Using novel, proprietary data on operational losses from a large government-owned bank in India, we provide evidence that only 3% of operational risk events (particularly external frauds) account for more than 80% of aggregate operational losses. Operational losses are power-law distributed and...

This study employs the firm-level political risk (FLPR) measure proposed by Hassan et al. (2019) to explore the association between firms’ political risk and their earnings management practices. Test results confirm that firms facing higher FLPR engage in higher real and accrual-based earnings...

We show that Educational loans is a case for application of artificial intelligence models to predict potential defaulters with a reasonable accuracy. Ensemble models tend to perform better than simple artificial techniques and statistical models and that the performance can be improved...

In this study we examine audit fees for SEC registrants that remediate previously disclosed material weaknesses in internal control. We find that remediating firms have lower audit fees when compared to firms that continue to report material weaknesses in internal control. However, the...

We find that the audit report lag is significantly higher for former Andersen clients (that did not follow their Andersen partner to the new audit firm) than for clients voluntarily changing auditors from another Big 5 predecessor for the fiscal year ended December 31, 2002 (the first year with...

We find a model that uses both financial statement and market information is an unambiguously superior predictor of bankruptcy than the going concern (audit) opinion. However, the audit opinion has incremental predictive ability for bankruptcy beyond both financial statement and market-based...

Auditors, legislators, and others have recently suggested that audit reporting options be expanded so as to provide better information about expected future events. However, the last action by the Auditing Standards Board (ASB) related to auditor reporting was to reduce the reporting options...