Absent regulatory requirements, 64% of small private commercial banks voluntarily procured an independent audit in our dataset. Hence, it can be argued that an independent audit may have a perceived value. In our study, we examine whether the decision to procure an audit is systematic. First, we...

The objective of this paper is to examine the relationship between an independent audit and financial reporting conservatism in the small private commercial bank setting. We use the timely recognition of probable losses and the minimal use of discretionary accruals as proxies for conservatism....

The central objective of this paper is to develop a transparent, consistent, self-contained, and stable country risk rating model, closely approximating the country risk ratings provided by Standard and Poor's (Samp;P). The models should be non-recursive, i.e., they should not rely on the...

The primary purpose of this paper is to advance research in internal audit (IA) evaluation by developing an IA assessment model that considers interrelationships among specific factors used by external auditors when evaluating the strength of the IA function. The model is built on three factors...

In order to evaluate the creditworthiness of various countries, a learning model is induced from the 1998 Standard and Poor's country risk ratings, using the 1998 values of nine economic and three political indicators. This learning model allows the construction of a partially ordered set...

Researchers have found that the volume of exceptions generated by a continuous auditing system can be overwhelming for an internal audit department to investigate. In this paper, we propose a framework that systematically prioritizes exceptions based on the likelihood of an exception being...

Capital IQ's Compustat database is commonly used in empirical accounting research. Numbers that appear in Compustat are standardized to ensure "...consistent and comparable data across companies, industries and business cycles..." However, there has been no evidence in the academic literature...