This paper introduces an approach to the assessment of financial statement fraud risk and audit program planning and illustrates its application by simulating its use in the 1999 audit of Olympus. The approach incorporates a rigorous approach to assessing risk and current standards and...

This study examines whether and how the Big 3 audit firms in Japan respond to clients' business risk and whether their responses vary. Two possible approaches to addressing clients' higher business risk are increasing audit effort (e.g., increasing total audit hours or assigning more experienced...

This study develops a conceptual framework for auditor knowledge comprising both the personal knowledge of auditors and the organizational knowledge of audit firms. We use this to examine how three measures of the personal knowledge held by engagement audit partners.the depth and width of...

This study examines how audit fees change when companies switch audit firms. In particular, we are interested in the effect of engagement partners’ familiarity with clients on the changes in audit fees. On the basis of the unique data on individual engagement partners obtained from auditors’...

To examine empirically the knowledge integration process of professional expertise that individuals have in a professional firm, this paper examines the emergence and growth of four large audit firms (ShinNihon, Azusa, Tohmatsu, and ChuoAoyama) in Japan over a period from the mid- 1960s to 2010....