We investigate the role of audit committee economic incentives in judgments involving the resolution of detected misstatements. The results reveal a positive association between audit committee short-term stock option compensation and the likelihood that managers are allowed to waive income...

This study examines the relationship of CEO overconfidence with accrual-based earnings management, real activities-based earnings management, and targeting to meet or just beat analyst forecasts. Following Malmendier and Tate (2005), we measure “overconfidence” based on the CEO's tendency to...

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...

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...