Using detailed data for fieldwork hours and audit hours by rank from audit engagements in Korea, we examine whether audits conducted under workload imbalance, proxied by busy-season audits, impair audit quality, and how auditors adjust staff assignments for busy-season audits. We generally find...

Managers have discretion as to whether to quantify their earnings guidance and supplementary disclosures. Using an experimental approach, we provide and test theory that when guidance is qualitative, quantifying supplementary attributions leads to more favorable investment judgments; for...

We conduct two experiments to investigate the joint effect of two justification factors of earnings management—namely, attribution for the firm’s underperformance and benefits accruing to other employees from inflating reported earnings. This investigation is important because prior research...

We investigate the joint effects of analyst reputation, uncertainty, and guidance news valence on analysts’ reliance on management guidance. We find that, compared to less reputable analysts, reputable analysts rely less on guidance when they issue earnings forecasts. This analyst reputation...

The decision-usefulness of the direct versus indirect presentation method of a cash flow statement has been a long-standing issue both in practice and accounting research. By capitalizing on comparative advantages of experimental methods, we provide insights into how investors process the...

Two aspects of critical audit matter (CAM) disclosure relate to the nature of the disclosed CAM, including whether it is related to complexity or uncertainty, and whether an indication of the outcome of audit procedures taken to address the CAM is included in the disclosure. In this study, we...