"Auditing has become an essential component in market societies and the need for auditing skills has risen in line with globalization. This textbook provides a comprehensive overview of the role of financial statement auditing in contemporary society, including the auditor's role in evaluating...

History of auditing and accountability in society -- The philosophy of auditing -- Professional ethics and reputation -- Audit regulation -- Auditing standards -- Auditor liability and litigation risk -- Audit quality -- Audit fees -- The impact of audits -- Audits of compliance with GAAP...

A unique feature of Chinese auditing and one under consideration for adoption in the U.S. is regulatory oversight of individual auditors. This paper analyzes enforcement actions by the China Securities Regulatory Commission (CSRC) against engagement auditors and investigates whether audit...

This paper derives the impacts of legal system characteristics and auditing standards on auditor behavior (audit quality), and analyzes the determination of optimal auditing standards under different legal regimes. Legal regimes are characterized by differences in the uncertainty concerning the...

Regulators have shown a renewed interest in considering the merits of mandatory auditor rotation. A fundamental concern is that long tenure may undermine auditor independence. We conduct a study to investigate the effects of long tenure on companies' allowance for bad debts (ABD). We focus on...

This paper uses a model extended from DeAngelo (1981) to examine audit market and audit pricing. When auditors have differential operational efficiencies, the audit market becomes delicate. On one hand, auditees would like to reduce audit fees by to purchasing audit services from the most...

We develop a theoretical model to compare the relative merits of a system that requires auditor rotation to one that does not. We show that auditor independence is improved with mandatory rotation, but that the net benefit is sensitive to the rotation period, startup cost, the cost associated...