AUDIT QUALITY EXAMINED ONE LARGE CPA FIRM AT A TIME: MID-1990’S EMPIRICAL EVIDENCE OF A PRECURSOR OF ARTHUR ANDERSEN’S COLLAPSE

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Abstract

The largest CPA firms have been regarded as quality-differentiated auditors. This has been a prominent assumption of empirical research in accounting and auditing. Yet, prior research has only tested whether the largest CPA firms, in the aggregate, are quality-differentiated auditors. This paper contributes to the audit quality literature by individually examining each of the largest CPA firms. This new approach is timely, given the questions that have been raised concerning Arthur Andersen.

Keywords: Audit Quality, Private Securities Class Actions, SEC enforcement actions, Criminal Law, Litigation

How to cite this paper: Fuerman, R. D. (2004). Audit quality examined one large CPA firm at a time: mid-1990’s empirical evidence of a precursor of Arthur Andersen’s collapse. Corporate Ownership & Control, 2(1), 137-148. https://doi.org/10.22495/cocv2i1p11