There has been a long-standing debate as to the relative merits of mandatory auditor rotation. In the United States (US), Section 203 of the Sarbanes-Oxley Act (2002) (SOX) requires rotation of the lead engagement partner and the concurring review partner at least once every five years. Section 207 also requires a study on the potential effects of mandatory audit firm rotation. After conducting...

The development and existence of appropriate, high quality auditing standards is the fi rst step in the road to quality audits. Auditing standards serve several important purposes including defi ning what an audit is, promoting consistency, facilitating education, providing a means to judge performance, and, most of all, infl uencing auditor behavior. Standards also affect many of the other fac...

It has been reported in the literature on strategic auditing that audit risk (the probability of audit failure) may increase when the auditor obtains information, whereas conditions for such cases have not been identified as yet. This paper provides simple models to analyze the general tendencies of exogenous parameters for such cases. The analysis shows that audit risk increases with more info...

This study aims to see how the influence of professional auditors on quality auditors. Reports that can be trusted with good audit reduce fears manipulation in financial statements presented a company and increase public confidence reliability reports have been audited by accountant. Findings research professionalism auditor agrees implemented. seen from acquisition % score 72.40%. Furthermore,...

This paper investigates how executive compensation affects the reliability of the information disclosed to investors. When incentive contracts are based on reported profits, a manager may respond to an increase in incentive compensation by decreasing effort. To both motivate the manager and maintain the quality of disclosure, it is necessary to introduce third-party verification of profits. I a...

This article explores recent regulatory reforms in Italy and analyzes the fi rst-time application of mandatory disclosure in annual reports of audit and non-audit fees. This information can convey to readers of fi nancial statements an indication of auditor independence (in appearance). An empirical analysis is conducted on annual reports of 239 Italian listed companies for the year 2007. The m...

This paper presents an historical and rhetorical analysis of auditor independence concepts. This analysis is relevant as the newly formed Independence Standards Board in the U.S. is beginning work on a conceptual framework of audit independence to use as a basis for regulation. Debate about independence concepts has a long history and some elements of the accounting profession are suggesting th...

Determinants of Auditor Expertise Author(s): Sarah E. Bonner and Barry L. Lewis Source: Journal of Accounting Research, Vol. 28, Studies on Judgment Issues in Accounting and Auditing (1990), pp. 1-20 Published by: Blackwell Publishing on behalf of Accounting Research Center, Booth School of Business, University of Chicago Stable URL: http://www.jstor.org/stable/2491243 . Accessed: 09/10/2011 12:27