Purpose: This study aims to explore the effect of negotiating audit differences on auditors’ internal control deficiency (ICD) severity assessments, an ensuing, non-negotiated judgment, in an integrated audit. Design/methodology/approach: The experiment manipulates the client’s concession...

An underlying objective of the Sarbanes-Oxley Act is to provide investors with reliable information, which presumably should increases investor confidence in financial disclosures. In part to achieve this goal, managers now have personal legal liability for internal control over financial...

Reported deficiencies continue to persist in audits of fair value measurements and other complex accounting estimates (hereafter, “FVMs”), despite improvements in auditor performance observed by regulators. The persistence of reported deficiencies in audits of FVMs suggests that factors...