Effective consultation is critical for improving the audit of estimates. In an experiment where audit managers acted as consultants to other auditors, we examine conditions in which consultants either recommend estimates that differ substantially from advice-seekers' assessments (contrariness)...

This study investigates why auditors leave public accounting and the consequences of auditor departures. We find that audit competency is negatively associated with a departure decision. Specifically, audit partners and managers, as well as auditors generating more audit revenues and providing...

This study reports the results of an investigation into the profitability of audit engagements. The study is motivated by the frequently expressed concern regarding the lack of competitiveness within the audit market, based on trends of increasing concentration of suppliers. Increasing...

This study investigates the implicit financial incentives of individual Big 4 audit partners by examining the association between a partner's compensation and characteristics of the audit firm, audit partner, and individual partner clientele for Big 4 firms in Sweden. Using tax and financial...

We evaluate whether, and under what circumstances, corporate tax aggressiveness influences audit pricing. Using a compound measure of two long-run effective tax rates, we find that tax aggressive firms pay higher fees for external audit services after controlling for factors related to earnings...

This chapter reviews key issues for future auditing research that is relevant to the future of auditing. We reflect on key issues for future research including audit quality; auditor independence; regulation; audit markets; auditing and governance; and auditing of private companies. We review issues...

What is the function of auditing, and why is it important? In recent decades there have been a series of financial disasters, affecting thousands, if not millions, of people, many of whom have lost their life savings, and which have destroyed once successful companies, further damaging the...