ABSTRACT. Stefaniak and Robertson investigate whether two interactive factors (the significance of the audit mistake and the anticipated professional repercussions of mistake admission) influence the likelihood of disclosing an audit error. Lin and Hwang test the effects of two levels of audit committee independence (complete and proportional independence), and find both to have a significant effect in reducing earnings management. Cahill remarks that the activities of internal audit and the audit committee of non-executive directors are critical elements in the assurance process. Hupkes contends that external auditors will commit a capital offence if they fail to collect and analyse critical financial and behavioural data. (pp. 144–149)
JEL: G34, M41, M42