Do PCAOB Inspections Change the Effect of Litigation Risk on Audit Quality?

• Published in: The International journal of accounting Vol. 60; no. 1
• Main Authors: Chen, Po-Chang, Moul, Charles, Reffett, Andrew
• Format: Journal Article
• Language: English
• Published: Urbana World Scientific Publishing Company 01.03.2025; World Scientific Publishing Co. Pte., Ltd
• Subjects: Audit quality; Auditor changes; Audits; Dependent variables; Financial restatements; Hypotheses; Inspections; Litigation; Motivation; Null hypothesis; Policy making; Profits; Regression analysis; Regulatory reform; Threats; audit quality; PCAOB inspections; regulatory risk; litigation risk

Synopsis The research problem This study examines whether the effect of litigation risk on audit quality changes when auditors face high versus low regulatory risk under the Public Company Accounting Oversight Board (PCAOB) inspection regime. Motivation The establishment of the PCAOB under the Sarba...