Did the PCAOB ’ s Restrictions on Auditors ’ Tax Services Improve Audit Quality ?

@inproceedings{Lennox2016DidTP,
  title={Did the PCAOB ’ s Restrictions on Auditors ’ Tax Services Improve Audit Quality ?},
  author={Clive Lennox},
  year={2016}
}
In 2005-2006, the PCAOB imposed restrictions on auditors’ tax services in order to strengthen auditor independence and improve audit quality. The restrictions resulted in a significant drop in auditor-provided tax services (APTS). To test the impact on audit quality, I partition the sample into a treatment group (companies whose APTS purchases dropped significantly when the restrictions were introduced) and a control group (companies whose APTS purchases were relatively unaffected) and I… CONTINUE READING