This study addresses auditors' role in determining the quality of their client's fair value classification judgments for investment securities under ASC 820. The standard requires companies to classify fair value assets into one of three levels (i.e., Level 1, 2, or 3) and there is often...

Recent regulatory and professional developments have increased the frequency with which public accountants work and interact with professionals from other accounting firms. We posit that competitive pressures are particularly salient when clients retain accountants from different firms to...