| Autor: |
RAGHUNANDAN, K., GRIMLUND, RICHARD A., SCHEPANSKI, ALBERT |
| Předmět: |
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| Zdroj: |
Contemporary Accounting Research; Spring1991, Vol. 7 Issue 2, p549-569, 21p |
| Abstrakt: |
This paper examines the probability judgments made by auditors for their financial statement footnote disclosure decisions and their audit report additional paragraph decisions in the presence of material loss contingencies. In the United Slates these judgments are governed by SFAS No. 5 and SAS No. 58. Two prior studies have reported inconsistent results pertaining to the degree of compliance of auditors with the judgment and decision-making process implied by SFAS No 5. In contrast, SAS No. 58 has not previously been examined with respect to auditor compliance. Results from an experiment with 64 audit partners from six firms were consistent with the hypothesis that audit partners employ the same (compensatory) judgment process when making footnote disclosure decisions as when making additional paragraph decisions. This process led the partners to make judgments for the additional paragraph decision that were in accordance with SAS No. 58. In contrast, their judgments for the footnote disclosure decision were consistent with a decision theory model of auditor behavior rather than the noncompensatory process implied by SFAS No. 5. Additional aspects of the study pertain to the additional paragraph decision of auditors. Observed judgments for these decisions are consistent with the hypothesis that additional information is conveyed beyond that provided by only a footnote disclosure. This is contrary to some recent discussions of the standards. [ABSTRACT FROM AUTHOR] |
| Databáze: |
Complementary Index |
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