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How should the auditors be audited? Comparing the PCAOB Inspections with the AICPA Peer Reviews

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  • DeFond, Mark L.

Abstract

In their investigation of the new PCAOB Inspections, Lennox and Pittman [Lennox, C., Pittman, J., 2009. Auditing the auditors: evidence on the recent reforms to the external monitoring of the audit firms. Journal of Accounting and Economics, forthcoming] address one of the most important and controversial features of the recent shift from self-regulation to government regulation in the US audit markets. In this paper I attempt to place their investigations into the broader auditing and regulatory literature, critique what we learn and do not learn from their analysis, and make suggestions for future related research.

Suggested Citation

  • DeFond, Mark L., 2010. "How should the auditors be audited? Comparing the PCAOB Inspections with the AICPA Peer Reviews," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 104-108, February.
    • Handle: RePEc:eee:jaecon:v:49:y:2010:i:1-2:p:104-108
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    References listed on IDEAS

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    1. Joseph Weber & Michael Willenborg & Jieying Zhang, 2008. "Does Auditor Reputation Matter? The Case of KPMG Germany and ComROAD AG," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 46(4), pages 941-972, September.
    2. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
    3. Gilles Hilary & Clive Lennox, 2005. "The Credibility of Self-Regulation: Evidence from the Accounting Profession's Peer Review," Post-Print hal-00482306, HAL.
    4. Leuz, Christian & Triantis, Alexander & Yue Wang, Tracy, 2008. "Why do firms go dark? Causes and economic consequences of voluntary SEC deregistrations," Journal of Accounting and Economics, Elsevier, vol. 45(2-3), pages 181-208, August.
    5. Hilary, Gilles & Lennox, Clive, 2005. "The credibility of self-regulation: Evidence from the accounting profession's peer review program," Journal of Accounting and Economics, Elsevier, vol. 40(1-3), pages 211-229, December.
    6. Peltzman, Sam, 1976. "Toward a More General Theory of Regulation," Journal of Law and Economics, University of Chicago Press, vol. 19(2), pages 211-240, August.
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