Regulators have expressed concerns that investors misunderstand auditors’ responsibility to “read and consider” other information in the annual report (e.g., the MD&A), often assuming the entire annual report has been audited. This is particularly a concern in the U.S. where auditors do...

In this study, we propose the concept of artificial intelligence co-piloted auditing, emphasizing the collaborative potential of auditors and foundation models, such as LaMDA, DALL-E, and GPT-4, in the auditing domain. We imagine an audit setup where auditors' capabilities are enhanced through...

This case is fictitious but draws upon facts from actual occurrences. It requires students to apply auditing concepts and professional standards in an international setting. An affiliate of a U.S. accounting firm, Loxon Shanghai CPA Ltd., has received a request from the SEC for the audit...

Purpose – The purpose of this paper is to examine how financial characteristics associated with the choice of a big audit firm with further investigation on the agency costs of free cash flows.Design/methodology/approach – The sample used for this work includes industrial listed companies...

This study examines the association between overseas and New Zealand governance regulatory reforms in New Zealand public companies' audit and non-audit fees. We state audit and non-audit fee models, and use temporal and IFRS indicator variables to relate the timing of the fee changes with the...

The purpose of this study is to investigate the level of effectiveness of 42 red flags for detecting fraudulent financial reporting as perceived by 82 internal auditors. According to Practice Advisory 1210.A2-2.2: Responsibility for Fraud Detection (IIA, 2004), internal auditors have a...

The aim of the study is to examine the association between audit quality and individual auditors providing independent audit service to the firms affiliated with the same business group. We used Turkish Listed firms traded in Borsa İstanbul between 2010 and 2016. These auditors have been...

Auditors' fraud detection is critical – undetected frauds impose costs on users and auditors. We propose auditors' fraud risk identification during end-of-audit analytical procedures is affected by working under a completion (“just get it done”) goal versus a “refuse to accept” goal...

Using a shock to the Chinese capital market and unique and detailed audit-adjustment data, this paper investigates the effect of a capital-market liberalization program on auditors' adjustments to their clients' financial reports. Employing difference-in-differences tests with propensity-score...