A significant concern in behavioral research in accounting has been the effect of experience on judgment and decision-making. As widely recognized, there are, however, several dimensions to experience, including general domain experience and task-specific experience. One important dimension that...

Negotiations are a pervasive feature of the audit process (e.g., the resolution of proposed audit adjustments and disclosures). The results of such negotiations are of great importance to the capital markets, the client and the auditor. The purpose of this study is to examine the effectiveness...

The first objective of the current study is to examine the extent to which financial auditors recognize heightened risks associated with an enterprise resource planning (ERP) system, as compared to non-ERP (legacy) system, in the presence of a control weakness over access privileges. The second...

We present evidence on the resolution of proposed audit adjustments during a unique period of time immediately following several US financial scandals and surrounding the passage of the Sarbanes-Oxley Act (SOX). During this period auditors and clients both faced increased scrutiny from investors...

The purpose of this exploratory study is to examine the relationship between auditors’ skeptical characteristics and skeptical judgments and decisions. Despite the importance of auditor skepticism, as recognized by auditing standards, regulators, and practice, there is a lack of consensus and...

Despite the importance of audit committee independence in ensuring the integrity of the financial reporting process, recent research suggests that even when audit committees meet regulatory independence requirements, certain factors, such as undue influence by the CEO over the selection of the...

Auditor-client negotiations are a common and critical part of the financial reporting process, yet we know little about contextual factors that influence negotiation judgments from the manager's perspective. Managers have incentives to act aggressively since outcomes often materially impact...

The financial crisis has brought to the forefront the need for companies to effectively manage their risks. One approach that has gained prominence is enterprise risk management (ERM), but little is known about the link between ERM and the financial reporting process. This link is important,...

Auditor errors are of concern since they reflect deviations from expectations, plans or goals and can thereby potentially impair audit quality. Audit firms have powerful mechanisms in place to prevent errors from occurring, such as the review process. However, all errors cannot be prevented; thus,...