I’m pleased to announce that Brad Badertscher is a 2024 recipient of the Mendoza Mission Research Award, an annual recognition of Mendoza research papers published in high-quality academic journals that exemplify the College’s imperative to “Grow the Good in Business.”

Brad A. Badertscher, Deloitte Professor of Accountancy
Assurance Level Choice, CPA Fees, and Financial Reporting Benefits: Inferences from U.S. Private Firms (Journal of Accounting and 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. The researchers find that CPA fees more than double for each increment in assurance. Commonly used financial reporting quality proxies are higher for reviews and audits than compilations but are statistically indistinguishable between reviews and audits. The study also finds that assurance-level choices are associated with bank debt, trade credit, and control concerns.

Five papers were chosen from nominations submitted across the College, with one award winner in each department.