Auditing: A Journal of Practice & Theory articles from March 2003

Auditing: A Journal of Practice & Theory archives from March 2003

The impact of pressure from potential client business opportunities on the judgments of auditors across professional ranks.
March 1, 2003... INTRODUCTION In this paper, we examine the effects of incentives in the form of additional business opportunities on auditors' inventory obsolescence judgments. While client service can take many forms (e.g., obtaining the client's respect...

Review partners' reactions to contact partner risk judgments of prospective clients.
March 1, 2003... INTRODUCTION Large audit firms generally wish to promote growth in their practice, yet avoid being associated with "overly risky" clients that could trigger litigation and diminish their reputation (Asare et al. 1994). The culture and...

The development and transferability of task knowledge.
March 1, 2003... INTRODUCTION Prior research has shown that knowledge is an important determinant of audit task performance (Libby and Luft 1993). Implicit in this finding is the notion that knowledge is an integral component to sustaining a competitive...

Factors affecting the choice to participate in flexible work arrangements.
March 1, 2003... INTRODUCTION The shortage of professional staffin the assurance services labor market has been described by the AICPA as a "crisis" (AICPA 2001). According to the AICPA study, The Supply of Accounting Graduates and Demand for Public...

The effect of the Private Securities Litigation Reform Act of 1995 on accounting discretion of client managers of Big 6 and non-Big 6 auditors.
March 1, 2003... INTRODUCTION In this paper we examine how changes in the legal environment due to the Private Securities Litigation Reform Act of 1995 (PSLRA) affect auditors' incentives to curtail earnings management by client managers. PSLRA was the...

Audit quality and the pricing of discretionary accruals.
March 1, 2003... INTRODUCTION The issue of how capital markets process accounting information, in particular earnings and its components, is of interest to participants of the capital market. Accrual earnings is considered superior to cash flows because it...

An examination of memory conjunction errors in multiple client audit environments.
March 1, 2003... INTRODUCTION This research focuses on auditor susceptibility to memory errors that are related to the memory reconstruction process. Due to the sheer volume of evidence typically documented in an audit examination, auditors do not have the...

The persuasiveness of client preferences: an investigation of the impact of preference timing and client credibility.
March 1, 2003... INTRODUCTION Several recent auditing studies have examined how explicitly stated client preferences influence the audit process (Gramling 1999; Salterio and Koonce 1997; Buchman et al. 1996; Salterio 1996; Trompeter 1994). Understanding...

Nonaudit services and shareholder ratification of auditors.
March 1, 2003... INTRODUCTION The Securities and Exchange Commission (SEC 2000b) recently issued new rules related to nonaudit services (NAS). The rules adopt a two-pronged approach by prohibiting auditors from rendering certain types of nonaudit services...

Auditors' strategies to protect their litigation reputation: a research note.(Critical Essay)
March 1, 2003... INTRODUCTION Reputation is believed to be an important success factor for auditors (Wilson and Grimlund 1990; Brozovsky and Richardson 1998). Thus, auditors' decisions and actions should be influenced by reputation concerns. That is,...

Market reactions to disclosure of reportable events.
March 1, 2003... INTRODUCTION Since 1971 the Securities and Exchange Commission (SEC) has required registrants to disclose details of auditor changes in timely Form 8-K filings (SEC 1971). These auditor change-related disclosure requirements have been...

Assessing the influence of Auditing: a Journal of Practice & Theory: 1985-2000.(Critical Essay)
March 1, 2003... INTRODUCTION From its inception in the summer of 1981, 49 issues of Auditing: A Journal of Practice & Theory (AJPT) have been published through 2000. Smith and Krogstad (1984, 1988, 1991) previously classified the 162 main articles and...