We conduct two experiments to examine whether artificial intelligence can reduce the effects of independence conflicts on audit firm liability. Our experiments manipulate (1) whether procedures are performed by an auditor or an artificial intelligence and (2) whether the audit firm was careful...

Current IFRS requires significant disaggregation of income statement numbers while such disaggregation is voluntary and much less common under U.S. GAAP. We examine whether voluntary disaggregation of income statement numbers increases the reliability of income statement subtotals because...

Investments that are classified as Level 2 within the fair value hierarchy account for approximately 92% of US banks' fair value assets. We report an experiment that examines how experienced auditors apply current PCAOB guidance when auditing portfolios of these assets. We hypothesize and find...