Are Auditor Reputations Correlated ? Evidence from the Andersen Experience

  • RAJIB DOOGAR, THEODORE SOUGIANNIS, ALBA HONG XIE
  • Published 2006

Abstract

Does bad news about one auditor’s conduct affect the credibility of other auditors? We address this question by investigating the existence, timing and magnitude of auditor credibility impairment spillovers around 25 bad news events involving Arthur Andersen LLP’s Waste Management, Sunbeam and Enron audits. We document strong evidence of market-wide… (More)

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