Early Evidence on the Effects of Critical Audit Matters on Auditor Liability

Gimbar, C., B. Hansen, and M. E. Ozlanski. 2015. Early Evidence on the Effects of Critical Audit Matters on Auditor Liability. Current Issues in Auditing (Forthcoming)

Posted: 12 Dec 2015

See all articles by Christine Gimbar

Christine Gimbar

DePaul University

Bowe Hansen

Virginia Commonwealth University

Michael Ozlanski

Susquehanna University

Date Written: December 10, 2015

Abstract

The U.S. Public Company Accounting Oversight Board recently proposed changes to the audit reporting model that would require auditors to disclose areas of high audit risk within the audit report. Concerns about the proposal’s potential to increase auditor liability have been raised by practitioners and highlighted in the business press. In this paper, we review five recent experiments that directly relate to these concerns, identify patterns in the results, and discuss the implications of these findings for regulators and practitioners.

Keywords: PCAOB, audit reporting, auditor litigation, critical audit matters (CAMs)

Suggested Citation

Gimbar, Christine and Hansen, Thomas Bowe and Ozlanski, Michael, Early Evidence on the Effects of Critical Audit Matters on Auditor Liability (December 10, 2015). Gimbar, C., B. Hansen, and M. E. Ozlanski. 2015. Early Evidence on the Effects of Critical Audit Matters on Auditor Liability. Current Issues in Auditing (Forthcoming), Available at SSRN: https://ssrn.com/abstract=2701898

Christine Gimbar (Contact Author)

DePaul University ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

Thomas Bowe Hansen

Virginia Commonwealth University ( email )

Richmond, VA 23284
United States

Michael Ozlanski

Susquehanna University ( email )

Sigmund Weis School of Business
Selinsgrove, PA 17870-0101
United States

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