This study investigates whether Public Company Accounting Oversight Board (PCAOB) inspections of foreign auditors affect global financial reporting comparability. Foreign auditors may adjust audit methodologies to address PCAOB inspection findings, which could affect financial reporting of local...

Brand name audit firms are global networks of local audit firms. These networks claim to enforce consistent audit methodologies across their member firms, which if true, should systematically affect client financial reporting. We find that clients from different countries have more (less)...

Using a comprehensive database of U.S. internal auditor job postings, we find that firms are 9.6% more likely to post an internal auditor job after the revelation of accounting and operational failures. Also, the demand for internal auditors is stronger when a failure is more severe. Among firms...

We examine whether individualism reduces financial reporting comparability using audit partner individualism in the U.S. We argue that individualistic audit partners are more likely to have non-holistic thinking styles and to resist conformity pressure from peers, thereby lowering their...

We identify 40 high-profile audit-related negative events involving the Big 4 audit firms from 2008-2017. Auditors experiencing negative events are more (less) likely to lose (gain) clients the following year. This effect is driven by switches to other Big 4 and disappears after two years, and...