Purpose – To examine whether planning‐stage fraud risk assessments and audit experience affect the level of professional skepticism displayed by auditors during fieldwork. Design/methodology/approach – The paper presents an experiment using professional auditors. Findings – Overall,...

Purpose – The purpose of this paper is to examine whether auditors interpret the risk of material misstatement (RMM) in accordance with current standards' definition of inherent risk (IR). It is argued that controls should not be presumed when assessing inherent risk and that inherent risk...

We examine the effect of Audit Committee (AC) quality on auditor conservatism from two perspectives that may be held by the auditors. The first perspective is that enhanced AC quality lowers audit risk, which allows auditors to be less aggressive when insisting on recording adjusting entries –...