The accounting academy is facing two critical challenges: an increasing disconnect between academia and practice and a growing shortage of faculty. Recently, the Pathways Commission proposed that accounting programs more fully embrace professionally oriented faculty. This proposal is attractive...

Independence is the cornerstone of the auditing profession. Even so, it is often assumed that acquiescing to the audit client when a disagreement occurs is more beneficial to the auditor-client relationship than asserting one’s independence (e.g., see Wang & Tuttle, 2009). We look more closely...

The rate of alliance formation by firms has greatly increased over the past two decades. Congruently, firm interest in corporate social responsibility (CSR) initiatives has also increased. Signaling theory suggests that firms may be increasing their CSR strategies in an effort to signal their...

This study investigates whether exposure to a previous client’s earnings management behavior will impact experienced auditors’ judgments of the risk that a current client’s financial statements are materially misstated. Contrast theory predicts the context of previous information can have...

Teaching ethical decision making can be distinguished from teaching decision making in other settings by its juxtaposition of students’ affect with their intellect (Gaudine & Thorne, 2001); as Griseri (2002, p. 374) aptly points out, “effective business ethics teaching should involve a...

This case deals with a purported fraud perpetrated on a nonprofit organization named Springfield Downtown, Inc. by its Executive Director, Donna Anderson. Under Anderson’s leadership from 2003 to 2010, the downtown area of Springfield, California, had been completely revitalized. Then in 2010,...