We integrate existing conceptual models of auditors’ professional skepticism with the Theory of Planned Behavior to develop an empirically testable model that explains the processes underlying the association between trait skepticism and skeptical actions. We use data from a sample of 663...

We investigate the association between auditors' supply chain knowledge and companies' audit quality and audit pricing. Auditor supply chain knowledge is a specialized understanding of information and processes regarding accounting and auditing issues that relates to both a supplier and its...

Previous research in non-audit contexts suggests that managers design budgets based on prior performance relative to budget targets, and that this quot;ratchetingquot; response can be asymmetrical (i.e., greater increase in target following good performance than the decrease in target following...

This paper investigates how clients' choices regarding whether or not to engage in competitive bidding affect a bidding firm's decisions about planned engagement effort and pricing. Specifically, we investigate whether competitive bidding is associated with higher planned engagement effort and...

This paper investigates auditors' assessments of earnings manipulation risk and corporate governance risk, and their planning and pricing decisions in the presence of these identified risks. To conduct this investigation, we use engagement partners' assessments of their existing clients made...

Little is known about how audit partners make the client-acceptance decision. A model is developed and tested that characterizes the client-acceptance decisions as a process of risk evaluation and risk adaptation. The model proposes that auditors will evaluate client-related risks and use that...

This paper presents a framework that explains how certain incentives affecting independence risk interact with situational factors to affect actual or perceived audit quality. The combined effects of direct incentives, indirect incentives, and judgment-based decisions involving difficult...

This study examines how client risk factors and the provision of additional services affect engagement planning and bid pricing for a set of initial engagement proposals that a single firm submitted to its prospective clients in 1997-1998. The paper finds little effect of risk on planned...