PCAOB Concludes 2017 Economic Conference on Auditing and Capital Markets
The Public Company Accounting Oversight Board concluded on Friday its fourth annual Economic Conference on Auditing and Capital Markets, an event that promotes academic research on the economic impact of auditing and audit regulation on capital markets.
The two-day conference, organized by the PCAOB Office of Economic and Risk Analysis in conjunction with the Journal of Accounting Research, drew 140 researchers to Washington from around the world.
"This economic conference brings together a diverse array of academic thought leaders to discuss important research topics related to the role of the audit in capital markets," said PCAOB Chairman James R. Doty. "Each year, the papers selected for presentation provide actionable insights that inform the activities of the PCAOB as well as further research."
Seven research papers were chosen for presentation at the conference out of more than 80 submitted in response to ERA’s call for papers. The papers presented addressed:
- Effect of inspection programs on audit quality
- Communicating with specialists used in an audit
- Audit firms that fail to address quality control criticisms
- Effect of non-GAAP reporting on auditor materiality judgments
- Going concern opinions
- Audit partner tenure and rotation
- Effect of auditor fair value expertise on audit quality
The papers were selected for presentation following a review by a committee of leading academics assembled by the editorial board of the Journal of Accounting Research and Luigi Zingales, Founding Director of ERA and the Robert C. McCormack Professor of Entrepreneurship and Finance and the David G. Booth Faculty Fellow at the University of Chicago Booth School of Business.
"The presentations of the papers at the economic conference always excite and stimulate our own staff economists," said Professor Zingales. "The purpose of the conference is to broaden the market for auditing research and engage researchers on issues we face.”
The conference agenda and working papers presented will remain available on the PCAOB website through November 30, 2017. After this date, interested parties should contact the authors to obtain the most current versions of their papers.
The PCAOB Office of Economic and Risk Analysis conducts economic analysis, research, risk assessments, and other data analysis to inform PCAOB activities, including standard setting, inspection, enforcement, and other oversight activities. ERA’s economists help PCAOB evaluate issues in a way that maximizes regulatory effectiveness and minimizes unintended consequences.