Public Audit Oversight and Audit Pricing: Evidence from the EU

References

• Acito, A. A., Hogan, C. E., & Mergenthaler, R. D. (2018). The effects of PCAOB inspections on auditor-client relationships. The Accounting Review, 93(2), 1–35. https://doi.org/10.2308/accr-51811
   Web of Science ®Google Scholar
• Aobdia, D. (2018). The impact of the PCAOB individual engagement inspection process—preliminary evidence. The Accounting Review, 93(4), 53–80. https://doi.org/10.2308/accr-51948
   Web of Science ®Google Scholar
• Baker, A. C., Larcker, D. F., & Wang, C. C. Y. (2022). How much should we trust staggered DiD estimates? Journal of Financial Economics, 144 (2), 370–395.
   Web of Science ®Google Scholar
• Barrios, J. M. (2021). Staggeringly problematic: A primer on staggered DiD for accounting researchers. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3794859
   Google Scholar
• Basu, S., & Grace, M.F. (2022) Insurance: in or out of the ‘too difficult’ box?. Accounting and Business Research, 52(5), 510–535. https://doi.org/10.1080/00014788.2022.2080350
   Google Scholar
• Bloomfield, R., Nelson, M. W., & Soltes, A. E. (2016). Gathering data for archival, field, survey, and experimental accounting research. Journal of Accounting Research, 54(2), 341–395. https://doi.org/10.1111/1475-679X.12104
   Web of Science ®Google Scholar
• Carson, E., Lamoreaux, P., Simnett, R., Thuerheimer, U., & Vaanstraelen, A. (2021). Establishment of national public oversight boards and audit quality (Working Paper). https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3049828
   Google Scholar
• Che, Y.-K. (1995). Revolving doors and the optimal tolerance for agency collusion. The RAND Journal of Economics, 26(3), 378–397. https://doi.org/10.2307/2555994
   Web of Science ®Google Scholar
• Choi, J. H., Kim, J. B., Liu, X. H., & Simunic, D. A. (2008). Audit pricing, legal liability regimes, and Big 4 premiums: Theory and cross-country evidence. Contemporary Accounting Research, 25(1), 55–99. https://doi.org/10.1506/car.25.1.2
   Web of Science ®Google Scholar
• Choi, J. H., & Wong, T. J. (2007). Auditors’ governance functions and legal environments: An international investigation*. Contemporary Accounting Research, 24(1), 13–46. https://doi.org/10.1506/X478-1075-4PW5-1501
   Web of Science ®Google Scholar
• Christensen, B. E., Lundstrom, N. G., & Newton, N. J. (2021). Does the disclosure of PCAOB inspection findings increase audit firms’ litigation exposure? The Accounting Review, 96(3), 191–219. https://doi.org/10.2308/TAR-2018-0151
   Web of Science ®Google Scholar
• Christensen, H. B., Hail, L., & Leuz, C. (2013). Mandatory IFRS reporting and changes in enforcement. Journal of Accounting and Economics, 56(2-3), 147–177. https://doi.org/10.1016/j.jacceco.2013.10.007
   Web of Science ®Google Scholar
• Cohen, J. E. (1986). The dynamics of the “revolving door” on the FCC. American Journal of Political Science, 30(4), 689–708. https://doi.org/10.2307/2111268
   Web of Science ®Google Scholar
• Dal Bó, E. (2006). Regulatory capture: A review. Oxford Review of Economic Policy, 22(2), 203–225. https://doi.org/10.1093/oxrep/grj013
   Web of Science ®Google Scholar
• Daske, H., Hail, L., Leuz, C., & Verdi, R. (2013). Adopting a label: Heterogeneity in the economic consequences around IAS/IFRS adoptions. Journal of Accounting Research, 51(3), 495–547.
   Google Scholar
• DeFond, M. L. (2010). How should the auditors be audited? Comparing the PCAOB Inspections with the AICPA Peer Reviews. Journal of Accounting and Economics, 49(1/2), 104–108. https://doi.org/10.1016/j.jacceco.2009.04.003
   Web of Science ®Google Scholar
• DeFond, M. L., & Lennox, C. S. (2011). The effect of SOX on small auditor exits and audit quality. Journal of Accounting and Economics, 52(1), 21–40. doi:10.1016/j.jacceco.2011.03.002
   Web of Science ®Google Scholar
• Dowling, C., Knechel, W. R., & Moroney, R. (2018). Public oversight of audit firms: The slippery slope of enforcing regulation. Abacus, 54(3), 353–380. https://doi.org/10.1111/abac.12130
   Web of Science ®Google Scholar
• Eierle, B., Hay, D., Hartlieb, S., Niemi, L., & Ojala, H. (2021). Importance of country factors for global differences in audit pricing: New empirical evidence. International Journal of Auditing, 25(2), 303–331. https://doi.org/10.1111/ijau.12222
   Web of Science ®Google Scholar
• European Commission. (2008). Recommendation (2008/362/EC) of 6 May 2008 on external quality assurance for statutory auditors and audit firms auditing public interest entities. European Commission. Available at http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32008H0362
   Google Scholar
• European Union. (2006). Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts. http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2006L0043:20080321:EN:PDF
   Google Scholar
• Federation of European Accountants (FEE). (2006). Quality assurance arrangements across Europe. FEE.
   Google Scholar
• Federation of European Accountants (FEE). (2015). Organisation of the public oversight of the audit profession in 23 European countries. FEE.
   Google Scholar
• Florou, A., Morricone, S., & Pope, P. F. (2020). Proactive financial reporting enforcement: Audit fees and financial reporting quality effects. The Accounting Review, 95(2), 167–197. https://doi.org/10.2308/accr-52497
   Web of Science ®Google Scholar
• Garcia Osma, B., Gisbert, A., & Heras Cristobal, E. D. L. (2017). Public oversight systems for statutory auditors in the European Union. European Journal of Law and Economics, 44(3), 517–552. https://doi.org/10.1007/s10657-014-9460-1
   Web of Science ®Google Scholar
• Gardner, J. (2021). Two-stage differences in differences (Working Paper). http://fmwww.bc.edu/RePEc/bocode/g/Gardner_2sdd.pdf
   Google Scholar
• Gipper, B., Leuz, C., & Maffett, M. (2020). Public oversight and reporting credibility: Evidence from the PCAOB audit inspection regime. The Review of Financial Studies, 33(10), 4532–4579. https://doi.org/10.1093/rfs/hhz149
   Web of Science ®Google Scholar
• Hanlon, M., & Shroff, N. (2022). Insights into auditor public oversight boards: Whether, how, and why they “work”. Journal of Accounting and Economics, 74(1), 101497. https://doi.org/10.1016/j.jacceco.2022.101497
   Web of Science ®Google Scholar
• Hay, D. C., Knechel, W. R., & Wong, N. (2006). Audit fees: A meta-analysis of the effect of supply and demand attributes*. Contemporary Accounting Research, 23(1), 141–191. https://doi.org/10.1506/4XR4-KT5V-E8CN-91GX
   Web of Science ®Google Scholar
• Hendricks, B. E., Landsman, W. R., & Pena-Romana, F. D. (2022). The revolving door between large audit firms and the PCAOB: Implications for future inspection reports and audit quality. The Accounting Review, 97(1), 261–292. https://doi.org/10.2308/TAR-2019-0649
   Web of Science ®Google Scholar
• International Forum of Independent Audit Regulators. (2011). Core principles for independent audit regulators. https://www.ifiar.org/?wpdmdl=2113
   Google Scholar
• Johnson, L. M., Keune, M. B., & Winchel, J. (2019). U.S. Auditors' perceptions of the PCAOB inspection process: A behavioral examination. Contemporary Accounting Research, 36(3), 1540–1574. https://doi.org/10.1111/1911-3846.12467
   Web of Science ®Google Scholar
• Lamoreaux, P. T. (2016). Does PCAOB inspection access improve audit quality? An examination of foreign firms listed in the United States. Journal of Accounting and Economics, 61(2-3), 313–337. https://doi.org/10.1016/j.jacceco.2016.02.001
   Web of Science ®Google Scholar
• Leuz, C., & Wysocki, P. D. (2016). The economics of disclosure and financial reporting regulation: Evidence and suggestions for future research. Journal of Accounting Research, 54(2), 525–622. https://doi.org/10.1111/1475-679X.12115
   Web of Science ®Google Scholar
• Lohlein, L. (2016). From peer review to PCAOB inspections: Regulating for audit quality in the U.S. Journal of Accounting Literature, 36(1), 28–47. https://doi.org/10.1016/j.acclit.2016.05.002
   Google Scholar
• Numan, W., & Willekens, M. (2012). An empirical test of spatial competition in the audit market. Journal of Accounting and Economics, 53(1-2), 450–465. https://doi.org/10.1016/j.jacceco.2011.10.002
   Web of Science ®Google Scholar
• Rama, D. S., & Read, W. J. (2006). Resignations by the Big 4 and the market for audit services. Accounting Horizons, 20(2), 97–109. https://doi.org/10.2308/acch.2006.20.2.97
   Google Scholar
• Simunic, D. A. (1980). The pricing of audit services: Theory and evidence. Journal of Accounting Research, 18(1), 161–190. https://doi.org/10.2307/2490397
   Web of Science ®Google Scholar
• Stigler, G. (1971). The theory of economic regulation. Bell Journal of Economics and Management Science, 2(1), 3–21.
   Google Scholar
• Vanstraelen, A., & Zou, L. (2022). PCAOB inspections and audit fees: An analysis of inspection rounds of small audit firms. European Accounting Review, 31(2), 345–376. https://doi.org/10.1080/09638180.2020.1828121
   Web of Science ®Google Scholar
• Viscusi, W. K., Harrington, J. E., Jr., & Vernon, J. M. (2005). Economics of regulation and antitrust (4th ed.). MIT Press.
   Google Scholar