In audit testing scenarios, the question arises as to the appropriate way to combine or aggregate the evidence gathered from separate tests of sub-populations into an overall conclusion about the amount of audit risk being borne - that is, the risk of a material amount of misstatement remaining...

We utilize a single period model to investigate the tradeoffs that management might make when faced with the necessity of disclosing the quality of the internal control over financial reporting (henceforth ICOFR) and the outcomes that would result from such tradeoffs. Our analysis indicates that...

When an auditor's effort is not observable, auditor liability becomes an important mechanism for motivating the auditor to exert an appropriate level of audit effort. However, while the presence of legal liability helps to preserve the value of an audit to investors, some aspects of the...

Central governments or the international community at large are concerned about subnational service delivery. The design of targeted expenditure programs features frequently in central efforts to redistribute infrastructure and social spending or assure minimum standards. These programs are...

Collusive equilibria in share auctions despite being the focus of previous theoretical research, have received little empirical or experimental support. We develop a theoretical model of uniform price initial public offering (IPO) auctions and show that there exists a continuum of pure strategy...