Purpose – The purpose of this paper is to show how dynamic regression models based on equilibrium correction principles can be used to form auditor expectations of account balances as part of the analytic review. Design/methodology/approach – The design and method are empirical, using the...

Earnings quality, conservative accounting and earnings management, are interpreted in a variety of ways in theory and empirical research in the accounting literature. Little attention is paid, in defining these concepts, to the accounting measurement procedures that generate accounting numbers...

This paper uses computer experiments to examine the effect of different overhead cost allocation methods (machine hours, labour hours, material costs, labour costs, equal apportionment, physical quantity, selling price method and activity based costing) on the volatility of earnings over time....

We measure the sensitivity of bank market values to capital and to regulatory adjustments applied to bank capital. Results for U.S. banks over the years 2001-2020 show that the sensitivity of banks’ market values to measures of bank capital e.g. book equity, Tier 1, and Total Capital,...