... association between air pollution and misstatements in annual financial reports. Moreover, we find this association using a subsample where auditors must travel a significant distance to their client’s headquarters and accordingly, are more likely to be exposed to a change in air pollution. Finally, our main...

... data on individual IAF employees, we document that IAF experience, education, and size are associated with higher financial reporting quality. Specifically, we find that IAF competency is inversely associated with the propensity for material weaknesses and misstatements. We further document that firms...

... quality. ¹⁰ tax nonaudit services audit quality misstatements This study uses a unique hand-collected dataset to examine how auditor-provided tax planning and tax compliance nonaudit services (NAS), two distinct types of tax NAS that auditors offer to their audit clients...

... 12 2021 2022 auditor risk assessment confirmation bias heuristics misstatements Wason (1960) indicates that individuals have a tendency to search for and interpret new information in ways that confirm their preconceptions. Consistent with confirmation bias affecting auditors...

..., the percentages applied to overall materiality for determining tolerable misstatement, and what constitutes a clearly trivial misstatement. We also find that the firms' guidance for evaluating detected misstatements, including qualitative factors and firm guidance for group audits, is consistent across firms...

...Thomas C. Omer; Marjorie K. Shelley; Anne M. Thompson SUMMARY This study examines investors' response to the disclosure of prior-period waived misstatements under Staff Accounting Bulletin (SAB) No. 108, Considering the Effects of Prior Year Misstatements When Quantifying Misstatements...