American Accounting Association

Auditing Section
2009 Midyear Conference

January 15 – 17, 2009
Hilton St. Petersburg Bayfront
St. Petersburg, Florida

Welcome and Plenary Session
Auditing – Advanced – 1.5 CH

Charles Holm, Chief Accountant of the Federal Reserve Board's Division of Banking Supervision and Regulation, on the accounting implications of this fall's banking crisis for teaching and research. Mr. Holm advises Federal Reserve Governors and the Board on the implications of key accounting and reporting issues facing the financial industry.

Concurrent Sessions

Session 1: Education Committee Panel – International Standards on Auditing: Preparing the Future Members of the Profession
Auditing – Advanced –1.5 CH  
Moderator:
Richard Riley, West Virginia University
Susan Jones, Partner, Grant Thornton
Bill Kinney, University of Texas
Doug Prawitt, Brigham Young University
Greg Scates, PCAOB Deputy Chief Auditor

Session 2: Pricing of Audit Services
Auditing– Advanced –1.5 CH
Moderator: Ray Whittington, DePaul University

Product Market Competition, Agency Conflicts and Audit Fees
Sudarshan Jayaraman, Washington University
Ron King, Washington University
Discussant: Jere Francis, University of Missouri

Does Incentive-based Compensation Impair Independence of Internal Auditors? Evidence from Audit Fees
Huajing Chen, Arizona State University
Hyeesoo Chung, Arizona State University
Jinyoung Wynn, Louisiana Tech University
Discussant: Gary Peters, University of Arkansas

Overconfidence, Auditor's Gender, and Audit Fees
Kim Ittonen, University of Vaasa
Emilia Peni, University of Vaasa
Discussant: Lynette Chou, National Chengchi University

Session 3: Fraud Detection in Auditing
Auditing – Advanced – 1.5 CH
Moderator: Mark Zimbelman, Brigham Young University

Does Information about Material Weaknesses Facilitate Auditors' Fraud Detection?
Jacqueline Hammersley, University of Georgia
Karla Johnstone, University of Wisconsin-Madison
Kathryn Kadous, Emory University
Discussant: Kendall Bowlin, University of Mississippi

Comparing the Outcomes of Nominal Group, Round Robin and Open Discussion Fraud Brainstorming
James Hunton, Bentley College
Anna Gold, Erasmus University
Discussant: Marsha Keune, University of Wisconsin

Planning Fraud Detection Procedures: Fraud Specialists vs. Auditors
Efrim Boritz, University of Waterloo
Natalia Kotchetova, University of Waterloo
Linda Robinson, University of Waterloo
Discussant: Paul Caster, Fairfield University

Session 4: Role of Audit Committee Expertise
Auditing – Advanced – 1.5 CH
Moderator: Mark Beasley, North Carolina State University

Effects of Auditor Consultation and Audit Committee Attitude on Managers' Accounting Method Choice
Terence Ng, Nanyang Technological University
Charlene Geisler,Nanyang Technological University
Kin Yew Low, Nanyang Technological University
Premila Gowri Shankar, Nanyang Technological University
Discussant: Steven Salterio, Queens University

Audit Committee Financial Expertise, Competing Corporate Governance Mechanisms, and Earnings Management
April Klein, New York University
Joe Carcello, University of Tennessee
Carl Hollingsworth, Clemson University
Terry Neal, University of Tennessee
Discussant: Lawrence Abbott, University of Memphis

Perspective Taking Ability and Performance in an Audit Committee Member Task: Experimental Evidence
Ong-Ard Singtokul, Georgia Institute of Technology
Discussant:Jonathan Grenier, University of Illinois

Plenary Session
Auditing – Advanced –1.5 CH

Corporate Scared Straight
presented by Oliver Halle, Diann Cattani, and Josh Kenyon from CorporateScaredStraight (for more information, see their website at www.CorporateScaredStraight.com) discussing ethics, fraud prevention and anti-corruption based on their first-hand experiences.

Concurrent Sessions

Session 5: Auditing Standards Committee PanelInternational Convergence and Clarity Research Opportunities
Auditing– Advanced –   1.5 CH
Moderators:
William Messier, University of Nevada Las Vegas
James Gunn, IAASB
Craig Crawford, KPMG
William Kinney, University of Texas
Greg Scates, PCAOB

Session 6: Expertise and Strategic Thinking
Auditing– Advanced –1.5 CH
Moderator: Mike Bitter, Stetson University

Pattern Recognition during Analytical Procedures: The Influence of Systems-Thinking Decision Support on Auditor Risk Assessments
Ed O'Donnell, University of Kansas
Jon Perkins, University of Illinois
Discussant: Heather Pesch, University of Wisconsin

The Use of Audit Partner Expertise as a Risk Management Strategy
Jeroen van Raak, Maastricht University
Discussant: Kyle Meyer, Florida State University

Industry Specialization as a Means to Soften Price Competition in the Audit Market
Wieteke Numan, Tilburg University The Netherlands
Marleen Willekens, KU Leuven and Tilburg University
Discussant: Roger Simnett, University of New South Wales

Session 7: Auditor Industry Specialization
Auditing– Advanced –1.5 CH
Moderator: Dana Hermanson, Kennesaw State University

The Impact of Office-Level vs. Firm-Level Auditors' Industry Expertise on Conservatism
Keith Jones, George Mason University
Gopal Krishnan, George Mason University
Kevin Melendrez, New Mexico State University
Discussant:Sundaresh Ramnath, University of Miami

Auditor Industry Specialization, Analysts Behavior, and Cost of Debt
Chan Li, University of Pittsburgh
Yuan Xie, Fordham University
Jian Zhou, SUNY-Binghamton
Discussant:Han Yi, University of Oklahoma

National and Office Specific Measures of Auditor Industry Expertise and Effects on Audit Quality
Kenneth Reichelt, Louisiana State University
Dechun Wang, Texas A&M University
Discussant:Jagan Krishnan, Temple University

Session 8: Auditors' Fraud Risk Analysis
Auditing– Advanced –1.5 CH
Moderator: Sanaz Aghazadeh, University of Oklahoma

Integration of Fraud Risk in the Risk of Material Misstatement and the Effect on Auditors' Planning Decisions
Velina Popova, Virginia Polytechnic Institute and State University
Discussant:Tina Carpenter, University of Georgia

The Effect of an Intentional Strategy on Auditors' Identification of Fraud Risks
Chad Simon, University of Nevada-Las Vegas
Discussant:Lisa Gaynor, University of South Florida

Can Strategic Reasoning Prompts Improve Auditors' Sensitivity to Fraud Risk?
Kendall Bowlin, University of Mississippi
Discussant: Billy Brewster, University of Illinois

Table 1: Alternative Models and Approaches

Using the Audit Risk Model to Opine on Internal Control
Abraham Akresh, U.S. Government Accountability Office

Can the Unified Theory of Acceptance and Use of Technology Help Us Understand the Adoption of Computer-Aided Audit Techniques by Auditors?
Elizabeth Payne, University of Louisville
Mary Curtis, University of North Texas

Analysis of Non-Random Samples in Auditing Research
Donald Cram, Cram Associations
Iris Stuart, Norwegian School of Economics and Business Administration
Vijay Kiran, California State University Fullerton

Table 2: Audit Litigation and Legal Matters

Lawyers' Letters: What the Evidence Tells Us
Mark Taylor, Creighton University
Jack Krogstad, Creighton University

CPA-Client-Attorney Privilege and Information Technology Risk
Alan Reinstein, Wayne State University
Jack Seward, Jack Seward & Associates, LLC

The Effects of Offshoring on Juror's Evaluations of Auditor Liability and Plaintiff's Awards
Brian Daugherty, University of Wisconsin – Milwaukee
Denise Dickins, East Carolina University

Table 3: Audit Quality Factors

Monitoring by Auditors: Case of Public Housing Authorities
Barbara Murray Grein, Drexel University
Stefanie Tate, University of Massachusetts – Lowell

Intra-Non-Big-4 Auditor Quality
Ross Fuerman, Suffolk University
Michael Kraten, Suffolk University

Can Individual CPA Sanction Improve Audit Quality of the Firm?
Chien-Hang Jennifer Chang, National Chengchi University
Ling-Tai Lynette Chou, National Chengchi University

Do Auditor Sanctions Affect Clients' Accruals?
Chien-Hang Jennifer Chang, National Chengchi University
Wen-Jing Chang, National Changhua University of Education
Ling-Tai Lynette Chou, National Chengchi University

Table 4: The Economics of Auditor-Client Alignment

Audit Market Contestability in the Post-2002 Era
Rajib Doogar, University of Illinois
Neil Fargher, The Australian National University
Keejae Hong, University of Illinois at Chicago

Fiscal Year End, SOX and Non-Lateral Auditor Switches
Nancy Chun Feng, Boston University

The Role of External Auditing in Private Companies
Marleen Willekens, KU Leuven and Tilburg University

Table 5: Auditor Judgment and Decision Making

A Review of Bias Research in Auditing: Opportunities for Combining Psychological and Economic Research
Christopher Koch, University of Mannheim
Jens Wüstemann, University of Mannheim

Cue Combination in Auditor's Internal Control Judgments
Jonas Gaudernack, Norwegian School of Economics and Business Administration

Differences in Belief Revision among Accounting Practitioners Regarding the Effect of Nonaudit Services on Auditor Independence
Philip Beaulieu, University of Calgary
Alan Reinstein, Wayne State University

Table 6: Audits in International Settings

An Assessment of the Mulitlocation Audit Engagements for the Improvements of the Audit Efficiency and Effectiveness: An Empirical Study within the Egyptian Settings
Mohamed Abd El Aziz Hegazy, The American University in Cairo
Marwa Mohamed Sami El Nahass, Cairo University

The Staff Capacity of the Internal Audit Function of German Corporations
Ulfert Gronewold, Ruhr University Bochum
Andre Heerlein, University of Potsdam

Implementation of IFRS within Europe: The Case of Goodwill
Katrien Van de Poel, Universiteit Antwerpen
Steven Majoor, Universiteit Maastricht
Ann Vanstraelen, Unversiteit Maastricht, Universiteit Antwerpen

Table 7: Ethics and Regulation

Evolving Ethics Mindsets: Moving Toward a Principles-Based Framework
Martin Leibowitz, Yeshiva University
Alan Reinstein, Wayne State University

The Rational Auditor and Moral Norms: The Code of Ethics for Professional Accountants - Lip Service or Self-binding Agreement?
Hansrudi Lenz, University Würzburg

PCAOB Inspections of Smaller CPA Firms: The Perspective of Inspected Firms
Brian Daugherty, University of Wisconsin – Milwaukee
Wayne Tervo, Murray State University

Table 8: Internal Control and Internal Audit Quality

Tax Consulting and Reported Weaknesses in Internal Control
 Randal Elder, Syracuse University
David Harris, Syracuse University
Jian Zhou, SUNY at Binghamton

The Role of Internal Audit in the Financial Statement Audit: The Contingent Effects of Board Independence and Audit Committee Effectiveness
Ganesh Krishnamoorthy, Northeastern University
Mario Maletta, Northeastern University

Table 9: Mentoring and Auditor Professional Development

Benefits and Issues of Mentoring in Corporations, Professional Service Firms and Academia
David Sinason, Northern Illinois University
Alan Reinstein, Wayne State University

Awareness of Partners' Views and Misrepresentation of Audit Judgment
Marietta Peytcheva, Lehigh University
Peter Gillett, Rutgers, The State University of New Jersey

Auditor and Non-Mentor Supervisor Relationships: Effects of Mentoring and Organizational Justice
Cathleen Miller, Wayne State University
Philip Siegel, University of Wisconsin-Eau Claire
Alan Reinstein, Wayne State University

Table 10: SOX, Audit Committees and Corporate Governance

Audit Quality and Accrual Reliability Evidence from the Pre- and Post-Sarbanes-Oxley Periods
Dennis Chambers, University of Kentucky
Jeff Payne, University of Kentucky

The Impact of Governance on IFRS Restatement Quality
Arnt Verriest, Katholieke Universiteit Leuven
Ann Gaeremynck, Katholieke Universiteit Leuven

Female Board Presence and the Likelihood of Financial Restatement
Lawrence Abbott, University of Memphis
Susan Parker, Santa Clara University
Theresa Presley, University of Memphis

Table 11: The Value of Auditing

The Role of Asset Reliability and Auditor Quality in Equity Valuation
Yaser Fallatah, King Fahd University of Petroleum & Minerals
Julia Higgs, Florida Atlantic University
Denise Dickins, East Carolina University

Accounting Conservatism in Fraud Firms: An Empirical Investigation
Keith Jones, George Mason University
Gopal Krishnan, Lehigh University
Mikhail Pevzner, George Mason University
Partha Sengupta, George Mason University

Concurrent Sessions

Session 9: Center for Audit Quality Panel
Auditing- Advanced –1.5 CH
Moderator:
Cynthia Fornelli, Center for Audit Quality
Stephan Allis, KPMG LLP
Charles Harris, PricewaterhouseCoopers LLP
William Ezzell, Deloitte LLP
Randy Fletchall, Ernst & Young LLP

Session 10: Audit Litigation and Legal Matters
Auditing- Advanced –1.5 CH
Moderator:  Christine Earley, Providence University

Limiting Auditors' Liability? - Experimental Evidence on Behavior under Risk and Ambiguity
Christopher Koch, University of Mannheim
Daniel Schunk, University of Zurich
Discussant: Ron King, Washington University

Managerial Opportunism, Legal Liability Rule, and Audit Pricing
Hyeesoo Chung, Arizona State University
Jinyoung Wynn, Louisiana Tech University
Han Yi, Oklahoma University
Discussant: Joe Trainor, Florida Atlantic University

Financial Statement Misstatements, Auditor Litigation, and Subsequent Auditor Behavior
Jaime Schmidt, Texas A&M University
Discussant: Billy Soo, Boston College

Session 11: Markets for Audit Services
Auditing– Advanced –1.5 CH
Moderator: Joel Pike, University of Illinois

Does the Wealth Effect Exist in the Market for Audit Services? An Experimental Examination
Mark Mellon, Florida State University
Discussant: Brian Mayhew, University of Wisconsin

Local Preference in Municipal Audit Markets
Karl Hackenbrack, Vanderbilt University
Mikhael Shor, Vanderbilt University
Discussant: Mike Stein, Old Dominion University

Do capacity constraints affect client acceptance decisions?
Dennis Lopez, University of Texas – San Antonio
Sandra Waller Shelton, DePaul University
Ray Whittington, DePaul University
Discussant:Cory Cassell, Texas A&M University

Session 12: Determinants and Impact of Audit Quality
Auditing– Advanced –1.5 CH
Moderator:  Matthew Hoag, University of Tennessee

Audit Quality and the Partner Effect: Evidence from European Listed Companies
Joost van Buuren, Nyenrode Business University
Discussant: Nancy Feng, Boston University

Audit Market Competition and Audit Quality
Sanjay Kallapur, Indian School of Business
Srinivasan Sankaraguruswamy, National University of Singapore
Yoonseok Zang, Singapore Management University
Discussant:Jonathon Stanley, Clemson University

Determinants of Market Reactions to Auditor-Initiated Restatements
Shawn Davis, Emory University
Wei Yu, Lehigh University
Discussant: Hak-Joon Song, Temple University

Concurrent Sessions

Session 13: Current Research Opportunities in Auditing Panel
Auditing- Advanced – 1.5 CH
Moderator: Joe Brazel, North Carolina State University

COSO Monitoring Guidance and ERM
Mark Beasley, North Carolina State

Judgment and Decision Making
Mark Peecher, University of Illinois at Urbana-Champaign

Fair Value Auditing
Jeff Wilks, Brigham Young University

Fraudulent Financial Reporting
Dana Hermanson, Kennesaw State University  

Session 14: The Impact of the Sarbanes-Oxley Act
Auditing – Advanced – l.5 CH
Moderator: Julia Higgs, Florida Atlantic University

The Impact of Form of Compensation and Likelihood of PCAOB Inspection on Audit Committee Member Resolution of Management/Auditor Disputes
Julie Persellin, Texas State University
Discussant: David Wood, Brigham Young University

The Impact of the Sarbanes-Oxley Act on Australian Listed Firms
Fazlina Mohd Salman, University of New South Wales
Elizabeth Carson, University of New South Wales
Discussant: Neil Fargher, Australian National University

Information Technology Investments and Sarbanes-Oxley Compliance Assurance
Adi Masli, University of Arkansas
Gary Peters, University of Arkansas
Vernon Richardson, University of Arkansas
Discussant: Diane Janvrin, Iowa State University

Session 15: The Role of the SEC and Other Regulators
Auditing  – Advanced –1.5 CH?
Moderator: Jackie Hammersley, University of Georgia

The SEC's Case Against California Micro Devices: A Lesson in Using Professional Skepticism and Obtaining Sufficient Appropriate Evidence
Jill D'Aquila, Jacksonville University
Kim Capriotti, Jacksonville University
Discussant:Lori Kopp, University of Lethbridge

Manager's Personal Legal Liability and External Audits of Internal Controls: Are These Regulatory Mechanisms Complements or Substitutes?
Yi-Jing Wu, Case Western Reserve University
Brad Tuttle, University of South Carolina
Discussant:Margaret Christ, University of Georgia

The Geography of Auditor Independence and SEC Enforcement
Mark DeFond, University of Southern California
Jere Francis, University of Missouri
Xuesong Hu, University of Oregon
Discussant: Susan Scholz, University of Kansas

Session 16: The Impact and Effectiveness of Internal Control
Auditing- Advanced –1.5 CH
Moderator: Scott Vandervelde, University of South Carolina

The Effects of Task Complexity and Skill on Over/Under-estimation of Internal Control
Cathleen Miller, Wayne State University
Discussant:Stephen Butler, Missouri Western State University

Economic Determinants and Consequences of Voluntary Disclosure of Internal Control Effectiveness: Evidence from Initial Public Offerings
Sudipta Basu, Temple University
Jagan Krishnan, Temple University
Jong Eun Lee, Virginia Commonwealth University
Discussant: Stacy Mastrolia, University of Tennessee

Evidence from the U.S. on the Effect of Auditor Involvement in Assessing Internal Control over Financial Reporting
Jean Bedard, Bentley College
Rani Hoitash, Bentley College
Udi Hoitash, Northeastern University
Discussant:Divesh Sharma, Florida International University

Concurrent Sessions

Session 17: Computers and Information Technology in Auditing
Auditing– Advanced – 1.5 CH
Moderator: Errol Stewart, Florida Atlantic University

Enhancing Auditors' Ability to Identify Opportunities to Commit Fraud in Automated System Environments: The Use of Case Studies
Denise Dickins, East Carolina University
John Reisch, East Carolina University
Discussant: Marietta Peytcheva, Lehigh University

Auditor Acceptance of Computer-Assisted Audit Techniques
Diane Janvrin, Iowa State University
D. Jordan Lowe, Arizona State University
James Bierstaker, Villanova University
Discussant: Efrim Boritz, University of Waterloo

Computer Leasing Fraud at CIT Group, Inc.
Jeffrey Michelman, University of North Florida
Victoria Gorman, University of North Florida
Discussant: Mary Curtis, University of North Texas

Session 18: Ethics and Education
Auditing- Advanced – 1.5 CH
Moderator: Satina Williams, Marist College

Rhetoric or Reality? Isomorphism in Codes of Ethics
Lori Holder-Webb, Simmons College
Discussant:Monika Causholli, University of Florida

CPA's View of the Content of Accounting Ethics Courses
Mohammad Abdolmohammadi, Bentley College
Alan Reinstein, Wayne State University
Discussant: Martha Eining, University of Utah

Business Students Perceptions of the Role of Auditors and the Auditing Process Post-SOX
Aretha Hill, North Carolina A&T University
Discussant:Pamela Murphy, Queen’s University

Session 19: Audit Committees and Corporate Governance
Auditing- Advanced –1.5 CH
Moderator: Wayne Tervo, Murray State University

An Empirical Investigation of Audit Committee Decision Quality
Helen Gabre, Alabama A&M University
Morris Stocks, University of Mississippi
Karl Wang, University of Mississippi
W. Mark Wilder, University of Mississippi
Discussant: Ya-Wen Yang, University of Miami

Audit Committees and Earnings Expectations Management
M. H. Carol Liu, Oakland University
Sam Tiras, Louisiana State University
Zili Zhuang, Chinese University of Hong Kong
Discussant: Scott Bronson, Michigan State University

Managerial Ownership, Corporate Monitoring and Audit Pricing
Sam Han, Singapore Management University
Julia Higgs, Florida Atlantic University
Tony Kang, Florida Atlantic University
Discussant:Rani Hoitash, Bentley College

Session 20: Value of Audit and Non-Audit Services
Auditing- Advanced –1.5 CH
Moderator: Gary Holstrum

How do Auditors View Managers' Disclosure Strategy? The Effect of Earnings Guidance on Audit Fees
Gopal Krishnan, George Mason University
Mikhail Pevzner, George Mason University
Partha Sengupta, George Mason University
Discussant:J. Kenneth Reynolds, Indiana University

Examining the Expectations Gap for No-Assurance Services
Brian Patrick Green, University of Michigan-Dearborn
Alan Reinstein, Wayne State University
Cathleen Miller, Wayne State University
Discussant:Yi-Jing Wu, Case Western Reserve University

Non-Audit Services and Audit Quality: Investors' Concerns Post-Enron
Aasmund Eilifsen, Norweigian School of Economics and Business Admin.
Kjell Knivsfla, Norweigian School of Economics and Business Admin.
Discussant: Steven Firer, Monash University South African Campus