Journal article
Auditing in the Presence of Outside Sources of Information
Journal of accounting research, Vol.39(3), pp.435-447
12/2001
DOI: 10.1111/1475-679X.00021
Abstract
We examine how an auditor’s ability to terminate a multi-period client relationship provides the auditor with a real option whose value depends on the nature of informational asymmetry between the incumbent and other potential auditors. In particular, we isolate conditions under which the auditor’s private and public sources of information behave as complements rather than substitutes. In such circumstances, increasing the likelihood of publicly provided information induces the auditor to expend more (rather than less)resources in private information gathering activities.
Details
- Title: Subtitle
- Auditing in the Presence of Outside Sources of Information
- Creators
- Mark Bagnoli - Purdue University West LafayetteMark Penno - Purdue University West LafayetteSusan G. Watts - Purdue University West Lafayette
- Resource Type
- Journal article
- Publication Details
- Journal of accounting research, Vol.39(3), pp.435-447
- DOI
- 10.1111/1475-679X.00021
- ISSN
- 0021-8456
- eISSN
- 1475-679X
- Publisher
- Blackwell Publishers Inc
- Number of pages
- 13
- Language
- English
- Date published
- 12/2001
- Academic Unit
- Accounting
- Record Identifier
- 9984963120202771
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