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Commentary on “The effect of an audit judgment rule on audit committee members’ professional skepticism: The case of accounting estimates” (Kang, Trotman, and Trotman)

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  • Vera-Muñoz, Sandra C.

Abstract

These discussant comments address the Kang, Trotman, and Trotman study on whether introducing an audit judgment rule – which is analogous to the business judgment rule applied to corporate officers and directors – and deploying innovative audit procedures affect audit committee members’ questioning on accounting estimates. I believe that the authors have identified a very relevant and timely topic for analysis. In addition, the authors have done a good job motivating the importance of the topic given the increasingly regulated post-Sarbanes-Oxley environment. In these comments, I attempt to place the Kang, Trotman, and Trotman study into context and facilitate generation of research ideas by others. My comments are divided into three sections: introduction, the evolving roles and responsibilities of audit committees and independent auditors, and comments on research design and some directions for future research.

Suggested Citation

  • Vera-Muñoz, Sandra C., 2015. "Commentary on “The effect of an audit judgment rule on audit committee members’ professional skepticism: The case of accounting estimates” (Kang, Trotman, and Trotman)," Accounting, Organizations and Society, Elsevier, vol. 46(C), pages 77-80.
    • Handle: RePEc:eee:aosoci:v:46:y:2015:i:c:p:77-80
    DOI: 10.1016/j.aos.2015.04.002
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    References listed on IDEAS

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    1. DeFond, Mark L., 2010. "How should the auditors be audited? Comparing the PCAOB Inspections with the AICPA Peer Reviews," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 104-108, February.
    2. Kang, Yoon Ju & Trotman, Andrew J. & Trotman, Ken T., 2015. "The effect of an Audit Judgment Rule on audit committee members’ professional skepticism: The case of accounting estimates," Accounting, Organizations and Society, Elsevier, vol. 46(C), pages 59-76.
    3. Abernathy, John L. & Barnes, Michael & Stefaniak, Chad, 2013. "A summary of 10 years of PCAOB research: What have we learned?," Journal of Accounting Literature, Elsevier, vol. 32(1), pages 30-60.
    4. Emily E. Griffith & Jacqueline S. Hammersley & Kathryn Kadous & Donald Young, 2015. "Auditor Mindsets and Audits of Complex Estimates," Journal of Accounting Research, Wiley Blackwell, vol. 53(1), pages 49-77, March.
    5. Peecher, Mark E. & Solomon, Ira & Trotman, Ken T., 2013. "An accountability framework for financial statement auditors and related research questions," Accounting, Organizations and Society, Elsevier, vol. 38(8), pages 596-620.
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