There is some evidence to suggest that former regulators can improve the quality of audits. For example, a study by the Public Company Accounting Oversight Board (PCAOB) found that audits conducted by firms with former regulators on their audit teams were less likely to be deficient. Additionally, a study by the University of Michigan found that former regulators were more likely to identify and report financial statement misstatements.

However, it is important to note that the evidence on this issue is mixed. Some studies have found no relationship between the presence of former regulators on audit teams and audit quality, while others have found a negative relationship. Additionally, the benefits of having former regulators on audit teams may be offset by the costs of hiring and training them.

Overall, the evidence on whether former regulators improve the quality of audits is mixed. More research is needed to determine the true impact of former regulators on audit quality.