We analyze a competitive labor market in which workers signal their productivities through education à la Spence (1973), and firms have the option of auditing to learn workers' productivities. Audits are costly and non–contractible. We characterize the trade–offs between signaling by...

After a lengthy and protracted debate, the Public Company Accounting Oversight Board (PCAOB) adopted new rules and related amendments to its auditing standards regarding the engagement partner and other accounting firms that took part in the audit (PCAOB 2015). The rules require disclosure of...

This study examines how audit-partner gender-diversity impacts audit quality, using data from China, where two partners are assigned to lead each engagement. Female and male partners bring different resources, in the form of information, expertise, experience, and perspectives that could result...

The purpose of this paper is to examine the effect of signing auditor-specific characteristics on the audit report lag using 968 firm-year observations from Borsa İstanbul in the period 2008-2013. The main findings indicate that the gender and education level of signing auditor have a positive...

This study examines the effect of audit committee connectedness through director networks on financial reporting quality, specifically the misstatement of annual financial statements. Using network analysis, we examine multiple dimensions of connectedness and find that, after controlling for...

Two forms of expertise can influence audit quality: industry and task-specific expertise. Anecdotal evidence suggests that tax knowledge is task-specific, rather than industry-specific and audit offices with increased exposure to complex tax issues develop this task-specific expertise. Using...

The study examined the status and impact of audit education on the audit expectation gap, as existence of such a gap is noted to be harmful to the accounting and auditing profession. Accordingly, undergraduates of a regional national university in Sri Lanka (in three categories as:...

Regulators around the world are concerned about the potentially harmful effects of high audit market concentration on audit pricing and quality. However, results in the overall literature have failed to reach consensus on this issue. We contribute to this debate by arguing that the audit market...

Issues related to audit team personnel and the resultant effects on audit outcomes have not been investigated widely with archival data due to data unavailability. In this study, we examine whether and how increases in co-working experience between the lead and the concurring partners impact...

The correction and disclosure prominence of misstatements identified in previously audited financial statements depends largely on preparers' and auditors' materiality judgments. Despite being tasked with independent attestation, we posit that auditors' incentives to avoid reputational and legal...