This paper empirically examines the impact of shareholder ratification of auditors (SRA) voting results on audit fees in a mandatory and binding ratification setting (i.e., Germany). Motivation for our study comes from the widespread implementation of SRA in Europe. Furthermore, it addresses...

This paper presents a model of auditor-client relationship-building. Existing literature suggests that quasi-rents rising from long auditor tenure have a negative effect on auditor independence. In contrast to this conventional wisdom, our paper shows a positive effect of quasi-rents resulting...

We analyze data made available through the PCAOB (Public Company Accounting Oversight Board) to provide descriptive evidence on the properties of auditors' actual quantitative materiality judgments and the implications of those judgments for financial reporting. Auditors' quantitative...

This research investigates the effect on audit quality of concentrated public company financial statement filing deadlines in audit offices. Audit offices must effectively manage their resources to meet their clients' audit service demands. For audit offices with clients that have filing...

We study the role of the Public Company Accounting Oversight Board (PCAOB) as a monitor in mitigating uncertainty surrounding fair value (FV) estimates in issuer financial statements. Specifically, we examine whether the FV deficiencies highlighted in PCAOB inspection reports are associated with...

This study seeks to determine the role of audit firms' quality control (QC) system deficiencies, as measured by the Public Company Accounting Oversight Board (PCAOB) inspection program, on audit quality and profitability. Using a unique dataset of firm-wide QC deficiencies identified by the...

Using a comprehensive sample of audits for public companies in China, we demonstrate whether and how bad audit behavior spreads among individual auditors (i.e., CPAs). CPAs are deemed to be “diseased” during the period when their audits fail, and are subsequently sanctioned by the...

Restatements of audited financial statements are used for evaluating reporting quality, audit quality and for other evaluative purposes. Prior research shows that restatements that correct unintentional errors have different implications for statement preparers, users, auditors and regulators...

While prior studies have explored auditors' collective reputational losses following audit failures at either the firm or office level when only the audit firm/office identities are publicly available, there is relatively little evidence regarding what happens when individual partner information...

Using a sample of firms from France, where the law requires the use of two auditors, we study the effect of auditor pair composition on audit quality by examining a specific account, goodwill impairment. We document that firms audited by a Big 4-non-Big 4 auditor pair (BS) are more likely to...