting issues, and the magnitude of accounts that require high degrees of judgment significantly determine the quantity...

This paper investigates remediation of Sarbanes-Oxley Section 404 material weaknesses (MWs). Prior research examines full remediation of all MWs or broad categories thereof. We build on these studies by investigating remediation of specific types of MW, thus measuring progress in improving...