Bijkerk, Suzanne H.; Karamychev, Vladimir A.; Swank, Otto H. - Tinbergen Instituut - 2013
We analyze the reporting strategies of firms and the investigation strategies of auditors in an archetype principles-based … to financial reporting. We show that for a principles-based system to work properly, firms should bear a sufficient share … of the cost of a thorough investigation. Furthermore, we find that a principles-based system is a mixed blessing. On the …