Evidence on the Audit Risk Model: Do Auditors Increase Audit Fees in the Presence of Internal Control Deficiencies?

By Chris E. Hogan, Michael S. Wilkins. 2008

643 citations recorded by the source corpus.

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Citations in the corpus

The Effects of Firm-Initiated Clawback Provisions on Earnings Quality and Auditor Behavior (2012, neutral): “Prior research also documents a positive association between the aggressiveness of ﬁnancial reporting (or the risk of earnings manipulation) and audit fees (e.g., Phillips, 1999; Beaulieu, 2001; Gul et al., 2003; Hogan and Wilkins, 2008; Hoitash et al., 2008).”
How do Auditors Respond to CEO Narcissism? Evidence from External Audit Fees (2015, neutral): “(2008), and Hogan and Wilkins (2008), respectively.”
Internal Control Weaknesses and Financial Reporting Fraud (2017, background): “ABNORMAL_AUDIT_FEES is the year t+1 residual of an audit-fee regression based off of equation (2) from Hogan and Wilkins (2008) that is estimated for all public, non-financial firms for years 2004 through 2012 covered by both Compustat and Audit Analytics.”
Internal Control and Management Guidance (2009, background): “Second, auditors’ substantive testing is expected to partially mitigate the errors in reported earnings (e.g., Hogan and Wilkins, 2008), but is less likely to correct erroneous figures in internal management reports and any resulting management guidance based on these reports.”
Direct and Indirect Effects of Internal Control Weaknesses on Accrual Quality: Evidence from a Unique Canadian Regulatory Setting (2011, neutral): “Hogan and Wilkins (2008) and Hoitash et al. (2008) find the same association for SOX 302 firms.”
Business Strategy, Financial Reporting Irregularities, and Audit Effort (2013, positive): “…sales (FOREIGN).15 Similar to prior research, we expect positive coefficients for our measures of client complexity (Casterella, Francis, Lewis, and Walker 2004; Larcker and Richardson 2004; Francis, Reichelt, and Wang 2005; Hay et al. 2006; Hogan and Wilkins 2008; Hribar, Kravet, and Wilson 2009).”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “The use of this variable to proxy for variation in EQ, however, is subject to a concern that disclosures of material weaknesses are correlated with manager and auditor incentives to discover and disclose internal control weaknesses (Ashbaugh-Skaife et al., 2007; Hogan and Wilkins, 2008).”
Internal Control Over Financial Reporting and Managerial Rent Extraction: Evidence from the Profitability of Insider Trading (2013, background): “When a material weakness in ICFR exists, there is more than a remote likelihood that material misstatements in financial reports will not be prevented or detected by a firm’s internal control system (Hogan and Wilkins 2008).”