We conduct a post-implementation research analysis of AS4, a standard guiding voluntary audits of material weakness (MW) remediation disclosures, to understand the reasons for the scarcity of AS4 audits in practice. We use multiple methods (experiments, comment letter analysis, and surveys) to...

Audit regulators and commentators propose prompting auditors to more fully take an investor’s perspective as a remedy to their concern that auditors underreact to material misstatements. By contrast, we predict that prompting auditors in this manner will backfire, making them less (more)...

While current audit standards explicitly state engagement partner tenure requirements, firms have flexibility in managing the rotation process. We conduct semi-structured interviews with 20 U.S. audit firm partners who share their experiences on topics including how they identify appropriate...

To foster positive relationships with clients, audit firms often assign non-decision-making liaisons to engagements (i.e., “relationship partners,” hereafter RPs). Yet, little is known about RPs' influence on disagreements that arise during fieldwork. We conduct an experiment with financial...