The complexity of computerized information systems increases the complexity of the external auditor's assessment of the reliability of a client's internal control systems. The purpose of this study is to investigate the impact of weaknesses in IT related internal controls on the cost of a SOX...

We investigate potential differences in audit reporting outcomes between Circular A-133 audits performed by governmental auditors vs. those performed by certified public accounting (CPA) firms. Specifically, we investigate the association between auditor type and the likelihood of...

Engagement quality review is an integral part of the audit process. It is designed to be a quality control mechanism for assessing the quality of an audit engagement. Since the 1990s, the SEC has increased sanctions against partners serving as engagement quality reviewers. Recently, the PCAOB...

We investigate whether auditor size is associated with the disclosure of internal control exceptions among Circular A-133 audits of nonprofit healthcare organizations. Our focus on auditor report outcomes within the nonprofit healthcare sector is timely and relevant, given the sector's growth...

Esta investigación examina cómo el conocimiento cultural del país en el que está localizada una empresa afecta la percepción de los auditores en un ambiente de planificación de una auditoría (controles internos y la posibilidad de riesgo de fraude). El análisis utiliza las dimensiones de...

In this paper we investigate why auditors fail to report material weaknesses in internal controls (ICMWs) in advance of misstated audited financial statements. To address this question, we analyze Public Company Accounting Oversight Board (PCAOB) proprietary data on audit clients' internal...

We test whether PCAOB inspections help remediate auditors' deficiencies in detecting and reporting material internal control weaknesses. After PCAOB inspectors report higher rates of internal control audit deficiencies, we find that auditors respond by increasing their issuance of adverse...

In this study, seventy-nine experienced internal auditors from the gaming industry participated in an experiment designed to investigate two factors that may affect internal auditors' objectivity: (1) reporting to two masters (management or audit committee) who have conflicting preferences and...

This study examines the effects of audit partner tenure and audit partner changes on internal control reporting quality for large U.S. not-for-profit (NFP) organizations. Regulators contend that audit partners lose their objectivity over successive audits, reducing audit quality. A large body of...