With the movement towards adoption of International Financial Reporting Standards (IFRS) worldwide, a question arises as to whether the adoption of a principles-based approach such as IFRS will ultimately result in higher quality financial reporting. This issue is particularly relevant because,...

While contemporary auditing standards such as ISA 315 provide broad categories of client risks, prior research regarding audit resource allocation decisions has been based on individual client risks. This study contributes to the literature by using factor analysis to examine how individual...

The purpose of this exploratory study is to examine the relationship between auditors’ skeptical characteristics and skeptical judgments and decisions. Despite the importance of auditor skepticism, as recognized by auditing standards, regulators, and practice, there is a lack of consensus and...

Congress passed the Sarbanes Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Anderson LLP. The Act altered the roles and responsibilities of auditors, corporate officers, audit...

A significant concern in behavioral research in accounting has been the effect of experience on judgment and decision-making. As widely recognized, there are, however, several dimensions to experience, including general domain experience and task-specific experience. One important dimension that...

The purpose of this study is to investigate the impact of the adoption of a business risk audit approach on internal control documentation and testing. Data were collected from senior auditors before and after a change to a new business risk approach to determine if auditors' preferred internal...

A significant concern in behavioral research in accounting has been the effect of experience on judgment and decision-making. As widely recognized, there are, however, several dimensions to experience, including general domain experience and task-specific experience. One important dimension that...

In many audit tasks, auditors evaluate multiple hypotheses to diagnose the situation. Research suggests this is a complex task that individuals have difficulty performing. Further, there is little guidance in professional standards or literature dealing with the many complexities present in the...

Negotiations are a pervasive feature of the audit process (e.g., the resolution of proposed audit adjustments and disclosures). The results of such negotiations are of great importance to the capital markets, the client and the auditor. The purpose of this study is to examine the effectiveness...