Audit-team specialists (valuation specialists employed by the audit firm) who evaluate a subset of the assumptions integral to a complex estimate often include caveats on otherwise-clean results to communicate reservations about certain assumptions to auditors. Although caveats can contain interpretation that may improve auditors’ judgments about estimates, auditors do not uniformly view caveat...

SYNOPSIS: Earnings management remains a popular topic of debate and discussion among investors, regulators, analysts, and the public. One mechanism that might mitigate earnings management is auditors’ industry expertise. Using a large sample of clients of Big 6 auditors, this research examines the association between auditor industry expertise, measured in terms of both auditor market share in ...

Information about the financial health of public companies provided by auditors ideally allows investors to make informed decisions and enhances the efficiency of financial markets. However, under the current system auditors are hired and fired by the companies they audit, which introduces incentives for biases that favor the audited companies. Three experiments demonstrate bias in auditors' ju...

.•\bstract—Theoretical research suggests that large auditors have more incentive to issue accurate reports compared to small auditors (DeAngelo. 1981; Dye, 1993). Controiling for the client characteristics of large and small auditors, this paper shows that large auditors issue reports that are more accurate and more informative signals of financial distress. These findings are consistent with t...

The importance of internal audits for the pharmaceutical company, which is indicated in guidelines good practices pharmacy (in particular, GMP, GDP).
 issue selection, training, grading, certification and continuous improvement auditor’s competence at companies are relevant important both domestic ones, foreign enterprises.
 aim study was to determine quality system auditors’ areas it...

The purpose of this study was to investigate the structural pattern of the effect of corporate governance mechanisms (internal organization) on audit quality considering the role of the intermediary variable of behavioural components of auditors. The statistical population of this research is independent auditors and auditors working in audit firms. A sample of 395 people was selected by simple...

and two anonymous auditors for their helpful comments. ABSTRACT Previous field research suggests that there is an increasing need for auditors to rely more extensively on enquiry based evidence. This study investigates how using various theory-and practice-based based interventions can lead to a more rigorous enquiry process. Based on psycholo gy theory on planning and on goal setting, as well ...

Purpose – The purpose of this study is to examine whether client-specific litigation risk affects the audit quality differentiation between Big N and non-Big N auditors. Specifically, we examine whether higher quality audits of Big N auditors relative to nonBig auditors is more pronounced for clients with high litigation risk than for clients with low litigation risk. Design/methodology/approac...

abstract: despite the importance of predictive variable in prediction, in most of the research in the field of auditors’ opinion the purpose was rendering the suitable models. meanwhile, less attention was paid to the selection of optimal predictive variable and appropriate models of these selection. therefore, in most of these research the predictive variables were chosen randomly and accordin...