We examine the joint effects of the reporting threshold (more than remote versus reasonably possible) and type of control deficiency (entity level versus account specific) described in the adverse report on internal controls on equity analysts' evaluation of the reliability of a company's future...

Although regulators have identified ethical lapses as a key factor contributing to auditors’ failure to detect their clients’ fraudulent financial reporting (fraud), research using ethical theory to examine auditors’ fraud detection remains limited. We provide evidence on the joint effect...