This study investigates auditors’ reputational damage following unfavorable PCAOB inspection reports. While prior studies reach different conclusions on the usefulness of PCAOB reports based on subsequent changes in auditors’ market share (or lack thereof), we posit that a client’s...

This study examines the relationship between the mandatory disclosure of auditor tenure under AS 3101 and the cost of debt. We find that yield spreads on seasoned bond trades decrease after AS 3101 as auditor tenure increases. Cross-sectional tests suggest that the effect is stronger for...

The valuation allowance for deferred tax assets is an audited disclosure that reflects management's expectations regarding the future profitability of a company. Building on prior literature that establishes this disclosure as an indicator of future distress, we examine whether the valuation...

In this study, we use a survey instrument to obtain perspectives from over 700 auditors about present-day audit workloads and the relationship between audit workloads, audit quality, and job satisfaction. Our findings indicate that auditors are working, on average, five hours per week above the...

Previous research shows that qualitative MD&A disclosures are valuable to investors and that managers modify MD&A tone to manage earnings expectations. In this study, we investigate whether the tone of the MD&A narrative is associated with the length of the auditor-client relationship. We find...

This study examines the extent to which audit clients successfully engage in internal control opinion shopping activities and whether audit market competition appears to facilitate those activities. Regulators have long been concerned about the impact of both audit market competition and opinion...