Table 8.

Random Audits and Changes in Paid Preparers

	(1)	(2)	(3)
	DV: Change Preparer
Audited	-0.004	0.012	-0.012
	(-0.27)	(0.42)	(-0.63)
Intercept	0.445***	0.474***	0.431***
	(38.68)	(23.10)	(31.04)
Sample	Full sample	Noncompliant funs	Compliant films
N	5.016	1.596	3,420
R-Squared	0.000	0.000	0.000
Cross Equation Tests on Audited Coefficient
(2) vs (3):	0.024
	(0.70)

This table shows the extent to which firms changed the paid preparer of their corporate income tax returns following a random audit. The dependent variable in columns 1–3 is Change Preparer. The independent variable of interest is Audited, which indicates whether a firm was audited as part of the National Research Program. No control variables are included, as both the audit and control firms were selected randomly. The sample consists of 2508 audited firms and 2508 control firms (one observation per firm). Observations are weighted using the sampling weights (inverse probability of being selected) to generalize the results to the population. All variables are defined in Appendix 1. Robust t-statistics are presented below the coefficients in parentheses. ***, **, * denotes statistical significance at the 10, 5, or 1% level, respectively.