A series of multi-group assessments of the structural model produced evidence that collusion was perceived as being the highest risk factor of all. The results for the 122 non-auditor respondents, drawn from the justice institutions, indicated that the direct links from opportunity (for fraud),...

A parsimonious model is developed to understand two perplexing, salient features of the distributions of earnings, earnings change, and earnings surprise. The model provides guidance for empirical work to uncover the unmanaged earnings important to firm valuation and public scrutiny, yet...

This paper examines the association between audit-firm characteristics and audit-related litigation risk. Previous litigation risk studies have been limited to examining audit-client characteristics, as audit-firm data has generally been unavailable, or available only for a very small set of...

Criminal prosecution of financial reporting-related corporate misconduct is generally acknowledged to be sometimes warranted. The decision to seek an indictment of Arthur Andersen remains controversial, however. Eisenberg and Macey (2004) posit that because the resulting increased concentration...

The largest CPA firms have been regarded as quality-differentiated auditors. This has been a prominent assumption of empirical research in accounting and auditing. Yet, prior research has only tested whether the largest CPA firms, in the aggregate, are quality-differentiated auditors. This paper...

Purpose - This paper presents an initial evaluation of recent Irish legislation in the area of corporate governance. Design/methodology/approach - The background to the introduction of the 2001 Company Law Enforcement Act, establishing the Office of the Director of Corporate Enforcement (ODCE),...

Several previous studies have pointed out the need for the use of a more robust statistical methodology in order to gain a better understanding of all forms of fraud. In this paper, we studied the aetiology of fraud proposed by Cressey (1973) by examining two models that incorporated...

This study examines whether a real production activity measure, firm-level electricity consumption growth, is useful in detecting firm financial misreporting. We hypothesize that the difference between revenue growth and electricity consumption growth (i.e., growth wedge) is a useful signal of...

This paper investigates a particular scenario under the Brazilian Generally Accepted Accounting Principles before IFRS adoption, which require public companies to disclose individual financial statements (legal parent entity), together with consolidated financial statements (economic entity)....

This study examines whether a real production activity measure, firm-level electricity consumption growth, is useful in detecting firm financial misreporting. Identifying proxies for a firm’s underlying financial performance that are not a function of the firm’s accounting system is...