We find that corporate social responsibility (CSR) is an effective reputation enhancing mechanism for audit firms. Audit firms that engage in CSR increase the size of their client base compared to audit firms that do not engage in CSR. This result is robust to audit firm fixed effects as well as...

This study examines whether auditors’ evaluation and report of firms’ internal control over financial reporting (ICFR) affects firm operational efficiency. Prior research indicates that the strength of internal controls is positively associated with economic benefits. However,...

Audits of internal control over financial reporting (ICFR) are typically “integrated” with the audit of the financial statements (FS)— both audits are conducted by the same audit firm, which designs procedures to satisfy the objectives of both audits simultaneously. A common assumption is...