...Matthew Ege; Allison Nicoletti; Sarah B. Stuber ABSTRACT We examine whether auditor scrutiny over the allowance for loan losses (ALL) is associated with bank lending decisions. Using PCAOB inspection findings over the ALL to capture increases in auditor scrutiny, we find that auditor scrutiny...

...Ole-Kristian Hope; Haihao Lu (Ross); Songlan Peng (Stella) ABSTRACT In 2014, the PCAOB adopted a new auditing standard, AS 18 Related Parties, with the intention of enhancing auditors’ performance in auditing related-party transactions (RPTs). Using hand-collected data, we find...

...Amy C. Tegeler; Veena L. Brown; Denise Hanes Downey ABSTRACT Guided by the performance feedback literature, we study PCAOB inspections as a nonstandard feedback event. We use an experiential questionnaire to collect and analyze perceptions, reactions, and responses to inspection feedback from 120...

...Lawrence J. Abbott; Colleen M. Boland; Sean M. McCarthy; Laura A. Swenson ABSTRACT The Big 4 auditors are inspected annually by the Public Company Accounting Oversight Board (PCAOB), with the summarized findings (labeled “audit deficiencies”) being publicly available on its website. Although...

.... This finding is unique to the U.S. and suggests investors may benefit from the requirement as the PCAOB intended. Our findings also provide insights to the PCAOB and to the recent wave of studies examining outcomes of PCAOB oversight and regulation (e.g., Cunningham, Li, Stein, and Wright 2019 ; Burke, R...

...Bradley E. Hendricks; Wayne R. Landsman; F. Dimas Peña-Romera ABSTRACT This study examines whether audit firms hire former PCAOB employees in response to negative PCAOB inspection reports, and whether such hiring leads to reductions in future inspection deficiencies and an increase in audit...

...Brant E. Christensen; Nathan G. Lundstrom; Nathan J. Newton ABSTRACT We examine whether PCAOB inspection reports increase auditors' litigation risk. We find that inspection reports with audit deficiencies are positively associated with the number of lawsuits subsequently filed against...

... Schroeder, Marco Trombetta, Luigi Zingales, PCAOB staff, two anonymous reviewers, two partners from one audit firm in our sample, and seminar participants at the 2018 AAA Auditing Section Midyear Meeting, 2018 EAA Annual Congress, PCAOB's Center for Economic & Risk Analysis, 2017 PCAOB/JAR Conference...

...Lauren M. Cunningham; Chan Li; Sarah E. Stein; Nicole S. Wright ABSTRACT We investigate changes in the quality and cost of audit services surrounding PCAOB Rule 3211, which requires disclosure of audit partner names in Form AP. To isolate changes due to Rule 3211 from other confounding factors, we...

...Jagan Krishnan; Jayanthi Krishnan; Hakjoon Song ABSTRACT We investigate the impact of the Public Company Accounting Oversight Board's (PCAOB) first-time inspections of foreign accounting firms by examining abnormal accruals around the inspection year, and the value relevance of accounting numbers...

...Lauren C. Reid; Joseph V. Carcello ABSTRACT The PCAOB recently considered implementing mandatory audit firm rotation in hopes of better aligning auditors' interests with investors' interests, suggesting that the PCAOB views long auditor tenure as problematic. However, the accounting profession...

... by a lesser amount under imprecise standards than precise standards. PCAOB audit reporting auditor litigation critical audit matter (CAMs) accounting standard precision The Public Company Accounting Oversight Board (PCAOB) is currently considering substantial changes to the audit reporting...

...Clive S. Lennox ABSTRACT In 2005–2006, the PCAOB imposed restrictions on auditors' tax services in order to strengthen auditor independence and improve audit quality. The restrictions resulted in a significant drop in auditor-provided tax services (APTS). To test the impact on audit quality, I...

... by the experimental and matching issuers in a multivariate model. Our findings suggest that the PCAOB's proposed rule requiring disclosure of the use of other auditors in addition to the principal auditor would provide information useful to investors in assessing audit quality for SEC issuers. We thank Michael...

... of Certified Public Accountants (AICPA), and the Public Company Accounting Oversight Board (PCAOB), in August 2014, the FASB issued an Accounting Standards Update (Subtopic 205-40) requiring firms to make going concern assessments in each reporting period and to report going concern problems in the financial...

... Company Accounting Oversight Board (PCAOB) is considering mandating a similar requirement in the United States (U.S.). In the first year after the introduction of the signature requirement, we find a significant decline in abnormal accruals and the propensity to meet an earnings threshold, and we find...