We examine audit fees and returns to auditor reputation for Israeli entrepreneurs making initial public offerings (IPOs) of equity in U.S. capital markets. We find that the cost of audit quality in terms of audit fees is higher, and the benefit of audit quality in terms of IPO proceeds is lower...

Between 1982 and 1987, the Australian audit market experienced an increase in price competition resulting from changes in professional rules governing advertising and marketing practices as well as the introduction of widespread audit tendering. Because these changes are generally assumed to...

This paper analyzes a game theoretic model in which a client can potentially avoid a going concern opinion and its self fulfilling prophecy by switching auditors. Incumbent auditors are less willing to express a going concern opinion the more credible the client's threat of dismissal and the...

Previous research (Bell, Landsman and Shackelford, Journal of Accounting Research, 2001) provides survey evidence that, for the clients of a large audit firm, audit clients with higher perceived business risk bear the expected costs of this risk with higher audit fees. We examine this relation...

This paper analyzes a game theoretic model in which a client can potentially avoid a going concern opinion and its self fulfilling prophecy by switching auditors. Incumbent auditors are less willing to express a going concern opinion the more credible the client's threat of dismissal and the...

When assessing the likelihood of fraud in commercial banks, an auditor is faced with two related issues: determining significant red flags in the commercial banking industry, and combining red flags in a model (Decision Aid) based on weights (Values of uncertainties) assigned to them. Prior...

Benefit plan audits, a material but less understood public accounting service, represent a non-audit service that is “audit-related.” We explore the implications of benefit plan audits for the financial statement audit. We find that performing a benefit plan audit for a company significantly...

Objective - This study aims to examine and prove the effect of education, experience and audit fee on audit quality.Methodology – The data used are primary data in the form of questionnaires distributed to auditors, both senior and junior auditors at Public Accounting Firms located in...

Audit firms and regulators have both commented extensively on the potential for new sources of data to transform the audit process. We examine whether information on social media could aid auditors’ going concern deliberations and find that more negative social media sentiment, measured using...

This paper assesses the effects of auditor dismissals and resignations on audit fees and, in particular, whether companies pay more or less for their audits around these events. We also test the hypotheses that the fee discount around a dismissal can be explained by the benefits of auditor...