We examine how an auditor assesses the risk of fraud and formulates an audit plan when the auditee has the opportunity to commit various types of fraud. Unlike previous studies, the auditee can misappropriate assets (also called defalcation), misreport financial information (also called...

We examine how an auditor assesses the risk of fraud and formulates an audit plan when the auditee has the opportunity to commit various types of fraud. Unlike previous studies, the auditee can misappropriate assets (also called defalcation), misreport financial information (also called...

This study explores close U.S. congressional elections involving politicians who have influence over the SEC to examine the effect of firms’ political connections on their financial reporting. This question is important in understanding the overall effect of political connections on financial...