With the movement towards adoption of International Financial Reporting Standards (IFRS) worldwide, a question arises as to whether the adoption of a principles-based approach such as IFRS will ultimately result in higher quality financial reporting. This issue is particularly relevant because,...

Using an experiment with 96 experienced practicing auditors as participants, this paper investigates the effects of a self-interest threat to auditor independence and of emotion on auditors' inventory valuation judgments. We predict that the presence of a self-interest threat in a judgment...

Fair values and other accounting estimates (FVOEs) are common in financial reporting (IAASB, 2009) and regulators are concerned that auditors are insufficiently skeptical in their evaluations of FVOEs (PCAOB, 2009, 2015a, b; IFIAR, 2014). Utilizing an experiment with auditors as participants, we...