The PCAOB Rules on Ethics, Independence, and Tax Services prohibited accounting firms from providing aggressive tax-position transactions to their audit clients. We exploit this setting to examine whether the scrutiny of the PCAOB affects companies’ financial reporting for income tax accounts. We find robust evidence that the overall quality of the income tax accrual increased after companies significantly reduced auditor-provided tax service (APTS) fees in response to the regulation. We show that this improvement is a function of companies’ pre-regulation tax aggressiveness. In addition, we find evidence that after the fee reductions, tax-aggressive companies increased financial statement reserves for uncertain income tax positions without changing tax-aggressive decisions. Overall, our findings are consistent with an improvement in the financial reporting for income taxes under regulatory scrutiny which is more pronounced for companies that were tax aggressive in the pre-regulation period.

PCAOB 关于道德、独立和税务服务的规则禁止会计师事务所向其审计客户提供激进的税务头寸交易。我们利用此设置来检查 PCAOB 的审查是否会影响公司的所得税账户财务报告。我们发现有力的证据表明，在公司为响应监管而大幅降低审计师提供的税务服务 (APTS) 费用后，所得税应计的整体质量有所提高。我们表明，这种改善是公司监管前税收积极性的函数。此外，我们发现证据表明，减费后，税收激进的公司在不改变税收激进决策的情况下，增加了不确定所得税状况的财务报表准备金。总体，