We examine the determinants of clients' decision to follow departing partners to new audit firms and the effect of this decision on the likelihood of financial restatements. Using Taiwanese audit partner turnover data from 1984–2010, we find that clients are more likely to follow departing...

This study examines whether audit partners suffer a reputation penalty following a going-concern opinion (GCO) reporting failure, either a Type I or a Type II error. A Type I error occurs when a partner issues a GCO to a client that does not go bankrupt in the next year, while a Type II error...

The purpose of this study is to investigate into the discretionary accruals of the client companies of sanctioned auditors before sanction enforcements and changes thereafter. We find that signed discretionary accruals of the sanctioned auditors' client companies are significantly more favorable...