The mathematical modelling of audit fees has emerged in research as one means by which the factors which explain the level and variability of audit fees can be examined. Existing literature shows that auditee size and complexity are major determinants of audit costs incurred by an auditee....

Statement on Auditing Standards (SAS) 65 was issued in April 1991 to clarify various aspects of the working relationship that should exist between external and internal auditors. Describes the historical development of this relationship as viewed through the promulgation of authoritative...

The purpose of this quantitative, correlational research was to examine to what extent the personnel factors of internal auditing departments predict the control environment within the public sector. Using the 2013 COSO Internal Control-Integrated Framework as the theoretical framework, we...

Audits are a common mechanism used by governments to monitor public spending. In this paper, we discuss the effectiveness of auditing with theory and empirics. In our model, the value of audits depends on both the underlying presence of abuse and the government's ability to observe it and...

Refers to previous research on the effects of poor external audits on agency costs to shareholders and takes the 1991 disciplinary action by the US Securities and Exchange Commission against Ernst and Young (re the Republic Bank) as an example to examine the effect on its other audit clients and...

Die Forderung nach höherer Transparenz und besserer Wirkungsorientierung von Subventionen ist ein finanzpolitischer Evergreen, der mit der Schuldenbremse und der Forderung nach langfristiger Tragfähigkeit der Finanzpolitik, zusätzliche Dringlichkeit erhält. Die im Auftrag des...

The budget forms the legal basis of government spending. If a budget is not in place at the beginning of the fiscal year, planning as well as current spending are jeopardized and government shutdown may result. This paper develops a continuous-time war-of-attrition model of budgeting in a...

We use high-quality panel data on corruption convictions, new panels of assistant U.S. attorneys and relative public sector wages, and careful attention to the consequences of modeling endogeneity to estimate the impact of prosecutorial resources on criminal convictions of those who undertake...

This paper develops new measures of environmental costs and local revenue capacity as the basis for a new municipal aid formula in Massachusetts. On the cost side, unlike previous studies, we quantify the effects on local non-school spending of characteristics related to uncontrollable costs. On...

This paper designs a new equalization-aid formula based on fiscal gaps of local communities. Using conceptual analysis and simulations with Massachusetts data, the authors illustrate the tradeoffs that policymakers face in deciding on the policy variables in the formula and lay out several...