We examine the effect of Audit Committee (AC) quality on auditor conservatism from two perspectives that may be held by the auditors. The first perspective is that enhanced AC quality lowers audit risk, which allows auditors to be less aggressive when insisting on recording adjusting entries –...

Despite the controversy regarding quot;glass ceilingquot; effects for women and the specific concern expressed by large CPA firms over their inability to retain women in senior positions, there is little empirical evidence regarding why women partners and managers leave public accounting. In...

To contribute to the PCAOB project on risk assessment in financial statement audits, we draw on the academic literature to offer insights and conclusions on the risk-assessment process. We use the PCAOB's (2005) recent briefing paper on risk assessment as the organizing framework for our...

Purpose – The purpose of this paper is to examine whether auditors interpret the risk of material misstatement (RMM) in accordance with current standards' definition of inherent risk (IR). It is argued that controls should not be presumed when assessing inherent risk and that inherent risk...

Purpose – The purpose of this paper is to examine whether auditors interpret the risk of material misstatement (RMM) in accordance with current standards' definition of inherent risk (IR). It is argued that controls should not be presumed when assessing inherent risk and that inherent risk...