Working Paper # 03-115 Rev. 09/04 Conflicts of Interest and the Case of Auditor Independence: Moral Seduction and Strategic Issue Cycling Don A. Moore Carnegie Mellon University Philip E. Tetlock Haas School of Business Lloyd Tanlu Harvard Business School Max H. Bazerman Harvard Business School This paper has benefited from the feedback of Art Brief‚ George Loewenstein‚ and three anonymous reviewers of an earlier version of the paper. This paper was supported by a grant from
Premium Audit Big Four auditors
Practical Training Report Program: Bachelor in Accountancy (Hons) My practical training started on 2nd of June 2008 and it was in one of the big four audit firm which is Klynveld‚ Peat Marwick and Goerdeler or also known as KPMG. It is situated in Bandar Utama‚ Damanasara. I’m not the only one that did my practical there. There are 120 students from various universities mainly from Multimedia University and UiTM itself. All of us are known as “Vacation Trainee”. We were gladly welcomed
Premium Audit Big Four auditors
Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization ’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. Accounting can be divided into several fields including financial accounting‚ management
Premium Enron Accountant Enron scandal
risk? How‚ if at all‚ are auditors’ professional responsibilities affected when a client proposes a higher than normal degree of engagement risk? I believe that the term “engagement risk” implies that inherent client-specific risks face an auditor throughout the course of an audit‚ thus creating a risk that the auditor will be unable to successfully assess and manage these risks in the performance of the engagement and properly issue an appropriate opinion. The auditor must understand these client-specific
Premium Audit Auditing Financial audit
A. Summary In 1913‚ Arthur Andersen LLP was found in Chicago‚ developed to become one of the “big five” largest accounting firm in the US. In 2003‚ after 90 years of business‚ the Chicago-based accounting firm was forced to close its doors because of accounting scandal I. The advent of consulting In the 1950s‚ Andersen began providing consulting services and over the next 30 years‚ Andersen’s consulting business became more profitable. With quick development of consulting sector‚ in
Premium Enron Audit Arthur Andersen
Arthur Andersen LLP‚ which is over a span of nearly 90 years‚ would become one of the "Big five" largest accounting firms in the United States. Moreover‚ the accounting firm seen as the symbol of trust‚ integrity and ethic. The good reputation is derived from the advent of consulting business‚ which was developed by Leonard Spack. However‚ with the growth of consulting services‚ many accounting firms viewed it as a successful model that should be emulated‚ so that the competition pressure increasing
Premium Enron Audit Big Four auditors
Accounting‚ or accountancy‚ is the measurement‚ processing and communication of financial information about economic entities. Accounting‚ which has been called the "language of business"‚ measures the results of an organization’s economic activities and conveys this information to a variety of users including investors‚ creditors‚ management‚ and regulators. Practitioners of accounting are known as accountants. The terms accounting and financial reporting are often used as synonyms. Accounting
Premium Enron International Financial Reporting Standards Accountant
results This report focuses on the design and evaluation of a Management Control System for the Auditing division of “Pierre & Silva” (P&S)‚ a hypothetical established second-tier‚ industry-specialised accounting firm operating in competition with the Big 4 and other second-tier accounting firms. One of the most important challenges facing the auditing industry is its ability to provide high quality audits . Recent survey reveals investors’ confidence in Audited Financial Information had held steadily
Premium Audit Auditing Management
CASE 1.8 Crazy Eddie‚ Inc. In 1969‚Eddie Antar‚ a 21-year-old high school dropout from Brooklyn‚ opened a consumer electronics store with 150square feet of floor space in New York City 1 Despite this modest beginning‚ Antar would eventually dominate the retail consumer electronics market in the New York City metropolitan area. By 1987‚Antar’s firm‚ Crazy Eddie‚ Inc.‚ had 43 retail outlets‚ sales exceeding $350 million‚ and outstanding stock with a collective market value of $600 million. Antar
Premium Crazy Eddie Fraud Big Four auditors
Accounting and Economics 15 (2-3): 203-27. Antle‚ R.‚ and B. Nalebuff. 1991. Conservatism and auditor-client negotiations. Journal of Accounting Research 29 (Supplement): 31-54. Becker‚ C ‚ M. DeFond‚ J. Jiambalvo‚ and K. R. Subramanyam. 1998. The effect of audit quality on earnings management. Contemporary Accounting Research 15 (I): 1-24. Blouin‚ J.‚ B. Grein‚ and B. Rountree. 2007. An analysis of forced auditor change: The case of former Arthur Andersen clients. The Accounting Review 82 (3): 621-50
Premium Audit Big Four auditors