The trend toward continuous monitoring of automated business transactions by the internal audit function is growing as organizations seek to improve internal control. In this study, we demonstrate that continuous monitoring and the time horizon over which performance-contingent incentives are...

Audit firms increasingly rely on audit approaches using data and analytics (D&A) tools but express concern that external reviewers will excessively scrutinize such approaches. We conduct two experiments in which experienced external reviewers conduct an engagement review. We manipulate whether...

This paper reports the results of an experiment examining financial statement users' earnings correction beliefs about the discovery of a quantitatively immaterial earnings misstatement by the auditor. The SEC contends that companies are reluctant to correct such misstatements when the...

Recent advances in decentralized, autonomous technology enables replacement of human agents with technology agents that perform recurring transactions with little human intervention. Theory suggests that this shift from human to technology agency will change perceptions of causality which could...

We study the relation between audit committee accounting expertise, analyst following, and market liquidity. Our main results indicate that analyst following increases subsequent to the appointment of an accounting expert to the audit committee. We also provide evidence that accrual quality, as...