[...]... the staff Research on Professional Responsibility and Ethics in Accounting Research on Professional Responsibility and Ethics in Accounting, Volume 10, 3–34 Copyright r 2005 by Elsevier Ltd All rights of reproduction in any form reserved ISSN: 1574-0765/doi :10. 1016/S1574-0765(05 )100 01-6 3 4 ANDREW D BAILEY AND AUDREY A GRAMLING explanations and interpretations to help users better understand reported... frequently conflicting 18 ANDREW D BAILEY AND AUDREY A GRAMLING and provide little unambiguous direction This suggests to us the value of integration research Integration research has two important characteristics – it synthesizes the conflicting research findings and points researchers in directions where additional research (often discovery or application research) would be useful Ideally, integration research. .. function will affect the nature, timing, and extent of the annual independent audit work, including procedures the independent auditor performs when obtaining an understanding of the entity’s internal control, when assessing risk, when gathering substantive evidence, and in performing an internal control assessment In performing the audit, the independent auditor may, as permitted by auditing standards,... quality Currently, in terms of ensuring technical competence through education, the profession and the firms rely on: (1) an entry level tertiary accounting education, (2) an entry level examination taken predominantly immediately after the completion of the tertiary education, and (3) continuing professional education requirements (CPE) varying by jurisdiction While formal education is clearly an important... Commission, 1994) Such mechanisms include internal reviews, potentially an internal audit function, whistle-blowing programs and other approaches for detecting, reporting, correcting audit quality problems, and continuously improving audit quality Malone and Roberts (1996) report that an individual auditor’s perception of the strength of a firm’s quality control system, including the nature and results... actions Standard setters, in conjunction with regulators, establish principles and objectives, provide guidance where necessary, prohibit certain behaviors, and provide penalties when behavior deviates from the established expectations A balanced combination of disincentives, guidance, and prohibitions from regulators and standard setters is necessary in affecting financial reporting quality Institutional... are involved daily in issues bearing directly on financial reporting quality, including issues of auditor independence, standard setting activities of the PCAOB, and implications of legislative and regulatory mandates Findings of academic research can be useful in understanding these and other issues of current relevance However, it is oftentimes difficult to have a clear picture of the academic findings,... standards set the ‘‘floor’’ for accounting and disclosures by management to the users of financial information (See Hackenbrack and Nelson (1996) and Trompeter (1994) for research evidence on accounting standards as a determinant of financial reporting quality.) In preparing its financial information, the public company, through its management, audit committee, and internal audit function, must be committed to... quality? s In what areas of competency should continuing education requirements be established (e.g., evaluation of information systems and internal controls; prevention and detection of fraud; and evaluation of fair value)? s What approaches to on- the-job training are most helpful to enhancing audit quality? s Which independence requirements are most associated with audit quality? s What incentives,... Are confirmations an effective source of evidence for auditors in substantiating management’s assertions in the financial statements? If yes, to what extent should confirmations be used during an audit? Financial Reporting Quality: A Focus on the Role of the Independent Auditor s Will requiring auditors to inquire of the audit committee about information on complaints and concerns (from whistleblowers and . RESEARCH ON PROFESSIONAL RESPONSIBILITY AND ETHICS IN ACCOUNTING RESEARCH ON PROFESSIONAL RESPONSIBILITY AND ETHICS IN ACCOUNTING (formerly Research on. Jeffrey RESEARCH ON PROFESSIONAL RESPONSIBILITY AND ETHICS IN ACCOUNTING VOLUME 10 (formerly Research on Accounting Ethics) RESEARCH ON PROFESSIONAL RESPONSIBILITY