Auditors fulfill a crucial societal role by increasing the credibility of financial reports, which requires that appropriate audit quality be provided and auditors are factually independent and perceived as such. So far, regulators and researchers have focused on a few measures for improving...

Purpose This paper aims to examine the effects of the 2014 European regulatory reform on auditors’ activity, the audit outcome and the audit market, with a focus on the Spanish market. Design/methodology/approach The research is based on in-depth, semistructured interviews with partners of the...

Regulators increasingly express concerns over auditor-provided tax services (APTS) because those services could impair auditor independence. To date, research on the impact of APTS on auditor independence has yielded mixed results, potentially due to endogeneity issues, providing no clear...

Purpose: Litigation against auditors has augmented as the number of corporate failures increased over the past decades. A failure to exercise professional scepticism has been cited as one of the main contributing factors to audit failure. This research establishes a link between professional...

Open Innovation (OI) models have been studied in many fields. However, the challenges and opportunities of a possible OI paradigm application in external auditing have been under-researched. Recent corporate scandals are currently triggering changes and improvements in the regulatory framework...

To understand the disruption and implications of distributed ledger technologies for financial reporting and auditing, we analyze firm misreporting, auditor monitoring and competition, and regulatory policy in a unified model. A federated blockchain for financial reporting and auditing can...

We analyze whether and how mandatory audit partner rotation affects the audit adjustments for the rotated partner’s remaining clients. We argue mandatory audit partner rotation can affect audit production of remaining clients through two channels. First, it can cause audit partners to acquire...

One of the critical responsibilities of the auditor is to form an independent view of the company’s financial performance in the auditor’s statement. In Malaysia, the issue of auditor independence has recently become prominent due to the 1MDB scandal. Hence, this study focuses on determining...

We examine whether the naming of partners provides a benefit to the public in the context of allowing researchers to empirically collect evidence on the economic importance of non-audit services (NAS) at the partner level. We provide evidence showing that auditor independence is impaired when...