Internal auditors play an important role in influencing managers’ judgments. Yet, the practitioner literature indicates that, because internal audit lacks the client services incentives of external audit, internal auditors often adopt a “policeman approach” that can lead to negative...

Using unique disclosures from the insurance industry, we identify instances where auditors plausibly allow clients to opportunistically utilize discretion in accounting estimates to manipulate losses to reported profits (i.e., auditor lenience). Auditing standards and SEC guidance state that...

We identify endogenously formed same-race audit pairings based on the estimated race of audit partners and auditee executives in the nonprofit sector and show that these pairings occur at a significantly greater than random frequency. Using within auditor-year variation, we find that same-race...

This paper investigates whether the differences in audit quality between Big 4 and non-Big 4 auditors can be attributed to the client’s pre-audit financial reporting quality or to the differences in audit treatment via audit adjustments. Hand-collected pre-audit and audited financial statement...

Regulators increasingly express concerns over auditor-provided tax services (APTS) because those services could impair auditor independence. To date, research on the impact of APTS on auditor independence has yielded mixed results, potentially due to endogeneity issues, providing no clear...

Audit firms are essential in ensuring companies’ financial statements are reliable and accurate. The Independent Regulatory Board for Auditors (IRBA) regulates the audit profession in South Africa. The IRBA sets auditing and ethical standards and oversees the registration and monitoring of...

We investigate the association of location-specific severity of the 2019 Coronavirus pandemic (COVID) with changes in audit fees and delays following the pandemic’s onset. Employing data on lengths of stay-at-home (S@H) mandates to proxy for COVID’s disrupting effects on audits, we find that...

This case is fictitious but draws upon facts from actual occurrences. It requires students to apply auditing concepts and professional standards in an international setting. An affiliate of a U.S. accounting firm, Loxon Shanghai CPA Ltd., has received a request from the SEC for the audit...

The study investigates the key factors affecting the professional skepticism of independent auditors in Vietnam. The factors that are studied in this research include knowledge and experience, workload, time pressure, and incentives that affect professional skepticism of independent auditors....

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...