By Harvey Schwartz, Harvey Ed. Schwartz, Bill N. Schwartz
"Advances in Accounting schooling" is a refereed, educational examine annual whose objective is to aid meet the desires of school participants drawn to how you can enhance their lecture room guideline. We put up considerate, well-developed articles which are readable, correct and trustworthy. Articles could be both empirical or non-empirical. They emphasize pedagogy, i.e., explaining how college contributors can enhance their educating equipment or how accounting devices can increase their curricula/programs.
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Extra info for Advances in Accounting Education Teaching and Curriculum Innovations, Volume 6 (Advances in Accounting Education Teaching and Curriculum Innovations)
If desired, the instructor may conduct another market with different student-auditors. Table 3 presents results from an actual classroom experiment run at a major public university. 3. Discussion In this experiment we expect that lowballing will emerge, as it is part of equilibrium behavior. The intuition, which the instructor should explain in class, is as follows. In year two, the incumbent auditor should bid 100 – any bid below 100 will unnecessarily reduce second year profits, and any bid above 100 would allow nonincumbent auditors to undercut the incumbent auditor’s bid at a profit.
Students learn that the long-term Experiential Learning in Auditing 35 cost of having acquired a reputation as a quick settler might exceed the short-term benefit of having obtained a quick settlement. , 1998), audit firms maintain that the cost of defending themselves against meritless suits is exorbitant. Audit firms often find themselves facing a situation where it is less costly in the short run to settle legal claims quickly than to vigorously defend themselves, even if they are reasonably confident of a successful defense.
Managers of a firm often take actions that affect themselves as well as the current or potential investors in the firm. Without reliable auditing, the nature of the actions taken may remain hidden from investors for a lengthy period of time. This information asymmetry can create an incentive for managers to act in a way that is consistent with their self-interest, but conflicts with the Experiential Learning in Auditing 27 interests of the stakeholders. By increasing the reliability of financial disclosures, auditing increases the visibility of actions, including those that stakeholders do not want.
Advances in Accounting Education Teaching and Curriculum Innovations, Volume 6 (Advances in Accounting Education Teaching and Curriculum Innovations) by Harvey Schwartz, Harvey Ed. Schwartz, Bill N. Schwartz