In the past six years, the average number of industries (2-digit SIC) serviced by audit offices in the United States has grown by 20% and the number of industries where the office has specialization has fallen by 40% (Data Source: Audit Analytics). This suggests a trend away from specialization...

Auditor-client negotiations are a common and critical part of the financial reporting process, yet we know little about contextual factors that influence negotiation judgments from the manager's perspective. Managers have incentives to act aggressively since outcomes often materially impact...

The initial public offering (IPO) market is characterized by large, periodic swings in new issue volume, commonly referred to as hot and cold markets. We compare IPO assurance fees over these cycles controlling for factors that are potentially associated with hot IPO markets. We find that...

This study investigates how a financial market mechanism, auditing, shapes a firm's engagement in global value chains and product choice. We examine the effect of the Public Company Accounting Oversight Board's (PCAOB) inspections on non-U.S. auditors, which induce higher reporting quality of...

This study examines the economic consequences of going concern audit reports (GCARs) in nonprofit charitable organizations (NPOs) using a sample of public charities that received initial GCARs between 1998 and 2003. I find that GCARs are negatively correlated with subsequent government grants....

This paper examines the 2017 audit inspection scandal involving KPMG — one of the fewbreaches of “tone at the top” at a Big 4 audit firm — to study whether and how the scandal affectsKPMG and its clients. From the federal court trial related to the scandal, we construct a novel dataset...