Competition in audit markets is an important topic but direct tests of market competition have been limited. In this paper, we examine how audit firms behave when they are confronted with competition from another firm in a wide range of industry segments in a local market. Sharing a large number...

We introduce the concept of fraud tolerance, validate the conceptualization using prior studies in economics and criminology as well as our own independent tests, and explore the relationship of fraud tolerance with numerous cultural attributes using data from the World Values Survey. Applying...

pt. 1. The social environment of auditing -- pt. 3. The impact of regulation of auditing -- pt. 3. Research on the process of auditing -- pt. 4. Issues concerned with audit reporting -- pt. 5. Alternative auditing services -- pt. 6. Conclusion.

With increased regulatory focus on audits and concerns about whether audit regulation is achieving its stated aims, it is timely to investigate how regulator inspection of audit files and partner rotations may be affecting staffing decisions. This is an important issue, which affects all audits,...