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...

This study uses an experimental context to compare the results obtained from two well accepted scales that have been designed to measure stable personality traits - the Hurtt Professional Skepticism Scale (HPSS) and the Rotter Interpersonal Trust Scale (RITS). The RITS was developed outside of...

While the importance of addressing cybersecurity risks and cyber incidents is widely acknowledged, there is no explicit requirement by regulators or audit standard setters for auditors to do so. This paper investigates 1) whether external auditors respond to cyber incidents by charging higher...

Experimental studies concerning fraud (or “red flag”) checklists often are interpreted as providing evidence that checklists are dysfunctional because their use yields results inferior to unaided judgments (Hogan et al. 2008). However, some of the criticisms leveled against checklists are...

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...

The article informs that in conducting an audit, the auditor is required to express an opinion concerning a client's financial statements. The construction of an audit plan or the evaluation of a completed or partially completed audit program usually requires the auditor to make a large number...

Describes a set of tests designed to evaluate the performance of CAPEX, an expert system designed to generate substantive audit program plans for the revenue/receivable/receipts cycle of manufacturing, retailing, and banking firms. Better performance of CAPEX in comparison with human experts;...

An effective audit plan starts with understanding of the client's business risks. Though business risk assessment is a required component of audit risk assessment (ISA 315), there is little guidance regarding the best format for documenting business risks to support audit risk assessment; as a...