This paper responds to recent questions posed by PCAOB regarding how to more effectively utilize fraud risk assessments … in the audit process. It examines the effects of explicitly integrating fraud risk assessments into auditors' judgments … of the risk of material misstatement (RMM). Specifically, I test the impact on auditors' risk assessments and planning …

-concern and fraud risk and the planning and performance of the financial statement audit. We analyze the association between the … above risks and the auditor's assessment of the risk of material misstatement (RMM) within the revenue cycle, and examine … whether going-concern and fraud risk assessments have an effect on the persuasiveness, timing and extent of audit evidence …

provides mixed evidence on whether better auditors mitigate misstatement risk embedded in the financial reporting process. A … challenge in previous studies is the lack of a powerful measure of inherent, “pre-audit” reporting risk. We overcome this issue … by developing a novel, powerful measure of accounting misstatement risk (AMR) from 10-K text. We validate this measure by …

We examine the association between carbon risk and future stock price crash risk and the moderating role of climate … change disclosures in this association using a sample of firms across the world. We find that carbon risk is positively … associated with future stock price crash risk, and firm-level climate-change disclosures attenuate the positive effect of carbon …

This study investigates whether corporate climate risk is priced by the capital markets. Using carbon dioxide emission … rates of publicly traded U.S. electric companies, we find that climate risk is positively associated with cost of capital … investors evaluate corporate climate risk differently. The results show that the cost of debt decreases with the level of …

risk for financial reporting. We argue that current disclosure regulation likely requires the disclosure of climate risk on …, heightened litigation risk, and increasing investor awareness. Field evidence shows that the majority of investors believe … climate risk to be financially material and to represent heightened regulatory and litigation risk. We find a misalignment of …

The aim of this paper is to offer a theoretical analysis, inspired by research into social theories of risk, of the … the Risk Society thesis. Demands for social and environmental accounts within this risk arena could be seen to relate to … governing these risks. Insights from the Risk Society thesis offer useful understandings into appreciating Social and …

Environmental performance, environmental risk and its management are of contemporary interest, but to date there is … approach and disaggregating firm-level environmental risk into types related to regulations, operations and nature. For a … sample of US firms in polluting sectors, descriptive findings show that the level of risk and the likelihood of active risk …