Both practitioners and academics are increasingly focusing their attention on the riskiness of firms' tax planning activities. In this study, we examine how external auditors respond to tax risk, measured using the volatility of firms' annual cash and GAAP effective tax rates. Consistent with...

This study examines the relationship among environmental uncertainty, effectiveness of budgetary control and propensity to create budgetary slack in public organizations. For this purpose, the data collected from 460 public organizations' managers via questionnaire. Results of analyses show that...

We examine how jurors’ negligence judgments and attorneys’ out-of-court settlements are differently impacted by two features of a materially misstated accounting estimate—the amount of estimate uncertainty and whether the misstated account is disaggregated into its own line-item or...

We examine the effect of Big 4 auditors on management's use of optimistic language in audited financial statement disclosures. While regulators and practitioners consider the audit of disclosures to be increasingly important, empirical evidence of an auditor's effect on management's qualitative...

This study investigates whether audit market competition influences the risk profile of audit offices' client portfolios and whether an audit office's client risk profile affects the association between audit market competition and audit quality. Economic theory suggests that market competition...

The majority of audit litigation research has focused on juror judgments. We examine how jurors' negligence judgments and attorneys' out-of-court settlements are differently impacted by two features of a materially misstated accounting estimate — the amount of estimate uncertainty and whether...

We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks between audited business units and matched non-audited units within the same company. This design allows us to isolate the importance of an internal audit while holding constant...

Fraud detection is among the highest priorities for the accounting profession, standard setters, regulators, and stakeholders in the financial reporting process. During planning, auditors are required to perform preliminary analytical procedures with the objective of identifying unusual or...

For about three years now, the COVID-19 pandemic has kept the global economy on tenterhooks. Although the pandemic has now been declared "over", the consequences of this mega-example of disruptive developments are still being felt everywhere, also regarding the work of Internal Audit. In...

Ex ante misstatement risk confounds nearly all settings relying on restatements as a measure of audit quality, but researchers continue to debate how to effectively control for this construct. In this study, we consider a recent approach that involves controlling for prior period restatements...