Long-Term Impact of Economic Conditions on Auditors’ Judgment*

Abstract

We find that economic conditions at the time an auditor enters the labor market have a long-term impact on her judgment and decision making. Specifically, engagement partners who started their career during economic downturns issue audit adjustments more frequently. For the subsample of company-years with no audit adjustments, downturn auditors are more… (More)

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11 Figures and Tables