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作者：Tan, HT; Trotman, KT
作者单位：Nanyang Technological University; University of New South Wales Sydney
摘要：In this paper, we examine specific process gains and losses arising from the review process by considering the interaction between attributes of the preparer and attributes of the reviewer. Specifically, we investigate determinants of reviewers' performance in the presence of potential stylization attempts by audit workpaper preparers. We assess whether reviewers' detection of conclusion errors and documentation errors depends on three factors: nature of the preparer's stylization (by way of t...
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作者：Patterson, ER; Smith, R
作者单位：State University of New York (SUNY) System; University at Buffalo, SUNY; Indiana University System; Indiana University Bloomington
摘要：The concept of materiality provides a basis for auditors to ignore I small misstatements, but the definition of small in this context is ambiguous. The issue of materiality-standard-setting has been raised recently by Arthur Levitt, former chairman of the Securities and Exchange Commission. We examine how materiality uncertainty affects the auditor's evaluation of audit evidence and a manager's choice of earnings overstatement in a strategic auditing model where earnings misstatements also inc...
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作者：Ng, TBP; Tan, HT
作者单位：Nanyang Technological University
摘要：In this paper, we present the results of an experiment that investigates the effects of two contextual features-the availability of authoritative guidance and the effectiveness of the client's audit committee-on auditors' perceived outcome of auditor-client negotiations concerning an audit adjustment that affects the client's ability to meet analysts' forecasts. Results show that auditors' perceived negotiation outcome is jointly influenced by authoritative guidance availability and audit comm...
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作者：Ashbaugh, H; LaFond, R; Mayhew, BW
作者单位：University of Wisconsin System; University of Wisconsin Madison
摘要：This paper challenges the findings of Frankel et al. (2002) (FJN). The results of our discretionary accruals tests differ from FJN's when we adjust discretionary current accruals for firm performance. In our earnings benchmark tests, in contrast to FJN we find no statistically significant association between firms meeting analyst forecasts and auditor fees. Our market reaction tests also provide different results than those reported by FJN. Overall, our study indicates that FJN's results are s...
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作者：Clement, MB; Tse, SY
作者单位：University of Texas System; University of Texas Austin
摘要：Prior research suggests that investors' response to analyst forecast revisions increases with the analyst's forecast accuracy. We extend this research by examining whether investors appear to extract all of the information that analyst characteristics provide about forecast accuracy. We find that only some of the analyst characteristics that are associated with future forecast accuracy are also associated with return responses to forecast revisions. This suggests that investors fail to extract...
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作者：Bonner, SE; Walther, BR; Young, SM
作者单位：University of Southern California; Northwestern University; Emory University
摘要：The accuracy of sell-side analysts' forecast revisions is related to a number of factors, including characteristics of the analyst and the age of the forecast. In this study we examine whether there are differences in how sophisticated and unsophisticated investors use these factors to predict the relative accuracy of forecast revisions. We adapt the lens model methodological approach from the judgment and decision-making literature to investigate these differences in an archival setting. Our ...
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作者：Kumar, KR; Visvanathan, G
作者单位：George Washington University; George Mason University
摘要：An event study demonstrates that disclosures of changes in deferred tax valuation allowances (VA) provide information beyond contemporaneous earnings reports. Prior research shows that, in setting VA, managers consider the extent that taxable income is available from various sources for the realization of deferred tax assets (DTA). Our evidence supports a characterization where investors use VA disclosures to infer management's expectations about DTA, its realizability, and future taxable inco...
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作者：Sedatole, KL
作者单位：University of Texas System; University of Texas Austin
摘要：Drawing on theories from operations, management, and marketing, this paper examines whether three types of measurement alternatives affect the forward-looking properties of a quality measure. Using proprietary data from a medical services firm, the results show that the strength of the relation between a current quality measure and future quality-related warranty costs depends on: (1) the standard against which quality is measured, (2) assumptions regarding the relation's symmetry, and (3) ass...
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作者：Johnstone, KM; Bedard, JC
作者单位：University of Wisconsin System; University of Wisconsin Madison; Northeastern University
摘要：This paper examines whether risk-management strategies (specifically, the use of specialist personnel and higher billing rates) moderate the effect of risk on client acceptance decisions, thereby assisting auditors in bringing prospective client relationships to acceptable risk/return levels. We propose a conceptual model of the client acceptance decision process, and use archival data on one firm's actual client acceptance decisions to test the model. Our results demonstrate the selective use...
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作者：Eames, MJ; Glover, SM
作者单位：Santa Clara University; Brigham Young University
摘要：Das et al. (1998) suggest that as earnings become less predictable, analysts issue increasingly optimistic forecasts to please managers and consequently gain, or at least limit the loss of, access to managers' private information. We reexamine the association between earnings forecast error and earnings predictability because there is evidence suggesting that deliberate earnings forecast optimism is not an effective mechanism for gaining access to managers' information (e.g., Eames et al. 2002...
