American Accounting Association - Auditing Section

2000 Midyear Conference

January 13-15, 2000
Newport Beach Marriott Hotel and Tennis Club
Newport Beach, California

Program

Thursday, January 13
1:00 PM – 6:00 PM	Registration
1:30 PM – 5:00 PM	CPE Workshop Title: E-Commerce: Implications for Assurance Education and Research Glen Gray, California State University Marilyn Greenstein, Lehigh University Tom McKee, East Tennessee State University Technological advances in electronic commerce have significant impacts on the role of the assurance function. This session examines the following issues related to electronic commerce and the assurance function: control assessment of electronic commerce based financial transactions; the relationship between SysTrust and the traditional assurance function; technology skills necessary to perform these functions and the educational implications; and research opportunities e-commerce assurance.
6:00 PM – 9:00 PM	Welcome Reception
Friday, January 14
7:00 AM – 5:00 PM	Registration
7:00 AM – 8:30 AM	Continental Breakfast
8:30 AM – 8:45 AM	Welcome
8:45 AM – 9:45 AM	Plenary Session: David Landsittle, retired partner from Arthur Anderson and Chair of the Big Five Task Force on Audit Materiality. The topic of his talk will be on emerging auditing issues facing the profession as we enter the 21st century
9:45 AM – 10:15 AM	Break
10:15 AM – 11:45 AM	Session 1– Auditor Independence Moderator: Melvin Auerbach, California State University, Dominquiz Hills "Contingent Rents and Auditors’ Independence" Nick Dopuch, Washington University Ron King, Washington University Rachel Schwartz, Washington University Discussant: Rajendra P. Srivastava, University of Kansas "The Effect of Accounting Uncertainty and Auditor Reputation on Auditor Independence" Brian W. Mayhew, University of Wisconsin Jeffrey W. Schatzberg, University of Arizona Galen Sevcik, Georgia State University Discussant: David E. Wallin, Ohio State University
10:15 AM – 11:45 AM	Session 2 – Auditor Moral Reasoning and Social Preference Moderator: Richard Hwang, California State University, San Marcos "Insights into Selection-Socialization in the Audit Profession: An Examination of the Moral Reasoning of Public Accountants in the United States and Canada" Linda Thorne, York University Dawn Massey, Fairfield University Michel Magnan, Ecole des HEC Discussant: Jeff Cohen, Boston College "The Relationships among Lifestyle Preference, Attrition, and Career Orientation: A Three-Year Longitudinal Study" Richard A. Bernardi, Roger Williams University Karen L. Hooks, Florida Atlantic University Discussant: Bill Dilla, Iowa State University
10:15 AM – 11:45 AM	Session 3 – Auditing Standards—Research Opportunities Moderator: Ray Whittingham, DePaul University Panel Members: William L. Felix, Jr., University of Arizona James S. Gerson, Vice Chair of Auditing Standards Board and PricewaterhouseCoopers, LLP William R. Kinney, Jr., University of Texas at Austin Thomas J. Ray, Director Audit and Attest Standards, AICPA Arnold Wright, Boston College
10:15 AM – 11:45 AM	Session 4 –Audit Pricing Moderator: James McKeown, Penn State University "Engagement Planning, Bid Pricing, and Client Response: The Effects of Risk and Market Context in Initial Attest Engagements" Karla M. Johnstone, University of Wisconsin Jean C. Bedard, Northeastern University Discussant: Randy Elder, Indiana University "Audit Markets: The Effect of Ethnicity on Pricing" Ayoid Che-Ahmad, University of Utara Malaysia Keith A. Houghton, University of Melbourne Discussant: Allen Craswell, University of Sydney
11:45 AM – 12:45 PM	Lunch and Education and Service Awards
1:00 PM – 2:30 PM	Business Meeting
2:30 PM – 3:00 PM	Break
3:00 PM – 4:30 PM	Session 5 – Audit Firm Industry Experience Moderator: Mohammad Abdolmohammadi, Bentley College " The Association between Audit Firm Industry Experience and Financial Reporting Quality" Audrey A. Gramling, Wake Forest University Van E. Johnson, University of Illinois Urbana-Champaign, Inder K. Khurana, University of Missouri, Columbia. Discussant: Lizabeth A. Austen, University of Arkansas "Client Industry Competition and Auditor Industry Dominance" Jayanthi Krishnan, Villanova University Discussant: Dana R. Hermanson, Kennesaw State University
3:00 PM – 4:30 PM	Session 6 – Independence Standards Board Panel Moderator: Jeff Cohen, Boston College Panel Members: Ken Dakdduk, PricewaterhouseCoopers, LLP, Dan Sunderland, Partner at Deloitte & Touche Linda McDaniel, University of North Carolina-Chapel Hill
3:00 PM – 4:30 PM	Session 7 -- Audit Review Judgment Moderator: Chen-en Ko, National Taiwan University/Yale University "Effects of Verbal Discussion in Audit Workpaper Review on Staff Auditor’s Motivation and Performance" Cathleen L. Miller, University of Michigan Donald B. Fedor, Georgia Institute of Technology Robert J. Ramsay, University of Kentucky Discussant: Ken T. Trotman, University of New South Wales "The Effect of Audit Structure and Task Complexity on Auditors' Performance" Iris Stuart, Nanyang Technology University Discussant: Ira Solomon, University of Illinois
3:00 PM – 4:30 PM	Session 8 –- Effects of Task Complexity on Auditor Decisions Moderator: Jack Krogstad, Creighton University "The Effects of Experience and Complexity on Order and Regency Bias in Decision Making by Professional Accountants" Vicky Arnold, Texas Tech University Philip A. Collier, Defense Science and Technology Organization Australia Stewart A. Leech, University of Tasmania Steve G. Sutton, Texas Tech University Discussant: Jane Kennedy, University of Washington "Comprehension in Internal Control Evaluation: Performance as a Function of Knowledge Structure and Text Structure Compatibility" A. Faye Borthick, Georgia State University Mary B. Curtis, University of North Texas Ram S. Sriram, Georgia State University Discussant: Gary Braun, University of Texas at El Paso
4:30 PM – 5:30 PM	Forum Papers 1 "Working Paper Review Process: A Theoretical Model and Simulation" Hai Lu, University of Southern California Rajendra P. Srivastava, University of Kansas 2 "Using Peer Mentors During Periods of Uncertainty" Alan Reinstein, Wayne State University. Philip H. Siegel, Fairleigh Dickenson University 3 "Negotiation of Audit Litigation Settlements: An Experimental Study of The Impact of the Level of Merit of the Suit" Susan McCracken, University of Toronto 4 "Evidence of Opinion Shopping : An Analysis of Lateral Auditor Switches" Ferdinand A. Gul, City University of Hong Kong, Lai Kam Wah, City University of Hong Kong 5 "Should Errors In Financial Statements Be Corrected?" Leif Hojskov, University of Southern Denmark 6 "An Examination of the Employment Contract of Public Accounting Firm Employees: The Application of Agency Theory to Professionals" Elizabeth Dreike Almer, University of Miami Karen Hooks, Florida Atlantic University Julia L. Higgs, Florida Atlantic University 7 "Fraud Risk Assessment: An Analysis of Practices of Auditing Firms" Sandra Waller Shelton, DePaul University, Ray Whittington, DePaul University, David Landsittel, Retired 8 "Capture Theory and The Regulatory Process Relating to Audit and Assurance Services – Some Empirical Evidence" Trimbakk Shastri, University of Windsor, Siri Withane, University of Windsor, Bart H. Ward, University of Southern Colorado 9 "The Real Risks in Using Random Sampling " Donald A. Schwartz, National University
6:30 PM	Reception
Saturday, January 1 5
7:00 AM – 3:00 PM	Registration
7:30 AM – 8:30 AM	Continental Breakfast
8:30 AM – 10:00 AM	Session 9 – Economics-Based Auditing Research: Analytical, Experimental and Archival Approaches Moderator: Rashad Abdel-Khalik, University of Florida Panel Members: Ron King, Washington University Rick Antle, Yale University Jere R. Francis, University of Missouri
8:30 AM – 10:00 AM	Session 10 –- Instructional Cases: Strategic System Audit and Internal Control Moderator: Bill Dilla, Iowa State University " Triton Energy Ltd., An Instructional Case: Internal Control and Auditing Issues for Multinational Companies" Michael C. Knapp, University of Oklahoma Carol A. Knapp, University of Central Oklahoma Discussant: Heather Hermanson, Kennesaw State University "Auditor Negotiations Within Strategic Systems Audits: A Teaching Case". Arnie Wright, Boston College Sally Wright, University of Massachusetts of Boston Mark Gordon, CMI/Vantage Partners LLC Discussant: Jay Thibodeau, Bentley College
8:30 AM – 10:00 AM	Session 11 –- Environmental Factors Affecting Audit Judgment Moderator: Linda Thorne, York University "Auditors’ Judgments of the Acceptability of Client-Preferred Accounting Methods: Ex Ante Evidence About the Likely Effectiveness of Recent Recommendations" Kathryn Kadous, University of Washington Jane Kennedy, University of Washington Mark E. Peecher, University of Illinois at Urbana-Champaign Discussant: Steve Salterio, University of Waterloo "Research on the Nature, Characteristics, and Causes of Accounting Errors: The Need for a Multi-method Approach" Dawn W. Massey, Fairfield University Paul Caster, Fairfield University Arnold M. Wright, Boston College Moderator: Catherine Usoff, Bentley College
8:30 AM – 10:00 AM	Session 12 – Auditor Reporting and Auditor Association Moderator: T. Sterling Wetzel, Oklahoma State University "Auditor Reporting Behavior When GAAS Lack Specificity: The Case of SAS NO. 59 and "Weasel Word" Going-Concern Reports" Joseph V. Carcello, University of Tennessee Dana R. Hermanson, Kennesaw State University Terry L. Neal, University of Kentucky Discussant: Bill Messier, Georgia State University "Auditor Association and Debt Availability: An Empirical Examination of Small Firms with Bank Lines of Credit" Thomas R. Noland, University of Houston David W. Blackwell, PricewaterhouseCoopers, LLP Drew B. Winters, University of Central Florida Discussant: Elaine Mauldin, University of Missouri - Columbia
10:00 AM – 10:30 AM	Break
10:30 AM – Noon	Session 13 – International Auditing Research and Practices Moderator: Ted Mock, University of Southern California "Adaptation of Audit Technology in the international Environment" Chen-en Ko, National Taiwan University / Yale University "Research Opportunities Associated with the International Auditing Practices Committee (IAPC) 'Assurance Services' Framework." Roger Simnett, University of New South Wales
10:30 AM – Noon	Session 14 – Auditor Skepticism and Audit Industry Structure Moderator: Morley Lemon, University of Waterloo "Economic Analysis of Skepticism in an Audit Setting" Barry E. Cushing, University of Utah Discussant: Rajendra P. Srivastava, University of Kansas "A Theory of Audit Industry Structure" Rajib Doogar, University of Illinois Discussant: Mike Stein, University of Oregon
10:30 AM – Noon	Session 15 – Auditor Judgment and Misstatements Moderator: Susan McCracken, University of Toronto "Characteristics of Auditor Detected Misstatements: Evidence from Norwegian Audits" Aasmund Eilifsen, Norwegian School of Economics and Business Administration William F. Messier, Jr.,Georgia State University and Norwegian School of Economics and Business Administration Lizabeth A. Austen, University of Arkansas Discussant: Jean Bedard, Northeastern University "Investigating Nonsampling Risk Among State Auditors: The Impact of Intentional and Systematic Misstatements" John T. Reisch, East Carolina University Karen S. Mckenzie, Florida Atlantic University Alan H. Friedberg, Florida Atlantic University Discussant: David Gilbertson, Western Washington University
10:30 AM – Noon	Session 16 –- Environmental Factors and Audit Process: Field Investigation Moderator: Dennis M. Hanno, University of Massachusetts "The Difficult Client-Acceptance Decision in Canadian Audit Firms: A Field Investigation" Yves Gendron, University of Alberta Discussant: Mark Beasley, North Carolina State University "Corporate Governance and the Audit Process" Jeffrey R. Cohen, Boston College Ganesh Krishnamoorthy, Boston College Arnie Wright, Boston College Discussant: Joseph V. Carcello, University of Tennessee
Noon – 1:45 PM	Lunch and Notable Contributions to Literature and Doctoral Dissertation Awards
2:00 PM – 3:30 PM	Session 17 – Behavioral Research in Auditing: Young Researchers’ View of Research in the Past and Directions for the Future Discussant: Jane Kennedy, University of Washington Panel Members: Audrey A. Gramling, Wake Forest University Karla M. Johnstone, University of Wisconsin—Madison Brian Mayhew, University of Wisconsin—Madison
2:00 PM – 3:30 PM	Session 18 –- Auditor Reporting Decision and Auditor Change Disclosure Moderator: Gail Sergenian, Suffolk University "Client Size and Auditor Reporting Decisions: An Office-Level Analysis" Jere R. Francis, University of Missouri, J. Kenneth Reynolds, Louisiana State University Discussant:Terry O'Keefe, University of Queensland "Auditor Change Disclosures and Investors' Response to Subsequent Earnings Reports" Karl Hackenbrack, University of Florida Chris E. Hogan, Vanderbilt University Discussant: Susan Shu, Boston College
2:00 PM – 3:30 PM	Session 19 – Internal Auditing Moderator: Julia Higgs, Florida Atlantic University "Voluntary Demand for Internal and External Auditing by Family Business" Peter Carey, Monash University Roger Simnett, University of New South Wales George Tanewski, Monash University Discussant: Rashad Abdel-Khalik, University of Florida "Outsourcing the Internal Audit Function: an Empirical Evaluation of Benefits and Pitfalls" Michael Sherer, University of Essex Saad Assiri, University of Al-Imam Discussant: Urton Anderson, University of Texas at Austin
2:00 PM – 3:30 PM	Session 20 – Auditor Quality and Audit Markets Moderator: Ken Schwartz, Boston College " Auditor Quality and the Activity and Independence of the Audit Committee: Evidence from Auditor Switches" Lawrence J. Abbott, University of Memphis Susan Parker, Santa Clara University Discussant: Heather Hermanson, Kennesaw State University "Audit Lag: The Effects of Different Size Measures, Auditor Market Share and Geographic Concentration" Charles P. Cullinan, Bryant College Discussant: Keith A. Houghton University of Melbourne