Auditing: A Journal of Practice & Theory articles

Recent articles from Auditing: A Journal of Practice & Theory

The role of incentives to manage earnings and quantification in auditors' evaluations of management-provided information.
March 1, 2004... INTRODUCTION Auditors must evaluate the information obtained at audit planning to determine the nature, extent, and timing of audit work to be performed. In many cases, planning information takes the form of explanations and other information from client management (Hirst and Koonce...

Professional service fees and auditor objectivity.
March 1, 2004... INTRODUCTION What causes the erosion of auditor independence? It is an intriguing question because the answer has been so elusive. The implications of audit and nonaudit services jointly provided by public accounting firms to their clients have been hotly debated for decades. Generally,...

An empirical investigation of IPO underpricing and the change to the LLP organization of audit firms.
March 1, 2004... INTRODUCTION This paper provides evidence on the relationship between the change in audit firm legal structure to limited liability partnerships (LLPs) and the pricing of initial public offerings (IPOs). During the early 1990s, the auditing profession asserted that it faced a liability...

Audit committee characteristics and restatements.
March 1, 2004... INTRODUCTION A financial restatement provides an explicit acknowledgement of material omissions or misstatements in prior financial statements. Increases over the past decade in the frequency of restatements have engendered a great deal of concern regarding the quality of financial...

The effects of immediate context on auditors' judgments of loan quality.
March 1, 2004... INTRODUCTION Auditors make many judgments regarding company attributes during the audit process. Systematic biases in judgments can lead auditors to different conclusions regarding accounting and auditing issues. We examine whether auditors, when making a series of judgments, have their...