We study how informed, strategic trading affects audit quality and investment efficiency. With the auditor's legal liability payment based on the decrease in the market price after an audit failure, informed trading provides a hedge to the auditor against legal liability risk. This weakens...

The purpose of public company audits is to increase the integrity of firms' financial statements. However, research provides mixed evidence on whether better auditors mitigate misstatement risk embedded in the financial reporting process. A challenge in previous studies is the lack of a powerful...

This paper investigates the differences in auditing practices between family and non-family firms in Israel using a unique database that includes external audit fees, hours, billing rates, and internal auditing hours. Based on the premise that the number of auditing hours reflects an auditor’s...

In this bibliometric analysis, the study explores the evolution of internal auditing and its transformation from a basic financial oversight function to a critical entity that manages various aspects of organizational culture, IT challenges, risk management and more. The study emphasizes the...

Although prior literature has documented a positive association between business risk and audit fees, it remains unclear whether, in addition to expending greater audit effort on riskier clients, auditors also charge a risk premium. This is an important issue because a risk premium is a...

Audit firms are essential in ensuring companies’ financial statements are reliable and accurate. The Independent Regulatory Board for Auditors (IRBA) regulates the audit profession in South Africa. The IRBA sets auditing and ethical standards and oversees the registration and monitoring of...

We examine differences in audit scope between family and non-family firms in Israel, using a unique database that includes both external and internal audit fees, hours, and billing rates. Consistent with prior literature, we argue that the number of audit hours reflects an auditor’s effort,...

This empirical study extends the existing, yet limited, literature on the influence of ownership concentration and family control on auditor choice. Following prior studies, a firm is considered using a higher-quality audit when its external auditor is one of Big 4 audit firms. The sample...

This paper reports the findings of a comprehensive study of the audit services market of an emerging market economy, namely, Bangladesh. It covers four important aspects of auditing in the country. They are (i) audit concentration; (ii) audit fee trends; (iii) big-four premium; and (iv) audit...

For about three years now, the COVID-19 pandemic has kept the global economy on tenterhooks. Although the pandemic has now been declared "over", the consequences of this mega-example of disruptive developments are still being felt everywhere, also regarding the work of Internal Audit. In...