...David B. Bryan; Terry W. Mason SYNOPSIS This study proposes that auditors incorporate earnings volatility into their risk assessments such that volatility is associated with auditor resignations. Because volatile earnings are less predictable, they create larger deviations from the auditor's...

... will notice and incorporate media-provided ESG information in their risk response, which has not been examined by prior research. Supporting this prediction, we find that ESG-related negative media coverage of an audit client is associated with a higher likelihood of auditor resignation and increased audit...

... firm's client risk management process. A key advantage of our sample is that we have an ex post period in which to evaluate audit firms in terms of their client risk management decisions. Bockus and Gigler (1998 ) conjecture that clients whose auditors resign will “have a higher incidence...