Document Type
Article
Publication Date
4-2021
Abstract
Audits provide monitoring for investors. The collapse of markets across the financial crisis made assets more difficult to value, which increased risk for auditors. The money markets were at the center of the financial crisis increasing audit engagement risk on money market funds, which at the time of the crisis were highly opaque. Measuring the response to increased engagement risk with audit fees, this study finds that auditors increase their fees for the riskiest class of funds. However, no evidence was found that audit fees increased as funds increased their holdings in the riskiest class of securities.
Copyright Statement
This version of the article has been accepted for publication and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s11156-020-00918-5
Publication Information
Allen, Kyle D. and Winters, Drew B.. (2021). "Auditor Response to Changing Risk: Money Market Funds During the Financial Crisis". Review of Quantitative Finance and Accounting, 56(3), 1057-1086. https://doi.org/10.1007/s11156-020-00918-5