We examine the impact of informal cultural attributes, such as generalized trust and civic cooperation in a society, on the presence of Big N auditors and audit fees in country-specific audit markets. On one hand, because societies with higher trust and civic cooperation are associated with low...

Businesses increasingly outsource organizational functions that have financial reporting implications which requires auditors to adjust their risk assessment and audit procedures for this practice. However, PCAOB inspection reports cite deficiencies indicating that external auditors frequently...