Motivated by evidence from the empirical accounting and finance literatures suggesting that short sellers target firms with suspect financial reporting, we investigate whether short interest provides a signal of the degree of audit risk. We find a positive association between audit fees and...

We investigate whether auditors are sensitive to litigation risk related specifically to having greater numbers of institutional investors that hold the common stock of a given client. Our findings suggest that audit fees are higher when the number of institutional investors holding stock in the...

Experimental research in accounting provides extensive evidence that auditors' judgments are negatively affected by the use of heuristics. However, there is little research investigating whether the negative effects of using heuristics manifest in practice and survive the quality control...

Financial audit services have changed in the US over the last half century, resulting in distinct cyclical patterns of relative audit risk. The purpose of this project is to describe changing patterns in the economic and institutional risk environment over time and investigate differences using...