Auditing

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Ph. D. Seminar in Auditing
Rutgers, The State University of New Jersey
Rutgers Business School
Auditing Concepts and Standards: Fall 2010
Fall,2010
Prof. Miklos A. Vasarhelyi
Class Hours:
Office Hours:
Best method of contact:
1WP Room 226
Tuesday 1-3:50 pm
Before and after class (and by appointment)
e-mail [email protected]
Course Materials
Journal Articles:
Other References:
See Reading List
AICPA, Codification of Statements on Auditing Standards.
Any good basic Auditing book (e.g. Loebbecke & Arens; Robertson)
Pre-Requisites
Participants in this seminar are assumed to have had basic accounting (financial and managerial), auditing
and some research methodology. If this is not the case a special supplementary reading list will be prepared
with the instructor
Requirements
Classroom participation, paper presentations, research paper, and a final exam will serve as the main
medium of instruction in this course. Students are expected to have read all required assignments, prepare
personal summaries for each paper (that will be collected) and lead the discussion on one paper per class.
Each research paper will have a "discussant" assigned who will be responsible for presenting the paper as if
he/she was the author and defend it as well as analyze it. Students should also perform a literature search of
related papers and be able to present it in class. Other class participants must also read the paper in detail,
prepare a summary, hand it to the instructor. They may be called to support (or replace) the discussant.
Seminar grade will be assigned based on the discussions presented, on the participation in the seminar, on
the research project, and on the final exam which will be in the form and content of a field exam.
All students are required also to participate in the Accounting Research Forum being held on Fridays
10:30: 12:00. Students are expected to prepare and ask questions to the presentor and also hand in these
questions to the instructor.
The research project is of the form of a term-paper and students may choose to replicate an experiment,
examine in the research format a particular audit issue, use an empirical database or any other relevant
project approved by the instructor. The objective of the paper is to provide the participants with an
experience in audit research.
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Course Outline1
Date
Topic
01. Sept 07, 2010
Reading Assignment
Introduction
A. Humphrey, “Auditing research: a review across the disciplinary divide,
Accounting,” Auditing &Accountability Journal, Vol. 21, No. 2, 2008, pp. 170-203
Presenter: ______Mandy_____________
Discussant 1: _________________
Discussant 2: _________________
B. Hunton & Rose, “21st CenturyAuditing:Advancing Decision Support Systems to
Achieve Continuous Auditing,” Accounting Horizons, Vol. 24, No. 2, 2010, pp. 297–
312
Presenter: ______Houssein_____________
Discussant 1: _________________
Discussant 2: _________________
C. Elliott – 21 Century Assurance
Presenter: ____just read_______________
Discussant 1: _________________
Discussant 2: _________________
D. Vasarhelyi, Concepts in Continuous Assurance, Chapter 12 in Arnold and Sutton,
researching Accounting as an Information Discipline, AAA IS Section monograph.
Presenter: _____Qi______________
Discussant 1: _________________
Discussant 2: _________________
Introduction: Additional references
Brown, Gardner & Vasarhelyi, Accounting Research Directory: the database of accounting literature,
Markus Wiener Publishing, Princeton, NJ, 1994.
1
LEGEND:
Aud.
JAR
TAR
JofA
AOS
JAL
JAE
Auditing: A Journal of Practice and Theory
Journal of Accounting Research
The Accounting Review
Journal of Accountancy
Accounting, Organization & Society
Journal of Accounting Literature
Journal of Accounting and Economics
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02. Sept 17, 2010
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Audit Risk
A. Deumes & Knechel Economic Incentives for voluntary reporting on Internal Risk
Management and OCntrol Systems
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Allen, Hermanson, Kpzloski & Ramsay, Auditor Risk Assessment: Insights from
the Academic Literature, Accounting Horizons, June 2006.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Jiambalvo & Waller, “Decomposition and Assessments of Audit Risk,” Auditing:
A Journal of Theory and Practice, Spring 1984, pp. 1-16.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Houghton & Fogarty, “Inherent Risk,” Auditing : A Journal of Practice & Theory,
Spring 1991, Vol. 10, No. 1, pp. 1-21.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Cushing & Loebbecke, “Analytical Approaches to Audit Risk: A Survey and
Analysis,” Auditing: A Journal of Practice and Theory, Fall 1983, pp. 23-41.
F. Bedard, Deis, Curtis and Jenkins, Risk Monitoring and Control in audit Firms: A
Research Synthesis
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Audit risk: Additional references
Brumfield, Elliott & Jacobson, “Business Risk and the Audit Process,” Journal of
Accountancy, April 1983, pp. 60-68.
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Grobstein & Craig, “A Risk Analysis Approach to Auditing,” Auditing: A Journal of
Practice and Theory, Spring 1984, pp. 1-16.
Mock & Vertinsky, “Risk Assessment in Accounting and Auditing,” (The Canadian
Certified General Accountants’ Research Foundation, Vancouver, B.C. 1985
Research Monograph No. 10)
Srivastava, Mock & Turner, “Fraud Risk Formulas for Financial Statement Audits
under Bayesian Theory and Dempster-Shafer Theory of Belief Functions,” Working
paper (2006)
Fukukawa & Mock, “Audit Judgements Using Belief versus Probability Assessment,”
Working paper (2006)
Bell, Bedard, Johnstone & Smith, “KRiskSM: A Computerized Decision Aid for
Client Acceptance and Continuance Risk Assessments,” Auditing: A Journal of
Practice & Theory, Vol. 21, No.2, September 2002, pp. 97-113.
Houston, Peters & Pratt, “The Audit Risk Model, Business Risk and Audit-Planning
Decisions, The Accounting Review , Vol. 74, No. 3, July 1999, pp. 281–298
Mock & Wright, “Are Audit Program Plans Risk-Adjusted?,” Auditing: A Journal of
Practice & Theory, Vol. 18, No. 1, Spring 1999, pp. 55-74
03. Sept 21, 2010
Continuous Audit and Digital Accounting
A. Vasarhelyi, Alles, & Williams , Continuous Assurance for the Now Economy,
Leadership Paper , Institute of Chartered Accountants of Australia, May 2010.
Presenter: _________Miklos__________
B. Alles, Kogan, & Vasarhelyi, “Feasibility and Economics of Continuous
Assurance,” Auditing: A Journal of Practice and Theory, March 2002, pp.125-138.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Vasarhelyi, Alles & Kogan, “Principles of Analytic Monitoring,” Journal of
emerging Technologies in Accouting, VOl. 1. No. 1, pp.1-23.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
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D. Kogan, A., Alles, M.G., Wu, J., Analytical Procedures for Continuous Data Level
Auditing: Continuity Equations, Working Paper, Continuous Audit and Reporting
Laboratory, Rutgers Business School, June 2010.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Alles, Michael, M. G. Brennan, Alexander Kogan, and Miklos Vasarhelyi.
“Continuous Monitoring of Business Process Controls: A Pilot Implementation of a
Continuous Auditing System at Siemens.” International Journal of Accounting
Information Systems 7.2. June 2006: 137-161.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Continuous Audit and digital Accounting: Additional references
Hodge & Maines, “Does Search-Facilitating technology Improve the Transparency of
Fiancial Reporting?,” The Accounting Review, VOl 79, No. 3, 2004, pp. 687-703.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Elliott & Jacobson, “The Evolution of the Knowledge Professional,” Accounting
Horizons, Vol 16, No. 1, March 2002, pp. 69-80.
Bowe, Kogan, Nelson, Srivastava & Vasarhelyi, “ Financial Reporting and Auditing
Agent with Net Knowledge (FRAANK) and eXtensible Business Reporting Language
(XBRL),” Journal of Information Systems, Vol.19, No.1, Spring 2005, pp.19-41.
Alles, Kogan & Vasarhelyi, “Who Guards the Guards? Restoring Auditor Credibility:
The Black Box Log File Proposal,” Working paper (July 2002), Rutgers Business
School.
Debreceny & Gray, “Embedded Audit Modules in Enterprise Resource Planning
Systems: Implementation and Functionality,” Journal of Information Systems, Vol.
19, No. 2, Fall 2005 pp. 7–27
04. Sept 28, 2010
Sarbanes Oxley
A. Kinney, “Twenty-Five Years of Audit Deregulation and Re-Regulation: What
Does it Mean for 2005 and Beyond?,” Auditing: A Journal of Practice & Theory,
Vol. 24, Supplement 2005, pp. 89–109
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Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Johnstone, Bedard & Biggs, “Aggressive Client reporting; Factors Affecting
Auditors’ Generation of Financial reporting Alternatives,” Auditing: A Journal of
Practice & Theory, Vol. 21, No. 1, March 2002.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Caney & Philipich, “Shredded reputation: The Cost of Audit Failure,” Auditing: A
Journal of Accounting Research September 2002, pp.1221-124
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Defond & Francis, “Audit Research after Sarbanes-Oxley,” Auditing: A Journal of
Practice & Theory, Vol. 24, Supplement 2005, pp. 5–30.
E. Charles, T, Shannon L., Steven M. Glover, and Nathan Y. Sharp The Association
between Financial Reporting Risk andAudit Fees before and after the Historic Events
Surrounding SOX, Auditing: A Journal of Practice & Theory, Vol. 21, No. 1, May
2010.
Sarbanes Oxley: Additional references
Sarbanes A Point Man on Corporate Change
Ge & McVay, “The Disclosure of Material Weaknesses in Internal Control after the
Sarbanes-Oxley Act,” Accounting Horizons, Vol.19, No.3, September 2005, pp. 137158
F. Lobo & Zhou, “Did Conservatism in Financial Reporting Increase after the
Sarbanes-Oxley Act? Initial Evidence,” Accounting Horizons, Vol. 20, No. 1, March
2006, pp. 57–73.
H. Leech & Gupta, “ Experiences with Implementing and Evaluating Section 404 of the
Sarbanes-Oxley Act of 2002”
05. Oct 05, 2010
Internal Controls
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A. Kinney, “Research Opportunities in Internal Control Quality and Quality
Assurance,” Auditing: A Journal of Practice and Theory, Vol 19, Supplement 2000.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Ashton, "An Experimental Study of Internal Control Judgments," Journal of
Accounting Research, Spring 1984, pp. 143-157.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Bedard, Hoitash & Hoitash, “SOX 302 Internal Controls Disclosures and Audit
Fees: The Case of Non-Accelerated Filers,” Working paper
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Biggs & Mock, "An Investigation of Auditor Decision Processes in the Evaluation
of Internal Controls and Audit Scope Decisions," Journal of Accounting Research
Spring 1983: 234-255.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Emby & Finley, “Debiasing Framing Effects in Auditors’ Internal Control
Judgments and testing Decisions,” AContemporary Accounting research, 2000.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
F. Bell, Knechel, Payne & Willingham, “An Empirical Investigation of the
Relationship Between the Computerization of Accounting Systems and the Incidence
and Size of Audit Differences,” Auditing: A Journal of Practice & Theory, Vol. 17.
No.1, Spring 1998, pp. 13-38.
G. Bierstaker, J. L., James E. Hunton, and Jay C. Thibodeau Do ClientPrepared Internal Control Documentation and Business Process Flowcharts
Help or Hinder an Auditor’s Ability to Identify Missing Controls? AJPT, May
2009.
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Internal Controls: Additional references
G. Ashbaugh-Skaife, Collins, Kinney & LaFond, “The Effect of Internal Control
Deficiencies on Firm Risk and Cost of Equity Capital,” Working Paper (2006)
H. Kinney, Botosan & Palmrose, “Do issuer benefits from mandated audits exceed audit firm fees?,”
Working Paper (2006)
I. Ettredge, Heintz, Li & Scholz, “Auditor Realignments Accompanying
Implementation of SOX 404 Reporting Requirements,” Working Paper (2006)
J. Internal Control Disclosures In Jan. 2005: The List, Compliance Week — February 8, 2005
Myers& Shakespeare, “Market Reactions to the Disclosure of
Internal Control Weaknesses and to the Characteristics of those Weaknesses under
Section 302 of the Sarbanes Oxley Act of 2002,” Working Paper (2005)
K. Hammersley,
L. Krishnan, “Audit Committee Quality and Internal Control: An Empirical
Analysis,” The Accounting Review, Vol.80, No.2, 2005, pp.649-675.
M. Jensen & Payne, “Management Trade-Offs of Internal Control and External
Auditor Expertise,” Auditing: A Journal of Practice & Theory, Vol. 22, No. 2,
September 2003, pp. 99-119.
N. Earley, Hoffman & Joe, “The Effect of Management’s Classification of Control
Deficiencies on Auditors’ Judgments Under PCAOB Auditing Standard Number 2,”
Working Paper (2006)
06. Oct. 12, 2010
Analytical Review / Analytical Methods
A. Chen & Leitch, “An Analysis of the Relative Power Characteristics of Analytical
Procedures,” Auditing: A Journal of Practice & Theory, Vol. 18, No. 2, Fall 1999,
pp.35-69
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Cohen, Krishnamoorthy & Wright, “Evidence on the Effect of Financial and
Nonfinancial Trends on Analytical Review,” Auditing: A Journal of Practice &
Theory, Vol. 19, No. 1, Spring 2000, pp. 27-48.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
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C. Church, McMillan & Schneider, “Factors Affecting Internal Auditors’
Consideration of Fraudulent Financial Reporting during Analytical Procedures,”
Auditing: A Journal of Practice & Theory,Vol. 20, No. 1, March 2001, pp.65-80.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Green & Trotman, “An Examination of Different Performance Outcomes in an
Analytical Procedures Task,” Auditing: A Journal of Practice & Theory, Vol. 22,
No.2, September 2003, pp.219-235.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. O’Donnell & Schultz, “The Influence of Business-Process-Focused Audit Support
Software on Analytical Procedures Judgments,” Auditing: A Journal of Practice &
Theory, Vol. 22, No. 2, September 2003, pp.265-279.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
F. Nigrini M. J.and Steven J. Miller Data Diagnostics Using Second-Order Tests of
Benford’s Law, AJPT November 2009.
Analytical Review / Analytical Methods: Additional references
Allen, Beasley & Branson, “ RESEARCH NOTES Improving Analytical Procedures:
A Case of Using Disaggregate Multilocation Data,” Auditing: A Journal of Practice
& Theory, Vol. 18, No. 2, Fall 1999, pp.128-142.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Leitch & Chen, “The Effectiveness of Expectation Models in Recognizing Error
Patterns and Generating and Eliminating Hypotheses While Conducting Analytical
Procedures,” Auditing: A Journal of Practice & Theory, Vol. 22, No. 2, September
2003, pp 147-170.
Glover, Jiambalvo & Kennedy, “Analytical Procedures and Audit-Planning
Decisions,” Auditing: A Journal of Practice & Theory, Vol. 19, No. 2, Fall 2000, 2745
Wilson & Glezen, “Regression Analysis in Auditing: A Comparison of Alternative
Investigation Rules,” Auditing: A Journal of Practice and Theory, Spring 1989, pp.
90-100.
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07. Oct. 19, 2010
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Evidence
A. Goodwin, “The Effects of Source Integrity and Consistency of Evidence on
Auditors’ Judgments,” Auditing: A Journal of Practice & Theory, Vol. 18, No. 2, Fall
1999
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Haynes, “Auditors’ Evaluation of Evidence Obtained Through Management
Inquiry: A Cascaded-Inference Approach,” Auditing: A Journal of Practice & Theory
Vol. 18, No. 2, Fall 1999
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Wilks, “Predecisional Distortion of Evidence as a Consequence of Real-Time
Audit Review,” The Accounting Review, Vol. 77, No. 1, January 2002, pp. 51–71
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Hilas & Ashton, “Audit Detection of Financial Statement Errors,” The Accounting
Review, October 1982, pp. 751-765.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Johnson, “Auditor Memory for Audit Evidence: Effects of Group Assistance, Time
Delay, and Memory Task,” Auditing: A Journal of Theory and Practice, Spring 1994,
pp. 36-56.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Evidence: Additional references
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Chaney & Philipich, “Shredded Reputation: The Cost of Audit Failure,” Journal of
Accounting Research, Vol. 40, No. 4, September 2002, pp. 1221-1245.
Haynes, “Auditors’ Evaluation of Evidence Obtained Through Management Inquiry:
A Cascaded-Inference Approach,” Auditing: A Journal of Practice & Theory, Vol. 18,
No. 2, Fall 1999, pp. 86-104
I. Mock & Wright, “Evaluating the Effectiveness of Audit Procedures,” Auditing: A
Journal of Theory and Practice, Fall 1982,pp. 33-44.
08. Oct. 26, 2010
Opinion
A. Bartov, Gul & Tsui, “Discretionary-accruals models and audit qualifications”,
Journal of Accounting and Economics, 30 , 2001, pp.421–452
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Carcello, Hermanson & Huss, “Going-Concern Opinions: The Effects of Partner
Compensation Plans and Client Size,” Auditing: A Journal of Practice & Theory, Vol.
19, No. 1, Spring 2000, pp. 67-77.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Chow & Rice, “Qualified Audit Opinions and Auditor Switching,” The
Accounting Review, Vol. 57, No.2, April 1982, pp.326-335.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Geiger & Raghunandan, “Auditor Tenure and Audit Reporting Failures,”,
Auditing: A Journal of Practice & Theory, Vol. 21, No. 1, March 2002, pp.67-78.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Geiger & Raghunandan, “RESEARCH NOTES Bankruptcies, Audit Reports, and
the Reform Act, Auditing: A Journal of Practice & Theory, Vol. 20, No. 1, March
2001, pp.187-195.
E. Feldmann D.A. and William J. Read Auditor Conservatism after Enron, AJPT May
2010
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Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Opinion: Additional references
F. Geiger & Raghunandan, “Going-concern Opinions in the “New” Legal
Environment”, Accounting Horizons, Vol.16, No.1, March 2002, pp.17-26.
G. Hasan, Roebuck & Simnett, “An Investigation of Alternative Report Formats for
Communicating Moderate Levels of Assurance”, Auditing: A Journal of Practice &
Theory, Vol. 22, No. 2, September 2003, pp.171-187.
H. Mutchler, Hopwood & McKeown, “The Influence Of Contrary Information And
Mitigating Factors On Audit Opinion Decisions On Bankrupt Companies,” Journal
of Accounting Research, Vol. 35, No.2, Autumn 1997, pp.295-310
I. Mutchler, “Auditors' Perceptions of the Going-Concern Opinion Decision,”
Auditing: A Journal of Theory and Practice, Spring 1984, pp. 17-30
09. Nov. 02, 2010
Auditing Markets
A. Jenkins & Haynes, “The Persuasiveness of Client Preferences: An Investigation of
the Impact of preference Timing and Client Credibility,” Auditing: A Journal of
practice & Theory, Vol.22, No.1, March 2003, pp. 143-154.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Raghunandan & Rama, “RESEARCH NOTES Auditor Resignations and the
Market for Audit Services,” Auditing: A Journal of Practice & Theory, Vol. 18, No.
1, Spring 1999.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Roberts, Glezen & Jones, “Determinants of Auditor Change In the Public sector,”
Journal of Accounting Research, Spring 1990, 220-228.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
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D. Gul, “RESEARCH NOTES Audit Prices, Product Differentiation and Economic
Equilibrium,” Auditing: A Journal of Practice & Theory, Vol. 18, No. 1, Spring 1999,
pp.90-100.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Auditing Markets: Additional references
E. DeAngelo, “Auditor Size and Audit Quality,” Journal of Accounting and
Economics, Dec. 1981: 183-200.
10. Nov 09, 2010
Materiality
A. Messier, Martinov-Bennie & Eilifsen, “A Review and Integration of Empirical
Research on Materiality: Two Decades Later,” Auditing: A Journal of Practice and
Theory, Vol. 24, No. 2, November 2005, pp. 153–187
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Whittington & Margheim, “The Effects of Risk, Materiality, and Assertion
Subjectivity on External Auditor Reliance on Internal Auditors,” Auditing: A Journal
of Practice and Theory, Vol.12, No.1, Spring 1993, pp. 50-64.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Stewart & Kinney , A General Unified Assurance and Component Materiality
Model for Group, Working Paper, 2010
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Loebbecke, Eining & Willingham, “Auditors' Experience with Material
Irregularities: Frequency, Nature and Detectability,” Auditing: A Journal of Practice
and Theory, Vol.9, No.1, Spring 1989, pp. 90-100.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
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E. Boritz & Zhang, “The Auditor’s Objectivity under a Negligence Liability System,”
Auditing: A Journal of Practice & Theory, Vol. 18, Supplement 1999.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Materiality: Additional references
C. Mayper, Doucet & Warren, “Auditors' Materiality Judgment of Internal
Accounting Control Weaknesses,” Auditing: A Journal of Practice and Theory, Vol.
9, No.1, Fall 1989, pp. 72-88.
F. Blokdijk, Drieenhuizen, Simunic & Stein, “Factors Affecting Auditors’
Assessments of Planning Materiality,” Auditing: A Journal of Practice & Theory,
Vol. 22, No. 2, September 2003, pp.297-307.
G.Patterson & Smith, “Materiality Uncertainty and Earnings Misstatement,” The
Accounting Review, Vol. 78, No. 3, 2003, pp.819-846
H. Tuttle, Coller & Plumlee, “The Effect of Misstatements on Decisions of Financial
Statement Users: An Experimental Investigation of Auditor Materiality Thresholds,”
Auditing: A Journal of Practice & Theory, Vol. 21, No.1, March 2002, pp.11-27.
11. Nov 16, 2010
Audit Practice Research
A. Davis & Weber, “The Impact of Advanced Computer Systems on Controls and
Audit Procedures,” Auditing: A Journal of Practice and Theory, Spring 1986, pp. 3549.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Loebbecke & Steinbart, “An Investigation of the Use of Preliminary Review to
Provide Substantive Audit Evidence,” Auditing: A Journal of Practice and Theory,
Spring 1987, pp.74-89.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Abbott, Parker, Peters & Raghunandan, “The Association between Audit
Committee Characteristics and Audit Fees,” Auditing: A Journal of Practice &
Theory, Vol. 22, No.2, September 2003, pp.17-32.
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Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Newton & Ashton, “The Association Between Audit Technology and Audit
Delay,” Auditing: A Journal of Practice and Theory, Supplement 1989, pp. 22-27.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Winograd, Gerson & Berlin, “PRACTICE NOTE Audit Practices of
PricewaterhouseCoopers,” Auditing: A Journal of Practice & Theory, Vol. 19, No. 2,
Fall 2000, pp. 175-182.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
Audit Practice: Additional references
F. Bamber & Iyer, “Big 5 Auditors’ Professional and Organizational Identification:
Consistency or Conflict?,” Auditing: A Journal of Practice & Theory, Vol.21, No.2,
September 2002, pp.21-38.
G. Francis, Maydew & Sparks, “The Role of Big 6 Auditors in the Credible Reporting
of Accruals,” Auditing: A Journal of Practice & Theory, Vol. 18, No. 2, Fall 1999,
pp. 17-34.
H. Street, “Large Firms Envision Worldwide Convergence of Standards,” Accounting
Horizons, Vol. 16, No.3, September 2002, pp.215-218
12. Nov 23, 2010
Legal & Org. Issues
A. Krishnan & Krishnan, “Litigation Risk And Auditor Resignations,” The
Accounting Review, Vol.72, No.4, October 1997, pp. 539- 560
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Palmrose, “Litigation and Independent Auditors: the Role of Business Failures and
Management Fraud,” Auditing: A Journal of Theory and Practice, Spring 1987, pp.
90-103.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
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C. Choo & Trotman, “The Relationship Between Knowledge Structure and
Judgments for Experienced and Inexperienced Auditors,” The Accounting Review,
Vol. 66, No.3, July 1991, pp 464-485.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Cushing & Gilbertson, Strategic Analysis of Securities Litigation against
Independent Auditor, AJPT, September 2002.
Legal and Organizational: Additional references
13. .Nov 30, 2010
Methodology
A. DeJong & Smith, “The Determination of Audit Responsibilities: an Application of
Agency Theory,” Auditing: A Journal of Theory and Practice, Fall 1984, pp.20-34
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Tucker & Matsumura, “Second-Partner Review: An Experimental Economics
Investigation,” Auditing: A Journal of Practice & Theory, Vol. 16, No.1, Spring1997,
pp.79- 98
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Dopuch, King & Wallin, “The Use of Experimental Markets in Auditing Research:
Some Initial Findings,” Auditing: A Journal of Practice and Theory, Vol.8,
Supplement 1989, pp. 98-127.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
D. Bedard, J.C. & Biggs, S. F. “Pattern Recognition, Hypotheses Generation, and
Auditor Performance in an Analytical Task,” The Accounting Review, Vol. 66, No. 3,
July 1991, pp. 622-642.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
E. Robertson, “A Defense of Extant Auditing Theory,” Auditing: A Journal of Theory
and Practice, Vol.3, No.2, Spring 1984, pp. 57-67.
Presenter: ___________________
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Discussant 1: _________________
Discussant 2: _________________
Methodology: Additional references
14. Dec 07, 2010
Auditor Technology
A. Graham, Damens & Van Ness, “Developing Risk advisor: An Expert System for
Risk Identification,” Auditing; A Journal of Practice & Theory, Vol. 10, No. 1, Spring
1991.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
B. Vasarhelyi & Halper, “The Continuous Audit of Online Systems,” Auditing : A
Journal of Practice & Theory, Spring 1991, Vol. 10, No. 1, pp. 110-125.
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
C. Koskivaara & Back, Artificial Neural Network assistant (ANNA) for Continuous
auditing and Monitoring of Financial data, JETA, xxxx
Auditor technology: Additional references
Presenter: ___________________
Discussant 1: _________________
Discussant 2: _________________
15. Dec. 14, 2010
Final Exam
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Other Readings
Kennedy,J, Peecher,Me, Judging Auditors' Technical Knowledge, Au, 97,
279, 293, Journal of Accounting Research
Melumad,Nd, Ziv ,A, A Theoretical Examination Of The Market Reaction To
Auditors Qualifications, Au, 97, 239, 256, Journal of Accounting Research
Dalton,Dr, Hill ,Jw, The Threat Of Litigation And Voluntary Partner/Manager
Turnover In Big Six Firms, Wi, 97, 379, 413, JAAP
Dopuch,N, King ,Rr, The Effects Of Lowballing On Audit Quality: An
Experimental Markets Study, Wi, 96, 45, 68, Jaaf
Bamber,Em, Watson,Rt, The Effects Of Group Support System Technology
On Audit Group Decision Making, Sp, 96, 122, 134, Aud
Fischer,Mj, , "Real-Izing" The Benefits Of New Technologies As A Source Of
Audit Evidence : An Interpretive Field Study, 02, 96, 219, 242, Aos
Iyer ,Vm, Iyer ,Gs, Effect Of Big 8 Mergers On Audit Fees: Evidence From
The United Kingdom, Fa, 96, 112, 132, Aud
Brackney,Ks, Helms ,Gl, A Survey Of Attestation Practices, Fa, 96, 85, 98,
Aud
Sikka ,P, Willmott,Hc, "The Power Of ""Independence"": Defending And
Extending The Jurisdiction Of Accounting In The United Kingdom", 08, 95,
547, 581, Aos
Luehlfing,Ms, Copley,Pa, An Examination Of The Relationship Between
Audit-Related Risks And The Second Partner Review, Wi, 95, 43, 50, Jaaf
Narayanan,Vg, , Moral Hazard In Repeated Professional Partnerships, Sp,
95, 895, 917, Car
Dye ,Ra, , Incorporation And The Audit Market, 02, 95, 75, 114, Jae
Koonce,L, Anderson,U, Justification Of Decisions In Auditing, Au, 95, 369,
384, Journal of Accounting Research
Moreland,Ka, , Criticisms Of Auditors And The Association Between Earning
And Returns Of Client Firms, Sp, 95, 94, 104, Aud
Johnstone,Dj, , Statistically Incoherent Hypothesis Testing In Auditing, Au,
95, 156, 175, Aud
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Wheeler, S & Pany, K., "Assessing the Performance of Analytical Procedures: A Best
Case Scenario, The Accounting Review," Vol. 65, No. 3, July 1990, pp. 557-577.
Pany & Smith, "Auditor Association with Quarterly Financial Information: An
Empirical Test," Journal of Accounting Research, Autumn 1982: 472-481.
Dye, R.A., Balachandran, B. V. & Magee, R. P., "Contingent Fees for Audit Work,"
Journal of Accounting Research," Vol. 28, No. 2 Autumn 1990, pp. 239-266.
Bell, T. B. & Tabor, R. H., "Empirical Analysis of Uncertainty Audit Qualifications,
“Journal of Accounting Research," Vol. 29, No. 2 Autumn 1991, pp. 350-370.
Johnson, Pany & White, "Audit Reports and the Loan Decision: Actions
and
Perceptions," Auditing: A Journal of Theory and Practice, Spring: 1983, 38-51.
Stillwell & Elliott, "A Model for Expanding the Attest Function, “Auditing: A
Journal of Theory and Practice, May 1985: 66-78.
Lowe, Geiger & Pany, The Effects of Internal Audit Outsourcing on Perceived
External Auditor Independence, Auditing: A Journal of Theory and Practice, Vol. 18,
Supplement:
Gul, Audit Prices, “Product Differentiation and Economic Equilibium,” Auditing: A
Journal of Theory and Practice, Spring 1999, pp. 90:100.
Raghunandan & Rama, Auditor Resignations and the Market for Audit Services,”
Auditing: A Journal of Theory and Practice, Spring 1999,
Johnstone, Bedard, & Biggs, “ Agressive Client Reporting: Factors Affecting
Auditors’ Generation of Financial Rreporting Alternatives,”.
Menzefricke & Smieliauskas, "A Survey of Simulation Studies in Statistical
Auditing," Journal of Accounting Literature, 1987: 26-54.
Fellingham, Newman & Patterson, "Sampling Information in Strategic Audit
Settings," Auditing: A Journal of Theory and Practice, Spring 1989, Volume 8, #2,
pp. 1-21.
Optional readings
VL chapters 7,8,9 & 10.
Other Readings Surveys
Bonner & Pennington, "Cognitive Processes and Knowledge as Determinants of
Auditor Expertise, " Journal of Accounting Literature, 1991: 1-50.
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Waller & Jiambalvo, "The Use of Normative Models in Human Information
Processing Research in Accounting," Journal of Accounting Literature, Spring 1984:
201-223.
Solomon, "Multi-Auditor Judgment/Decision Making Research", Journal of
Accounting Literature, 1987: 1-25.
Rodgers & Ho, "A Review of Accounting Research on Cognitive Characteristics,"
Journal of Accounting Literature, Vol. 12, 1993..
Libby & Lewis, "Human Information Processing Research in Accounting: The State
of the Art in 1982," Accounting, Organizations and Society, 1982: 231-286.
Scott, "The State of the Art of Academic Research in Auditing," Journal of
Accounting Literature, Spring 1984: 153-200.

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