Prior survey studies imply that time budgets create incentives for auditors to underreport time and that such incentives decrease time reporting accuracy. Our study, however, hypothesizes that incentivising time reporting provides a signal that time reports are important, which increases the...

Regulators and researchers tend to focus primarily on the risk-shifting benefits of audit liability insurance. We obtain field data from the US audit insurance industry (16 interviews and 83 survey responses) to examine whether insurers also possess characteristics favorable to transferring...

We provide theory and experimental evidence that, in cases of undetected fraud, professional evaluators (i.e. experienced auditors) do not evaluate auditor performance any more favorably when the auditor more accurately assessed a heightened risk of fraud. This occurs despite professional...

I develop a framework that elucidates how the primary target of auditors’ professional skepticism – audit evidence or their own judgment and decision making – interacts with other factors to affect auditors’ professional judgments. As an initial test of the framework, I conduct an...

In cases of alleged audit failure, auditors can make general statements regarding the quality of their work, or other statements intended to decrease juror assessments of auditor negligence. In this study, we examine how the perceived credibility of these remedial defense tactics moderates their...