Affiliation:
1. University of Virginia
Abstract
ABSTRACT
Audit workpapers play a key role in auditor negligence trials, yet little is known about how workpaper documentation affects jurors' decision making. I investigate how auditors' documentation of their consideration of the alternative accounting treatments and their risk-based audit approach influence jurors' negligence verdicts and damage awards. I find that documentation of their consideration of the accounting alternatives increases the likelihood that auditors are found negligent because it increases jurors' perceptions of the foreseeability of the misstatement. However, when combined with documentation that explicitly links the audit risks to the work performed to address each risk, jurors award lower damage awards because they perceive auditors' actions prior to the negligent act as more compliant with the auditing standards. My results highlight the consequences of more complete documentation on jurors' evaluations of auditors and suggest the need for documentation policies that more effectively communicate the appropriateness of auditors' professional judgments.
Publisher
American Accounting Association
Subject
Economics and Econometrics,Finance,Accounting
Reference72 articles.
1. Culpable control and the psychology of blame;Alicke;Psychological Bulletin,2000
2. Culpable control and causal deviance;Alicke;Social and Personality Psychology Compass,2012
3. Culpable control and counterfactual reasoning in the psychology of blame;Alicke;Personality and Social Psychology Bulletin,2008
4. Meta-analysis comparing the persuasiveness of one-tailed and two-tailed messages;Allen;Western Journal of Speech Communication,1991
5. American Bar Association (ABA). 2005. Principles for Juries and Jury Trials. Available at: http://www.abanet.org/jury/pdf/final%20commentary_july_1205.pdf
Cited by
54 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献