The Public Company Accounting Oversight Board (PCAOB) recently suggested that auditors' lack of specific fraud planning documentation has led auditors to devote insufficient attention to fraud risks in subsequent audit work. Guided by Support Theory, we experimentally investigate how the...

We experimentally investigate whether alternative judgment frameworks help Big 4 audit managers and partners constrain management's aggressive financial reporting under accounting standards that differ in their precision. We find that a framework based on the SEC's Advisory Committee on...

Recent financial reporting scandals have prompted actions directed at improving corporate governance, especially as it relates to fraud prevention and detection. Internal auditors are now perceived as an important part of the solution to this breakdown in financial reporting and ethical...

This study examines the extent to which providing a course that emphasizes forensic accounting influences students skepticism and fraud-related judgments. We follow a cohort of students (trained students) who have enrolled in a forensic accounting course and examine their fraud judgments at...

The PCAOB is concerned about auditors' tendency to ignore relevant information that is inconsistent with management's assumptions underlying complex estimates. We find that priming auditors to consider how management arrived at a particular assumption helps curb aggressive reporting by...

Auditors struggle to respond skeptically to fraud, reducing audit quality. This problem is particularly prevalent during the evidence evaluation phase of the audit, when auditors face the greatest time constraints. Empowerment theory suggests people overcome constraints and produce higher...

Data analytics is transforming our global markets. Companies' investments in data analytics are projected to grow to more than $274 billion in the next few years, and audit firms are pledging to invest an unprecedented $9 billion. While auditors, company managers, regulators, and academics agree...

We examine whether increased transparency in the comparison of financial measures and nonfinancial measures (NFMs) influences nonprofessional investors' reactions to the risk of fraudulent financial reporting. We consider a comparison of key financial measures and NFMs to be transparent when the...