... for the subordinate’s work product. In contrast, we investigate what effect the apprenticeship model has on supervising auditors. We theorize that coaching an apprentice activates norms that are accompanied by an ideal audit quality focus. In an experiment with experienced auditors, we find that salient apprenticeship...

...Ole-Kristian Hope; Cyndia Wang; Yaqian Wu; Min Zhang ABSTRACT Many countries have converged their domestic auditing standards with International Standards on Auditing (ISA). This study provides global empirical evidence on first-order determinants of audit quality by examining whether...

...Shaohua He; Ling Lei Lisic; Liang Tan; K. Philip Wang ABSTRACT Whether audit firms should disclose financial statements is controversial among investors, practitioners, and regulators. The debate centers on whether audit firms’ financial statements provide information about audit quality. Using...

... University, Yale School of Management, New Haven, CT, USA. Editor’s note: Accepted by Joseph J. Gerakos, under the Senior Editorship of W. Robert Knechel. 15 02 2022 26 11 2024 11 12 2024 2025 auditing audit markets audit quality auditor selection two-sided matching...

... agree with the feedback message, perceiving it as consistent and well reasoned. We observe a range of auditor reactions (satisfaction with and motivated to use inspection feedback), responses at the engagement level (improvements to audit quality and inspection risk or impression management...

... the PCAOB claims that its inspection findings and process are designed to increase audit quality, there is limited empirical evidence to support this claim. We examine whether changes in revenue-deficient audit engagements are associated with subsequent year changes in client revenue quality. A revenue...

...Tao Ma; Chi Wan; Yakun Wang; Yuping Zhao ABSTRACT We examine the relationship between audit quality and office-level auditor turnover. Using resumes of over 106,000 Big 4 auditors, we find that audit offices with higher turnover have a greater likelihood of client annual report restatements...

... are only present when employees have lower mobility across professions and geographies, consistent with audit offices’ power in the local labor market explaining the results. Collectively, our findings highlight the importance of labor market power in understanding audit quality. Data Availability: Data...

...Daniel Aobdia; Preeti Choudhary; Noah Newberger ABSTRACT As audits of public companies are labor intensive, require a variety of team members, and involve year-round work, practitioners and academics have increasingly focused on identifying audit production factors that drive audit quality. Using...

...Christine E. Earley; Stephen G. Kuselias; Nikki L. MacKenzie ABSTRACT Regulators and researchers express concern about auditors who leave their firms for employment at their clients, due to lingering relationships which might represent a threat to audit quality. These relationships could...

... 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...

... audit quality auditor style financial-statement comparability SEC comment letters The merits of centralized and decentralized decision making have been discussed extensively in economics and management since Hayek (1945) . A noted feature of centralized decision making (CDM) is that it may...

... Accounting Oversight Board (PCAOB) enforcement. We find that large audit firm offices improve audit quality following enforcement naming another office within their firm while small firm offices improve following enforcement of local small firm competitors, with these responses varying...

... 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...

...Karen Ton ABSTRACT Auditor knowledge is a key element in explaining the supply of audit quality, yet understanding of the drivers of this knowledge in the archival literature is limited. This study uses an archival approach to examine whether the sharing of auditors among firms in banking...

...., nonintegrated auditors), we find evidence that challenges this assumption. Specifically, we find ICFR audit quality is higher for nonintegrated audits compared to integrated audits. Moreover, total audit fees are lower for nonintegrated audits, despite higher ICFR audit fees. audit quality audit cost...

...Evgeny Petrov; Phillip C. Stocken ABSTRACT We study the determinants of auditor industry specialization, the impact of specialization on fees and audit quality, and a regulator's optimal choice of audit standards in the presence of specialization. In industries with correlated firm values...

... with whom we conducted extensive interviews for giving their time. This study was supported by a Center for Audit Quality Research Advisory Board grant. We thank Margot Cella and Lauren Tuite of the CAQ for facilitating access to participants, members of the Research Advisory Board, especially John DeMelis...

... in an industry audited by both merging audit firms, those audited by the audit firm less specialized in that industry belong to the treatment group, while all other clients belong to the control group. We find an economically significant improvement in audit quality (as reflected in a reduction in financial...

...Gladys Lee; Vic Naiker; Christopher R. Stewart ABSTRACT This study examines whether the audit quality of Big 4 audit firms is affected by an audit office's proximity to more target universities for appointing staff auditors. We identify these target universities using a recruitment map of a Big 4...