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,...

Tax evasion is a serious and growing problem in the United States. From 2008 through 2010, the Internal Revenue Service estimated underreported taxes at $264 billion. Servers, who receive a large portion of their income through tips, do not always comply with tax laws when reporting their tip...

Despite debate on the desirability of rules-based standards, no studies provide evidence on why accounting standards take on rules-based characteristics. We identify and test five theories from prior research (litigation risk, constraining opportunism, complexity, transaction frequency, and age)...

This study examines whether firms transfer income between the income statement and other comprehensive income (OCI) to manage earnings. The results are consistent with managers opportunistically reclassifying income as OCI and OCI as income. Specifically, we find that firms strategically...

We examine the cost-effectiveness, from the shareholders' perspective, of the accounting standards issued by the FASB during 1973-2009. In particular, we evaluate (i) the stock market reactions of firms affected by the standards surrounding events that changed the probability of issuance of...

Financing terrorist organizations and activities must be fought on at least four fronts within public accounting in the United States: the SEC Audit Requirements, PCAOB Auditing Standards, the AICPA Code of Professional Conduct, and state licensing statutes. This article examines the ethical and...

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...

In France, the European Accounting directive has been implemented via a decree and a ministerial order, issued without any public consultation and which led to an amendment of the Commercial Code and three regulations released by the ANC, the French standard-setter. Our analysis of those texts...

This study focused on the awareness of the Human Resource Accounting Practices and Costing (HRAC) of companies located in Carmelray Industrial Park 1 (CIP 1), Canlubang, Calamba City. The respondents were 8 human resource managers, 18 human resource supervisors, 8 finance officers, 9 chief...