This study examines investors' response to the disclosure of prior period, auditor-waived misstatements under Staff Accounting Bulletin No. 108, Considering the effects of prior year misstatements when quantifying misstatements in the current year. Auditors' misstatement correction decisions...

While contemporary auditing standards such as ISA 315 provide broad categories of client risks, prior research regarding audit resource allocation decisions has been based on individual client risks. This study contributes to the literature by using factor analysis to examine how individual...

At present, ways to improve audit quality and auditing decisions are intensively being discussed worldwide by standard setters and researchers. Audit quality is mainly influenced by two factors the requirements of standard setters and the professional judgment of auditors. Especially the...

I examine the effects of changes in audit quality on changes in accrual quality and audit fees for a sample of companies who have switched audit engagement offices within the same audit firm. This setting allows me to research changes in audit quality while holding firm-specific factors which...

This study investigates whether the auditors incorporate the implications of potential litigation risks arising from their client firms' earnings management through real activities manipulations (REM). Using a large sample of US firms, I find that REM is significantly positively related to audit...

An important aim of the Sarbanes-Oxley Act (SOX) was to reduce cost of capital by enhancing auditor independence. However, prior literature has argued that SOX has been ineffective in meeting this objective. We contribute to this debate by first providing evidence suggesting that auditor...

The Japanese Institute of Certified Public Accountants (JICPA) formerly issued a standard audit fees table in accordance with the Certified Public Accountants Law. This table was intended to serve as a reference for the determination of audit fees, but in practice, the standard fees were applied...

The main objective of this study was to analyze the pattern of accounting events that signals error in audited financial statements and resulted in restatement in Brazil during the periods of 2000-2009. The study which is characterized as interpretative, borrows a leaf from the contexts studied...

This paper investigates the association between the internal audit function attributes and audit delay using a sample of 432 publicly traded firms in Malaysia in 2009. In this unique setting, we capitalize on the publicly available data concerning the investment in and the sourcing arrangement...

Using a sample of U.S. firms spanning 2001-2008, we examine whether female directors or nonexecutive female directors or female audit committee members affect auditor choice and audit effort measured by audit fees. After correcting for selectivity bias and controlling for other known board, firm...