Are Auditors' Judgments Sufficiently Regressive?
Edward J Joyce, Gary C Biddle
Journal of Accounting Research | Wiley | Published : 1981
In the course of an audit engagement, audit practitioners must make numerous judgments and express an opinion on the basis of information and test results that are never perfectly diagnostic with respect to the underlying economic state of the client. The ability of auditors to for- mulate these judgments appropriately is crucial, since they may be held liable at common law or under the federal securities laws should the audited financial statements prove to be materially in error. Thus, the ability of auditors to process information in audit-related tasks has recently become the subject of research (e.g., Ashton , Gibbins , Joyce , Joyce and Biddle , Moriari..View full abstract