Tax authorities around the world often are reluctant to disclose audit policy details. In particular, the US Internal Revenue Service (IRS) has the practice of releasing broad statistics like the audit rate of each income class but resists pressures demanding details on how different...

I formulate a model to emphasize the fraud detection role of auditors in the financial market and relate the role to audit and financial reporting delays. The model focuses on asset misappropriation fraud, which is one of the two types of fraud US and international auditing standards require...

The advantage of multiple sourcing to protect against supplier failures arising from undependable products due to latent defects is examined using a model with non-linear external failure costs. Prior research has focused only on supplier failures arising from unreliable supply, such as...

This paper adds to the economic-psychological research on tax compliance by experimentally testing a simple auditing rule that induces strategic uncertainty among taxpayers. Under this rule, termed the bounded rule, taxpayers are informed of the maximum number of audits by a tax authority, so...

Abstract. A recent study shows that industry-specific analysis has no incremental advantage over economy-wide analysis in forecasting firm profitability. This result seems puzzling because some earlier studies have documented the importance of industry effects in explaining firm profitability....

A model emphasizing cookie-jar earnings management and the effect of auditor-required adjustment is formulated, with the optimal misreporting strategy generally characterized and the closed-form solutions for particular functional form assumptions derived. Using simulation results based on the...

The advantage of multiple sourcing to protect against supplier failures arising from undependable products due to latent defects is examined using a model with non-linear external failure costs. Prior research has focused only on supplier failures arising from unreliable supply, such as...

This paper analyzes the incremental advantage of industry-specific models of profitability forecasting, over economy-wide models, for business segments and firms. Some prior research suggests that industry-specific analysis has no advantage over economy-wide analysis in forecasting firm...

This paper adds to the economic-psychological research on tax compliance by experimentally testing a simple auditing rule that induces strategic uncertainty among taxpayers. Under this rule, termed the bounded rule, taxpayers are informed of the maximum number of audits by a tax authority, so...

The advantage of multiple sourcing to protect against supplier failures arising from undependable products due to latent defects is examined using a model with non-linear external failure costs. Prior research has focused only on supplier failures arising from unreliable supply, such as...