Increased audit regulation, coupled with practitioner reports of “hyper-acquisitive” behavior among smaller firms, creates a dynamic environment in which to assess changes in the U.S. audit market. Against this backdrop, we examine the consequences of small audit firm mergers on audit...

Public accountants are in high demand by non-accounting firms. While this demand attracts high-quality accountants to public accounting, it can negatively impact audit quality via disrupting the audit (e.g., through distraction, reduced motivation to work hard, and human capital loss). We find...