... 2025 24 03 2025 2025 audit-employee turnover audit quality auditor-client realignment auditor switching audit fees auditor human capital THE ACCOUNTING REVIEW Vol. XX, No. XX MONTH YEAR pp. 1 28 American Accounting Association DOI: 10.2308/TAR-2022-0249 Audit-Employee Turnover...

... the heightened uncertainty to make it more difficult for auditors and clients to assess materiality and to reach a consensus on materiality assessment, which increases audit effort and engagement risk, leading to higher audit fees. Consistent with this prediction, we find that after the ruling, audit fees...

... Engagement Composition,” “Which Audit Input Matters? An Analysis of the Determinants of Audit Quality, Profitability, and Audit Fees Using PCAOB Data,” and “The Economics of Audit Production: What Matters for Audit Quality?” Daniel Aobdia and Preeti Choudhary were Senior Economic Research Fellows...

... audit office improves audit quality and results in an audit fee discount, even after controlling for the product similarity effect, auditors’ overall technological expertise, and industry specialization. Both an increase in audit quality and a decrease in audit fees occur if a client firm exhibits...

... 15 08 2022 18 08 2022 2023 earnings announcement timing peer effects spillover effects financial reporting regulation market attention audit fees Wells Fargo [decides] to move up its earnings release date to this Friday so that it coincides with competitor JPMorgan Chase...

... to audit fees or audit quality (measured with several accrual and misstatement-based measures) for CAM adopters in the post-period relative to the control group of nonadopters. This is consistent with the majority of non-U.S. studies ( Gutierrez et al. 2018 ; Bédard et al. 2019 ; Liao et al. 2019...

... associated with audit quality. Consistent with this work, we find that stricter standards lead to higher investment efficiency. This higher investment efficiency, however, comes at the expense of higher audit fees. We find that an increase in the fees is driven not only by the increased amount of prescribed...

... cycle and little support for “fresh-look” benefits provided by the new audit partner. Audit fees decline and audit hours increase after mandatory rotation, but then reverse over the tenure cycle. We also find evidence that audit firms use “shadowing” in preparation for a lead partner turnover...

... and companies. We find evidence that increased enforcement intensity leads to temporary increases in audit fees and more conservative accruals. However, cross-sectional analysis across market segments reveals that audit fees increase primarily in the less-regulated AIM segment, and especially those AIM...

...Shane S. Dikolli; Thomas Keusch; William J. Mayew; Thomas D. Steffen ABSTRACT We investigate the audit fee response to CEO behavioral integrity (BI). BI refers to the perceived congruence between an individual's words and deeds ( Simons 2002 ). Because low word-deed congruence should result...

... ). To begin, we develop our baseline specification by comparing audit quality and audit fees surrounding the Rule 3211 disclosure date for a balanced panel of U.S. companies that engage U.S. auditors. ¹ Specifically, for U.S. companies with audit opinions issued between January 31, 2017 and June...

... a female lead audit partner. In addition, the experience of the client's board is positively associated with the experience of the lead audit partner. In terms of audit quality, we find that higher audit fees are positively associated with female and more experienced audit partners. Our results shed light...

... incentives increases the likelihood of misstatements. Further, auditors discount the audit fee premium associated with compensation-based incentives when executives have accounting competence. Together, our results suggest that a dark side of accounting competence emerges in the presence of certain...

...Andrew A. Acito; Chris E. Hogan; Richard D. Mergenthaler ABSTRACT We investigate whether PCAOB-identified audit deficiencies lead to higher audit fees or turnover likelihood for clients of Big 4 auditors. To examine this, we identify areas of GAAP related to PCAOB deficiencies for each auditor. We...

... disclosures, longer audit delay, and higher audit fees. In comparison to commonly used measures of operating and linguistic complexity, the associations between ARC and these outcomes are more consistent, exhibit greater explanatory power, and have stronger economic significance. These and additional...

... committees). Management succession introduces uncertainty about firms' future operations, financial policies, and potential motivation for earnings management, which we predict elevates the perceived risk of financial reporting improprieties. Consistent with this prediction, we find that audit fees...

...-quality audits and higher audit fees (or audit fee premiums). Using hand-collected data on association membership, we find that association member firms conduct higher-quality audits than nonmember firms, where audit quality is proxied for by fewer Public Company Accounting Oversight Board (PCAOB...

... does not necessarily reduce audit fees. Instead, we find an increase in audit fees when acquirers are international Big 4 audit firms even when we control for possible changes in market power. This premium is at least partially due to the certification effect of international Big 4 audit firms. We...

...Yangyang Chen; Ferdinand A. Gul; Madhu Veeraraghavan; Leon Zolotoy ABSTRACT Using a large sample of U.S. firms spanning the period 2000–2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also...

... Leuven for their helpful comments on prior versions of this paper. Editor's note: Accepted by John Harry Evans III. August 2013 December 2014 2015 auditor industry specialization audit fees economies of scale homogenous industries...