The Securities and Exchange Commission is currently seeking comments on whether registrants should be required to discuss the probability of occurrence for each risk factor as part of Item 503(c) disclosures. We examine how risk category and spatial distance from a risk assessment target affects...

PCAOB inspections of audit firms help drive audit focus and costs, and with the PCAOB's emphasis on internal control audit work beginning in 2010, internal control weaknesses (ICW) have become of even greater concern. IT-related material weaknesses have emerged as particularly significant with...

This study addresses recent calls for research on the conditions influencing auditor decisions related to PCAOB-encouraged reliance on third-party experts. To this end, the present study explores the effect of psychological distance on external auditors’ reliance when induced through physical...

Purpose: Cultural studies in business and economics research are still limited to particular cultures. Knowledge on cultural differences may help international corporations to adapt management practices according to the markets they are operating in. The purpose of this paper is to study the...