We provide evidence that disclosed items are not processed differently from recognized items when the disclosures are salient, not based on management estimates and amenable to simple techniques for imputing as-if recognized amounts. For a sample of firms with both capital and operating leases,...

I examine whether financial statement preparers (managers and auditors) treat recognized versus disclosed fair value of option compensation differently. Recognition refers to items that appear on the face of financial statements and that are included in subtotal figures that appear in the...

We analyze the disposition of auditor-proposed adjustments to financial statements. Our analysis addresses concerns, expressed by regulators and others, that auditors and their clients fixate on quantitative thresholds and overlook qualitative factors in assessing the materiality of discovered...

We provide large-sample archival evidence on the nature and consequences of immaterial error corrections. The incidence of these error corrections has been steadily increasing since about 2004, and they are associated with modestly but discernibly negative share price returns that are more...

We analyze data made available through the PCAOB (Public Company Accounting Oversight Board) to provide descriptive evidence on the properties of auditors' actual quantitative materiality judgments and the implications of those judgments for financial reporting. Auditors' quantitative...

We analyze data made available through the PCAOB (Public Company Accounting Oversight Board) to provide descriptive evidence on the properties of auditors' actual quantitative materiality judgments and the implications of those judgments for financial reporting. Auditors' quantitative...