While substantial revisions to auditor and audit committee reporting are being discussed internationally, including in the United States, the impact of these reforms on audit quality is unknown. We exploit the United Kingdom's recent regulatory changes and find that the U.K.'s new reporting regime is associated with an improvement in audit quality as proxied by significant decreases in absolute abnormal accruals and the propensity to just meet or beat analyst forecasts. While we find that audit

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... fees marginally increased after the reporting changes, the increase is not significantly different from the fee change documented in the prior year, suggesting a possible time trend of increasing fees unrelated to the new requirements. We also fail to document a significant change in audit delay. Taken together, this study finds that new auditor and audit committee reporting requirements are associated with a significant improvement in audit quality without detecting significant incremental costs.