Greater competition has increased pressure to reduce product costs and design times. To introduce products more quickly, some companies begin designing products before all relevant design information is available and continue modifying product specifications during the design process. We...

Listed firms increasingly strive for a sustainable appearance, which has made sustainability reporting very popular in recent years. This would be completely rational if sustainability reporting could enhance shareholder value. This paper investigates from a theoretical perspective which...

We consider accounting from an evolutionary perspective. Accounting encompasses the creation of transactional records, the summarization of records in t-accounts, and the preparation of audited financial statements. Accounting's history spans at least 10,000 years dating back to the first human...

This paper investigates whether firm ownership structure alters the likelihood of auditor resignations and the associated stock market reaction in the U.S. over the period 2004-2008. Relying on prior research, we posit that family ownership aligns family members’ interests with those of...

This study examines audit partners' predictions of the ability of managers and seniors to detect financial statement errors. If partners are unable to predict the ability of their subordinates to detect errors, audit effectiveness may be affected. Audit partners were asked to predict which...

Incentives affect the manner in which auditors conduct their audits and one important research question is how different types of incentives affect behavior. The objectives of this paper are to examine how auditors' intrinsic motivation could be augmented by their participation in developing the...

This paper models the demand by auditors for bright-line financial reporting standards, and compares auditors' preferences for bright-line standards with managers' and regulators' preferences. Bright-line standards are unambiguous, requiring no judgment in their application. Standards that are...

In many audit tasks, auditors evaluate multiple hypotheses to diagnose the situation. Research suggests this is a complex task that individuals have difficulty performing. Further, there is little guidance in professional standards or literature dealing with the many complexities present in the...

When assessing the likelihood of fraud in commercial banks, an auditor is faced with two related issues: determining significant red flags in the commercial banking industry, and combining red flags in a model (Decision Aid) based on weights (Values of uncertainties) assigned to them. Prior...

We examine the empirical relationship between auditor's resource allocations and selected engagement characteristics. Our measure of resources is hours of grades of labor (partner, manager, etc.) "charged" to audit activities (planning, internal control evaluation, etc.). Engagement...