Recognizing the increasing complexities of today's business in a knowledge-based economy, many public accounting firms have reorganized their staff and practice by industry (Bell et al. 1997; Emerson 1993). Consequently, today's auditors' training and experience are becoming more industry-specific earlier in their audit career. While early industry specialization could potentially reduce auditors' breadth of general audit experi-ence, industry-specialist auditors have greater opportunities to develop more in-depth knowledge of the industry in which they specialize. Such in-depth knowledge should lead to greater audit effectiveness. Prior research on auditors' industry experience and/or specialization has found that auditors with greater industry-specific experience generally possess greater knowledge of