We examine how auditors respond to news coverage of their firm and evaluate the extent to which national news outlets function as a watchdog over audit firms. We find that when media coverage includes issues specific to audit conduct (i.e., restatements, adverse internal control opinions, or...

Litigation poses a significant business risk for auditors. We argue that auditors learn from other auditors' litigation events and examine the consequences of such events for future accounting misstatements. Using a hand-collected sample of auditor litigation events, we find a significant...

Litigation poses a significant business risk for auditors. We argue that litigation events involving other auditors' deter audit firms from providing low quality audits. We find a significant subsequent decrease in the misstatement frequency of financial reports in within-industry audits...

A restatement occurs when a previously issued financial statement contains a misstatement and this misstatement is detected and corrected. Higher audit quality lowers restatement probability by reducing misstatements, but it increases restatement probability by increasing the probability that...

Regulators have long expressed concerns about auditor changes and the detrimental impact of opinion shopping on the audit market. While prior studies have examined how single-instance auditor switching impacts audit outcomes, we examine whether frequent auditor switching impacts audit outcomes....