Business Commons^™

How Consulting Services Could Kill Private-Sector Auditing, Dana R. Hermanson

Faculty Articles

The article presents a discussion of recommendations for improving sustainability of a public company auditing profession in the U.S., adapted from a submission by Dana R. Hermanson to the Advisory Committee on the Auditing Profession of the Treasury Department.

The Association Between Data Intermediaries And Bond Rating Classification Model Prediction Accuracy, Pavani Tallapally

Doctoral Dissertations

Kamstra et al. (2001) developed a bond rating classification model that was based on a similar model developed by Ederington (1985). While both studies use Moody's bond ratings as dependent variables, the studies differ with respect to the independent variable data source, that is, Kamstra et al. (2001) use financial statement data extracted from Moody's Industrial Manual (now known as Mergent) while Ederington (1985) uses financial statement data extracted from Compustat. Given this, and given the divergent results of the two studies, the following question must be addressed: Do different data sources yield models that differ considerably with respect to …

The Impact Of Cultural Environment On Entry-Level Auditors’ Abilities To Perform Analytical Procedures, James F. Sander, Susan B. Hughes, Scott D. Higgs, Charles P. Cullinan

Scholarship and Professional Work - Business

We focus on the impact of three of Hofstede’s cultural dimensions, power distance, uncertainty avoidance, and individualism, on the results of analytical procedures conducted by entry-level auditors in Mexico and the U.S. Analytical procedures are ideal for this research as they require auditors to use professional judgment and appropriate levels of professional skepticism, abilities related to all three cultural characteristics. We find no other study investigating the impact of culture on the application of auditing procedures similar across the studied cultures.

We find cultural characteristics do not affect the participants’ abilities to predict income statement balances, but they may influence …

Critical Accounting Policy And Estimate Disclosures: Company Response To The Evolving Sec Guidance, Susan B. Hughes, James F. Sander, Jillian K. Snyder

Scholarship and Professional Work - Business

In late 2001, soon after numerous financial reporting failures including the much publicized demise of Enron, the SEC began a series of initiatives to improve critical accounting policy (CAP) and critical accounting estimate disclosures included within the MD&A section of Form 10-K. The first announcement, in the form of cautionary guidance, was issued in December 2001. This was followed by a Proposed Rule in 2002, and additional disclosure guidance near the end of 2003. Combined, the guidance required companies to provide information that would help investors understand the impact of estimates, accounting policies and external factors on financial results. Through …

Comment Letters On Proposed Statements On Auditing Standards: Required Supplementary Information, Other Information In Documents Containing Audited Financial Statements, Other Information N Relation To The Financial Statements As A Whole; Exposure Draft (American Institute Of Certified Public Accountants) 2009, January 21, American Institute Of Certified Public Accountants. Auditing Standards Board

Statements on Auditing Standards

No abstract provided.

Codification Of Statements On Auditing Standards (Including Statements On Standards For Attestation Engagements) Numbers 1 To 116, As Of January, 2009, American Institute Of Certified Public Accountants (Aicpa)

Statements on Auditing Standards

No abstract provided.

Qualitative Information In Annual Reports & The Detection Of Corporate Fraud : A Natural Language Processing Perspective, Sunita Goel

Legacy Theses & Dissertations (2009 - 2024)

High profile cases of fraudulent financial reporting such as those that occurred at Enron and WorldCom have shaken public confidence in the U.S. financial reporting process and have raised serious concerns about the roles of auditors, regulators, and analysts in financial reporting. In order to address these concerns and restore public confidence, the Sarbanes-Oxley Act (SOX) of 2002 was enacted. However, SOX has not lived up to its promise. Numerous cases of fraudulent financial reporting have surfaced in the post-SOX era. So far, the major thrust of research has been on examining fraud that has already been discovered. This dissertation …

Directory Of Accounting Faculty, Academic Year 2009 - 2010, 33rd Edition, James R. Hasselback

Individual and Corporate Publications

No abstract provided.

Government Auditing Standards And Circular A-133 Audits, With Conforming Changes As Of October 1, 2009; Audit And Accounting Guide, American Institute Of Certified Public Accountants. Single Audit Working Group

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

Checklists And Illustrative Financial Statements : Not-For-Profit Entities, May 2009, American Institute Of Certified Public Accountants

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

Predicting Patients’ Use Of Provider-Delivered E-Health: The Role Of Facilitating Conditions, E. Vance Wilson, Nancy K. Lankton

Accounting Faculty Research

This chapter presents a new rational-objective (R-O) model of e-health use that accounts for effects of facilitating conditions as well as patients’ behavioral intention. An online questionnaire measured patients’ behavioral intention to use a new e-health application as well as proxy measures of facilitating conditions that assess prior use of and structural need for health services. A second questionnaire administered three months later collected patients’ self-reported use of e-health during the intervening period. The new model increased predictions of patients’ e-health use (measured in R2) by more than 300% over predictions based upon behavioral intention alone, and all measured factors …

Audit Standard Setting And Inspection For U.S. Public Companies: A Critical Assessment And Recommendations For Fundamental Change, Steven M. Glover, Douglas F. Prawitt, Mark H. Taylor

Faculty Publications

The Sarbanes-Oxley Act of 2002 (SOX) established the Public Company Accounting Oversight Board (PCAOB) to oversee the public accounting firms that audit publicly traded companies in the U.S. In this commentary we outline why we believe the PCAOB’s audit standard setting and inspection models are inefficient and dysfunctional. We assert that the Board’s ability to achieve its mission is limited by its early choices, together with its incentives, organizational composition, and structure. We support our assertions with a number of indicators of serious problems and flaws in the current approach. We also present high-level recommendations for change for policy makers, …

Internal Audit Quality And Earnings Management, Douglas F. Prawitt, Jason L. Smith, David A. Wood

Faculty Publications

Internal auditors often perform work that is relevant to their host entities’ financial reporting processes, yet little research attention has focused on the effects of internal auditing on companies’ external financial reporting. Using a unique and previously unavailable data set, we investigate the relation between internal audit function (IAF) quality and earnings management. We measure IAF quality using a composite measure comprising six individual components of IAF quality based on SAS No. 65, which guides external auditors in assessing the quality of an IAF with respect to its role in financial reporting. Earnings management is measured using two separate proxies, …

Auditing Standards Board (Asb) Meeting, August 24-27, 2009, Nashville, Tn; Highlights, Asb Meeting, August 24-27, 2009, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Auditing Standards Board (Asb) Meeting, Janaury 12-15, 2009, San Antonio, Tx, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

What Happens In Vegas Doesn't Always Stay In Vegas: Nevada Corporations Enjoy A Disproportionate Share Of Sec Trading Suspensions, Anthony J. Cataldo Ii, Peter F. Oehlers, Robert C. Scanlon

Accounting Faculty Publications

No abstract provided.

The Role Of Accounting Information In The Sentiment-Price Relation, Kun-Chih Chen

Research Collection School Of Accountancy

This study reconciles inconsistent evidence on the sentiment-price relation in prior studies by explicitly considering the effects of sentiment on both investor judgments and risk preferences. Using the uncertainty in accounting information, I am able to disentangle these two effects of sentiment and investigate the causes of the variations in the sentiment-price relation. The results show that, under low uncertainty, the effect of sentiment on risk preferences dominates in the sentiment-price relation, such that a negative effect of sentiment on price is observed. In contrast, under high uncertainty, the effect is less negative and, in fact, becomes positive. This suggests …

Audits Of Futures Commission Merchants, Introducing Brokers, And Commodity Pool, American Institute Of Certified Public Accountants. Commodity Practice Aid Task Force, American Institute Of Certified Public Accountants. Stockbrokerage And Investment Banking Committee

Guides, Handbooks and Manuals

No abstract provided.

Independence Compliance : Checklists And Tools For Complying With Aicpa And Gao Independence Requirements, Catherine R. Allen, Karin Glupe, Robert Durak, American Institute Of Certified Public Accountants

Guides, Handbooks and Manuals

No abstract provided.

Guide To Investigating Business Fraud, Ernst & Young, Ruby Sharma, Michael H. Sherrod, Richard Corgel, Steven J. Kuzma

Guides, Handbooks and Manuals

No abstract provided.

Aicpa Technical Practice Aids As Of June 1, 2009, Volume 1, American Institute Of Certified Public Accountants

Guides, Handbooks and Manuals

No abstract provided.

Aicpa Technical Practice Aids As Of June 1, 2009, Volume 2, American Institute Of Certified Public Accountants

Guides, Handbooks and Manuals

No abstract provided.

Aicpa Audit And Accounting Manual As Of June 1, 2009 : Nonauthoritative Technical Practice Aid, American Institute Of Certified Public Accountants

Guides, Handbooks and Manuals

No abstract provided.

Independence Compliance : Checklists And Tools For Complying With Aicpa, Sec, And Pcaob Independence Requirements, Dennis W. Ridge, American Institute Of Certified Public Accountants

Guides, Handbooks and Manuals

No abstract provided.

Forensic Accounting For Divorce Engagements : A Practical Guide, Ezra Huber, Donald A. Glenn

Guides, Handbooks and Manuals

No abstract provided.

Guide To Financial Decisions : Implementing An End-Of-Life Plan, American Institute Of Certified Public Accountants. Personal Financial Planning Division, 360 Degrees Of Financial Literacy

Guides, Handbooks and Manuals

No abstract provided.

Cpa's Handbook Of Fraud And Commercial Crime Prevention, Tracy Coenen

Guides, Handbooks and Manuals

No abstract provided.

Characteristics And Skills Of The Forensic Accountant, Charles Davis, Ramona Farrell, Suzanne Ogilby

Guides, Handbooks and Manuals

No abstract provided.

Introduction To Civil Litigation Services; Special Report 09-1, American Institute Of Certified Public Accountants. Forensic And Valuation Services Section

Guides, Handbooks and Manuals

No abstract provided.

An Examination Of The Use Of The Board Balanced Scorecard By Large Public Corporations, Qianhua L. Ling, Don E. Giacomino, Michael D. Browne, Michael D. Akers

Accounting Faculty Research and Publications

While the Balanced Scorecard (BSC) developed by Norton and Kaplan has gained global prominence as a management tool and there is qualitative accounting literature that discusses the benefits of the Board BSC, there is limited empirical evidence that examines the use of the Board BSC. We surveyed Chairs of large public companies to determine the extent to which they use the Board BSC and the reasons why. Our findings suggest that the Board BSC is currently not a widely used technique by Boards of Directors. We also found that the Sarbanes-Oxley Act of 2002 wasn't an influencing factor for those …