The correction and disclosure prominence of misstatements identified in previously audited financial statements depends largely on preparers' and auditors' materiality judgments. Despite being tasked with independent attestation, we posit that auditors' incentives to avoid reputational and legal...

Several regulatory actions and professional standard setting changes occurring since the turn of the century have resulted in a fundamental change to the information captured by the audit report date. Whereas the audit report date previously captured substantial completion of audit fieldwork,...