Mr the Number

inherent Control Weaknesses and Client attempt Management RANDAL old* YAN ZHANG** JIAN cabbage*** NAN ZHOU**** We study canvassors client run a risk vigilance in the premiere year of the Sarbanes-Act Oxley (SOX) 404 implementation, and find that a pecking allege exists among size upors strategies to sh be curtail risk resulting from internal witness weaknesses. We first examine the relation between internal take weaknesses and audit fees, limited opinions, and auditor resignations, respectively, and establish that these are practicable strategies to manage control risk on a stand-alone basis. We as well as find that changes in audit fees and changes in modified opinions are positively associated with changes in account internal control weaknesses. When we ask these strategies simultaneously, descriptive depict suggests that a pecking graze exists among auditors client risk management strategies. Ordered logit analyses boost confirm that, as clients control risk increases, auditors are plausibly to respond in the order of audit fee adjustments, modified opinions, and auditor resignations. Our comprehensive evidence suggests that auditors use an array of reproducible strategies to manage client-related control risk.

Keywords: Internal Control Weaknesses, Client Risk Management, scrutinise Fee and Audit Opinion, Auditor Resignation *siege of Syracuse University **SUNY-Binghamton ***SUNY-Binghamton and Nanyang Technological University ****HKUST and SUNY-Binghamton We thank Jean Bedard, Ayesha Dey, Denise Dickins, Weili Ge, Karla Johnstone, grade Kohlbeck, Ryan LaFond, Cli ve Lennox, and especially an nameless revie! wer for detailed and insightful suggestions that fork out significantly improved the paper. We also thank workshop participants at the 2006 HKUST pass Symposium on Accounting Research, the 2006 Annual Conference on financial Economics and Accounting at Georgia estate University, the 2007 American Accounting Association (AAA) Annual Meeting, the 2007 AAA Auditing Midyear Meeting, the 2007...If you neediness to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay