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SYNOPSIS: The Big 4 accounting firms have expanded their legal service arms to historic proportions over the last decade, employing thousands of lawyers around the world. Although most of the Big 4's revenue from legal services is presently generated outside the U.S., they are now making inroads into the U.S. legal market, and rule changes are being considered that would further allow the Big 4 to offer legal services in the U.S. This essay summarizes the current status of Big 4 firms as legal service providers, discusses potential implications of legal offerings for their U.S. audit practices, and suggests directions for future research. Our proposed research questions are informed by several literatures, interviews with former Big 4 partners and practicing attorneys, and a survey of the general public. They center on the fundamental difference between audit and law practices, brand equity considerations, and culture changes within the Big 4. [ABSTRACT FROM AUTHOR]

SYNOPSIS: Public accounting firms have developed reliable substantive tests using data and analytics based procedures to improve audit quality and efficiency. However, firms need to convince audit stakeholders that relying on data and analytics based procedures will improve, or at least maintain, audit effectiveness for them to be allowed and accepted. This study provides exploratory, experimental evidence to indicate how three key audit stakeholder groups—non-professional investors, peer reviewers, and jurors—perceive population testing and predictive modeling data and analytics based procedures relative to traditional sample-based substantive testing. Results suggest that while key audit stakeholders are generally open to or favorably disposed to the use of data and analytics based audit procedures, they also expressed some concerns about the appropriateness of relying on data and analytics based procedures, particularly predictive modeling, as primary sources of substantive evidence. This paper develops an agenda for future research to help firms better address stakeholder concerns. [ABSTRACT FROM AUTHOR]