The rising prominence of fair values and other estimates (FVOEs) to financial reporting increases their significance to the audit. Based on inspections that report numerous deficiencies, the PCAOB is concerned that auditors are not sufficiently prepared for the challenges faced in evaluating...

Recent corporate governance reforms that require audit committees to pre-approve audit and non-audit services increase audit committees' accountability to third parties for actual auditor independence and audit quality. Other SEC reforms mandate the disclosure of fees for auditor-provided...

We examine the effect of Audit Committee (AC) quality on auditor conservatism from two perspectives that may be held by the auditors. The first perspective is that enhanced AC quality lowers audit risk, which allows auditors to be less aggressive when insisting on recording adjusting entries –...

Statement of Financial Accounting Standards No. 130 requires companies to report comprehensive income in a primary financial statement, but allows its presentation in either a statement of comprehensive income or a statement of stockholders' equity. In an experiment, we examine whether and how...

Statement of Financial Accounting Standards No. 130 requires companies to report comprehensive income in a primary financial statement, but allows its presentation in either a statement of comprehensive income or a statement of stockholders' equity. In an experiment, we examine whether and how...