Academic Impact: Audit oversight board cites School of Management research in audit disclosure proposal
JUNE 2024
Researchers from the University at Buffalo School of Management recently influenced a new proposal from the Public Company Accounting Oversight Board (PCAOB), the main regulator for audits of publicly traded companies in the U.S., by investigating how employee turnover is related to audit quality.
Szerwo
Khavis
The study from Brandon Szerwo and Joshua Khavis, both assistant professors of accounting and law, found that audit employee turnover is directly linked to audit quality and client services.
Citing this research, the PCAOB proposes that audit firms publicly disclose a set of 11 metrics — including disclosing audit personnel turnover — as such information can be a useful indicator of service quality for clients.