We conduct an experiment with professional internal auditors and evaluate their performance and objectivity, measured as the extent to which they truthfully report the performance of other participants in a real-effort task. It has been suggested in the literature that incentive-based...

This paper reports the results of four laboratory experiments designed to examine whether an appropriate legal system, which is a combination of legal regime (strict vs. negligence) and damage apportionment rule (joint-and-several vs. proportionate), may serve as an effective mechanism to...

This study investigates the relationship between public and private information using experimental markets. The level of public disclosure is varied to examine the effect on private information consumption and the informedness of price. The experimental setting consists of a double auction...

Auditors often receive summary information or conclusions from management about account balances or internal controls. They must then gather evidence to assess whether this information is fairly stated. In such situations, management can be considered the first mover and the auditor the second...

This study tests the competitive equilibrium predictions of a multi-period model of audit pricing and independence in two sets of laboratory markets: a control set consisting of human subjects in the role of auditors contracting with robot clients, and a treatment set of which both auditors and...

Auditors are the gatekeepers to the public securities markets and their independence is central to the effectiveness of auditors as gatekeepers. Our general interest is on independence and we investigate how financial and non-financial incentives affect choices made by an auditor-gatekeeper...

I report the results of an experiment designed to investigate the influence of noncredible communications and group affiliation on the formation of self-serving bias in an auditing trust game. I find that manager-subjects use noncredible communications (i.e., a message communicating their intent...