This study examines an aspect of earnings management that we refer to as audit management. We define audit management as a client’s strategic use of diversions to decrease the likelihood that auditors will discover earnings management during the audit. Specifically, we examine whether...

A critical and pervasive component of firm-specific audit firm inspection reports is the inclusion of detailed descriptions of the deficiencies uncovered by inspection teams. Prior research in psychology indicates that people are likely to focus on such anecdotal information without adequately...

In this study, we examine the effectiveness of four persuasive arguments that auditors may use to convince clients to accept their desired position in auditor–client negotiations. In addition, we investigate how the style in which the argument is communicated by the auditor impacts its...

Over the three decades leading up to the crisis of 2008, inequality dramatically increased in the United States and Great Britain. What stands out, but is seldom noted, is that this occurred within democracies where the relative losers -- the overwhelming majority -- could in principle have used...