Companies using cost-plus pricing often produce products that entail joint cost allocation. A problem they have encountered is that, while product prices are a function of the full cost, joint cost allocation methods using net realizable values depend on the product prices. This paper shows that...

Purpose – The objective of this paper is to examine whether lending decisions are affected by knowledge about the auditor's revenue dependence on a client and whether the amount spent by a company on audit fees (AF) affects lending decisions concerning the company. Design/methodology/approach...

Purpose – The purpose of this paper is to examine the impact of internal control opinions on individuals' judgments about investments. Design/methodology/approach – The approach used is a behavioral experiment where risk assessments and judgments about investments are made for four internal...

This article investigates the impact of auditing on the commission of financial reporting irregularities by managers. We also examine whether the deterrent effect of auditing is affected by individual demographics. An experiment, using three case scenarios, was employed. Our findings indicated...