Anecdotal evidence suggests that audit clients are automating more internal controls over time. Audit firms customarily respond to their clients’ increasing IT (information technology) risks by including more IT audit specialists in their external audit engagements. But, using IT audit specialists on the audit engagement to examine the IT risks that external financial statement auditors can exa...

This paper explores the leverage determinants across firms’ sizesbased on the two main theories behind the capital structure, the trade-offand the pecking order theories. A panel data is sued to find therelationship between capital structure and the variables that proxy forbenefits and costs of debt during 1990 to 2006. Our findings show thatboth principles help to explain the capital structure...

journal of accounting advances (j.a.a) vol. 5, no. 1, 2013, ser. 64/3     extended abstract   monitoring role of auditing and corporate dividend payout policies   dr. v. khodadadi              s. hajizadeh               r. ghorbani shahid chamran university of ahvaz   introduction the aim of this paper is to investigate the relation between monitoring role of independent auditing and corporate ...

This study investigates whether an auditor's experience of litigation in the recent past affects subsequent financial reporting quality. At the audit firm level, we find accounting misstatements occur significantly less (more) often after audit firms are sued (not sued). At the audit office level, the negative association between past litigation and future misstatements is stronger for offices ...

ABSTRACT I develop a structural model to quantify the costs of tax avoidance. In model, firm trades off savings with audit risk, financial reporting considerations, and operational frictions imposed by avoidance, last which label as nontax costs. The estimated parameters suggest costs, are difficult observe, decrease pretax income 6.4 percent or $58 million per firm-year. large magnitude this e...