The Contagion Effect of Low-Quality Audits

266 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

Does a Lack of Choice Lead to Lower Quality?: Evidence from Auditor Competition and Client Restatements (2013, unknown): “we quantify the magnitude of the restatement using the Francis and Michas (2013) methodology.”
Evidence on Contagion in Earnings Management (2015, background): “Private information about earnings management could be obtained from a common lax auditor’s office (Francis and Michas 2013) or common board member (see Bizjak, Lemmon and Whitby [2009] and Chiu, Teoh and Tian [2013]).”
Costs and Benefits of Requiring an Engagement Partner Signature: Recent Experience in the United Kingdom (2013, unknown): “19 Importantly, Francis and Michas (2011) find that abnormal accruals are negatively correlated with audit quality when audit quality is measured using restatements.”
The Effect of China's Weak Institutional Environment on the Quality of Big 4 Audits (2015, unknown): “Specifically, recent studies find that problematic audits—as measured by accounting restatements and auditor lawsuits—are largely clustered in certain low-quality offices (Francis and Yu 2009; Francis and Michas 2013; Lennox and Li 2014).”