Whether audit firm tenure affects audit quality is a question of longstanding regulatory and scholarly interest. While this question centers on how audit quality changes over time within client-audit firm relationships (longitudinal variation), prior studies tend to instead compare audit quality...

This study investigates auditors’ reputational damage following unfavorable PCAOB inspection reports. While prior studies reach different conclusions on the usefulness of PCAOB reports based on subsequent changes in auditors’ market share (or lack thereof), we posit that a client’s...