I examine the extent to which the high degree of inherent risk present in many fair value measurements (FVMs) is communicated via disclosures to financial statement users under conditions of high and low management aggressiveness. Specifically, I conduct an experiment that investigates which of...

The financial security of the investing public relies on high quality service by broker-dealers (BDs), investors' gateway to the financial markets. The Securities and Exchange Commission (SEC) has long required auditors to attest to BDs' internal controls and compliance with regulations...

U.S. and international regulators and standard setters have criticized companies and audit firms for failing to establish and audit internal controls for complex fair value measurements (FVMs). In this study, we examine the association between FVMs and the likelihood of reporting a material...

The financial security of the investing public relies on high quality service by broker-dealers (BDs), investors' gateway to the financial markets. The Securities and Exchange Commission (SEC) has long required auditors to attest to BDs' internal controls and compliance with regulations...

Concern about effective auditing of fair value measurements (FVMs) has risen in recent decades. Building on prior interview-based and experimental research, we provide an engagement-level analysis of challenging FVMs, using quantitative and qualitative data on audit phases from risk assessment...