We present evidence on the relationship between firms that have engaged in fraudulent financial reporting and accounting conservatism. We empirically investigate the extent to which U.S. firms identified by the SEC in their Enforcement Releases demonstrate higher levels of conditional...

Purpose – The purpose of this paper is to compare the effect of corporate governance variables and fraud litigation on audit fees both before and after the implementation of the Sarbanes-Oxley (SOX) Act in 2002.Design/methodology/approach – The paper utilizes a sample of firms that had...