Do changes in audit actions and attitudes consistent with increased auditor scepticism deter aggressive earnings management? An experimental investigation
Author
Abstract
Suggested Citation
DOI: 10.1016/j.aos.2011.11.001
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Gary S. Becker, 1974.
"Crime and Punishment: An Economic Approach,"
NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54,
National Bureau of Economic Research, Inc.
- Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76(2), pages 169-169.
- Baiman, S & Evans, Jh & Noel, J, 1987. "Optimal-Contracts With A Utility-Maximizing Auditor," Journal of Accounting Research, Wiley Blackwell, vol. 25(2), pages 217-244.
- Peecher, Mark E. & Schwartz, Rachel & Solomon, Ira, 2007. "It's all about audit quality: Perspectives on strategic-systems auditing," Accounting, Organizations and Society, Elsevier, vol. 32(4-5), pages 463-485.
- Lawrence P. Kalbers & William J. Cenker, 2007. "Organizational commitment and auditors in public accounting," Managerial Auditing Journal, Emerald Group Publishing, vol. 22(4), pages 354-375, April.
- Knapp, Carol A. & Knapp, Michael C., 2001. "The effects of experience and explicit fraud risk assessment in detecting fraud with analytical procedures," Accounting, Organizations and Society, Elsevier, vol. 26(1), pages 25-37, January.
- Asare, S. K. & Wright, A., 1997. "Hypothesis revision strategies in conducting analytical procedures," Accounting, Organizations and Society, Elsevier, vol. 22(8), pages 737-755, November.
- Phillips, F, 1999. "Auditor attention to and judgments of aggressive financial reporting," Journal of Accounting Research, Wiley Blackwell, vol. 37(1), pages 167-189.
- Lance Lochner, 2007.
"Individual Perceptions of the Criminal Justice System,"
American Economic Review, American Economic Association, vol. 97(1), pages 444-460, March.
- Lance Lochner, 2003. "Individual Perceptions of the Criminal Justice System," NBER Working Papers 9474, National Bureau of Economic Research, Inc.
- Lance Lochner, 2005. "Individual Perceptions of the Criminal Justice System," 2005 Meeting Papers 452, Society for Economic Dynamics.
- Zimbelman, MF, 1997. "The effects of SAS no. 82 on auditors' attention to fraud risk factors and audit planning decisions," Journal of Accounting Research, Wiley Blackwell, vol. 35, pages 75-97.
- Fisher, Robert J, 1993. "Social Desirability Bias and the Validity of Indirect Questioning," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(2), pages 303-315, September.
- Bloomfield, R, 1999. "Discussion of an experimental investigation of auditor-auditee interaction under ambiguity," Journal of Accounting Research, Wiley Blackwell, vol. 37, pages 157-165.
- McCracken, Susan & Salterio, Steven E. & Gibbins, Michael, 2008. "Auditor-client management relationships and roles in negotiating financial reporting," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 362-383.
- Karl E. Weick & Kathleen M. Sutcliffe & David Obstfeld, 2005. "Organizing and the Process of Sensemaking," Organization Science, INFORMS, vol. 16(4), pages 409-421, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Dan Dacian Cuzdriorean, 2013. "Most Recent Findings In Earnings Management Area: Interesting Insights From Traditionally Top 5 Leading Accounting Journals," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-5.
- Madher E. Hamdallah & Salem Al-N’eimat & Anan F. Srouji & Manaf Al-Okaily & Khaldoon Albitar, 2022. "The Effect of Apparent and Intellectual Sustainability Independence on the Credibility Gap of the Accounting Information," Sustainability, MDPI, vol. 14(21), pages 1-22, November.
- Tim D. Bauer & Sean M. Hillison & Mark E. Peecher & Bradley Pomeroy, 2020. "Revising Audit Plans to Address Fraud Risk: A Case of “Do as I Advise, Not as I Do”?," Contemporary Accounting Research, John Wiley & Sons, vol. 37(4), pages 2558-2589, December.
- Marisa Agostini & Giovanni Favero, 2012. "Accounting fraud, business failure and creative auditing: A micro-analysis of the strange case of Sunbeam Corp," Working Papers 12, Venice School of Management - Department of Management, Università Ca' Foscari Venezia, revised Mar 2013.
- Sandeep Goel, 2014. "Creating Accounting Numbers Using Designed Choices: A Case Study of Indian Hotel Industry," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 29-35, September.
- Pantic, B., 2016. "Comparability of financial reports: A literature review of most recent studies," Working Papers 6451, Graduate School of Management, St. Petersburg State University.
- Kazunori Miwa & Satoshi Taguchi & Tatsushi Yamamoto, 2017. "Are IPOs “Overpriced?” Strategic Interactions between the Entrepreneur and the Underwriter," Discussion Paper Series DP2017-07, Research Institute for Economics & Business Administration, Kobe University.
- Pamela R. Murphy & Michael Wynes & Till‐Arne Hahn & Patricia G. Devine, 2020. "Why Are People Honest? Internal and External Motivations to Report Honestly†," Contemporary Accounting Research, John Wiley & Sons, vol. 37(2), pages 945-981, June.
- Bennett, G. Bradley & Hatfield, Richard C., 2018. "Staff auditors' proclivity for computer-mediated communication with clients and its effect on skeptical behavior," Accounting, Organizations and Society, Elsevier, vol. 68, pages 42-57.
- Florian Hoos & Jorien Louise Pruijssers & Michel W. Lander, 2019. "Who’s Watching? Accountability in Different Audit Regimes and the Effects on Auditors’ Professional Skepticism," Journal of Business Ethics, Springer, vol. 156(2), pages 563-575, May.
- Takahiro Endo & Nidhi Srinivas & Yuki Tsuboyama, 2017. "The Role of Meta-organising in Legitimacy Recovery: The Case of Frozen Food Category in Japan," Discussion Paper Series DP2017-10, Research Institute for Economics & Business Administration, Kobe University.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Marisa Agostini & Giovanni Favero, 2012. "Accounting fraud, business failure and creative auditing: A micro-analysis of the strange case of Sunbeam Corp," Working Papers 12, Venice School of Management - Department of Management, Università Ca' Foscari Venezia, revised Mar 2013.
- Luippold, Benjamin L. & Kida, Thomas & Piercey, M. David & Smith, James F., 2015. "Managing audits to manage earnings: The impact of diversions on an auditor’s detection of earnings management," Accounting, Organizations and Society, Elsevier, vol. 41(C), pages 39-54.
- Blesse, Sebastian & Diegmann, André, 2022. "The place-based effects of police stations on crime: Evidence from station closures," Journal of Public Economics, Elsevier, vol. 207(C).
- Justina A.V. Fischer, 2005. "The Impact of Direct Democracy on Crime: Is the Median Voter Boundedly Rational?," University of St. Gallen Department of Economics working paper series 2005 2005-14, Department of Economics, University of St. Gallen.
- Gerlinde Fellner & Rupert Sausgruber & Christian Traxler, 2013.
"Testing Enforcement Strategies In The Field: Threat, Moral Appeal And Social Information,"
Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 634-660, June.
- Gerlinde Fellner & Rupert Sausgruber & Christian Traxler, 2009. "Testing Enforcement Strategies in the Field: Legal Threat, Moral Appeal and Social Information," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2009_31, Max Planck Institute for Research on Collective Goods.
- Gerlinde Fellner & Rupert Sausgruber & Christian Traxler, 2009. "Testing Enforcement Strategies in the Field: Legal Threat, Moral Appeal and Social Information," CESifo Working Paper Series 2787, CESifo.
- Philip A. Curry & Anindya Sen & George Orlov, 2016.
"Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces,"
Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(2), pages 481-514, May.
- Philip A. Curry & Anindya Sen & George Orlov, 2016. "Crime, apprehension and clearance rates: Panel data evidence from Canadian provinces," Canadian Journal of Economics, Canadian Economics Association, vol. 49(2), pages 481-514, May.
- Lisa R. Anderson & Gregory DeAngelo & Winand Emons & Beth Freeborn & Hannes Lang, 2017.
"Penalty Structures And Deterrence In A Two-Stage Model: Experimental Evidence,"
Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1833-1867, October.
- Emons, Winand & Anderson, Lisa R. & Freeborn, Beth & Lang, Jan, 2015. "Penalty Structures and Deterrence in a Two-Stage Model: Experimental Evidence," CEPR Discussion Papers 10576, C.E.P.R. Discussion Papers.
- Lisa R. Anderson & Gregory DeAngelo & Winand Emons & Beth Freeborn & Hannes Lang, 2015. "Penalty Structures and Deterrence in a Two-Stage Model: Experimental Evidence," Diskussionsschriften dp1505, Universitaet Bern, Departement Volkswirtschaft.
- Thomas J. Miceli & Kathleen Segerson & Dietrich Earnhart, 2022. "The role of experience in deterring crime: A theory of specific versus general deterrence," Economic Inquiry, Western Economic Association International, vol. 60(4), pages 1833-1853, October.
- Dorfleitner, Gregor & Kreuzer, Christian & Sparrer, Christian, 2022. "To sin in secret is no sin at all: On the linkage of policy, society, culture, and firm characteristics with corporate scandals," Journal of Economic Behavior & Organization, Elsevier, vol. 202(C), pages 762-784.
- Gider, Jasmin, 2014. "Do SEC Detections Deter Insider Trading? Evidence from Earnings Announcements," VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100343, Verein für Socialpolitik / German Economic Association.
- Giovanni Mastrobuoni & David A Rivers, 2019.
"Optimising Criminal Behaviour and the Disutility of Prison,"
The Economic Journal, Royal Economic Society, vol. 129(619), pages 1364-1399.
- Mastrobuoni, Giovanni & Rivers, David A., 2017. "Optimizing Criminal Behavior and the Disutility of Prison," IZA Discussion Papers 10796, Institute of Labor Economics (IZA).
- Giovanni Mastrobuoni & David A. Rivers, 2018. "Optimizing Criminal Behaviour and the Disutility of Prison," Carlo Alberto Notebooks 578, Collegio Carlo Alberto.
- Campaniello, Nadia & Gavrilova, Evelina, 2018.
"Uncovering the gender participation gap in crime,"
European Economic Review, Elsevier, vol. 109(C), pages 289-304.
- Campaniello, N & Gavrilova, E, 2017. "Uncovering the Gender Participation Gap in Crime," Economics Discussion Papers 18833, University of Essex, Department of Economics.
- Blesse, Sebastian & Diegmann, André, 2019.
"Police reorganization and crime: Evidence from police station closures,"
Working Papers
07/2019, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung.
- Blesse, Sebastian & Diegmann, André, 2019. "Police reorganization and crime: Evidence from police station closures," ZEW Discussion Papers 18-044, ZEW - Leibniz Centre for European Economic Research, revised 2019.
- Entorf, Horst, 2012. "Expected recidivism among young offenders: Comparing specific deterrence under juvenile and adult criminal law," European Journal of Political Economy, Elsevier, vol. 28(4), pages 414-429.
- Entorf, Horst, 2011.
"Turning 18: What a Difference Application of Adult Criminal Law Makes,"
IZA Discussion Papers
5434, Institute of Labor Economics (IZA).
- Entorf, Horst, 2011. "Turning 18: What a Difference Application of Adult Criminal Law Makes," MPRA Paper 29811, University Library of Munich, Germany.
- Arzhenovskiy S.V. & Bakhteev A.V. & Sinyavskaya T.G. & Hahonova N.N., 2019. "Audit Risk Assessment Model," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 74-85.
- Michael Arnold & Éric Darmon & Sylvain Dejean & Thierry Pénard, 2014.
"Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-strike (Hadopi) Law,"
Economics Working Paper Archive (University of Rennes & University of Caen)
201401, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
- Michael Arnold & Eric Darmon & Sylvain Dejean & Thierry Penard, 2014. "Graduated Response Policy and the Behavior of Digital Pirates: Evidence from the French Three-Strike (Hadopi) Law," Working Papers 14-07, University of Delaware, Department of Economics.
- Brian Bell & Stephen Machin, 2013. "Immigration and crime," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 19, pages 353-372, Edward Elgar Publishing.
- Florian Baumann & Tim Friehe, 2013.
"Cheap Talk About The Detection Probability,"
International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-16.
- Baumann, Florian & Friehe, Tim, 2013. "Cheap talk about the detection probability," DICE Discussion Papers 90, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
- William Kerler & Larry Killough, 2009. "The Effects of Satisfaction with a Client’s Management During a Prior Audit Engagement, Trust, and Moral Reasoning on Auditors’ Perceived Risk of Management Fraud," Journal of Business Ethics, Springer, vol. 85(2), pages 109-136, March.
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:aosoci:v:37:y:2012:i:2:p:95-115. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/aos .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.