Business, Management and Accounting
4 years ago

PCAOB's Expansion Boosts Audit Quality Without Costing Companies Big Bucks

2 views
SSRN Electronic Journal
The Efficacy of PCAOB Operational Decision Making
James Justin Blann, Tyler J. Kleppe, Jonathan E. Shipman

Paper Summary

The PCAOB invested more in its inspection program by opening new offices in 2009. They chose markets where oversight would help audit quality. After the expansion, audit quality improved in markets with new offices. Auditors did not raise prices for clients, but there was more turnover. This shows that the PCAOB's investment in oversight was effective in improving audit quality without major costs for companies and shareholders.

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