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Audit firm size and going concern reporting

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  1. Two other samples were also identified.
  2. The authors document that across the ERAs, financially stressed public companies are increasingly audited by regional audit firms. However, our evidence suggests that more recently, to lessen their litigation risks, regional audit firms, relative to BigN and national audit firms, acted more conservatively by issuing more going concern reports to their financially stressed public clients.
  3. The authors document that across the ERAs, financially stressed public companies are increasingly audited by regional audit firms.