Business Commons^™

The Moderating Effects Of The Ethicality On Both Morality And Religiosity Concerning The Likelihood Of Tax Evasion, Fred Coleman

Doctoral Dissertations

The Internal Revenue Service (IRS) defines the estimate of the difference between the federal income tax due each year and the amount voluntarily and timely paid as the "tax gap". In 1981, the Service reports a tax gap of 81.5 billion dollars. In 2006, the most recent IRS data indicates that the tax gap has risen to 345 billion dollars which suggests that tax evasion in the United States remains a growing concern for the federal government. Although various economic and nonpecuniary theories have been developed to investigate tax noncompliance, Jackson and Milliron (1986) and Cruz et al. (2000) suggest …

Investor And Client Responses To The First Pcaob Sanction And Part Ii Disclosure Of A Big N Auditor, Leah Elena Muriel

Doctoral Dissertations

I examine investor and client responses to the first PCAOB sanction and the first release of “Part II – Issues Related to Quality Controls” of a Big N auditor. I examine the following: the stock market reaction to the Part II disclosure, investors’ perceptions of earnings quality after both events using the earnings response coefficient (ERC), and client dismissals after the sanction. I find that December year-end clients that operate in highly litigated industries or those with auditor tenure greater than three years are more likely to dismiss Deloitte in the post-sanction period. For the sample of U.S. highly litigated …

Collaborative Tenure, Audit Committee Chair Changes, And Earnings Management, Nelson Milan Carrasco Abarca

Doctoral Dissertations

In a recent concept release the Public Company Accounting Oversight Board (PCAOB) highlighted concerns regarding auditor independence and auditor objectivity. They expressed concern that auditors may have a bias to accept management’s views, particularly in long auditor tenure relations, and asked for public comments on the idea of mandatory auditor rotation. Prior research has focused primarily on the auditor side of the relation, however, my study considers the collaborative effect of the three parties involved in the financial reporting process (management (Chief Executive Officer (CEO), the auditor, and the audit committee).I find that longer collaborative tenure between the CEO and …

A Distributional Analysis Of Substituting A Value-Added Tax For The Current Federal Tax System, Xiaoyan Chu

Doctoral Dissertations

The growing public dissatisfaction with the current federal tax system and the ongoing national debt crisis are generating serious consideration of alternative consumption tax systems, especially the value-added tax (VAT hereafter). The purpose of this study is to objectively evaluate the distributional effects of both the current federal tax system and the alternative value-added tax system it is intended to (partially) replace.

This study finds some evidence that the current federal tax system becomes significantly more progressive over the period of 2005 and 2009 under the annual income approach, which is contrary to the prior research findings that the current …

The Effects Of Procedural Injustice, Rebecca B. Martin

Doctoral Dissertations

The purpose of this dissertation is to test for the existence of procedural injustice (PIJ) in the audit environment and its effect on junior auditor's reporting of time and level of skeptical action. This dissertation theorizes that the conflicting forces between junior auditors' ethical beliefs, formal firm policies forbidding the underreporting of chargeable time (URT), and implicit encouragement from managers to engage in URT result in a unique aspect of the audit environment, PIJ, because entry-level auditors perceive these conflicting beliefs and messages as unfair. In this study, PIJ is defined as the inverse of procedural justice, which is the …