Griffin, Paul A.; Guo, Michael Zhe; Sun, Estelle - 2021
We examine the impact of extreme weather events on the cost of an audit. We measure impact as the number of days per … year a firm experiences an extreme weather event of any type (e.g., drought, floods, storms, wildfires) in its metropolitan … statistical area (MSA). We first find that auditors charge significantly higher fees for firms exposed to more extreme weather …