Prior research has documented the continued existence of an expectation gap, defined as the divergence between the public's and the profession's conceptions of auditor's duties, despite the auditing profession's attempt to adopt standards and practices to close this gap. In this paper, we...

Ethics has been identified as an important factor that can affect auditors' professional skepticism For example, prior research finds that auditors who are more concerned with professional ethics exhibit greater professional skepticism. Further, the literature suggests that professional...

Despite the importance of audit committee independence in ensuring the integrity of the financial reporting process, recent research suggests that even when audit committees meet regulatory independence requirements, certain factors, such as undue influence by the CEO over the selection of the...

Regulatory responses to the business failures of 1998-2001 framed them as a general failure of governance and ethics rather than as firm-specific problems. Among the regulatory responses are Section 406 of Sarbanes-Oxley Act, SEC, and exchange requirements to provide a Code of Ethics. However,...

This paper investigates whether client engagement risks lengthen the client acceptance phase for audit firms and result in a longer auditor search period for their clients. Using a sample of auditor resignations over the period 2003-2008, we document that the auditor search period is longer for...

This study provides insights on the effectiveness of the Sarbanes-Oxley Act (2002) in promoting high quality financial reporting and good corporate governance. We report the results of interviews conducted with 22 experienced directors from US firms. Our results indicate that SOX has had a...

Recent years have featured a leap in academic and public interest in Corporate Social Responsibility (CSR) activities and related corporate reporting. Two main themes in this literature are the exploration of management incentives to engage in and disclose this information, and of the use and...

Academic literature and the business press have placed increased attention on the corporate disclosure of non-financial information. This study uses a survey of 750 retail investors to examine perceptions about indicators of economic performance; corporate governance policies and performance; and...

Internal control over financial reporting (ICFR) audits have been the subject of intensive examination by the Public Company Accounting Oversight Board (PCAOB) and researchers, and the SEC has signaled ongoing interest in the monitoring of ICFR. However, the process through which auditors make...

This paper investigates the effect of different mood statesiquest;specifically positive, neutral, and negative moodiquest;on inventory valuation decisions. Psychological research suggests that different mood states can lead to different professional judgments in the performance of an ambiguous...