This paper examines the real effects of auditor regulatory oversight on companies’ financing and investing policies. Using the Public Company Accounting Oversight Board’s (PCAOBs) international inspection program as a setting to generate within-country variation in auditor oversight, I find that companies respond to the increase in auditor oversight by issuing additional external capital amount...

This paper constructs and analyzes a simple model of auditing in which three principal issues are explored, namely: (i) The information contained in the report. An audit is a process of verification of a report of private information available to the reporter but not to the auditor. What information is contained in a report? Is it sufficient for the auditor to infer the private information exac...

ABSTRACT This study addresses the international debate over whether rotation of audit firms should be mandatory. Mandatory rules have been adopted by European Union, but these not established in United States. Proponents policy believe that a long-tenure auditor-client relationship leads to auditor building an excessive economic bond with client, which may then erode independence. Motivated thi...

Proofs of storage (POR or PDP) is a cryptographic tool, which enables data owner or third party auditor to audit integrity of data stored remotely in a cloud storage server, without keeping a local copy of data or downloading data back during auditing. We observe that all existing publicly verifiable POS schemes suffer from a serious drawback: It is extremely slow to compute authentication tags...

This research examines the association between external auditors’ position in their firm (rank) and their consideration of fraud risk factors when planning an audit. Included in this examination is a study of the relationship between rank and judgmental agreement among auditors concerning the effects of risk factors on the extent of substantive testing. Results reveal that, when planning the ex...