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Appearances Are Important: Outsourced Internal Audit Services And The Perception Of Auditor Independence, Marshall A. Geiger, D. Jordan Lowe, Kurt J. Pany

Accounting Faculty Publications

The appearance of independence is an important facet of the regulation of auditor independence. The authors conducted a research study to gauge how some financial statement users—loan officers—view and make decisions based on loan proposals that present various types of relationships between the applicant, the auditor that performs the external audit, and the auditor that performs the internal audit function (whether performed in-house or outsourced to the hypothetical loan applicant's external auditor).

The results are insightful: The closer the relationship between the external auditor and the audit client, the higher the perception of inappropriateness, and the less likely the loan …

Audit Committee Effectiveness: A Synthesis Of The Empirical Audit Committee Literature, F. Todd Dezoort, Dana R. Hermanson, Deborah S. Archambeault, Scott A. Reed

Accounting Faculty Publications

The empirical audit committee literature is both diverse and expansive, with rapid growth in recent years based on increased concerns about corporate governance and the quality of financial reporting. Our objective in this paper is to synthesize empirical literature on audit committee effectiveness to guide future thinking and research on audit committees. To organize our review, we focus on four components that we believe contribute to audit committee effectiveness (ACE) - audit committee composition, authority, resources, and diligence.