Brad Badertscher's, Deloitte Professor of Accountancy, paper, Assurance Level Choice, CPA Fees, and Financial Reporting Benefits: Inferences from U.S. Private Firms has been accepted by the Journal of Accounting & Economics

Many U.S. private firms choose either a financial statement compilation or review rather than the higher assurance provided by an audit, yet little is known about these choices. Brad and co-authors find that assurance choices are associated with bank debt, trade credit and internal information reliability. They explore economic aspects of assurance choice and find that CPA fees more than double for each increment in assurance, yet the financial reporting benefits are similar for audits and reviews.