Along with many other business entities, auditing firms have implemented a variety of electronic work systems to assist professionals in collecting and analyzing data, with the objective of improving operational efficiency and effectiveness. While prior research in other contexts finds that...

While many audit firms have adopted electronic systems for workpaper preparation and review in hopes of improving both efficiency and effectiveness, prior research shows that the expected gains may be difficult to achieve. In order to investigate possible sources of difficulty in full use of...

This study examines the relationship of CEO overconfidence with accrual-based earnings management, real activities-based earnings management, and targeting to meet or just beat analyst forecasts. Following Malmendier and Tate (2005), we measure “overconfidence” based on the CEO's tendency to...

The United States faces exceptionally large budget deficits over the foreseeable future that threaten the nation's financial stability (Bernanke 2010). A large portion of these deficits is due to the Social Security and Medicare programs. Thus, given the likely need to reform these programs, we...

We investigate the role of audit committee economic incentives in judgments involving the resolution of detected misstatements. The results reveal a positive association between audit committee short-term stock option compensation and the likelihood that managers are allowed to waive income...

We explore labor market consequences for CFOs employed by fraud firms, focusing on contagion effects of blame for CFOs who are not implicated, i.e., not publicly blamed by the SEC for committing the fraud. Studying these individuals is important because they are associated with the fraud, so it...

We investigate the association between auditors' supply chain knowledge and companies' audit quality and audit pricing. Auditor supply chain knowledge is a specialized understanding of information and processes regarding accounting and auditing issues that relates to both a supplier and its...

We examine the association of Big 4 audit partners' public-client specialization with client companies' audit quality. Using a sample of NASDAQ OMX companies in Finland, we identify the audit partner assigned to each public-client engagement. We expect that partners with greater public-client...