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Governance and Auditing
This authoritative new collection contains reprints of seminal articles on the subject of auditing and its relationship to the way in which outside stakeholders monitor the activities of corporate management. Whilst the primary audience is students in upper-level undergraduate and graduate accounting courses, the book should also be of use to existing researchers, as it collects together the ‘must read’ articles on the subject in a readily accessible form.
More Information
Critical Acclaim
Contributors
Contents
More Information
This authoritative new collection contains reprints of seminal articles on the subject of auditing and its relationship to the way in which outside stakeholders monitor the activities of corporate management. Whilst the primary audience is students in upper-level undergraduate and graduate accounting courses, the book should also be of use to existing researchers, as it collects together the ‘must read’ articles on the subject in a readily accessible form.
The articles have been selected to cover four broad topic areas: (i) the role of auditing in the governance process, (ii) audit quality and auditor reputation, (iii) governance and audit committees and (iv) the relationship between internal and external auditors. The readings show that much work has been done and that there now exists a substantial body of knowledge of how auditing can contribute to corporate governance. The volume makes an important contribution to an issue that will continue to raise challenges in the years ahead.
The articles have been selected to cover four broad topic areas: (i) the role of auditing in the governance process, (ii) audit quality and auditor reputation, (iii) governance and audit committees and (iv) the relationship between internal and external auditors. The readings show that much work has been done and that there now exists a substantial body of knowledge of how auditing can contribute to corporate governance. The volume makes an important contribution to an issue that will continue to raise challenges in the years ahead.
Critical Acclaim
‘It can be seen from the foregoing that this book constitutes a wide-ranging selection of good quality and interesting papers on a topic area of ongoing concern. . . Peter Moizer’s introduction is succinct, cogent and provides a compelling structure within which to consider the papers. A further particularly nice feature of the selection is, that by often including two papers in a specific area, the manner in which extensions of ideas and refinements in method are highlighted, and thus the reader is given a flavour of how papers in a given area have developed: one gains a sense of living literatures. . . readers are unlikely to be disappointed. . . this volume constitutes a nicely judged and good selection of papers in the area of governance and auditing that is a useful addition to the shelves of anyone with an interest in this area.’
– Pelham Gore, European Accounting Review
– Pelham Gore, European Accounting Review
Contributors
25 articles, dating from 1971 to 2003
Contributors include: J.V. Carcello, L. DeAngelo, J.R. Francis, W.B. Johnson, A. Klein, Z.-V. Palmrose, B.T. Pentland, M. Power, L. Rittenberg, D.A. Simunic
Contributors include: J.V. Carcello, L. DeAngelo, J.R. Francis, W.B. Johnson, A. Klein, Z.-V. Palmrose, B.T. Pentland, M. Power, L. Rittenberg, D.A. Simunic
Contents
Contents:
Acknowledgements
Introduction Peter Moizer
PART I ROLE OF AUDITING IN THE GOVERNANCE PROCESS
1. David Flint (1971), ‘The Role of the Auditor in Modern Society: An Exploratory Essay’
2. Chee W. Chow (1982), ‘The Demand for External Auditing: Size, Debt and Ownership Influences’
3. Don Anderson, Jere R. Francis and Donald J. Stokes (1993), ‘Auditing, Directorships and the Demand for Monitoring’
4. Brian T. Pentland (1993), ‘Getting Comfortable with the Numbers: Auditing and the Micro-Production of Macro-Order’
5. Michael Power (1996), ‘Making Things Auditable’
6. Christopher G. Humphrey, Peter Moizer and Stuart Turley (1992), ‘The Audit Expectations Gap – Plus ca Change, Plus c’est la Meme Chose?’
PART II AUDIT QUALITY AND AUDITOR REPUTATION
7. Linda Elizabeth DeAngelo (1981), ‘Auditor Independence, “Low Balling”, and Disclosure Regulation’
8. Linda Elizabeth DeAngelo (1981), ‘Auditor Size and Audit Quality’
9. Randolph P. Beatty (1989), ‘Auditor Reputation and the Pricing of Initial Public Offerings’
10. Allen T. Craswell, Jere R. Francis and Stephen L. Taylor (1995), ‘Auditor Brand Name Reputations and Industry Specializations’
11. Zoe-Vonna Palmrose (1988), ‘An Analysis of Auditor Litigation and Audit Service Quality’
12. Clive S. Lennox (1999), ‘Audit Quality and Auditor Size: An Evaluation of Reputation and Deep Pockets Hypotheses’
13. Jere R. Francis and Earl R. Wilson (1988), ‘Auditor Changes: A Joint Test of Theories Relating to Agency Costs and Auditor Differentiation’
14. W. Bruce Johnson and Thomas Lys (1990), ‘The Market for Audit Services: Evidence from Voluntary Audit or Changes’
15. Zoe-Vonna Palmrose (1989), ‘The Relation of Audit Contract Type to Audit Fees and Hours’
16. Terrence B. O’Keefe, Dan A. Simunic and Michael T. Stein (1994), ‘The Production of Audit Services: Evidence from a Major Public Accounting Firm’
17. Joseph V. Carcello, Roger H. Hermanson and Neal T. McGrath (1992), ‘Audit Quality Attributes: The Perceptions of Audit Partners, Preparers, and Financial Statement Users’
PART III GOVERNANCE AND THE AUDIT COMMITTEE
18. Michael E. Bradbury (1990), ‘The Incentives for Voluntary Audit Committee Formation’
19. Krishnagopal Menon and Joanne Deahl Williams (1994), ‘The Use of Audit Committees for Monitoring’
20. Lawrence P. Kalbers and Timothy J. Fogarty (1998), ‘Organizational and Economic Explanations of Audit Committee Oversight’
21. April Klein (2002), ‘Economic Determinants of Audit Committee Independence’
22. Joseph V. Carcello and Terry L. Neal (2003), ‘Audit Committee Characteristics and Auditor Dismissals Following “New” Going-Concern Reports’
PART IV THE RELATIONSHIP BETWEEN INTERNAL AND EXTERNAL AUDITORS
23. James C. Lampe and Steve G. Sutton (1994), ‘Evaluating the Work of Internal Audit: A Comparison of Standards and Empirical Evidence’
24. William L. Felix, Jr., Audrey A. Gramling and Mario J. Maletta (2001), ‘The Contribution of Internal Audit as a Determinant of External Audit Fees and Factors Influencing This Contribution’
25. Larry Rittenberg and Mark A. Covaleski (2001), ‘Internalization Versus Externalization of the Internal Audit Function: An Examination of Professional and Organizational Imperatives’
Name Index
Acknowledgements
Introduction Peter Moizer
PART I ROLE OF AUDITING IN THE GOVERNANCE PROCESS
1. David Flint (1971), ‘The Role of the Auditor in Modern Society: An Exploratory Essay’
2. Chee W. Chow (1982), ‘The Demand for External Auditing: Size, Debt and Ownership Influences’
3. Don Anderson, Jere R. Francis and Donald J. Stokes (1993), ‘Auditing, Directorships and the Demand for Monitoring’
4. Brian T. Pentland (1993), ‘Getting Comfortable with the Numbers: Auditing and the Micro-Production of Macro-Order’
5. Michael Power (1996), ‘Making Things Auditable’
6. Christopher G. Humphrey, Peter Moizer and Stuart Turley (1992), ‘The Audit Expectations Gap – Plus ca Change, Plus c’est la Meme Chose?’
PART II AUDIT QUALITY AND AUDITOR REPUTATION
7. Linda Elizabeth DeAngelo (1981), ‘Auditor Independence, “Low Balling”, and Disclosure Regulation’
8. Linda Elizabeth DeAngelo (1981), ‘Auditor Size and Audit Quality’
9. Randolph P. Beatty (1989), ‘Auditor Reputation and the Pricing of Initial Public Offerings’
10. Allen T. Craswell, Jere R. Francis and Stephen L. Taylor (1995), ‘Auditor Brand Name Reputations and Industry Specializations’
11. Zoe-Vonna Palmrose (1988), ‘An Analysis of Auditor Litigation and Audit Service Quality’
12. Clive S. Lennox (1999), ‘Audit Quality and Auditor Size: An Evaluation of Reputation and Deep Pockets Hypotheses’
13. Jere R. Francis and Earl R. Wilson (1988), ‘Auditor Changes: A Joint Test of Theories Relating to Agency Costs and Auditor Differentiation’
14. W. Bruce Johnson and Thomas Lys (1990), ‘The Market for Audit Services: Evidence from Voluntary Audit or Changes’
15. Zoe-Vonna Palmrose (1989), ‘The Relation of Audit Contract Type to Audit Fees and Hours’
16. Terrence B. O’Keefe, Dan A. Simunic and Michael T. Stein (1994), ‘The Production of Audit Services: Evidence from a Major Public Accounting Firm’
17. Joseph V. Carcello, Roger H. Hermanson and Neal T. McGrath (1992), ‘Audit Quality Attributes: The Perceptions of Audit Partners, Preparers, and Financial Statement Users’
PART III GOVERNANCE AND THE AUDIT COMMITTEE
18. Michael E. Bradbury (1990), ‘The Incentives for Voluntary Audit Committee Formation’
19. Krishnagopal Menon and Joanne Deahl Williams (1994), ‘The Use of Audit Committees for Monitoring’
20. Lawrence P. Kalbers and Timothy J. Fogarty (1998), ‘Organizational and Economic Explanations of Audit Committee Oversight’
21. April Klein (2002), ‘Economic Determinants of Audit Committee Independence’
22. Joseph V. Carcello and Terry L. Neal (2003), ‘Audit Committee Characteristics and Auditor Dismissals Following “New” Going-Concern Reports’
PART IV THE RELATIONSHIP BETWEEN INTERNAL AND EXTERNAL AUDITORS
23. James C. Lampe and Steve G. Sutton (1994), ‘Evaluating the Work of Internal Audit: A Comparison of Standards and Empirical Evidence’
24. William L. Felix, Jr., Audrey A. Gramling and Mario J. Maletta (2001), ‘The Contribution of Internal Audit as a Determinant of External Audit Fees and Factors Influencing This Contribution’
25. Larry Rittenberg and Mark A. Covaleski (2001), ‘Internalization Versus Externalization of the Internal Audit Function: An Examination of Professional and Organizational Imperatives’
Name Index
