accounting rules] to compel managers to be conservative). Prior conditional conservatism models infer asymmetric timeliness from …

Audit deficiencies have far-reaching implications on the users of financial reports, accounting firms and their clients …, and the accounting profession. Section 104 of the Sarbanes-Oxley Act of 2002 (USHR 2002) requires the Public Company … Accounting Oversight Board to conduct inspections of each registered public accounting firm. The inspection process is the Board …

We examine conditional accounting conservatism (Basu, 1997) of UK firms cross-listed in the US. More specifically, we … accounting, we control for debt-raising activities of our sample firms. Using data on equity deals from cross-listed firms during … drive for conservative accounting into perspective. Our evidence suggests that firms provide credible and verifiable …