volume 31, issue 4/5, P387-402 2016
DOI: 10.1108/maj-05-2015-1189
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Benjamin W. Hoffman, Albert L. Nagy

Abstract: Purpose This paper aims to investigate whether the Sarbanes-Oxley Act: Section 404(b) exemption caused an increase in auditor changes due to changes in expectations for both auditors and their clients. Design/methodology/approach This paper predicts that this exemption caused a significant amount of auditor changes post-exemption, due to a change in expected future economic rents (audit scope demands) for auditors (clients). Logistic regression analysis is used to examine whether auditor changes increased f…

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