We study the association between credit availability and modified audit opinions using a sample of more than 50,000 observations for small- and medium-sized companies. Studies in finance suggest that companies use trade-credit as a source of financing when institutional debt is not available...

The purpose of this study is to examine the relationship between audit quality in private firms and the provision of non-audit services (NAS) - an issue that has rarely been considered in prior research. The threats to auditor independence are different in private firms compared to public firms....