This paper presents a new adoption framework i.e. Individual, Technology, Organization and Environment (I-TOE) to address the factors influencing computer-assisted auditing tools (CAATs) acceptance in public audit firms. CAATs are audit technology that helps in achieving effective and efficient audit work. While CAATs adoption varies among audit departments, prior studies focused narrowly on CA...

Weber's "Institutional Ethics Audit" model was designed as a tool for assessment of an organization's effort to institutionalize ethics into its operations. In this model, the overall ethical environment of an organization is evaluated through an assessment of its 1) ethical cultures, 2) ethics policy, 3) enforcement mechanisms, and 4) ethical training. Assessment of these components allows the...

All that is necessary for the triumph of evil is that good men do nothing. Introduction The auditing profession is unusual in its depth and breadth of authoritative standards, including the AICPA Code of Conduct, state ethics laws and regulations, professional auditing standards and firm–sponsored policies. Despite, or perhaps because of, this extensive set of guidelines, numerous accounts in t...

In a market where firms with different characteristics decide upon both the level of emissions and their reports, we study the optimal audit policy for an enforcement agency whose objective is to minimize the level of emissions. We show that it is optimal to devote the resources primarily to the easiest-to-monitor firms and to those firms that value pollution the less. Moreover, unless the budg...

This paper reviews literatures related to auditor independence and audit quality. The review is structured based on the four main threats to auditor independence, namely client importance, nonaudit services, auditor tenure, and client’s affiliation with CPA firms. For each of the threats, we discuss findings related to the incentives, perception, and behavior of the auditor and the client, the ...

This paper investigates the nature of and dynamics surrounding the operationalisation of sustainability assurance within two Big 4 professional services firms who have developed significant markets in this area. Drawing primarily on a longitudinal series of in-depth interviews conducted over a four and a half year period with practitioners in both firms, the paper seeks to develop and deepen ou...

This paper reports an experimental study of two stochastic audit schemes for enforcing regulatory compliance. In the Random Audit mechanism firms are randomly chosen for inspection. In the Tournament Audit mechanism the probability of inspection increases with the degree of estimated under-reporting. The experiment also varies the observability of identity, output, and compliance decisions. Opt...

This study assesses factors influencing Internal Audit Quality (IAQ) in Greece. Hand-collected data were obtained from 2013 and 2014 annual financial reports from companies such as food industries, beverage –and their subcategoriesindustries as well as fishing and distillation, listed in Athens Stock Exchange (ASE). Previous literature was chosen in order to highlight significant independent va...