The revelation of material negative events about a firm, including issues such as fraud, restatements, or internal control material weaknesses (ICMWs), may destabilize the firm's corporate governance equilibrium as it works to remediate the event or effects thereof. Prior research investigates...

Along with many other business entities, auditing firms have implemented a variety of electronic work systems to assist professionals in collecting and analyzing data, with the objective of improving operational efficiency and effectiveness. While prior research in other contexts finds that...

Firms' use of the Internet to enhance the relevance of their financial reporting is examined. A firm is defined as practicing Internet Financial Reporting (IFR) when it provides in its web site either: 1. a comprehensive set of financial statements, 2. a link to its annual report elsewhere on...

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 describes how auditors conduct brainstorming sessions to comply with the requirements of SAS No. 99. We gather evidence by interviewing twenty-two auditors at all personnel levels across seven audit firms (including all of the Big 4 firms) and by observing actual brainstorming...

While many audit firms have adopted electronic systems for workpaper preparation and review in hopes of improving both efficiency and effectiveness, prior research shows that the expected gains may be difficult to achieve. In order to investigate possible sources of difficulty in full use of...

Along with many other business entities, auditing firms have implemented a variety of electronic work systems to assist professionals in collecting and analyzing data, with the objective of improving operational efficiency and effectiveness. While prior research in other contexts finds that...