Browsing by Subject "Auditing"
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Item A study of published audit reports(Texas Tech University, 1957-08) Austin, Walter GeorgeNot availableItem A study of the auditor's contemporary legal hazards and remedial action(Texas Tech University, 1970-05) Samson, James EdwardNot availableItem A survey and comparison of bank internal auditing practices in the Philippines and the state of Texas(Texas Tech University, 1966-05) Tipgos, Mamuel AtendidoNot availableItem An analysis of the effect of the expectation gap statements on auditing standards on the reporting of going concern(Texas Tech University, 1993-05) Franz, Diana RuthIn 1988, auditors' responsibility for evaluating and reporting on material uncertainties, including going concern, was changed by the issuance of nine Statements on Auditing Standards (SAS). These statements are referred to as the expectation gap (EG) SAS and were promulgated to reduce the gap between public expectations of auditors' responsibility and auditors' service level in providing assurance that financial reporting is in accordance with generally accepted accounting principles. This research studied the impact of the EG SAS requirements on the financial reporting of entities. Two sub-periods were used for statistical comparisons. The first, or pre-EG SAS period, began with the previous guidance and extended to the transition period when the EG SAS had been issued but were not required guidance. The second sub-period included the transition to the post period, when use of the EG SAS became a requirement. In addition, the overall change from the pre- to the post-EG SAS period was examined.Item An empirical evaluation and extension of the postaudit of capital expenditures.(Texas Tech University, 1974-12) Dillon, Ray DNot availableItem An empirical study of audit problems encountered with small business engagements(Texas Tech University, 1981-08) Raiborn, Debra DNot availableItem An empirical study of audit sampling problems(Texas Tech University, 1986-08) Tatum, Kay WardStatement on Auditing Standards (SAS) No. 39 "Audit Sampling" was issued in June 1981. Several events associated with its issuance suggested that auditors possibly were experiencing various problems implementing its requirements. The specific objectives of this study were to: 1. Determine the major audit sampling problems in current audits based on frequency of occurrence 2. Determine if the frequency of audit sampling problems was related to a statistical versus a nonstatistical approach or a high versus low level of continuing professional education (CPE) 3. Determine if the frequency of audit sampling problems in current and past audits was different 4. Determine the nature and extent of audit sampling methods in current audits 5. Compare the frequency of audit sampling problems and methods in compliance and substantive tests 6. Determine the effect of the SAS No. 39 requirements on the audit process. There were 1,988 public accounting firms surveyed. This population was divided into four strata: largest firms, other large firms. Division firms, and other small firms. Data analysis included descriptive statistics and t-tests. Survey results relative to each objective were: 1. Eight (fourteen) considerations and procedures performed in compliance (substantive) tests were determined to be major problems. 2. Frequencies of problems were significantly greater for the largest firms using a nonstatistical approach and the other small firms providing a high level of CPE to their audit staffs. 3. Frequency of problems in current audits decreased significantly for the largest and other small firms. 4. Within a stratum the firms' approaches to testing were fairly consistent across various categories of compliance and substantive tests. The least amount of audit sampling was reported by the other large firms. The amount of statistical sampling was about the same for all strata. 5. The frequencies of audit sampling in compliance and substantive tests were not significantly different. The frequency of statistical methods was significantly greater in compliance than substantive tests. 6. The firms changed their audit processes to incorporate the SAS No. 39 requirements by modifying their audit sampling definitions and approaches, increasing audit sampling, and increasing audit sampling documentation.Item Can strategic reasoning prompts improve auditors' sensitivity to fraud risk?(2008-08) Bowlin, Kendall Owen; Kachelmeier, Steven J. (Steven John), 1958-The basic premise of risk-based auditing is that more (fewer) audit resources should be allocated to accounts that are more (less) likely to be misstated. However, financial reporting managers can exploit such allocations by intentionally misstating balances that are less likely to draw auditor attention. If auditors do not recognize this strategic implication of risk-based auditing, undetected misstatements among ostensibly low-risk accounts could be much more common than traditional risk assessment procedures suggest. The purpose of this study is to examine whether prompting auditors to form beliefs about managers’ expectations of, and responses to, audit strategies can enhance auditors’ sensitivity to the strategic risk of fraud among accounts typically considered low-risk. Using a multi-account audit game, I find that auditors do not naturally attune to strategic risks but instead tend to focus resources on “highrisk” accounts. However, when auditors are prompted to reason strategically, they utilize more resources and devote that increase almost entirely to “low-risk” accounts. I also find that, although increasing available resources does result in an overall increase in the amount of utilized resources, the relative effect of the strategic prompt is robust to the level of available audit resources.Item Communication in auditing:: an examination of investors' understanding of the auditor's report(Texas Tech University, 1976-12) Barnett, Andrew Horn,Not availableItem Earnings Management Pressure on Audit Clients: Auditor Response to Analyst Forecast Signals(2013-06-26) Newton, Nathan J.This study investigates whether auditors respond to earnings management pressure created by analyst forecasts. Analyst forecasts create an important earnings target for management, and professional standards direct auditors to consider how this pressure could affect their clients. Using annual analyst forecasts available during the planning phase of the audit, I examine whether this form of earnings management pressure affects clients? financial statement misstatements. Next, I investigate whether auditors respond to earnings forecast pressure through audit fees and reporting delay. I find that higher levels of analyst forecast pressure increase the likelihood of client restatement. I also find that auditors charge higher audit fees and delay the issuance of the audit report in response to pressure from analyst expectations. Finally, I find that when audit clients are subject to high analyst forecast pressure, a high audit fee response by auditors mitigates the likelihood of client misstatements.Item Earnings Management: do the type of GAAP, persuasive client explanation, and SEC notification influence the auditors' decisions?(Texas Tech University, 2003-08) Segovia, Joann RWhile many researchers have examined earnings management and the firm's motivation to manage earnings, few researchers have examined the role of auditors in potentially approving earnings management. Several factors influence the auditors' subjective judgment in evaluating the interpretation of generally accepted accounting principles (GAAP) by client management who may have incentives that bias the interpretation of GAAP to achieve target earnings. This study provides evidence that existing standards may actually facilitate earnings management. In addition, the conflicting influence of the client and the Securities Exchange Commission affect the auditors' decision making and interpretation of GAAP. These issues were examined by providing auditors with a research instrument that required them to assess an accounting transaction that is used to manage earnings and determine the appropriate amount of expense. Three variables of interest were manipulated in this study: (1) the type of GAAP, (2) management explanation, and (3) the SEC notification of potential investigation due to earnings management. The client desired additional expenses in the current year to offset higher than expected revenues from a new product. The type of GAAP was operationalized as (I) a write-down of impaired assets which reflects a broad financial accounting standard and (2) the expensing of additional supplies that were acquired but unused which reflects a strict accounting principle, matching. Management explanation was operationalized as (1) a high persuasive explanation to record a large amount of loss or expense to achieve analysts' projections of earnings and (2) a low persuasive explanation to achieve steady long-term growth in earnings and fair presentation within the financial statements. The potential conflicting influence of the SEC was operationalized by the absence or presence of the January 22, 1999 notification of the SEC's intent to audit the financial statements due to asset write-downs, restructuring activities, or acquired in-process research and development.Item The effects of group affiliation and expectation formation on judgment skepticism : implications for auditing(2004-05) Geisler, Charlene See, 1972-; Kachelmeier, Steven J. (Steven John), 1958-; Hales, Jeffrey W.Accounting researchers and regulators have often debated the issue of auditor rotation, and, specifically, the possibilities of auditors becoming too close to their clients. There has been less discussion, however, on the notion that auditors could also compromise their professional skepticism over time because of over-reliance on their own firms’ prior decisions in repeat engagements. The impact of prior judgments on judgment skepticism could depend on whether the prior judgments are associated with an affiliated or a competitive source and on whether an independent expectation is formed before viewing these prior judgments. Affiliated prior-year judgments could promote an in-group bias that leads current-year auditors to overweight prior judgments made by own-firm auditors and/or to increase their confidence in their own judgments. This in turn may lead to ineffective audits. However, in-group bias can potentially be mitigated if auditors form explicit expectations prior to reviewing prior-year work. This study uses an experiment to examine the conditions under and degree to which in-group bias exists and how it affects individuals’ use of information (i.e., the extent of judgment disagreement) and confidence in judgments. Results indicate that although group affiliation does not significantly influence judgment disagreement, it does affect self-reported confidence in judgments. Conversely, the forming of prior expectations increases judgment disagreement, but does not influence confidence. I explore the implications of these results for auditing.Item Essays on certification mechanism design in strategic communications(2010-08) Xu, Hong, doctor of information, risk, and operations management; Stinchcombe, Maxwell; Whinston, Andrew B.; Mote, John; Wiseman, Thomas; Gu, BinCertifiers have a crucial role in facilitating effective communication in the online and the traditional world. As a way of generating statistically meaningful information, certification has been adopted in financial statements evaluation and more recently in various online communities as well. This dissertation examines three related issues along this common theme: online reputation market, moderation in user-generated content, and strategic communications in the market for certifications, and consists of three essays. The first essay analyzes the impact of various dispute mechanisms on online identity trading. Online identities with a good reputation profile is a valuable and tradable asset. However, with free identity creation, there is room for low quality sellers to free-ride high quality sellers. When there is a lack of incentive for sellers to maintain a good reputation, identity trading becomes ineffective. This essay focuses on the role of an auditing system, such as eBay dispute center, and shows that even a small amount of objective information from the auditors can reverse the negative result and sustain reliable reputation and identity trading. The second essay investigates the impact of moderation on the quality of information in an user-generated content (UGC) environment. In most UGC communities, content contributors have incentive to publish biased or false information. For example, companies hire people to write positive reviews about themselves. This essay establishes a framework for the mechanism design of moderation, and provides insight on how to optimally allocate moderation resource. The third essay examines a market for certification and certifiers' strategic reporting behaviors. The central question is how to induce certifiers to provide statistically meaningful information to investors when they are paid by their client firms. We provide insights on how certifier competition plays an role in firms' certifier choice, how certifiers degrade their accuracies to achieve maximum profit, and how the legal environment impacts the information quality.Item Evaluation of the significance of accounting and administrative controls to the independent auditor(Texas Tech University, 1969-08) Villegas, Rafael M.Not availableItem Interim Reports: A Study of the Necessity and the Frequency of Interim Financial Reports(Texas Tech University, 1960-05) Hagstrom, MarkNot Available.Item Performance auditing and program evaluation in government: Saudi Arabia as a field of application(Texas Tech University, 1978-08) Jadallah, Salih MahmoudNot availableItem Some practices in college and university internal auditing(Texas Tech University, 1961-08) Price, RobertNot availableItem The application of statistical sampling techniques to the field of auditing(Texas Tech University, 1960-08) Stevens, Elmer GlennNot availableItem The effects of auditors' reports on internal accounting controls upon investment analyses made by financial analysts and bank loan officers: an empirical study(Texas Tech University, 1980-12) Boyett, Arthur SNot availableItem The historical development of the short-form report(Texas Tech University, 1951-01) Conine, Milton RNot available