We investigate how overlapping activities of bank regulators and supervisors and bank auditors influence banks' internal control quality, auditor-client contracting (audit fees and audit effort), and financial statement reliability. Using material weaknesses in internal controls as a proxy for...

I examine whether bank regulators and external auditors have conflicting effects on loan loss provision timeliness, an accounting choice associated with important economic consequences and a potential conflict between regulators and auditors. In the absence of the other group, auditors and...

Exploiting the staggered state-level adoption of the Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA), we examine whether and how banking deregulation affects firms’ auditor choices. We find that an exogenous increase in the degree of interstate branch banking deregulation...

We discuss “Economic Consequences of Mandatory Auditor Reporting to Bank Regulators” by Balakrishnan, De George, Ertan, and Scobie (BDES, Journal of Accounting and Economics, forthcoming). BDES concludes that a key benefit of mandatory auditor reporting to bank regulators is reduced bank...

The objective of this study is to ascertain the effect of risk-based audit on quality internal control of selected deposit money banks in Nigeria. Survey method was used for this studywhile random sampling technique was adopted. Paired T-test and Cronbach Alpha via Statistical Package for Social...

In this study, we empirically investigate the relationship between financial and auditing requirements, capital requirements, official supervisory power, and the likelihood of receiving a qualified audit opinion. The sample consists of 71 qualified financial statements and 17,526 unqualified...

This paper investigates what we can learn from the financial crisis about the link between accounting and financial stability. The picture that emerges ten years after the crisis is substantially different from the picture that dominated the accounting debate during and shortly after the crisis....

I empirically examine the evolution of loan loss accounting across banks that differ categorically by external auditing practice. Using a partial adjustment model, and a sample of 75,505 observations on affiliated banks, 1995–2009, I find evidence of convergence across audit categories in...

We investigate three prominent German bank failures in the financial crisis of 2007-2008, IKB Deutsche Industriebank, Landesbank Sachsen, and Hypo Real Estate (HRE). The cases provide a unique setting to analyze the interrelation between financial reporting, regulation, and financial stability....