This research examines the importance of previously identified factors (i.e., investor needs, client retention, professional values and obligations, and time budget pressures) on independence in two scenarios. The sample includes of 198 auditors from Big 6 auditing firms located in Denmark,...

The research examines the differences in materiality estimates for a sample of 181 experienced auditors from Big-Six firms located in Denmark, Ireland, Italy, Spain, Sweden, the Netherlands, and the United Kingdom. We asked each auditor to estimate materiality for a client whose integrity...

To imply that a series of behavioral controls solves the problem begs the question of human behavior. How would auditors really act when faced with tough issues of independence? Would they consistently act in a manner that would guarantee the needed state of independence? Or might they allow the...

In their article quot;Accounting for a Bargain Purchase in a Business Combinationquot; DeMoville and Petrie (Damp;P) point out that application of APB 16 to some bargain purchase transactions can result in misleading information related to the reported values for non-current assets. This paper...

The current research investigates cash flows to a bank making mortgage loans to determine the effects on revenue of policy decisions involving escrow accounts. The analysis indicates that loan officers may be making suboptimal decisions by adhering to rigid policies in times of declining...

This research investigates the influence of client integrity and competence as well as firm and individual auditor differences on materiality estimates. In a laboratory setting, a case study was administered to 494 auditors (152 managers and 342 seniors) from five Big Six firms. The subjects...

This research studied the relationships between an auditor's assessment of the probability of fraud and risk assessments (client integrity-and-competence ratings), prior beliefs about the existence of fraud, confidence, moral development, and hierarchical level. Four hundred and ninety-four...

Researchers and practitioners have long debated the arguments in favor of and against providing specific mathematical materiality guidelines in auditing standards. Yet, there is little empirical evidence about the relationship between materiality thresholds and audit risk judgments in the...

This study examined the performance of 516 practicing accountants on the Group Embedded Figures Test and scores were compared with previously published norms and scores from Pincus (1985). The present accountants scored significantly more field-independent than the test norms and the 124...

The current study involved 494 auditors from five Big Six firms. While two of the cognitive tests used in the research had Cronbach's alphas in the .70 to .90 range, the Defining Issues Test had an alpha of .35. This research investigated the relationship between cognitive test elements and the...