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The Effect Of Presentation Format On Investor Judgments And Decisions: Does The Effect Differ For Varying Task Demands?, Kevin Agnew
USF Tampa Graduate Theses and Dissertations
This study examines the efficacy of presenting footnotes information in alternative display formats on investors’ judgments and decisions. Non-professional investors play a significant role in the capital markets yet they do not always attend to information contained in footnote disclosures. As a result, nonprofessional investors systematically misprice firms and misallocate resources. Recognizing that increased mandatory and voluntary disclosures create additional challenges for non-professional investors, both the FASB and SEC have actively sought ways to increase the effectiveness of disclosures. I hypothesize that high display proximity, low signal-to-noise presentation formats can increase investors’ attention to and processing of footnote disclosures and …
Increasing Auditor Sensitivity To The Risk Of Fraudulent Financial Reporting: Assessing Incentives And Pressures On Top Management, Donald Wengler
Increasing Auditor Sensitivity To The Risk Of Fraudulent Financial Reporting: Assessing Incentives And Pressures On Top Management, Donald Wengler
USF Tampa Graduate Theses and Dissertations
The ability of auditors to detect fraud, including intentional material misstatements in earnings, remains key to the credibility of audit firms and confidence in capital markets. The PCAOB concludes from its most recent inspections of public company audits that auditors often fail to assess and respond to risks of material misreporting by management. In a behavioral experiment, this study concludes that auditors can increase sensitivity to management motivation to misreport by actively seeking to transform identified risk factors focused on the organization, into factors focused on top managers, and to evaluate whether these manager-focused risk factors represent incentives for personal …