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Using a comprehensive sample of audits for public companies in China, we demonstrate whether and how bad audit behavior spreads among individual auditors (i.e., CPAs). CPAs are deemed to be “diseased” during the period when their audits fail, and are subsequently sanctioned by the...
Persistent link: https://www.econbiz.de/10012903068
Using a sample of firms from France, where the law requires the use of two auditors, we study the effect of auditor pair composition on audit quality by examining a specific account, goodwill impairment. We document that firms audited by a Big 4-non-Big 4 auditor pair (BS) are more likely to...
Persistent link: https://www.econbiz.de/10012904029
always an option. To facilitate multitasking, engagement team communications have extended in-person interactions to computer …
Persistent link: https://www.econbiz.de/10014242313
engagements, and often is not communicated to the entire engagement team. We then experimentally investigate whether the explicit … communication of AC support to the entire engagement team (by the partner vs. directly from the AC chair) impacts the skepticism of … auditors. AC support increases skeptical actions when management attitudes towards the engagement team are poor. However …
Persistent link: https://www.econbiz.de/10014265469
suggests that firms can promote skeptical team judgments by leveraging individuals’ high trait skepticism in thoughtfully …
Persistent link: https://www.econbiz.de/10014236577
share knowledge upward to their supervisors on the engagement team. Using a semi-structured interview methodology, we … the engagement team to encourage, support, and pave the way for innovative ideas …
Persistent link: https://www.econbiz.de/10014356259
research involving within-firm group interactions related to audit teams in context, shared mental models, and audit team …
Persistent link: https://www.econbiz.de/10012997101
In a group audit setting, component auditors receive instructions and communication from a group engagement team … component audit supervisor's preferences and nature of the communication from the group engagement team affect component … the group engagement team requesting less detailed documentation regarding their work, budgeted fewer audit hours and …
Persistent link: https://www.econbiz.de/10012970641
Auditing standards now mandate that group auditors determine and implement appropriate component materiality amounts, which ultimately affect group audit scope, reliability, and value. However, standards are silent about how these amounts should be determined and methods being used in practice...
Persistent link: https://www.econbiz.de/10013101039
In this paper, we study spatial competition in the U.S. audit market while accounting for its two-tiered nature. We provide evidence on the differential impact that market share distances within and between the players in the large and small audit markets have on competition. We find that the...
Persistent link: https://www.econbiz.de/10013035663