This study examines the effect of feedback on calibration of auditors¡¯ probability judgment. Results from our experiment indicate that auditors¡¯ probability judgments are indeed poorly calibrated and auditors are in general overconfident. In addition, we investigate whether we can use...

Purpose – This research study aims to examine how differences in opinions on the material weaknesses identified in the auditor's assessment of the financial statements, and the auditor's assessment of internal control affect investment analysts' assessment of the financial strength of the...

The purpose of this study is to examine the duration of the auditorÕs relationship with a client and factors that affect audit firm tenure. The duration of the auditor and client relationship has been cited as possibly affecting the risk of a loss of auditor independence. Also, audit firm...

In an effort to restore investor confidence in the wake of recent financial reporting scandals, the Sarbanes-Oxley Act of 2002 mandates that audit committees be fully independent and have at least one financial expert. The SEC adopted rules implementing these Sarbanes-Oxley provisions. This...

The purpose of this study is to examine the duration of the auditorÕs relationship with a client and factors that affect audit firm tenure. The duration of the auditor and client relationship has been cited as possibly affecting the risk of a loss of auditor independence. Also, audit firm...

Purpose –The purpose of this paper was to examine whether a less precise (or imprecise) estimate may increase investors’ confidence and improve investors’ perceptions of fair value reliability. The main criticism of fair value accounting has been its lack of reliability perceived by...

This study investigates the quality of direct probability judgments and quantile estimates with a focus on calibration and consistency. The two response modes use different measures of miscalibration, so it is difficult to directly compare their relative (in)accuracy. We employed a more refined...

Vagueness attitudes have been used to explain anomalies and irregularities in investment behavior. It is generally assumed (Ellsberg 1961) that decision makers (DMs) dislike vagueness, but this assumption has been challenged by empirical results documenting systematic alternative attitudes to...