Data analytics is transforming our global markets. Companies' investments in data analytics are projected to grow to more than $274 billion in the next few years, and audit firms are pledging to invest an unprecedented $9 billion. While auditors, company managers, regulators, and academics agree...

Auditors have difficulty evaluating the assumptions underlying management's estimates. One source of these problems is that auditors appear to dismiss evidence contradicting management's assumptions because their initial preference to support management's accounting biases their preliminary...

Regulators express concern over auditors’ failure to respond to fraud risks. Audit firms communicate the importance of remaining skeptical and alert for fraud, but busy auditors give these messages insufficient attention. Building on psychology theory, we develop an innovative intervention...

Auditors struggle to respond skeptically to fraud, reducing audit quality. This problem is particularly prevalent during the evidence evaluation phase of the audit, when auditors face the greatest time constraints. Empowerment theory suggests people overcome constraints and produce higher...