
Audrey Gramling- Oklahoma State University
Audrey Gramling
- Oklahoma State University
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40
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Introduction
Skills and Expertise
Current institution
Publications
Publications (40)
To provide optimal learning and career outcomes for accounting graduates, we propose complementing competency-based frameworks of accounting education with the cultivation of relevant mindsets. Building on insights from research in cognitive psychology, organizational leadership, and education, we define a mindset as a combination of cognitive filt...
This study’s purpose is to examine whether providing prior consulting services influences internal auditors’ subsequent assessments when providing assurance services to assist management in its assessment of internal control over financial reporting. A behavioral experiment is used, with internal auditors as participants. We provide some evidence t...
Purpose
This paper aims to explore whether an internal auditor’s evaluation of internal control deficiencies are influenced by the party with primary influence over the internal audit function and by the type of internal control deficiency.
Design/methodology/approach
A behavioral experiment is conducted with internal auditors as participants in...
This study examines the association between the characteristics of the audit committee and the characteristics of the internal auditing function in public companies in Turkey. The motivation for this study stems from the important impact that effective internal auditing has on corporate governance and the limited academic literature and regulatory...
Recently, Walmart and several other large corporations have faced allegations of Foreign Corrupt Practices Act (FCPA) violations, subjecting the companies to large fines and stock price declines. This instructional assignment introduces students to the FCPA and provides an illustration of FCPA compliance problems at Nature's Sunshine Products (Natu...
SYNOPSIS
When assessing the effectiveness of internal control over financial reporting (ICFR), auditors evaluate design effectiveness, gather evidence on operating effectiveness, assess operating effectiveness, and conclude whether control deficiencies are material weaknesses. We experimentally examine audit managers' and partners' assessments of I...
We survey practicing internal auditors on whether their organizations hire recent university graduates as entry-level internal audit staff and, if they do, what factors are important in their hiring decisions. Approximately 58 percent of the 273 respondents hire, or plan to hire, recent graduates into their internal audit functions. Important facto...
Internal auditors play an important role related to internal control over financial reporting by assisting corporate management and external auditors with Sarbanes-Oxley Act of 2002 compliance work. The purpose of this paper is to study internal auditor objectivity by examining whether internal control work performed by internal auditors during the...
An internal audit function (IAF) should positively impact financial reporting and governance, and add value to its organization. We provide evidence on IAF factors (i.e., characteristics, activities, work areas) associated with these types of impact and whether these factors, and their influence on various impacts, differ between a developed and an...
The primary issue we examine is whether PCAOB identified audit deficiencies are associated with a change in triennially inspected audit firms’ going concern (GC) reporting decisions for their financially distressed clients. Our analysis generally indicates that firms with PCAOB deficiencies were more likely to issue a GC opinion for financially dis...
We synthesize the results of existing auditor independence research and provide commentary on the implications for two primary audiences: policy makers who consider research findings in formulating independence requirements for public company auditors and academics whose research can help inform policy makers. Our review of the independence literat...
Prior research has shown that when auditors are aware of overall risk information from procedures performed earlier in the audit, halo effects in subsequent judgments result (e.g., O’Donnell and Schultz 2005). The purpose of this study is to examine whether such effects occur in the context of evaluating the effectiveness of a client’s internal con...
The article discusses the problems encountered by smaller companies in the U.S. in the segregation of duties under Sarbanes-Oxley (SOX) section 404(a), which requires management to disclose its assessment of the effectiveness and weaknesses of internal control over financial reporting in the U.S. Analyses of the management report on internal contro...
The auditing environment continues to change in dramatic ways, and new professionals must be prepared for a high standard of responsibility. Prepare your students for these changes by using the new decision-making framework in Rittenberg/Johnstone/Gramling's AUDITING: A BUSINESS RISK APPROACH, 7th EDITION. With the help of new author Audrey Gramlin...
This descriptive study analyzes deficiency data disclosed in peer review reports of the AICPA's Center for Public Company Audit Firms Peer Review Program (CPCAF PRP). We analyze the reports of the largest 20 triennially inspected firms that have both a PCAOB inspection report and a CPCAF peer review report. The CPCAF focuses on audits of non-public...
One of the critical elements of internal control over financial reporting is an effectively functioning audit committee. The Sarbanes-Oxley Act of 2002 (SOX) defines an audit committee as " committee (or equivalent body) established by and amongst the board of directors of an issuer for the purpose of overseeing the accounting and financial reporti...
Section 404 of the Sarbanes-Oxley Act of 2002 (SOX) mandates reporting on the effectiveness of internal control over financial reporting (ICFR) by public company management and auditors. Such reporting began for fiscal years ended Nov 15, 2004 for accelerated filers and is scheduled to be fully implemented for non-accelerated filers in mid-2010. Se...
We examine internal auditors fraud risk decisions in response to variations in audit committee quality and management performance incentives. Using an experimental approach, we find that internal auditors serving in a either a self-assessment role or a due diligence role were sensitive to variations in management performance incentives, linked thes...
The frequency of earnings restatements has been increasing over the last decade. Restating previous earnings erodes perceived
trustworthiness and competence of management, giving firms strong incentives to take actions to enhance perceived credibility
of future financial reports [Farber, D. B.: 2005, The Accounting Review
80(2), 539–561.]. Using a...
Auditor independence is an important underpinning of the federal securities laws. These laws require that registrants' financial statements filed with the Securities and Exchange Commission (SEC) be audited by independent public accountants. The focus on independence for public company auditors was increased in light of the requirements of the Sarb...
Internal audit quality is an issue of great importance to both the internal and external audit professions. PCAOB Auditing Standard No 2 highlights this importance when addressing the reliance that the external auditor can place on the internal audit work product. The study discussed here experimentally tests the influence of the source of the inte...
Internal audit departments have played a variety of roles in their organization's enterprise risk management (ERM) activities since The Committee of Sponsoring Organizations of the Treadway Commission (COSO) released its Enterprise Risk Management -- Integrated Framework in Sep 2004. According to the IIA position paper issued in the wake of COSO ER...
In this study, we use experimental markets to examine the disclosure of non-audit service fees on investors' perceptions of auditor independence. The SEC justified the disclosure of non-audit services fees rule by stating that: "Investors will be able to evaluate for themselves whether the proportion of non-audit service fees causes them to questio...
This paper investigates how external auditor provision of significant non-audit services and client pressure to use the work of internal audit influence external auditors' use of internal auditors' work. More specifically, we study how external audit evidence gathering choices are influenced by non-audit fees and client pressure. Our research is mo...
Version 2.2 Preliminary Draft. Please do not quote. We gratefully acknowledge the help of Rajib Doogar, Bob Halperin and our students in the acquisition of participants and in the running of the experiments. We also thank Abstract This paper reports the results of an experiment wherein participants estimated the covariation between two binary varia...
This study investigates whether attestation of asserted compliance with specified standards influences users’ perceptions of assertion credibility. We find that, when an investment manager reports above average performance, users perceive the investment manager's assertion to be somewhat more credible when an independent third party has attested to...
We examine the sensitivity of internal auditors' fraud risk assessments and audit effort decisions (i.e., budgeted hours) to variations in management's incentives to intentionally misstate their financial position, and in the quality of a firm's audit committee. Internal auditors are an integral part of an organization's monitoring scheme and it is...
Despite extensive research on the determinants of external audit fees, there is little empirical evidence on the effect of internal audit contribution on the external audit fee. Using a cross-sectional regression model based on prior audit fee research, this study provides evidence that internal audit contribution is a significant determinant of th...
The purpose of this paper is to provide insight regarding past, present, and future research in behavioral auditing to Ph.D. students and other researchers seeking to identify productive opportunities for future research. Our analysis is informed by recent publication trends and interviews with twenty-one active researchers likely to shape behavior...
This study uses experimental methods to examine client acceptance, auditor pricing and effort decisions for clients of varying risk under two legal rules, joint and several liability, and proportionate liability. We predict greater availability of audit services for high-risk clients, lower audit prices, and lower audit effort under proportionate l...
Through review and synthesis, we evaluate the extent to which existing auditing research supports the contention that audit firm and auditor industry concentration, specialization, experience, and knowledge improve client-relevant audit outcomes. We classify the twenty-three published auditing research studies that directly investigate these issues...
This study provides evidence on the influence of voluntary attestation outside of the financial statement audit setting. Information preparers can voluntarily employ an independent third party to attest to the reliability of information other than financial statement information. An issue of interest is whether voluntary attestation of information...
Describes a study conducted to obtain empirical evidence with respect to the nature of the perceived benefits of the Certified Internal Auditor (CIA) designation as they relate to career advantages and perceived competences. A survey comprising 24 questions was mailed to the director of internal audit, the chief financial officer, and a member of t...