Abnormal Audit Fees and Restatements
2012 ◽
Vol 31
(1)
◽
pp. 79-96
◽
Keyword(s):
SUMMARY We investigate the relationship between audit fees and subsequent financial statement restatements in the years following the Sarbanes-Oxley Act of 2002 (SOX). After controlling for internal control quality, we find that abnormal audit fees are negatively associated with the likelihood that financial statements are subsequently restated. This result conflicts with prior work that finds that audit fees are positively associated with future restatements. Overall, our evidence is consistent with the notion that restatements reflect low audit effort or underestimated audit risk in the periods leading up to the restatement year.
2015 ◽
Vol 30
(1)
◽
pp. 93-116
◽
2019 ◽
Vol 69
(4)
◽
pp. 685-703
◽
2008 ◽
Vol 27
(1)
◽
pp. 105-126
◽
Keyword(s):
2016 ◽
Vol 33
(4)
◽
pp. 485-505
◽
2018 ◽
Vol 9
(2)
◽
pp. 203
◽
Keyword(s):
2014 ◽
Vol 28
(2)
◽
pp. 231-256
◽