Cheng, Peter; Childs, Bradley D.; Sheng, William W. - In: Journal of Business Finance & Accounting 28 (2001-06) 5-6, pp. 631-652
This paper presents a stylized model of the strategy game between the auditor and the client. The client is assumed to have either good or bad inherent risk in her reporting system. She chooses a reporting effort level to maintain the accounting records and data management depending on her type...