This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of...

Theory from organizations and economics research posits that in an inter-organizational relationship, both parties invest in relationship-specific knowledge, which in turn facilitates the effectiveness of the relationship while strengthening the attachment between the parties. In complex...

In this study, we examine whether the flexibility in a firm's business model (i.e., the way in which the firm manages and deploys its resources) is associated with its financial reporting practices. Recent survey evidence suggests that executives view firms' business models as a key determinant...

This study provides evidence that binary signals in audit reports are unable to fully communicate underlying risks that are inherently continuous in nature. Specifically, we find that companies whose audit reports signal an improvement in internal control effectiveness relative to the prior year...

This study provides evidence that binary signals in audit reports are unable to fully communicate underlying risks that are inherently continuous in nature. Specifically, we find that companies whose audit reports signal an improvement in internal control effectiveness relative to the prior year...

This study examines whether a company's business strategy is an underlying determinant of the strength of its internal control over financial reporting (ICFR) and auditors' internal control reporting quality. Organizational theory suggests that companies following an innovative “prospector”...

In an effort to make audit reports more informative to investors, the U.K. recently passed a new audit reporting standard that requires auditors to disclose the risks of material misstatement (RMMs) that had the greatest effect on the financial statement audit. Using short-window market...

This study examines whether material corporate events that occur during the year-end closing process constrain management's and the auditor's resources and inhibit them from providing high quality financial reports. For a sample of U.S. company financial reports issued during 2000–2013, we...