Individuals judge audit quality, in part, based on adverse outcome information. Assuming that individuals over-rely on outcomes, prior accounting research attempts to improve their judgments by reducing their reliance on outcome information. Logically, however, individuals could either over-rely...

This study tested whether the audit review process for analytical procedure working papers can help reduce the risk of accepting working papers for which sufficient evidence has not been gathered to support the unexpected fluctuation or rule out alternative explanations. Reviewer-subjects were...

Efficient contracting involves reducing the losses in wealth due to bargaining impasses, time and effort spent in negotiating, delays in implementing profitable projects, and second-best agreements. Properties of accounting systems play a significant role when bargainers haggle over...