Starting in October 2013, auditors of premium-listed firms in the UK are mandated to prepare an expanded audit report that provides details on audit procedures, main risks of material misstatement (RMMs), and materiality thresholds. We hypothesize that the expanded audit disclosures decrease...

In this paper, we analyze whether the voluntary purchase of audit reviews lowers firms' cost of debt. An audit review is a tool through which boards assess interim financial reports' quality on a timely basis throughout the year. The voluntary purchase of an audit review is therefore likely to...