We study whether audit-partner quality influences the probability of annual report misstatements (measured by restatements) and whether various levels of quality control attenuate such influences. We measure audit-partner quality with audit failure rate (i.e., the total number of audit failures...

One major regulatory device for improving audit quality is to require auditors to assess the ‘Tone at the Top’ (that is, the integrity and especially top management’s intentions and attitude towards earnings management), but prior audit research suggests that auditors are quite poor at...

Auditors identify, assess, and respond to risks of material misstatement in the financial statements of the clients they audit. This study examines whether textual features of key audit matters (KAMs) disclosed in the audit reports of Hong Kong publicly-listed firms are reflected in the pricing...