Assume or Divide Responsibility? An Experimental Examination of Investors' Reactions to the Role and Disclosure of Component Auditors in an Audit

• In Event: Auditing

Abstract

Audits of multinational corporations typically involve multiple auditors, the lead auditor and multiple component auditors. The lead auditor decides whether to assume responsibility for the work of the component auditor or to divide responsibility for the component audit. We investigate investor reaction to the lead auditor's decision.

Authors

• John D Keyser, Case Western Reserve University

• Jason L. Smith, University of Nevada-Las Vegas