【报告主题】The Implications of Small Firms’ Responses to PCAOB Inspections
【主讲嘉宾】Miguel Minutti-Meza， Herbert Business School
【报告时间】2025年6月3日 14:00
【报告地点】会计学院108室
【内容提要】
Audit firms may voluntarily submit public responses to PCAOB inspection findings. In contrast to large audit firms, many small firms issue detailed responses that sometimes openly disagree with the PCAOB. We examine the implications of small firms’ responses and document three primary findings. First, auditors that issue a response subsequently charge higher audit fees and have lower audit quality, especially when the inspection reveals a high number of deficiencies. Second, relatively unstructured responses — characterized by brevity, low discrepancy, minimal technical content, and lack of partner signature—are associated with low subsequent audit quality. Third, clients are more likely to retain auditors that issue unstructured responses. Next, we do not find compelling evidence that auditor responses are associated with future inspection deficiencies or negative investor reactions around the response’s publication date. Overall, auditors’ responses appear as strategic impression management that is related to audit quality and client retention outcomes.