...Katherine A. Gunny; Juan Mao; Jing Zhang SUMMARY This study examines the association between group audit risk and component auditor use. The audit risk model defines audit risk as a function of the risk of material misstatement and detection risk. We use the revelation of an internal control...

...Gopal V. Krishnan; Juan Mao; Jing Zhang SUMMARY While component auditors audit a significant proportion of public companies, lenders may not be aware of their involvement before Form AP disclosure. We study whether the disclosure of component auditor use and the extent of their involvement...

...Jayanthi Krishnan; Mengtian Li SUMMARY Inadequate supervision by lead auditors of “other” (component) auditors contributing to audit engagements has been a recent regulatory concern. However, uniquely in the United States, the lead auditor is required to conduct only minimal supervision...

...Candice T. Hux SUMMARY Drawing on prior research and source credibility theory, this study examines nonprofessional investors' acquisition and evaluation of component auditor use as disclosed in Form AP, and whether and how this evaluation influences their investment decisions. I find that very...