Download or read book Understanding Auditor Decision Behavior in Different Going Concern Task Settings written by Andrew J. Rosman and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The going-concern decision is studied within a framework that varies task settings. Using an interactive computer process-tracing method, experienced auditors from four Big 6 firms examined cases based on real data that differed in financial health (bankrupt and nonbankrupt) and stage of organizational development (start-up and mature). They made judgments about each entity's ability to continue as a going concern and if they had substantial doubt about continued existence, they listed evidence they would seek as mitigating factors. There are six principal findings. First, problem representations and information acquisition were sensitive to differences in task settings. Second, mitigating factors generally remained constant across settings. Third, auditors' behavior reflected configural processing in the presence of audit settings that differed on multiple dimensions. Without the computer process-tracing method used in this study, this configural processing may not have been detected. Fourth, categorizing information into financial and nonfinancial dimensions was critical to understanding how auditors problem representations differed across settings. Fifth, Type I errors (determining that a health company is a going-concern problem) differed from correct judgments in terms of information acquisition, although Type II errors (determining that a problem company is viable) did not. This finding may indicate that Type II errors are primarily due to deficiencies in other stages of processing, such as evaluation. Finally, accurate performance in the going-concern task was found to be related to acquiring fewer information cues, proportionately more liquidity information, and nonfinancial information earlier in the process.
Download or read book The Effect of Stage of Development and Financial Health on Auditor Decision Behavior in the Going Concern Task written by Andrew J. Rosman and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The effect of different task settings within an industry on auditor behavior is examined for the going-concern task. Using an interactive computer process-tracing method, experienced auditors from four Big 6 accounting firms examined cases based on real data that differed on two dimensions of task settings: stage of organizational development (start-up and mature) and financial health (bankrupt and nonbankrupt). Auditors made judgments about each entity?s ability to continue as a going concern and, if they had substantial doubt about continued existence, they listed evidence they would seek as mitigating factors. There are seven principal results. First, information acquisition and, by inference, problem representations were sensitive to differences in task settings. Second, financial mitigating factors dominated nonfinancial mitigating factors in both start-up and mature settings. Third, auditors? behavior reflected configural processing. Fourth, categorizing information into financial and nonfinancial dimensions was critical to understanding how auditors? information acquisition and, by inference, problem representations differed across settings. Fifth, Type I errors (determining that a healthy company is a going-concern problem) differed from correct judgments in terms of information acquisition, although Type II errors (determining that a problem company is viable) did not. This may indicate that Type II errors are primarily due to deficiencies in other stages of processing, such as evaluation. Sixth, auditors who were more accurate tended to follow flexible strategies for financial information acquisition. Finally, accurate performance in the going-concern task was found to be related to acquiring (1) fewer information cues, (2) proportionately more liquidity information and (3) nonfinancial information earlier in the process.
Download or read book Auditor Going Concern Reporting written by Marshall A. Geiger and published by Routledge. This book was released on 2021-06-09 with total page 160 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditor reporting on going-concern-related uncertainties remains one of the most challenging issues faced by external auditors. Business owners, market participants and audit regulators want an early warning of impending business failure. However, companies typically do not welcome audit opinions indicating uncertainty regarding their future viability. Thus, the auditor’s decision to issue a "going concern opinion" (GCO) is a complex and multi-layered one, facing a great deal of tension. Given such a rich context, academic researchers have examined many facets related to an auditor’s decision to issue a GCO. This monograph reviews and synthesizes 182 recent GCO studies that have appeared since the last significant review published in 2013 through the end of 2019. The authors categorize studies into the three broad areas of GCO: (1) determinants, (2) accuracy and (3) consequences. As an integral part of their synthesis, they summarize the details of each study in several user-friendly tables. After discussing and synthesizing the research, they present a discussion of opportunities for future research, including issues created or exacerbated as a result of the global COVID-19 pandemic. This monograph will be of assistance to researchers interested in exploring this area of auditor responsibility. It will also be of interest to auditing firms and individual practitioners wanting to learn what academic research has examined and found regarding this challenging aspect of audit practice. Auditing standard-setters and regulators will find it of interest as the authors review numerous studies examining issues related to audit policy and regulation, and their effects on GCO decisions. The examination of GCO research is extremely timely given the financial and business disruption caused by the worldwide COVID-19 pandemic. This unprecedented global event has caused companies, auditors and professional bodies to revisit and reassess their approach to going concern, and to think even more deeply about this fundamental business imperative.
Download or read book The Auditors Going Concern Opinion Decision written by Stephen Kwaku Asare and published by . This book was released on 1990 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Understanding Auditor client Relationships written by Gary Kleinman and published by Gary Kleinman. This book was released on 2001 with total page 137 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work is intended to assist researchers, regulators, and practitioners who are interested in the topic of auditor independence. It presents a comprehensive model of the individual, work place, organization, inter-organizational, and organizational field level determinants of the topic.
Download or read book Strategic Auditor Behavior and Going Concern Decisions written by Ella Mae Matsumura and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes a game theoretic model in which a client can potentially avoid a going concern opinion and its self fulfilling prophecy by switching auditors. Incumbent auditors are less willing to express a going concern opinion the more credible the client's threat of dismissal and the stronger the self fulfilling prophecy effect. Similarly, the client is more willing to switch auditors the more likely it is that auditors' reporting judgments will differ and the stronger the self fulfilling prophecy effect. Further, with greater noise in the auditor's forecast of client viability, the auditor tends to express fewer going concern opinions.
Download or read book Audit Reporting for Going Concern Uncertainty written by Sandro Brunelli and published by Springer. This book was released on 2018-02-07 with total page 105 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book employs a narrative analytical approach to explore all aspects of the debate surrounding auditor reporting on going concern uncertainty worldwide. In-depth analysis of significant academic studies and of regulatory perspectives is combined with an illuminating empirical study in the Italian context. The book opens by discussing the assessment of going concern for accounting and auditing purposes. It is examined how going concern is considered in the FASB and IASB accounting standards and how auditors in the PCAOB and IAASB environments should verify its presence in financial statements and report on it in the audit report. Accounting and auditing in relation to going concern in other jurisdictions are also addressed. Research into the determinants, accuracy, and consequences of going concern opinions (GCO) is then thoroughly reviewed, with separate examination of studies and trends in the United States, Europe, and the rest of the world. In the third part of the book, interesting evidence from the Italian Stock Market, including investor reactions to GCOs during the period 2008–2014, is presented and evaluated. The book will be of interest to academics, regulators, and practitioners alike.
Download or read book Judgment and Decision Making Research in Accounting and Auditing written by Robert H. Ashton and published by Cambridge University Press. This book was released on 1995-09-29 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: A timely and comprehensive study on behavioural decision-making within the field of accounting.
Download or read book A Multivariate Analysis of Auditor Decision Making in the Presence of Going concern Uncertainties written by Jane Frances Mutchler and published by . This book was released on 1983 with total page 221 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A further investigation of the effects of task variables on the auditor s going concern decision process written by Michael Edward Bitter and published by . This book was released on 1996 with total page 141 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Auditor s Going concern Opinion written by Ann Vanstraelen and published by . This book was released on 2000 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Journal of Accounting Research written by and published by . This book was released on 1997 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt: Proceedings of the 9th- Annual conference on research in accounting, held at the University of Chicago.
Download or read book The Effects of Performing Other Audit Tasks on Going Concern Judgements written by Stephen E. Rau and published by . This book was released on 1997 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Auditing written by Lawrence A. Ponemon and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book has been prepared for those readers who want to maintain their knowledge of current developments in the field of behavioral research as applied to auditing. The articles and papers presented in this volume were selected because they will contribute to the knowledge and advancement of not only the individual researcher or educator, but also of the profession. It is our belief that if research endeavors may be viewed as having stages of life, then the field of behavioral research in auditing is in its genesis. Almost twenty years ago, in speaking of the state of the art of psychology, William Hays expressed a most·appropriate thought: Experimental evidence is accumulating at a rapid rate in psychology, and efforts at constructing psychological theories with mathematical deductive power are constantly being made. However, it seems safe to say that it will be sometime before there are psychological laws and theories on a par with those of physics. The absence of a general theory does not imply that those relations are missing or unhpportant in psychology; the discovery and specification of relations is the process by which those theories are built. (Hays, 1973, p. 40.) In the first chapter, "Experimental Research and the Distinctive Features of Accounting Settings," Robert Libby presents an encompassing and knowledgeable summary of the changes that have taken place during the last decade in human information processing research in accounting and experimental economics as it relates to those issues.
Download or read book A Multivariate Analysis of the Auditor s Going concern Opinion Decision written by Jane Frances Mutchler and published by . This book was released on 1984 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Multivariate Analysis of Auditor Decision Making in the Presence of Going concern Uncertainies written by Jane F. Mutchler and published by . This book was released on 1983 with total page 442 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Behavior of Assurance Professionals written by Olof P. G. Bik and published by Eburon Uitgeverij B.V.. This book was released on 2010 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt: The complexity of human behavior challenges our explanatory powers. Yet, in this day and age we desperately try to manage and control the behavior of our corporate citizens through rules, codes, systems and procedures alike. This study is an illustration that true human behavior cannot simply be controlled by (more of) such rules. Instead, it is driven by many psychological, cultural, contextual, and environmental factors. The focus of this study is the influence of cross-national cultural differences in the context of the professional behavior of auditors, based on the central question: Is auditors' professional behavior affected by crossnational cultural differences, and, if so, how? Being based on grounded theory, in part validated within an international accounting organization, this study is the first to provide a more profound, in-depth, and contextualized analysis and understanding of the effect of cross-national cultural differences on the behavior of professionals in general, and that of auditors in particular.
