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Full-Text Articles in Business
The Auditor’S Report On Internal Control & Fraud Detection Responsibility: A Comparison Of French And U.S. Users’ Perceptions, Benjamin P. Foster, Guy M. Mcclain, Trimbak Shastri
The Auditor’S Report On Internal Control & Fraud Detection Responsibility: A Comparison Of French And U.S. Users’ Perceptions, Benjamin P. Foster, Guy M. Mcclain, Trimbak Shastri
Faculty Scholarship
The AICPA recently finished a harmonization project to converge U.S. audit standards with those of the International Audit and Assurance Standards Board. The assumption implicit in this project is that users of financial statements will benefit from a converged, or consistent set of audit standards. Additionally, the AICPA’s clarified auditing standard AU-C700, Audit Conclusions and Reporting, now requires explicit acknowledgement of the auditor’s responsibility for fraud procedures in the auditor’s report, which is the focus of advisory committees in both the U.S. Department of Treasury and the European Commission. Therefore, the purpose of this study is to investigate how users …
Tackling "Arithmophobia": Teaching How To Read, Understand, And Analyze Financial Statements, Paula J. Williams, Kris Anne Tobin, Eric Franklin, Robert J. Rhee
Tackling "Arithmophobia": Teaching How To Read, Understand, And Analyze Financial Statements, Paula J. Williams, Kris Anne Tobin, Eric Franklin, Robert J. Rhee
Faculty Scholarship
This discussion presents different ideas on how to teach accounting and practical finance to law students.
Material Internal Control Weaknesses And Earnings Management In The Post-Sox Environment, Benjamin P. Foster, Trimbak Shastri
Material Internal Control Weaknesses And Earnings Management In The Post-Sox Environment, Benjamin P. Foster, Trimbak Shastri
Faculty Scholarship
Prior studies found that companies with internal control deficiencies incorporate abnormal accounting accruals into their financial statements. However, these studies did not consider the materiality of abnormal accruals. Abnormal accruals should be within materiality when financial statements receive clean audit opinions. When material internal control weaknesses (MICW) exist, to compensate for additional risk, auditors should apply more audit effort to gain the quantity and quality of evidence necessary to obtain a reasonable degree of assurance to support their audit reports. We find evidence of this because audit fees are significantly higher for MICW companies than those for effective internal controls …