7/28/2017 11:34 PM Version 4.0 1 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 miklosv@andromeda.rutgers.edu 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. 7/28/2017 11:34 PM Version 4.0 2 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 7/28/2017 11:34 PM 02. Sept 17, 2010 Version 4.0 3 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. 7/28/2017 11:34 PM Version 4.0 4 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: _________________ 7/28/2017 11:34 PM Version 4.0 5 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 7/28/2017 11:34 PM Version 4.0 6 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 7/28/2017 11:34 PM Version 4.0 7 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. 7/28/2017 11:34 PM Version 4.0 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: _________________ 8 7/28/2017 11:34 PM Version 4.0 9 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. 7/28/2017 10 11:34 PM 07. Oct. 19, 2010 Version 4.0 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 7/28/2017 11 11:34 PM Version 4.0 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 7/28/2017 12 11:34 PM Version 4.0 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: _________________ 7/28/2017 13 11:34 PM Version 4.0 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: _________________ 7/28/2017 14 11:34 PM Version 4.0 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. 7/28/2017 15 11:34 PM Version 4.0 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: _________________ 7/28/2017 16 11:34 PM Version 4.0 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: ___________________ 7/28/2017 17 11:34 PM Version 4.0 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 7/28/2017 18 11:34 PM Version 4.0 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 7/28/2017 19 11:34 PM Version 4.0 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. 7/28/2017 20 11:34 PM Version 4.0 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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