Auditing: A Journal of Practice & Theory articles from March 1 2004

Auditing: A Journal of Practice & Theory archives from March 1 2004

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...

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...

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...

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...

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...

An empirical analysis of voluntarily supplied client-auditor realignment reasons.
March 1, 2004... INTRODUCTION The U.S. Securities and Exchange Commission (SEC) proposed that companies be required to disclose reasons for client-auditor realignments in relevant Form 8-K filings (SEC 1977). Opponents of this proposed rule claimed that...

Auditor industry specialization, client bargaining power, and audit pricing.
March 1, 2004... INTRODUCTION The purpose of this study is to examine audit pricing by Big 6 auditors, and the joint effects of industry specialization and client bargaining power on audit fees. Drawing on Porter's (1985) analysis of corporate strategy,...

Comparing audit team effectiveness via alternative modes of computer-mediated communication.
March 1, 2004... INTRODUCTION Most organizations today, including public accounting firms, use some form of computer-mediated communication (CMC) beyond electronic mail (email). For instance, several large public accounting firms have deployed group...

Getting inside the black box: a field study of practices in "effective" audit committees.
March 1, 2004... INTRODUCTION Most regulators and practitioners view the audit committee (AC) as an important corporate governance mechanism deemed to improve the quality of financial reporting (e.g., Dey 1994; KPMG 1999). However, in contrast to the...