{"id":"https://openalex.org/W4415926559","doi":"https://doi.org/10.1287/mnsc.2024.08084","title":"Deciphering the PCAOB Inspection Process: Evidence and Predictive Insights from Public Data","display_name":"Deciphering the PCAOB Inspection Process: Evidence and Predictive Insights from Public Data","publication_year":2025,"publication_date":"2025-11-05","ids":{"openalex":"https://openalex.org/W4415926559","doi":"https://doi.org/10.1287/mnsc.2024.08084"},"language":"en","primary_location":{"id":"doi:10.1287/mnsc.2024.08084","is_oa":false,"landing_page_url":"https://doi.org/10.1287/mnsc.2024.08084","pdf_url":null,"source":{"id":"https://openalex.org/S33323087","display_name":"Management Science","issn_l":"0025-1909","issn":["0025-1909","1526-5501"],"is_oa":false,"is_in_doaj":false,"is_core":true,"host_organization":"https://openalex.org/P4310315699","host_organization_name":"Institute for Operations Research and the Management Sciences","host_organization_lineage":["https://openalex.org/P4310315699"],"host_organization_lineage_names":["Institute for Operations Research and the Management Sciences"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Management Science","raw_type":"journal-article"},"type":"article","indexed_in":["crossref"],"open_access":{"is_oa":false,"oa_status":"closed","oa_url":null,"any_repository_has_fulltext":false},"authorships":[{"author_position":"first","author":{"id":"https://openalex.org/A5046996550","display_name":"Daniel Aobdia","orcid":"https://orcid.org/0000-0001-7082-760X"},"institutions":[{"id":"https://openalex.org/I130769515","display_name":"Pennsylvania State University","ror":"https://ror.org/04p491231","country_code":"US","type":"education","lineage":["https://openalex.org/I130769515"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Daniel Aobdia","raw_affiliation_strings":["Accounting Department, Smeal College of Business, The Pennsylvania State University, University Park, Pennsylvania 16802"],"raw_orcid":"https://orcid.org/0000-0001-7082-760X","affiliations":[{"raw_affiliation_string":"Accounting Department, Smeal College of Business, The Pennsylvania State University, University Park, Pennsylvania 16802","institution_ids":["https://openalex.org/I130769515"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5028012849","display_name":"Edward Xuejun Li","orcid":"https://orcid.org/0000-0002-3127-056X"},"institutions":[{"id":"https://openalex.org/I141810926","display_name":"Baruch College","ror":"https://ror.org/023qavy03","country_code":"US","type":"education","lineage":["https://openalex.org/I141810926"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Edward Xuejun Li","raw_affiliation_strings":["Stan Ross Department of Accountancy, Zicklin School of Business, Baruch College, New York, New York 10010"],"raw_orcid":"https://orcid.org/0000-0002-3127-056X","affiliations":[{"raw_affiliation_string":"Stan Ross Department of Accountancy, Zicklin School of Business, Baruch College, New York, New York 10010","institution_ids":["https://openalex.org/I141810926"]}]},{"author_position":"middle","author":{"id":"https://openalex.org/A5048587793","display_name":"K. Ramesh","orcid":"https://orcid.org/0000-0002-2505-6268"},"institutions":[{"id":"https://openalex.org/I74775410","display_name":"Rice University","ror":"https://ror.org/008zs3103","country_code":"US","type":"education","lineage":["https://openalex.org/I74775410"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"K. Ramesh","raw_affiliation_strings":["Jones Graduate School of Business, Rice University, Houston, Texas 77005"],"raw_orcid":"https://orcid.org/0000-0002-2505-6268","affiliations":[{"raw_affiliation_string":"Jones Graduate School of Business, Rice University, Houston, Texas 77005","institution_ids":["https://openalex.org/I74775410"]}]},{"author_position":"last","author":{"id":"https://openalex.org/A5035833584","display_name":"Min Shen","orcid":"https://orcid.org/0009-0000-9561-7801"},"institutions":[{"id":"https://openalex.org/I162714631","display_name":"George Mason University","ror":"https://ror.org/02jqj7156","country_code":"US","type":"education","lineage":["https://openalex.org/I162714631"]}],"countries":["US"],"is_corresponding":false,"raw_author_name":"Min Shen","raw_affiliation_strings":["Accounting Area, Costello College of Business, George Mason University, Fairfax, Virginia 22030"],"raw_orcid":"https://orcid.org/0009-0000-9561-7801","affiliations":[{"raw_affiliation_string":"Accounting Area, Costello College of Business, George Mason University, Fairfax, Virginia 22030","institution_ids":["https://openalex.org/I162714631"]}]}],"institutions":[],"countries_distinct_count":1,"institutions_distinct_count":4,"corresponding_author_ids":[],"corresponding_institution_ids":[],"apc_list":null,"apc_paid":null,"fwci":0.0,"has_fulltext":false,"cited_by_count":0,"citation_normalized_percentile":{"value":0.42748678,"is_in_top_1_percent":false,"is_in_top_10_percent":false},"cited_by_percentile_year":null,"biblio":{"volume":"72","issue":"7","first_page":"6120","last_page":"6145"},"is_retracted":false,"is_paratext":false,"is_xpac":false,"primary_topic":{"id":"https://openalex.org/T10081","display_name":"Auditing, Earnings Management, Governance","score":0.8849999904632568,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},"topics":[{"id":"https://openalex.org/T10081","display_name":"Auditing, Earnings Management, Governance","score":0.8849999904632568,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T12378","display_name":"Accounting Education and Careers","score":0.012600000016391277,"subfield":{"id":"https://openalex.org/subfields/1402","display_name":"Accounting"},"field":{"id":"https://openalex.org/fields/14","display_name":"Business, Management and Accounting"},"domain":{"id":"https://openalex.org/domains/2","display_name":"Social Sciences"}},{"id":"https://openalex.org/T13720","display_name":"Benford\u2019s Law and Fraud Detection","score":0.009600000455975533,"subfield":{"id":"https://openalex.org/subfields/2613","display_name":"Statistics and Probability"},"field":{"id":"https://openalex.org/fields/26","display_name":"Mathematics"},"domain":{"id":"https://openalex.org/domains/3","display_name":"Physical Sciences"}}],"keywords":[{"id":"https://openalex.org/keywords/audit","display_name":"Audit","score":0.7846999764442444},{"id":"https://openalex.org/keywords/listed-company","display_name":"Listed company","score":0.6277999877929688},{"id":"https://openalex.org/keywords/issuer","display_name":"Issuer","score":0.5685999989509583},{"id":"https://openalex.org/keywords/enforcement","display_name":"Enforcement","score":0.5625},{"id":"https://openalex.org/keywords/commission","display_name":"Commission","score":0.5393999814987183},{"id":"https://openalex.org/keywords/suspect","display_name":"Suspect","score":0.4237000048160553},{"id":"https://openalex.org/keywords/quality","display_name":"Quality (philosophy)","score":0.42289999127388},{"id":"https://openalex.org/keywords/quality-audit","display_name":"Quality audit","score":0.4115000069141388},{"id":"https://openalex.org/keywords/litigation-risk-analysis","display_name":"Litigation risk analysis","score":0.37529999017715454},{"id":"https://openalex.org/keywords/work","display_name":"Work (physics)","score":0.3716999888420105}],"concepts":[{"id":"https://openalex.org/C199521495","wikidata":"https://www.wikidata.org/wiki/Q181487","display_name":"Audit","level":2,"score":0.7846999764442444},{"id":"https://openalex.org/C121955636","wikidata":"https://www.wikidata.org/wiki/Q4116214","display_name":"Accounting","level":1,"score":0.7709000110626221},{"id":"https://openalex.org/C144133560","wikidata":"https://www.wikidata.org/wiki/Q4830453","display_name":"Business","level":0,"score":0.6514999866485596},{"id":"https://openalex.org/C2993937409","wikidata":"https://www.wikidata.org/wiki/Q891723","display_name":"Listed company","level":2,"score":0.6277999877929688},{"id":"https://openalex.org/C138170105","wikidata":"https://www.wikidata.org/wiki/Q1337949","display_name":"Issuer","level":2,"score":0.5685999989509583},{"id":"https://openalex.org/C2779777834","wikidata":"https://www.wikidata.org/wiki/Q4202277","display_name":"Enforcement","level":2,"score":0.5625},{"id":"https://openalex.org/C2776034101","wikidata":"https://www.wikidata.org/wiki/Q1509347","display_name":"Commission","level":2,"score":0.5393999814987183},{"id":"https://openalex.org/C2778223634","wikidata":"https://www.wikidata.org/wiki/Q224952","display_name":"Suspect","level":2,"score":0.4237000048160553},{"id":"https://openalex.org/C2779530757","wikidata":"https://www.wikidata.org/wiki/Q1207505","display_name":"Quality (philosophy)","level":2,"score":0.42289999127388},{"id":"https://openalex.org/C140181557","wikidata":"https://www.wikidata.org/wiki/Q2288714","display_name":"Quality audit","level":3,"score":0.4115000069141388},{"id":"https://openalex.org/C154307955","wikidata":"https://www.wikidata.org/wiki/Q6648555","display_name":"Litigation risk analysis","level":3,"score":0.37529999017715454},{"id":"https://openalex.org/C18762648","wikidata":"https://www.wikidata.org/wiki/Q42213","display_name":"Work (physics)","level":2,"score":0.3716999888420105},{"id":"https://openalex.org/C86743352","wikidata":"https://www.wikidata.org/wiki/Q2495358","display_name":"Generally Accepted Auditing Standards","level":4,"score":0.3605000078678131},{"id":"https://openalex.org/C12559387","wikidata":"https://www.wikidata.org/wiki/Q185142","display_name":"Initial public offering","level":2,"score":0.33959999680519104},{"id":"https://openalex.org/C2776801101","wikidata":"https://www.wikidata.org/wiki/Q4570975","display_name":"Securities fraud","level":3,"score":0.3391000032424927},{"id":"https://openalex.org/C188198153","wikidata":"https://www.wikidata.org/wiki/Q1613840","display_name":"Limiting","level":2,"score":0.33709999918937683},{"id":"https://openalex.org/C41282006","wikidata":"https://www.wikidata.org/wiki/Q830689","display_name":"Auditor's report","level":3,"score":0.33570000529289246},{"id":"https://openalex.org/C156223087","wikidata":"https://www.wikidata.org/wiki/Q4819948","display_name":"Audit evidence","level":5,"score":0.329800009727478},{"id":"https://openalex.org/C191602146","wikidata":"https://www.wikidata.org/wiki/Q6269489","display_name":"Joint audit","level":4,"score":0.32330000400543213},{"id":"https://openalex.org/C147007100","wikidata":"https://www.wikidata.org/wiki/Q3344190","display_name":"External auditor","level":4,"score":0.3197999894618988},{"id":"https://openalex.org/C49630185","wikidata":"https://www.wikidata.org/wiki/Q6980675","display_name":"Natural experiment","level":2,"score":0.3192000091075897},{"id":"https://openalex.org/C150130657","wikidata":"https://www.wikidata.org/wiki/Q4819986","display_name":"Auditor independence","level":5,"score":0.2976999878883362},{"id":"https://openalex.org/C2776475305","wikidata":"https://www.wikidata.org/wiki/Q29627","display_name":"Public interest","level":2,"score":0.2906999886035919},{"id":"https://openalex.org/C166052673","wikidata":"https://www.wikidata.org/wiki/Q83021","display_name":"Empirical evidence","level":2,"score":0.28769999742507935},{"id":"https://openalex.org/C2777189325","wikidata":"https://www.wikidata.org/wiki/Q61022630","display_name":"Officer","level":2,"score":0.2799000144004822},{"id":"https://openalex.org/C162118730","wikidata":"https://www.wikidata.org/wiki/Q1128453","display_name":"Actuarial science","level":1,"score":0.27630001306533813},{"id":"https://openalex.org/C137725906","wikidata":"https://www.wikidata.org/wiki/Q758913","display_name":"Audit committee","level":3,"score":0.27320000529289246},{"id":"https://openalex.org/C2779820595","wikidata":"https://www.wikidata.org/wiki/Q798505","display_name":"Listing (finance)","level":2,"score":0.26429998874664307},{"id":"https://openalex.org/C2778137410","wikidata":"https://www.wikidata.org/wiki/Q2732820","display_name":"Government (linguistics)","level":2,"score":0.2635999917984009},{"id":"https://openalex.org/C13896816","wikidata":"https://www.wikidata.org/wiki/Q3029422","display_name":"Chief audit executive","level":5,"score":0.2563999891281128},{"id":"https://openalex.org/C2986265317","wikidata":"https://www.wikidata.org/wiki/Q484876","display_name":"Chief executive officer","level":2,"score":0.2551000118255615},{"id":"https://openalex.org/C39549134","wikidata":"https://www.wikidata.org/wiki/Q133080","display_name":"Public relations","level":1,"score":0.25290000438690186},{"id":"https://openalex.org/C120936955","wikidata":"https://www.wikidata.org/wiki/Q2155640","display_name":"Empirical research","level":2,"score":0.2524000108242035},{"id":"https://openalex.org/C71745522","wikidata":"https://www.wikidata.org/wiki/Q2476929","display_name":"Confidentiality","level":2,"score":0.25049999356269836}],"mesh":[],"locations_count":1,"locations":[{"id":"doi:10.1287/mnsc.2024.08084","is_oa":false,"landing_page_url":"https://doi.org/10.1287/mnsc.2024.08084","pdf_url":null,"source":{"id":"https://openalex.org/S33323087","display_name":"Management Science","issn_l":"0025-1909","issn":["0025-1909","1526-5501"],"is_oa":false,"is_in_doaj":false,"is_core":true,"host_organization":"https://openalex.org/P4310315699","host_organization_name":"Institute for Operations Research and the Management Sciences","host_organization_lineage":["https://openalex.org/P4310315699"],"host_organization_lineage_names":["Institute for Operations Research and the Management Sciences"],"type":"journal"},"license":null,"license_id":null,"version":"publishedVersion","is_accepted":true,"is_published":true,"raw_source_name":"Management Science","raw_type":"journal-article"}],"best_oa_location":null,"sustainable_development_goals":[],"awards":[],"funders":[],"has_content":{"grobid_xml":false,"pdf":false},"content_urls":null,"referenced_works_count":53,"referenced_works":["https://openalex.org/W1968816001","https://openalex.org/W1995152248","https://openalex.org/W1996875373","https://openalex.org/W2006002836","https://openalex.org/W2038663319","https://openalex.org/W2039823962","https://openalex.org/W2043464706","https://openalex.org/W2057332384","https://openalex.org/W2081466304","https://openalex.org/W2092012754","https://openalex.org/W2107718938","https://openalex.org/W2112946319","https://openalex.org/W2127598739","https://openalex.org/W2168323597","https://openalex.org/W2189821821","https://openalex.org/W2290098699","https://openalex.org/W2318691846","https://openalex.org/W2336317428","https://openalex.org/W2547150306","https://openalex.org/W2549324540","https://openalex.org/W2603451829","https://openalex.org/W2607885861","https://openalex.org/W2609366230","https://openalex.org/W2788043825","https://openalex.org/W2806475706","https://openalex.org/W2893448390","https://openalex.org/W2899883402","https://openalex.org/W2944035888","https://openalex.org/W2979791503","https://openalex.org/W2996167227","https://openalex.org/W3087699331","https://openalex.org/W3093737922","https://openalex.org/W3121143499","https://openalex.org/W3121832054","https://openalex.org/W3121986726","https://openalex.org/W3122057730","https://openalex.org/W3122073774","https://openalex.org/W3122244775","https://openalex.org/W3122285379","https://openalex.org/W3123604205","https://openalex.org/W3123979843","https://openalex.org/W3124047017","https://openalex.org/W3124592374","https://openalex.org/W3125538794","https://openalex.org/W3125939619","https://openalex.org/W3160840355","https://openalex.org/W4213117274","https://openalex.org/W4225597485","https://openalex.org/W4284664821","https://openalex.org/W4308698185","https://openalex.org/W4365138215","https://openalex.org/W4385782002","https://openalex.org/W4387013600"],"related_works":[],"abstract_inverted_index":{"Little":[0],"is":[1,139,182],"known":[2],"about":[3],"how":[4,177],"the":[5,33,46,146,174,228,233,253,265],"Public":[6],"Company":[7],"Accounting":[8],"Oversight":[9],"Board":[10],"(PCAOB)":[11],"selects":[12],"audits":[13,75],"for":[14,70,117],"inspections.":[15,133],"We":[16,55],"exploit":[17],"public":[18,124],"data":[19,278],"that":[20,58,82,154],"track":[21],"PCAOB":[22,52,59,83,113,147,198,207,229],"searches":[23,60,84],"of":[24,36,39,65,73,136,176,227,257,270],"issuer":[25],"Securities":[26],"and":[27,32,69,94,97,100,169,232,264,277],"Exchange":[28],"Commission":[29],"(SEC)":[30],"filings":[31],"trial":[34],"transcripts":[35],"United":[37],"States":[38],"America":[40],"v.":[41],"David":[42],"Middendorf":[43],"to":[44,142,184],"provide":[45],"first":[47],"large-sample":[48],"evidence":[49],"on":[50,123,150],"confidential":[51],"monitoring":[53,208],"activities.":[54],"initially":[56],"validate":[57],"spike":[61],"during":[62],"actual":[63,132],"inspections":[64,199],"triennially":[66],"inspected":[67,76],"auditors":[68],"a":[71,112,223],"list":[72],"KPMG":[74,108],"in":[77],"2016.":[78],"Importantly,":[79],"we":[80,110],"find":[81],"vary":[85],"predictably":[86],"with":[87,126,131,203],"ongoing":[88],"audit-flagged":[89],"events,":[90,93],"client":[91,95],"corporate":[92],"characteristics,":[96],"these":[98],"screening":[99],"inspection":[101,114,180,230],"activities":[102],"extend":[103],"beyond":[104],"enforcement":[105],"actions.":[106],"Using":[107],"data,":[109,125],"introduce":[111],"prediction":[115],"model":[116],"Big":[118],"4":[119],"clients":[120],"based":[121],"solely":[122],"predicted":[127],"incidence":[128],"closely":[129],"aligning":[130],"One":[134],"implication":[135],"our":[137,220],"study":[138,221],"that,":[140],"perhaps":[141],"mitigate":[143],"political":[144],"costs,":[145],"relies":[148],"overly":[149],"conspicuous":[151],"trigger":[152],"events":[153],"already":[155],"signal":[156],"low":[157],"audit":[158,187,192],"quality":[159,188],"(i.e.,":[160],"restatements,":[161,205],"auditor":[162],"changes,":[163],"chief":[164],"financial":[165],"officer":[166],"turnovers,":[167],"bankruptcies,":[168],"SEC":[170],"comment":[171],"letters),":[172],"raising":[173],"question":[175],"its":[178,236],"risk-based":[179],"program":[181,231],"designed":[183],"improve":[185],"overall":[186],"or":[189],"minimize":[190],"large":[191],"failures.":[193],"In":[194],"addition,":[195],"although":[196],"model-inferred":[197],"are":[200,280],"not":[201],"associated":[202],"future":[204],"broader":[206],"activities,":[209],"as":[210],"proxied":[211],"by":[212,243,252],"search":[213],"intensity,":[214],"exhibit":[215],"modest":[216],"predictive":[217],"power.":[218],"Overall,":[219],"provides":[222],"more":[224],"nuanced":[225],"understanding":[226],"factors":[234],"driving":[235],"revealed":[237],"preferences.":[238],"This":[239,248],"paper":[240],"was":[241,250],"accepted":[242],"Ranjani":[244],"Krishnan,":[245],"accounting.":[246],"Funding:":[247],"work":[249],"supported":[251],"Jones":[254],"Graduate":[255],"School":[256],"Business":[258],"at":[259,282],"Rice":[260],"University,":[261],"Baruch":[262],"College,":[263],"Penn":[266],"State":[267],"Smeal":[268],"College":[269],"Business.":[271],"Supplemental":[272],"Material:":[273],"The":[274],"online":[275],"appendix":[276],"files":[279],"available":[281],"https://doi.org/10.1287/mnsc.2024.08084":[283],".":[284]},"counts_by_year":[],"updated_date":"2026-07-07T06:14:10.401900","created_date":"2025-11-05T00:00:00"}