Prior studies suggest that financial accounting audits improve earnings quality and exert positive effects on a firm’s cost of capital/investments. We argue, however, that managers who have experienced prior downward audit adjustments, will react myopically by increasing future real earnings...

Common ownership (i.e., financial institutions’ block holding of stock in industry rivals) and its implications for investors are matters of current interest and debate (SEC 2018). Motivated by this debate and the salience of common ownership, we investigate whether and how auditors price...

We examined the nexus between four internal audit functions (IAF) and sustainability audits (SA) of manufacturing firms. The specific IAF employed in this study were; risk management practices (RMP), sustainability sensitivity (SS), internal audit effectiveness (IAE) and enactments, policies,...

The purpose of this research is to examine the impact of green electronic auditing on accounting information reliability and the mediating role of cloud computing in the Jordanian Social Security Corporation. A survey of 500 employees in the Jordanian Social Security Corporation was used to...

Although skepticism is widely viewed as essential to audit quality, there is a debate about what form is optimal. The two prevailing perspectives that have surfaced are ‘neutrality’ and ‘presumptive doubt’. With neutrality, auditors neither believe nor disbelieve client management. With...

This study examines the qualifications and criteria required of public auditors to facilitate effective and objective auditing results. A questionnaire was developed and distributed to a representative sample of chief control departments in the Jordan Audit Bureau (AB) and financial managers and...

Objective - The auditor is responsible for obtaining sufficient audit evidence about the accuracy and proper use of the going concern assumption from the company's management through its financial statements. These evidence are used for the purpose of deciding whether there are material...

This study examines whether audit firm office size affects auditors' risk tolerance in making client acceptance decisions. Analyzing publicly traded client portfolios of the Big 4 audit firms from 2003 to 2012, we find that large Big 4 offices are less likely to accept clients with high audit...

The CPA exam provides an evaluation of auditors' professional competence in the early stages of their careers. Using Swedish data, this paper shows that:i) auditors at Big 4 firms are younger when they take the exam, ii) younger auditors and auditors at Big 4 firms perform better in the exam,...

Auditing theory predicts that larger auditors will be more likely to issue a going concern opinion to a distressed client. However, the existing empirical evidence on this issue is mixed. We argue that the mixed results of prior literature are attributable to a failure to adequately control for...