United States and European Union Auditor Independence Regulation: Implications for Regulators and Auditing Practice

Christiane Strohm investigates the effects of the Sarbanes-Oxley-Act and the revised 8th EU-Directive on auditing. She shows that there is a difference in the communication and safeguarding effects of a regulation, depending on the precision of its wording and that safeguarding effects also depend on auditors monetary incentives and on perceived costs of litigation.