We examine the relation between nonaudit fees and SOX 404 opinions on the effectiveness of a client's internal control over financial reporting. We find a negative association between nonaudit fees and the auditor's propensity to issue an adverse SOX 404 opinion during 2004-2006 (when AS2 was...

This paper focuses on the reform of accounting standards in China in 2007 and investigates its impact on equilibrium pricing in the audit market. We find that the concentration of the audit market and the probability of issuing modified audit opinions do not significantly change, but that audit...

We examine the costs and benefits of proactive financial reporting enforcement by the UK Financial Reporting Review Panel. Enforcement scrutiny is selective and varies by sector and over time, yet can be anticipated by auditors and companies. We find evidence that increased enforcement intensity...

Based on a model developed in prior studies (e.g. Ogneva et al. 2007), we first use US data to predict the likelihood that a firm has material internal control weaknesses (ICW). We then show, using this model, that firms in the pre-SOX era, in UK and in Australia with a higher predicted...

This study's purpose is to prove the existence of regional disparities in terms of the relationship between audit fees and their major determinants in the Swiss audit market, which is ideal for identifying regional disparities. First, we show that audit firms compete in two regional markets...

We examine whether additional education requirements to enter the accounting profession lead to higher costs to clients. Using the 150-hour education requirement in the U.S. and the audit services market during the period 2000-2004 as the setting for our study, we find that corporations...

We investigate whether audit fees and auditors' opinions on internal controls are associated with whistleblowing allegations externally filed to regulatory agencies. We find that firms subject to whistleblowing allegations have significantly higher audit fees, regardless of the substance of...

Since 2014, a number of U.S. states have legalized business activities related to the production, distribution, and use of recreational cannabis. These activities remain illegal at the U.S. federal level, creating a dual regulatory environment. The uncertainty related to the enforcement of...

We examine whether corporate pension plans of client firms (hereafter, clients) influence auditors' decisions on audit pricing for the clients in the U.S. We find that, on average, auditors charge higher fees for auditing financial statements of client firms sponsoring defined benefits (DB)...

Nevertheless, methods of previous study conducted only with DART system's existing corporate disclosure information have a limitation in study. Therefore, this study aims to identify change in audit fees and audit hours after the adoption of K-IFRS through questionnaire survey conducted on...