...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...

...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...

...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...

... Thibodeau, Ken Trotman, Shankar Venkataraman, Tyler Williams, Ari Yezegel, Jing Zhang, and participants in presentations at Bentley University (2020), Northeastern University (2020), UNSW Syndey (2020), University of Colorado Denver (2020), and the PCAOB Office of Economic and Risk Analysis (2021...

...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...

... by the audit firms to minimize disruptions and audit failures around mandatory rotations. JEL Classifications: J01; J44; L84; M21; M42. auditing audit fees audit quality auditor rotation audit partner tenure competition PCAOB Does tenure of an audit partner at a given client influence...

...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...

... Institute and State University and University of New Hampshire. Editor's note: Accepted by Kathryn Kadous. January 2015 January 2016 2016 PCAOB audit reporting auditor litigation critical audit matter (CAMs) accounting standard precision The Public Company...

...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...

... FASB PCAOB auditor opinion bankruptcy prediction In October 2008, the Financial Accounting Standards Board (FASB) issued an exposure draft requiring management to assess the entity's ability to continue as a going concern. In January of 2012, the FASB decided...

... 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...