...Nicholas J. Mueller SYNOPSIS Prior literature shows that the receipt of an SEC comment letter strains the auditor-client relationship by increasing the likelihood of a change in auditor. This paper examines this result by investigating whether an auditor’s involvement in responding to comment...

... of accounting and reporting choices but show significant increases in the quantity and detail of disclosure over time. Consistent with our predictions, these changes in disclosure are positively related to initial disclosure levels below the average of industry peers, the receipt of a related SEC comment letter...