In audit testing scenarios, the question arises as to the appropriate way to combine or aggregate the evidence gathered from separate tests of sub-populations into an overall conclusion about the amount of audit risk being borne - that is, the risk of a material amount of misstatement remaining...

We utilize a single period model to investigate the tradeoffs that management might make when faced with the necessity of disclosing the quality of the internal control over financial reporting (henceforth ICOFR) and the outcomes that would result from such tradeoffs. Our analysis indicates that...

When an auditor's effort is not observable, auditor liability becomes an important mechanism for motivating the auditor to exert an appropriate level of audit effort. However, while the presence of legal liability helps to preserve the value of an audit to investors, some aspects of the...

The Sarbanes-Oxley Act (SOX) mandates managers and auditors to assess the effectiveness of internal controls over financial reporting. Our study investigates two methods that organizations commonly use to document their business processes – descriptive narrative (hereafter, textual) and...

Growing customer privacy concerns are resulting in companies paying increased attention to privacy. The main challenge to e-commerce companies is to balance the competitive advantages provided by the use of personal information with the privacy concerns that customers may have regarding the use...

In this paper we provide a synthesis of the research that has been performed on business models and business model descriptions. We address a series of seven research questions aimed at exploring the nature of business models and business model descriptions to better understand how they are and...

This study examines all SOX 404 reports issued between 2004 and 2014 to determine their readability as measured by the FOG index after controlling for report size. We find that managements' reports are more readable than auditors' reports. Big 6 reports are less readable than non-Big 6 reports....

This article presents a discussion of research on the effects of different response elicitation methods on the audit planning and review judgments. The study involved 40 auditors, at five different levels of expertise, who reviewed the audit strategy of a hypothetical senior and provided...

This article presents information related to issues discussed at the 1998 Audit Symposium. Presenting their views on traditional audit, experts commented that they didn't really know what opportunities existed in the assurance market but some early indications showed that in fact the market was...