In this study, we examine the effect of accrual-based earnings management on the association between managers' earnings forecast errors and accruals, which we label “managers' accrual-related forecast bias.” We build on extensive research which finds that managers engage in accrual-based...

The paper explores the idea that earnings fraud follows a slippery slope wherein companies manage earnings “legitimately” to achieve pre-determined targets, then aggressively in an effort to achieve the desired results; if the desired results are still not achieved, then, the only option...

The amount of estimation uncertainty contained in financial statement items may be obscured from investors, given that all estimates, regardless of their imprecision, are reported as precise figures on the face of the financial statements. Our study examines two disclosures expected to help...

I provide instructions for use of a Securities and Exchange Commission (SEC) Accounting and Auditing Enforcement Release (AAER) assignment by instructors in Introductory or Advanced Audit Courses. The assignment gives students an opportunity to use the knowledge they have gained from their...

We present empirical evidence on the temporal graduation trends in managerial, financial and tax accounting as well as audit and (corporate) finance in Germany. Overall, we observe a positive trend, which reverses as of lately. Accounting and finance lag behind the positive trend of business...

We investigate the effectiveness of regulatory oversight exercised by the SEC against auditors over the years 1996-2009. The evidence suggests that the SEC is significantly less likely to name a Big N auditor as a defendant, after controlling for both the severity of the violation and for the...

This study examines whether managers make voluntary changes in accounting principle in response to a material weakness (MW). We find that managers are more likely to report voluntary changes in the same year as and year following a MW disclosure, a result largely driven by companies with a...

KPMG's discussion of Bribery and Corruption as a Key Audit Matter (KAM) in the Extended Auditor's Reports (EAR) of Rolls-Royce for 2013-2015 is examined as implying limitations on EARs in general. The KAM for Bribery and Corruption was apparently written in view of the company's legal interests...

We examine international differences in the effect of management forecasts (which we use to proxy for voluntary disclosure) on the cost of equity capital (COC) across 31 countries. We find that the issuance of management forecasts is associated with a lower COC worldwide but that the effect of...

This paper examines the effect of auditors with government experience on audit quality using 1,067 firm*year observations between 2008 and 2015 from Borsa İstanbul firms. We use three measures of audit quality to test the effect of auditors with government experience. Government-experienced...