John Reisch

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Accounting Faculty: Will There be Enough

Selecting an auditor for Bradco using indicators of audit quality

Journal of Accounting Education, 2018

In this activity, you are introduced to the auditor selection process and how indicators of an au... more In this activity, you are introduced to the auditor selection process and how indicators of an auditor's audit quality may influence that process. You will gain an understanding of factors that can affect audit quality and apply that knowledge in a decision-making taskselecting an auditor for Bradco. The CAQ, PCAOB, IAASB, and other entities classify indicators according to how they impact audit quality. By completing the activity, you will learn to delineate how certain inputs (e.g., auditor training) may influence how an audit is conducted and certain outputs (e.g., PCAOB inspection findings) may measure or indicate whether an audit was conducted with an appropriate level of quality. The activity also demonstrates how indicators of audit quality may be used by audit committee members and company management to evaluate and select an auditor.

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Do experienced auditors have a bias for confirmatory audit evidence?

International Journal of Accounting, Auditing and Performance Evaluation, 2017

In this study we experimentally test whether experienced auditors display a preference for confir... more In this study we experimentally test whether experienced auditors display a preference for confirmatory evidence when performing a routine part of a financial statement audit. We theorise that information auditors receive early during an audit leads them to form an initial belief about the correctness of an account balance. Subsequently, auditors may bias their evidence choices in a way that confirms their initial belief. We conducted a 2 × 2 between-subjects experiment with 97 experienced auditors. We manipulated whether early information came from a client's CFO or a firm partner and whether or not it supported the account balance as currently stated. We found that auditors selected more confirmatory evidence after receiving positive information from an audit partner compared to receiving the same information from a client's CFO. We found that experienced auditors selected more confirmatory evidence when the CFO provided negative information relative to when the CFO provided positive information.

Investigating Error Projection Among State Auditors: The Impact of Intentional and Systematic Misstatements

Advances in Accounting Behavioral Research

Page 1. INVESTIGATING ERROR PROJECTION AMONG STATE AUDITORS: THE IMPACT OF INTENTIONAL AND SYSTEM... more

A discussion of public identification of US audit engagement partners: Who benefits? Who pays?

International Journal of Disclosure and Governance, 2010

Law. She entered academics after a 20-plus year career in a legal / tax practice with regional an... more Law. She entered academics after a 20-plus year career in a legal / tax practice with regional and national accounting and law fi rms, as well as serving as an estate planning consultant in the fi nancial industry. Her published topics include estate tax and planning and tax issues concerning closely held entities.

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Enhancing Auditors' Ability to Identify Opportunities to Commit Fraud: Instructional Resource Cases

Issues in Accounting Education, 2012

ABSTRACTResearch suggests that audit team members, especially staff, may lack the necessary train... more ABSTRACTResearch suggests that audit team members, especially staff, may lack the necessary training to be able to identify fraud risks and to develop appropriate responses to identified fraud risks (e.g., Pearson and Singleton 2008; Knapp and Knapp 2001; Braun 2000; Zimbelman 1997). This lack of training may be particularly acute with respect to the perpetration of fraud in automated environments (Filipek 2007). The case studies are designed to improve undergraduate auditing, accounting information systems, and forensic accounting students' abilities to recognize and respond to indicators of fraud and general information technology (IT) control weaknesses.

Actions Speak Louder than Words: A Case Study on Mexican Corporate Governance

Issues in Accounting Education, 2007

In this case, you will examine corporate governance in an international context and gain a thorou... more In this case, you will examine corporate governance in an international context and gain a thorough understanding of the ramifications of the Sarbanes-Oxley Act of 2002 (SOX), as you observe very different reactions to the provisions of SOX by two Mexican companies, both of whom were trading on the NYSE at the time SOX was enacted. One company, TV Azteca, withdrew from the exchange on the grounds that U.S. regulations ignore Mexico's legal framework and corporate culture. You are required to contrast TV Azteca's response with the actions of another Mexican company, Cemex, which embraces the concepts of SOX. Cemex views compliance with SOX as an integral component of its corporate governance and sees it as necessary for continued access to international capital markets.

Testing NCAA Compliance at Southeastern State University: A Case Study

Issues in Accounting Education, 2002

A large part of an auditor's work includes evaluation of an organization's compliance wit... more A large part of an auditor's work includes evaluation of an organization's compliance with laws and regulatory requirements, internal policies and procedures, and other rules that an entity must follow. The objective of this case is to assist you in understanding both the importance of compliance auditing, and the need for auditors to exercise professional judgment when interpretation of rules is required. The case involves a hypothetical university's adherence to NCAA rules and regulations. The first part of the case provides exposure to various resources needed to develop an understanding of both intercollegiate athletics and compliance with rules established by its governing body, the NCAA. The second part requires you to use judgment in interpreting different scenarios that may or may not indicate compliance violations.

Compliance with Title IX at Kingston State University: A Case Study on Cost Allocation and Ethical Decision Making

Issues in Accounting Education, 2005

We present a case that focuses on the allocation of costs between men's and women's sport... more We present a case that focuses on the allocation of costs between men's and women's sports. At issue is whether large portions of indirect costs can or should be allocated to women's sports to keep a university in compliance with Title IX, the federal law promoting gender equity in collegiate athletics. Students are instructed to use an ethical decision-making model when addressing the cost allocation issue and deciding whether it is ethical for accountants to “play” with numbers to achieve certain objectives. The cost allocation alternatives generated by students are appropriate for managerial accounting courses at both the undergraduate and graduate levels. The case also helps students to develop a systematic approach when solving ethical dilemmas. Students are required to identify potential stakeholders of the decision to reallocate costs and to assess the interests of the different stakeholders. After developing potential alternatives and determining how each decisio...

Brodnax Minerals Company: A Case Study on Auditors' Responsibilities

Issues in Accounting Education, 1999

Brodnax is a comprehensive auditing case involving litigation between external auditors and share... more Brodnax is a comprehensive auditing case involving litigation between external auditors and shareholders who lost billions of dollars as a result of a massive fraud. Students are required to discuss several important topics covered in most external auditing courses: the objectives and limitations of an audit, issues involving client acceptance and risk to the auditing firm, the rendering of appropriate audit opinions, and the auditors' responsibilities for the detection of fraud. The objective of the case is to provide students with an opportunity to see the importance for practicing auditors to consider the legal ramifications of performing their jobs in light of the litigious environment in which auditors work.

Institutional Ownership and the Selection of Industry Specialist Auditors

Review of Quantitative Finance and Accounting, 2003

This study provides evidence linking corporate governance mechanisms to the choice of auditor, na... more This study provides evidence linking corporate governance mechanisms to the choice of auditor, namely industry specialists. Given that institutional investors are likely to prefer higher quality financial reports to lower quality reports, we theorize that institutional investors will influence managers of companies in which they invest to improve reporting quality by using higher quality, industry specialist auditors. Our findings indicate that firms having relatively greater levels of institutional ownership tend to employ industry specialist audit firms. The results of this study contribute to an understanding of an important facet of corporate governance, the selection of a high quality audit firm.

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