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The Role of Tacit Knowledge in Auditor Expertise and Human Capital Development

Bol, Jasmijn C. - 2019

Two critical aspects of the model of auditor expertise development in Tan and Libby [1997] are that audit firms do not value tacit knowledge in inexperienced auditors but do value it in experienced auditors. We update the former and extend the latter. Our paper predicts and finds that audit...

Persistent link: https://www.econbiz.de/10012872079

When Do Auditors Use Specialists’ Work to Develop Richer Problem Representations of Complex Estimates?

Griffith, Emily E. - 2017

Auditors must recognize problematic patterns among the assumptions underlying complex estimates to identify misstatements. Pattern recognition requires rich problem representations of complex estimates that auditors may be unable to develop given their lack of valuation expertise. I predict and...

Persistent link: https://www.econbiz.de/10012971633

Auditors, Specialists, and Professional Jurisdiction in Audits of Fair Values

Griffith, Emily E. - 2017

Auditors frequently use valuation specialists to help them improve the quality of audits of fair values, but problems related to specialists' involvement suggest specialists do not always improve audit quality. I interviewed 28 audit partners and managers with extensive experience using...

Persistent link: https://www.econbiz.de/10012973036

Misstatements in Financial Statements : The Relationship between Inherent and Control Risk Factors and Audit Adjustments

Ruhnke, Klaus - 2017

This paper analyzes whether audit adjustments vary systematically with inherent and control risk factors. The analysis is based on proprietary data from a large recent sample of audit adjustments detected in the financial statement audits conducted by a Big 4 audit firm in Germany. We extend the...

Persistent link: https://www.econbiz.de/10012973189

The Cost of Compliance : FIN 48 and Audit Fees

Erickson, Matthew - 2016

Effective for fiscal years beginning after December 15, 2006, FIN 48 significantly altered uncertain tax benefit (UTB) recognition and disclosure requirements relative to its predecessor standard, FAS 5. We examine the effect of the new standard on audit pricing. We first document that...

Persistent link: https://www.econbiz.de/10013006453

Should the Forensic Accounting Profession Be Regulated?

Huber, Wm. Dennis - 2016

Adopting Huber's (2012) argument that forensic accounting has become a profession, this paper examines whether the … forensic accounting profession and the forensic accounting certification industry should be regulated. Several recent studies … have uncovered significant problems within the forensic accounting profession and the forensic accounting certification …

Persistent link: https://www.econbiz.de/10013006791

Forensic Accountants, Codes of Ethics and Forensic Accounting Corporations

Huber, Wm. Dennis - 2016

certifications in forensic accounting be not-for-profit and that these corporations have a duty to disclose their legal status …. However, there are for-profit forensic accounting corporations that do not disclose their legal status. Not surprising given … accounting corporations have a procedure for enforcing compliance with their Codes of Ethics, many forensic accountants hold …

Persistent link: https://www.econbiz.de/10013006792

The Effects of Disclosing Critical Audit Matters and Auditor Tenure on Investors’ Judgments

Rapley, Eric T. - 2020

In an effort to provide more meaningful information to financial statement users, the Public Company Accounting …

Persistent link: https://www.econbiz.de/10012850745

Big 4 Auditors, Litigation Risk, and Disclosure Tone

Czerney, Keith - 2020

We examine the effect of Big 4 auditors on management's use of optimistic language in audited financial statement disclosures. While regulators and practitioners consider the audit of disclosures to be increasingly important, empirical evidence of an auditor's effect on management's qualitative...

Persistent link: https://www.econbiz.de/10012854033

The Effect of Increased Audit Disclosure on Managers’ Real Operating Decisions : Evidence from Disclosing Critical Audit Matters

Bentley, Jeremiah W. - 2020

We investigate whether and how a “critical audit matter” (CAM) disclosure affects managers' real operating decisions in two contexts (issuing a loan that decreases versus increases the average risk profile of loan portfolios, or choosing to hedge versus speculate on commodity risk). We...

Persistent link: https://www.econbiz.de/10012854046