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dc.contributor.authorBrandon, Duaneen_US
dc.date.accessioned2014-03-14T20:15:00Z
dc.date.available2014-03-14T20:15:00Z
dc.date.issued2003-08-08en_US
dc.identifier.otheretd-08102003-103059en_US
dc.identifier.urihttp://hdl.handle.net/10919/28596
dc.description.abstractThis dissertation investigates auditor independence by examining the effects of various factors on independence, both in fact and as perceived by several distinct groups. The first study examines the effects of auditing students' cognitive moral development and client risk on students' judgments related to an audit partner's acquiescence to client pressure in an earnings management scenario. The results indicate that students with higher levels of moral reasoning evaluated earnings management as less ethical and were also less likely to accept earnings management by an audit client. The results also indicate that subjects in a high client risk scenario evaluated earnings management as less ethical and were also less likely to accept earnings management by an audit client. Furthermore, this study investigated whether client risk moderates the effect of cognitive moral reasoning on ethical judgments and behavioral intentions. The results do not indicate an interaction. The second and third studies deal with potential consequences associated with the perceived impairment of auditor independence. Specifically, the second study deals with the effects of auditor-provided non-audit services on the client company's bond rating. If financial statement users believe that auditors providing non-audit services impairs the auditor's independence, they are likely to recognize an increase in information risk associated with such impairment (Johnstone et al. 2001). This could occur regardless of the true nature of the auditor's independence and would suggest a negative relationship between the amount of non-audit services purchased from the company's auditor and the company's bond rating. The results of this study support that contention. The third study investigates the effects of client importance and audit firm size on juror evaluations of auditor liability and damage awards. Previous research in accounting shows that client importance can affect sophisticated financial statement users' perceptions of auditor independence. However, no study has investigated perceptions of auditor independence in a litigation context. The results indicate that when an auditor is involved in litigation associated with an audit client that is financially more important to the auditor, jurors' evaluations of negligence are higher and they assess more in punitive damages. No effect of audit firm size on negligence ratings or damage awards is found.en_US
dc.publisherVirginia Techen_US
dc.relation.haspartBrandon-ETD.pdfen_US
dc.rightsI hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to Virginia Tech or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report.en_US
dc.subjectJuror Decision Makingen_US
dc.subjectBond Ratingsen_US
dc.subjectEthicsen_US
dc.subjectAuditor Independenceen_US
dc.titleThree Studies of Auditor Independenceen_US
dc.typeDissertationen_US
dc.contributor.departmentAccounting and Information Systemsen_US
dc.description.degreePh. D.en_US
thesis.degree.namePh. D.en_US
thesis.degree.leveldoctoralen_US
thesis.degree.grantorVirginia Polytechnic Institute and State Universityen_US
thesis.degree.disciplineAccounting and Information Systemsen_US
dc.contributor.committeechairKillough, Larry N.en_US
dc.contributor.committeememberMaher, John J.en_US
dc.contributor.committeememberSheetz, Steven D.en_US
dc.contributor.committeememberBrown, Robert M.en_US
dc.contributor.committeememberStephens, Robert S.en_US
dc.identifier.sourceurlhttp://scholar.lib.vt.edu/theses/available/etd-08102003-103059/en_US
dc.date.sdate2003-08-10en_US
dc.date.rdate2005-09-05
dc.date.adate2003-09-05en_US


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