This article reviews global practices on auditor rotation and discusses the pros and cons of mandatory rotation. While many studies have examined auditor tenure and rotation, I argue that the literature has not yet answered the question as to whether mandatory rotation is desirable. The reason...

Existing empirical research and results presented in this paper indicate that large auditors are more accurate than small auditors. Two explanations for this are examined. DeAngelo (1981) has argued that large auditors have a greater incentive to maintain a reputation for accurate auditing. More...

Prior studies document a Delaware incorporation effect on firm valuation, generally using Tobin's Q, but the directional effects are mixed and inconclusive. Our study uses implied cost of equity to assess valuation, and we find consistent evidence that firms incorporated outside of their home...

Prior studies document a Delaware incorporation effect on firm valuation, generally using Tobin's Q, but the directional effects are mixed and inconclusive. Our study uses implied cost of equity to assess valuation, and we find consistent evidence that firms incorporated outside of their home...

The concept of “audit quality” is of fundamental importance in auditing but there is little agreement on its definition or measurement. I review several approaches to understanding audit quality and argue that the most meaningful measure of audit quality is based on what the auditor is...