..., Fisher School of Accounting, Gainesville, FL, USA. Editor's note: Accepted by Jacqueline S. Hammersley, under the Senior Editorship of Mary E. Barth. 1 10 2019 1 2 2022 2022 audit effort audit adjustments auditor independence mental accounting information choice audit...

...Clive S. Lennox; Xi Wu ABSTRACT This study examines whether audit adjustments are a mechanism that links the effect of mandatory internal control audits (MICAs) on financial reporting quality. We argue that the requirement for auditors to publicly disclose internal control weaknesses exacerbated...

.... There is little prior research on the effect of audit adjustments in nonprofit settings and conflicting research on how auditors react to management's incentives to misreport. We identify potential financial statement areas at risk of manipulation based on incentives specific to public housing authorities. Using...