1. Research Sheds New Light On Audit Partner Selection

    Research Sheds New Light On Audit Partner Selection

    Companies whose audit committees disclose involvement in the selection of the audit partner experience higher levels of audit and financial reporting quality...

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    1. We also saw that when the committee discloses involvement and has social ties with the CEO, audit quality declines. We interpret this to suggest that the committee chooses to side with management in selecting a more lenient partner when social ties exist.
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