Information risk – the uncertainty regarding the parameters of the distribution of firms’ future cash flows – generates valuation errors and is costly to investors who require a higher return to compensate for greater information risk. We argue that, on average, through their...

In this paper, we analyze the importance of internal audit against banking fraud in order to ensure banking stability, using mathematic approach. We explain the steps involved in setting up an anti-fraud plan. Then, we implement two phases of this plan, namely the evaluation of the degree of...

The accuracy of computer systems represents the property that they are working as the users expect. Very often, these computer systems give inaccurate or wrong results. However, designing correct computer systems is a complex and expensive task. There are several ways to deal with this problem....

Purpose - Since the 1960s earnings management has been a widely researched area and became presumably known by the current accounting scandals. This paper aims at empirically showing which factors affect earnings management. Design/methodology/approach - According to former research literature...

Purpose - Since the 1960s earnings management has been a widely researched area and became presumably known by the current accounting scandals. This paper aims at empirically showing which factors affect earnings management. Design/methodology/approach - According to former research literature...

Much has been written about Section 404 of the Sarbanes Oxley Act, especially the great expense that it inflicts upon SEC registrants preparing their annual reports. Less remarked on, though, is whether the restrictions that SOX imposes on the auditing profession in its relationship to its...

The issue of the importance of the independent auditor's audit to the integrity of corporate financial statements has been a staple of the corporate governance and financial market functioning literature since the Securities Act of 1933 and the Securities Exchange Act of 1934. These acts...

The issue of auditor judgment prowess and resultant decision-making success has been an important topic in the behavioral auditing area for many years and has generated a voluminous research literature. However, relatively little literature exists on how differences in individual group member...

Purpose – Since the 1960s earnings management has been a widely researched area and became presumably known by the current accounting scandals. This paper aims at empirically showing which factors affect earnings management.Design/methodology/approach – According to former research...

The purpose of this study is to investigate the impact of auditor workload compression on the likelihood of changes to the busy season client portfolio of an audit firm. We find evidence of a positive association between workload compression and the likelihood of changes to the constituents of...