Although investor perceptions of audit quality play a critical role in maintaining systemic confidence in the integrity of financial accounting reports (Levitt 2000), prior research on the effects of auditor tenure from an investor perspective is relatively sparse. In this study, we investigate...

In recent years, both the SEC (2003) and the FASB (2004) have indicated a need for accounting standards where principles are balanced by implementation guidance (i.e., a framework for exercising professional judgment). In this study, we take advantage of a jurisdictional split during 1996-2001...

In this paper, we examine audit quality for Big 4 and Second-tier auditors during 2003-2006. We utilize the auditor's propensity to issue a going concern audit report for distressed clients as a measure of audit quality. In addition, since the purpose of an audit is to improve financial...

We investigate whether reputation concerns provides sufficient incentive for Big Four auditors to provide higher quality audits in ASEAN (Association of South East Asian Nations) countries where litigation exposure is low or nonexistent. We proxy audit quality based on the quality of reported...

In this cross-border study, we document the usefulness of reported earnings as conditioned by varying levels of litigation risk. We focus on litigation risk, since Ball (2001) suggests that although litigation rights are seldom discussed in the context of international accounting, the threat of...