Auditors and clients are often required to resolve difficult, complex accounting issues in which they have different views. This resolution entails a negotiation process where research has shown that the strategies employed have dramatic effects on the process, final agreed upon outcome, and the...

We examine the extent to which the behavioral agency model describes the relation between stock-based compensation and managerial risk-seeking behavior. The behavioral agency model, which incorporates prospect theory, predicts that while managers are more risk-seeking in the loss decision...

Auditor errors are of concern since they reflect deviations from expectations, plans or goals and can thereby potentially impair audit quality. Audit firms have powerful mechanisms in place to prevent errors from occurring, such as the review process. However, all errors cannot be prevented; thus,...

Prior archival and experimental studies provide conflicting results regarding the extent to which audit program plans are responsive to client risks, as prescribed by the Audit Risk Model. The purpose of this study is to corroborate and extend archival research on this issue by considering a...