Welcome and Opening Remarks

Yoshihide Toba (Waseda University)
Theodore J. Mock (Chair, ISAR Scientific Committee)

Plenary Session I: Enhancing the Value of Auditor Reporting:
Current Developments, Challenges and Research Opportunities

A number of jurisdictions and regulators have called for reconsideration of the form, content and communication value of the audit report. These include the International Auditing and Assurance Standards Board, the European Commission, the U.S. Public Company Accounting Oversight Board and the U.K. Financial Reporting Council. This session will discuss current developments, what we know about audit reports from academic research and present two research papers which further contribute to our knowledge on this topic.

Current Developments and Research Synthesis

Roger Simnett, University of New South Wales

Mitigating the Outcome Bias for Auditors’ Judgments: Modification of the Auditor’s Report

Arnie Wright, Northeastern University, and Sally Wright, University of Massachusetts-Boston

Does the Identity of Engagement Partners Matter to the Market? An Analysis of the Persistence and Economic Consequences of Audit Reporting Failures

Ann Vanstraelen, Maastricht University, and Mikko Zerni, University of Vaasa

Concurrent Session IA: Restatements, Partner Continuance and Industry Expertise

Spillover Effects of Restatements on the Financial Reporting Behavior of Board-Interlocked Firms

Chih-Ying Chen, Beng Wee Goh, Singapore Management University, Yu-Chen Lin, National Cheng-Kung University, and Guan-Syun Wu, Chung Yuan Christian University

Audit Firm Switch and Engagement Partner Continuance

Hironori Fukukawa, and Masaru Karube, Hitotsubashi University

Audit Office Industry Expertise, Audit Production and Audit Fees

Simon Dekeyser, Ann Gaeremynck, and Marleen Willekens, KU Leuven

Moderator: Roger Meuwissen, Maastricht University

Concurrent Session IB: Bias, Fair Value Choices and Audit Partner Disclosure

Do Conflict of Interest Disclosure and Certification of Objectivity Reduce Bias in Professional Accountants’ Judgments?

Karim Jamal, Erin Marshall, University of Alberta, and Hun-Tong Tan, Nanyang Technological University

The Impact of Social Pressure and Estimate Source on Auditors’ and Financial Statement Preparers’ Fair Value Estimate Choices

Alisa G. Brink, and Ling Yang, Virginia Commonwealth University

Audit Partner Disclosure: Potential Implications for Investor Reaction and Auditor Independence

Tamara A. Lambert, University of Massachusetts Amherst, Benjamin L. Luippold, Georgia State University, and Chad M. Stefaniak, Oklahoma State University

Moderator: Steve Salterio, Queen’s University

Symposium Welcome and ISAR Overview (Waseda Conference Hall)

Yoshihide Toba (Waseda University),
Tatsuo Uemura (GCOE and Waseda University)
Theodore J. Mock (Chair, ISAR Scientific Committee)

Plenary Session II: Audit Quality and Corporate Governance Systems

JICPA Activities regarding Audit Quality

Shozo Yamazaki, Chairman and President of the Japanese Institute of Certified Public Accountants

Audit Firms as Gatekeepers in Corporate Governance Systems: The U.S. after Sarbanes-Oxley and Japan after Olympus

Bruce E. Aronson, Creighton University

Moderator: Ken Trotman, University of New South Wales

Plenary Session III: Professional Skepticism in Auditing

Although it is indeed “a cornerstone of audit quality” (Auditing Practices Board, 2012), Professional Skepticism has not been a focus of academic research until quite recently. Independent auditors can naturally understand that professional skepticism encompasses an attitude of “raising a question” as to the audit evidence to collect and assess. Yet this alone has not been enough to prevent audit failures resulting from insufficient skepticism. This session will cover an important part of current developments - in theory, in research and in practice - on professional skepticism.

Refocusing the Professional Skepticism Discussion: Doubt versus Critical Thinking

Kathryn Kadous, Emory University

Constructing a Conceptual Framework of Professional Skepticism in Auditing

Yoshihide Toba, Waseda University

Professional Skepticism – Challenges for the Independent Auditors in Japan

Koichiro Kimura, Chief Executive Officer, PricewaterhouseCoopers Aarata

Moderator: Robert Roussey, University of Southern California

Poster Session

The Impact of Management Incentives and Monitoring Mechanisms on Auditor-Client Negotiations around the Time of an Initial Public Offering

Helen Brown-Liburd, Rutgers Business School, Arnold Wright, Northeastern University, and Valentina L. Zamora, Seattle University

Competition in the Market for Audit Services: An Examination of Audit Fee Stickiness

Charl de Villiers, David Hay, and Zhizi (Janice) Zhang, The University of Auckland

The Governance Role of Private Debt and the Monitoring Role of External Auditors: Evidence from Covenant Violations

Liangliang Jiang, Lingnan University, and Hui Zhou, Melbourne Business School

The Effect of Audit Committee Member-Audit Partner Interlocks on Audit Quality

Sarowar Hossain, Gary S Monroe, University of New South Wales, Mark Wilson, and Christine Jubb, The Australian National University

When Does the Reputational Capital of the Traditional Accounting Profession Pay?—Evidence from the Emerging GHG Assurance Market

Shan Zhou, Wendy Green, and Roger Simnett, University of New South Wales

Do Audit Partners Share Reputation Jointly and Severally with Other Partners in the Firm?

Xianjie He, Shanghai University of Finance and Economics, Jeffrey Pittman, Memorial University of Newfoundland, and Oliver Rui, China Europe International Business School

The Effects of a Client’s Political Connections on Auditors’ Judgments

Radzi Jidin, and Gary S. Monroe, University of New South Wales

Auditor Independence and Non-Audit Services: Evidence from the United Kingdom

Stuart Turley, Shahidul Islam, and Javed Siddiqui, University of Manchester

The Effect of the Absence of Misstatements on Auditors’ Material Weakness Judgments

Stephen Kwaku Asare, University of Florida, Barbara Majoor, Nyenrode Business University,  and Arnold Wright, Northeastern University

Review of Choice-Based and Matched Sample Studies in Auditing Research

Iris Stuart, Norwegian School of Economics and Business Administration, Yong-Chul Shin, University of Massachusetts Boston, and Donald P. Cram, State University of New York, Oswego, Vijay Karan, California State University Fullerton

A Tale of Two Tails: A Quantile Regression Approach to Investigate Audit Firm and Audit Partner Changes Across the Audit Quality Distribution

Elizabeth Carson, Per Christen Tronnes, and Leon Wong, University of New South Wales

Auditor Gender and Audit Quality

Peter Carey, Shireenjit Johl, Arifur Khan, and Xiaoqing Li, Deakin University

Concurrent Session IIA: Audit Quality I

Does Audit Partner Rotation Enhance Audit Quality? Evidence from Japan

Kenichi Yazawa, Aoyama Gakuin University

Restatements: Do They Affect Auditor Reputation for Quality?

Afshad J. Irani, Washington and Lee University, Stefanie L. Tate, University of Massachusetts Lowell, and Le (Emily) Xu, University of New Hampshire

Audit Quality and the Timeliness of Loss Contingency Disclosures

Feng Chen, Yu Hou, Gordon Richardson, and Minlei Ye, University of Toronto

Moderator: Peter Roebuck, University of New South Wales

Concurrent Session IIB: Audit Committees

Audit Committee Characteristics and the Safeguarding of Auditor Independence

Ling Lei Lisic, George Mason University, Linda A. Myers, University of Arkansas, and Jian Zhou, University of Hawaii at Manoa

Determinants and Consequences of Audit Committee Effectiveness: Evidence from China

Hsihui Chang, Drexel University, Xin Chen, Shanghai Jiao Tong University, and Nan Zhou, State University of New York at Binghamton

The Audit Committee: Management Watchdog or Personal Friend of the CEO?

Liesbeth Bruynseels and Eddy Cardinaels, Tilburg University

Moderator: Caren Schelleman, Maastricht University

Concurrent Session IIIA: Audit Quality II

Competition and Quality in the Market for Audit Services

Roger Meuwissen, Caren Schelleman, Maastricht University, and Jeroen van Raak, University of Amsterdam

The Effects of Significant Changes in Auditor Clientele and Auditor-Client Mismatches on Audit Quality        

Kenneth L. Bills, University of Oklahoma

Does Auditor Industry Specialization Improve Audit Quality? Evidence from Comparable Clients

Miguel Minutti-Meza, University of Miami

Moderator: Gary Monroe, University of New South Wales

Concurrent Session IIIB: Audit Judgment Research

Decision Making Under Uncertainty: Auditor Stopping Rules

Amanda W. White, University of Technology, and Roger Simnett, University of New South Wales

Do Disclosures of Professional and Social Ties between the CEO and the Audit Committee Affect Investors’ Judgments of the Effectiveness of the Audit Committee?

Jeffrey Cohen, Boston College, Lisa Milici Gaynor, University of South Florida, Ganesh Krishnamoorthy, and Arnie Wright, Northeastern University

A General Framework for Assessing Fraud Risk

Lei Gao, State University of New York at Geneseo, Rajendra P. Srivastava, and Elizabeth Emeigh, University of Kansas, and Theodore J. Mock, University of California, Riverside

Moderator: Terence Ng, Nanyang Technological University

Plenary Session IV: Compensation, Auditor Style and Supply Chain

Empirical Evidence on the Implicit Determinants of Compensation in Big four Audit Partnerships

W. Robert Knechel, University of Florida, Lasse Niemi, Aalto University, and Mikko Zerni, University of Vaasa

The Role of Auditor Style in Financial Statement Comparability

Jere R. Francis, Olena Watanabe, University of Missouri, and Matt Pinnuck, University of Melbourne

Client Supply Chain Relationships: Implications for Audit Quality, Audit Pricing, and Audit Firm Selection

Karla M. Johnstone, University of Wisconsin, Chan Li, University of Pittsburgh, and
Shuqing Luo, National University of Singapore

Moderator: Roger Simnett, University of New South Wales

Closing Remarks and Invitation to ISAR 2013

Ken Trotman or Roger Simnett  (University of New South Wales)
Yoshihide Toba (Waseda University) and Hironori Fukukawa (Hitotsubashi University)
Theodore J. Mock (Chair, ISAR Scientific Committee)