Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility (ASR) plays in shaping their performance. In one direction, the behavior consistency theory implies that individual auditors exhibiting more social...

We investigate if varying rates of false positives impact auditor skepticism toward red flags identified by data analytic tools. We also examine the extent to which consistent rewards for skepticism can improve the application of skepticism on audits employing data analytics. Using an experiment...

Extant theories suggest that managers may use hedging either to alleviate underinvestment problems caused by costly external financing or to promote overinvestment by circumventing the scrutiny of external capital markets. We empirically investigate this issue using a hand-collected dataset of...

This paper aims to present the effect of life-cycle on financial reporting quality (FRQ). I used Discretionary accruals, small profit, and audit aggressiveness to test the FRQ from different approaches for Borsa Istanbul-listed companies between 2008 and 2017. The sample comprises 1,645...

Objective – This study examined the governance of accounting rules and tax rules on the level of tax burdens paid by SMEs in Malaysia. According to the tax gap theory, taxpayers utilize the different rules between accounting and tax which is known as the dual reporting system in their tax...

"Big data" and "visual displays" are currently hot topics in accounting. We present a way of depicting weekly financial statement data in a user-friendly format, using the sparkline feature in Excel. By embedding sparklines in traditional income statements, balance sheets and cash flow...

Using publicly available data from annual reports, we find that SEC rule changes (33-8128 and 33-8644) that impose time pressure on the audits of registered firms have a negative impact on earnings quality, which we interpret as evidence of lower audit quality. Consistent with our predictions,...

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...