This monograph is not intended to constitute an exhaustive coverage of all of the policies and procedures comprising KPMG's full audit process, and how it comports with generally accepted auditing standards.
This paper has two purposes. The first is to present hypotheses generated by joining two foundation theories of decision-making. The first foundation theory is the mental model theory, which has its roots in cognitive psychology (Johnson-Laird 1983). The theory posits that individuals make inferences by constructing and integrating mental models, which are… (More)
In this study, we investigate whether audit managers' assessment of the quality of work their subordinates perform is influenced by the man-agers' prior impressions of these subordinates, and whether managers whom the firm considers outstanding are less susceptible to such an effect. We conduct an experiment using actual audit senior-manager teams. Each… (More)
Shaker Zahra for their support and assistance throughout this project. I thank audit professionals from the four international accounting firms for participating in this study. I appreciate the valuable comments provided Abstract Auditing firms have been developing and implementing business risk-based audit approaches Schultz 2003 a, b). Such approaches… (More)
We examine the stock market reaction to emerging news about the role of Arthur Andersen LLP in Enron's financial collapse. We find evidence consistent with an impairment of the insurance value of Andersen's audits starting as early as October 2001. Starting shortly before Andersen's January 10, 2002 admission of Enron-related document shredding we find… (More)