This study investigates the market's reaction to companies hiring accounting and finance officers directly from their external audit firms - the auditor to - client hiring practice referred to as the ‘‘revolving door.'' The Sarbanes-Oxley Act (SOX) eliminated this hiring practice, reflecting...

This study uses audit file data to analyze the association between the auditors' preliminary assessments of going-concern and fraud risk and the planning and performance of the financial statement audit. We analyze the association between the above risks and the auditor's assessment of the risk...