archives@tulane.edu / Psychology and neuroscience research shows that individuals with negative emotions (e.g., fear) are more sensitive to negative signals and exhibit a higher degree of risk aversion. Using local terrorist attacks as exogenous shocks that cause auditors to experience more negative emotions in the audit period, I empirically study the impact of negative emotions on audit practice. I find that accounting misstatements are less likely to occur for firms when there is a local terrorist attack in the audit period. The reduction in misstatements is stronger for auditors who are located closer to the terrorist attacks. Further evidence suggests that affected auditors are more likely to issue going concern opinions, spend more time on the audit, and charge higher audit fees. I obtain a similar set of results using airplane crashes as an alternative source of emotional shocks. Overall, the evidence is consistent with the idea that auditors with more negative emotions exert greater effort to lower misstatement risks. My findings provide large-scale archival causal evidence that emotions can affect audit outcomes. / 1 / Pengkai Lin

This dissertation considers the reforms made to the liability rules in Australia�s prospectus laws during the 1990s. It traces the rewrite of the fundraising provisions at the end of the 1980s as part of the new Corporations Law through to the rewrite of those provisions at the end of the 1990s as part of the CLERP Act initiative. As the law in this area is not particularly well served by detailed judicial or academic analysis in Australia, the dissertation seeks to define the scope of the Australian liability regime by reference to case law analysis, a review of relevant theoretical considerations and comparative analysis with other key jurisdictions. The thesis of the dissertation is that many of the reforms were, particularly initially, misconceived in key respects because of a failure to apply appropriate theoretical underpinnings and to take account of the lessons that could have been learned from a comparative analysis with other key jurisdictions.

This dissertation considers the reforms made to the liability rules in Australia�s prospectus laws during the 1990s. It traces the rewrite of the fundraising provisions at the end of the 1980s as part of the new Corporations Law through to the rewrite of those provisions at the end of the 1990s as part of the CLERP Act initiative. As the law in this area is not particularly well served by detailed judicial or academic analysis in Australia, the dissertation seeks to define the scope of the Australian liability regime by reference to case law analysis, a review of relevant theoretical considerations and comparative analysis with other key jurisdictions. The thesis of the dissertation is that many of the reforms were, particularly initially, misconceived in key respects because of a failure to apply appropriate theoretical underpinnings and to take account of the lessons that could have been learned from a comparative analysis with other key jurisdictions.

<p>Revision innebär en granskning av årsredovisningen, bokföringen och förvaltningen. Revisionen delas in i fyra steg vilka går ut på att erhålla och acceptera nya klienter, planera revisionen, utföra granskningen samt slutsatser och rapportering. Det viktigaste steget är planeringen där väsentlighet och risk är centrala begrepp. Väsentlighet är en förutsättning vid granskningen och avgör vad revisionen ska innehålla. Det finns både kvantitativa och kvalitativa faktorer att ta hänsyn till vid en bedömning av väsentligheten. Dessa är exempelvis revisionsprogram och standarder samt erfarenhet och personliga egenskaper. Som hjälpmedel för denna bedömning används ett väsentlighetsbelopp som skiljer det väsentliga från det oväsentliga. Det kan vara svårt med väsentlighetsbedömningar eftersom det är diffust samt att det inte finns någon utförlig vägledning. Hur utförs det egentligen i praktiken? Detta leder oss till forskningsfrågan. Hur bedömer revisorerna väsentligheten vid en revision?</p><p>Vårt syfte med uppsatsen är att förstå hur revisorer bedömer väsentligheten vid en revision. Vi vill dels ta reda vad de grundar sin bedömning på och dels utreda hur de kommer fram till väsentlighetsbeloppet. Utifrån detta har vi som delsyfte att jämföra olika stora revisionsbyråer för att se om och i så fall vilka skillnader det finns i väsentlighetsbedömningen.</p><p>Uppsatsen grundas på litteratur om revision och revisionsprocessen. Genom dessa kommer vi in på väsentlighet och risk. Detta följs av mer ingående litteratur om väsentlighet, väsentlighetsbedömningen samt kvantitativa och kvalitativa faktorer som är viktiga för bedömningen. Vidare diskuteras väsentlighetsbeloppet och dess olika baser samt skillnader i en väsentlighetsbedömning.</p><p>Vi har intervjuat sex personer vid tre stora och tre små revisionsbyråer. Således har vi använt oss av en kvalitativ metod. Vi har använt litteraturen som ett hjälpmedel att formulera våra intervjufrågor och case. Respondenternas diskussioner har presenterats i en empiridel med en tillhörande analys av respektive revisor. Därefter har revisorernas uppfattningar jämförts i en mellanfallsanalys.</p><p>Revisorerna grundar sin väsentlighetsbedömning på både kvalitativa och kvantitativa faktorer där vissa revisorer är mer kvalitativa och andra mer kvantitativa. De främsta kvalitativa aspekterna är erfarenhet, branschkunskap, kännedom om ägarna, känsla och personligt omdöme. Viktiga kvantitativa aspekterna är revisionsprogram, disciplinärenden och utbildning. Vidare beräknas väsentlighetsbeloppet med olika baser som underlag. Valet av bas grundar sig bland annat på erfarenhet, företagets verksamhet samt på hur stabil resultatutvecklingen är. De mest vanliga baserna är företagets resultat, eget kapital, balansomslutning och omsättning. Revisionsprogrammen som revisorn använder sig av, för att bedöma väsentligheten, ger förslag på ett väsentlighetsbelopp. Detta använder revisorerna som vägledning vilket dem kan ändra själva utifrån vad de anser är lämpligt. Slutligen ser vi större skillnader revisorer emellan än mellan olika stora revisionsbyråer. Väsentlighetsbedömning handlar därmed mer om personlig bedömning. Således uppfattar vi att det är mer kvalitativt än kvantitativt.</p>

Revision innebär en granskning av årsredovisningen, bokföringen och förvaltningen. Revisionen delas in i fyra steg vilka går ut på att erhålla och acceptera nya klienter, planera revisionen, utföra granskningen samt slutsatser och rapportering. Det viktigaste steget är planeringen där väsentlighet och risk är centrala begrepp. Väsentlighet är en förutsättning vid granskningen och avgör vad revisionen ska innehålla. Det finns både kvantitativa och kvalitativa faktorer att ta hänsyn till vid en bedömning av väsentligheten. Dessa är exempelvis revisionsprogram och standarder samt erfarenhet och personliga egenskaper. Som hjälpmedel för denna bedömning används ett väsentlighetsbelopp som skiljer det väsentliga från det oväsentliga. Det kan vara svårt med väsentlighetsbedömningar eftersom det är diffust samt att det inte finns någon utförlig vägledning. Hur utförs det egentligen i praktiken? Detta leder oss till forskningsfrågan. Hur bedömer revisorerna väsentligheten vid en revision? Vårt syfte med uppsatsen är att förstå hur revisorer bedömer väsentligheten vid en revision. Vi vill dels ta reda vad de grundar sin bedömning på och dels utreda hur de kommer fram till väsentlighetsbeloppet. Utifrån detta har vi som delsyfte att jämföra olika stora revisionsbyråer för att se om och i så fall vilka skillnader det finns i väsentlighetsbedömningen. Uppsatsen grundas på litteratur om revision och revisionsprocessen. Genom dessa kommer vi in på väsentlighet och risk. Detta följs av mer ingående litteratur om väsentlighet, väsentlighetsbedömningen samt kvantitativa och kvalitativa faktorer som är viktiga för bedömningen. Vidare diskuteras väsentlighetsbeloppet och dess olika baser samt skillnader i en väsentlighetsbedömning. Vi har intervjuat sex personer vid tre stora och tre små revisionsbyråer. Således har vi använt oss av en kvalitativ metod. Vi har använt litteraturen som ett hjälpmedel att formulera våra intervjufrågor och case. Respondenternas diskussioner har presenterats i en empiridel med en tillhörande analys av respektive revisor. Därefter har revisorernas uppfattningar jämförts i en mellanfallsanalys. Revisorerna grundar sin väsentlighetsbedömning på både kvalitativa och kvantitativa faktorer där vissa revisorer är mer kvalitativa och andra mer kvantitativa. De främsta kvalitativa aspekterna är erfarenhet, branschkunskap, kännedom om ägarna, känsla och personligt omdöme. Viktiga kvantitativa aspekterna är revisionsprogram, disciplinärenden och utbildning. Vidare beräknas väsentlighetsbeloppet med olika baser som underlag. Valet av bas grundar sig bland annat på erfarenhet, företagets verksamhet samt på hur stabil resultatutvecklingen är. De mest vanliga baserna är företagets resultat, eget kapital, balansomslutning och omsättning. Revisionsprogrammen som revisorn använder sig av, för att bedöma väsentligheten, ger förslag på ett väsentlighetsbelopp. Detta använder revisorerna som vägledning vilket dem kan ändra själva utifrån vad de anser är lämpligt. Slutligen ser vi större skillnader revisorer emellan än mellan olika stora revisionsbyråer. Väsentlighetsbedömning handlar därmed mer om personlig bedömning. Således uppfattar vi att det är mer kvalitativt än kvantitativt.

Regulators worldwide are considering expanding current audit reporting model to include key audit matters (KAM). Proponents argue that current audit reports are standardized and uninformative to financial statement users. Auditors in current reporting regime can choose to add explanatory notes in audit reports, however, few current studies have investigated the information content of these explanatory notes. This thesis conducts a textual analysis of explanatory notes in auditor reports and examines the predictability of auditors’ explanatory notes consisting of both unqualified and qualified opinions in determining the incidence of subsequent restatements. I hand collect material accounting restatements disclosed by the public companies in China from 2003 to 2017 and obtain modified audit reports from the CSMAR database during the period between 2003 and 2015. Based on a sample of 22,850 firm-years from 2003 to 2015 in China, I find that modified audit opinions, in general, can communicate financial misstatement risks, and the probability of such risks increases when the type of audit opinion is more severe. I also find that compared with unmodified audit opinion, modified ones containing explanatory notes have a higher possibility of subsequently being restated. Further, the predictive power is not the same across different types of explanatory notes. I have shown that explanatory notes including notes emphasizing contingencies and uncertainties and those relating to audit scope limitations have greater predictive power in explaining subsequent accounting restatements. My findings are robust with a set of additional tests. The findings of this thesis indicate that auditors do communicate financial misstatement risks in modified audit opinions (MAOs). Moreover, the findings are consistent with and provide evidence to support policy changes in developing new enhanced auditor reports introduced by the standard setters in China.

Prior research has provided evidence that the disclosure of internal controls material weaknesses (ICMWs) is a powerful input attribute in misstatement prediction. However, the disclosure of ICMWs is imperfect in capturing internal control quality because many firms with control problems fail to disclose ICMWs on a timely basis. The purpose of this study is to examine whether the existence of ICMWs, including both the disclosed and the undisclosed ICMWs, improves misstatement prediction. I develop a two-stage machine learning model for misstatement prediction with the predicted existence of ICMWs as the intermediate concept; my model that outperforms the model with the ICMW disclosures. I also find that the model incorporating both the predicted existence and the disclosure of ICMWs outperforms those with only the disclosure or the predicted existence of ICMWs. These results hold across different input attributes, machine learning methods, and prediction periods, and training-test samples splitting methods. Finally, this study shows that the two-stage models outperform the one-stage models in predictions related to financial reporting quality.

The study aims to establish an integrated generic investigation process that could be utilised by Commercial Forensic Practitioners in South Africa. Secondly, it aims to determine which investigation processes are currently being utilised in South African forensics practices. An overview is given of the international utilised processes and a basic framework was developed, presented and tested by means of questionnaires to members of the Institute of Commercial Forensic Practitioners in South Africa. The development of an investigation process for Commercial Forensic Practitioners in South Africa could be utilised by the Institute of Commercial Forensic Practitioners to provide a governance structure for the Institute that would enhance the quality of forensic investigations and contribute to the successful investigation and prosecution of commercial crime in South Africa. To achieve the study objective, an empirical study was conducted among current members of the Institute of Commercial Forensic Practitioners in South Africa through the circulation of questionnaires via their website. These results were interpreted, taking cognisance of international practices identified in the literature review. A formalised investigation process was developed and suggested to the Institute of Commercial Forensic Practitioners. Statisticians were involved during the process of designing the questionnaires, and analysing and interpreting the results. The research dealt with a generic investigation process for Commercial Forensic Practitioners. It also dealt with its implementation and investigative performance in South African practices. In this study, an overview of the investigation process for Commercial Forensic Practitioners in South Africa was discussed. The research also analysed the following: * The time period in which organisations implemented the Commercial Forensic Practitioners Process; * The effect of the Commercial Forensic Practitioners Process on investigative performance; and * The integration of the Commercial Forensic Practitioner's process into the budgeting process. The findings of the study revealed the following: * Each of the phases of the Commercial Forensic Practitioners Process is as important as the others in matters that will be presented before court. * An investigation should only be performed if it can be performed properly and in a manner that provides clarity and value to the engagement and its objectives. For this purpose, a Commercial Forensic Practitioner should only accept an assignment if free of conflicts and any independence issues. It is imperative for Commercial Forensic Practitioners to adequately assess not only their relationship to the client and the particular engagement, but also their relationship to any opposing party. This assessment should be done in the context of all other work of the practice, not only that work that is performed by the particular Commercial Forensic Practitioner and direct colleagues. * The Commercial Forensic Practitioner must design, implement and use a robust client and engagement acceptance process that is documented, standardised and, where relevant, agreed with the client. * The role of a Commercial Forensic Practitioner in an investigation process is, therefore, to gather evidence, interrogate and examine the financial evidence, develop computer applications that help in analysing and presenting the evidence, putting forward all the findings in the form of reports, exhibits and documents, and finally taking part in civil actions or litigation as an expert witness, and testifying to the court and presenting all the evidence obtained through documentation or visual aids. It is therefore of the essence that a Commercial Forensic Practitioner be well versed in financial issues and legal concepts and proceedings. * The study found that the majority of respondents (69.3%) were male, while only 30.7% were female. The majority of Commercial Forensic Practitioners fall within two age categories, namely, 35 to 44 and 45 to 54 years. These age categories fall into the productive stage of a working career in the human life-cycle. It is furthermore inferred that the level of experience is of importance, as the majority of participants were well experienced, mostly with at least ten years‟ experience. * A total of 22.7% of respondents indicated that they do not use a formalised investigation process. The majority of respondents (77.3%) thus make use of a formalised investigation process. * The study found that formalised investigation processes are not implemented for the following reasons: -- Managerial and governance processes within practices were sufficient to address the risks posed (41.2%); -- Commercial Forensic Practitioners do not have a formalised investigation process at their disposal (35.3%); -- Commercial Forensic Practitioners are not aware of a formalised investigation process being utilised in industry that could be used (23.5%); and -- The implementation of a formalised investigation process proved too difficult (23.5%). * The most important reasons for implementing a formalised investigation process included reputational risks and quality control of investigative work. It was notable that the study revealed that the industry does not require practitioners to follow any procedures. * It is noteworthy that practitioners did not regard monitoring and management review of compliance with the provisions of their formalised investigation process as an important requirement. The study revealed that the majority of Commercial Forensic Practitioners would measure compliance as an occasional requirement (33.3%); only 23.3% placed compliance as an agenda item for each monthly management meeting and 16.7% as a quarterly agenda item. * The majority (56.3%) of practitioners recognised that integration of a formalised process with the budgeting process could enhance productivity and financial benefits. * The majority of respondents (88.1%) were of the view that there was an improvement in financial performance and/or productivity after the implementation of the formalised investigation process. * 62% of respondents were of the view that there was a significant improvement in financial performance and productivity since the implementation of the formalised investigation process. This finding is significant, as it proves that a formalised process for Commercial Forensic Practitioners in South Africa can have a positive effect on a practise‟s financial performance. The suggested sub-processes, as described, are accepted by the respondents, namely: * Client acceptance, service considerations, risk management procedures, independence and engagement agreements; * Planning and strategic objectives of an engagement, including documented investigative plan incorporating the relevant disciplines (accounting, law, IT, investigative and risk management skills); * Gathering information and evidence, documenting evidence in an evidence file or system and safeguarding evidence as important; * Interviewing, using best practice interviewing skills, by planning the interview to achieve strategic objectives, recording the interview and using technology; * Analysis and verification of evidence; * Quality management, with all reported findings included in referenced working papers supported by documented physical evidence; and * Reporting on findings in a detailed forensic report, clearly and concisely reflecting on the sequence of events, supported by financial information and documents, in a format that could be used in disciplinary enquiries and/or proceedings in civil and criminal courts. These findings fulfil the objective of the study, which was to establish an integrated generic investigation process that could be utilised by Commercial Forensic Practitioners in South Africa and secondly to determine which investigation processes are currently being utilised in South African forensics practices. It was clarified whether the implementation of a formalised process can lead to an improvement in financial performance and what the result of the integration of a formalised process into a practise‟s budgeting process is. It was established that there is indeed a relationship between the integration of the formalised process into the budgeting process and the improved financial performance of a practise. The findings of this study have significant implications for the management of South African Commercial Forensic Practitioner practices. Based on the study findings, the following general and specific recommendations can be made: * The investigation process for Commercial Forensic Practitioners should be fully integrated with the budgeting process of the practise, as this will ensure improved investigative performance by the business; and * Education and research on the investigation process for Commercial Forensic Practitioners should be conducted by the management of a practice before implementing such a process. / MCom (Forensic Accountancy), North-West University, Potchefstroom Campus, 2015

The study aims to establish an integrated generic investigation process that could be utilised by Commercial Forensic Practitioners in South Africa. Secondly, it aims to determine which investigation processes are currently being utilised in South African forensics practices. An overview is given of the international utilised processes and a basic framework was developed, presented and tested by means of questionnaires to members of the Institute of Commercial Forensic Practitioners in South Africa. The development of an investigation process for Commercial Forensic Practitioners in South Africa could be utilised by the Institute of Commercial Forensic Practitioners to provide a governance structure for the Institute that would enhance the quality of forensic investigations and contribute to the successful investigation and prosecution of commercial crime in South Africa. To achieve the study objective, an empirical study was conducted among current members of the Institute of Commercial Forensic Practitioners in South Africa through the circulation of questionnaires via their website. These results were interpreted, taking cognisance of international practices identified in the literature review. A formalised investigation process was developed and suggested to the Institute of Commercial Forensic Practitioners. Statisticians were involved during the process of designing the questionnaires, and analysing and interpreting the results. The research dealt with a generic investigation process for Commercial Forensic Practitioners. It also dealt with its implementation and investigative performance in South African practices. In this study, an overview of the investigation process for Commercial Forensic Practitioners in South Africa was discussed. The research also analysed the following: * The time period in which organisations implemented the Commercial Forensic Practitioners Process; * The effect of the Commercial Forensic Practitioners Process on investigative performance; and * The integration of the Commercial Forensic Practitioner's process into the budgeting process. The findings of the study revealed the following: * Each of the phases of the Commercial Forensic Practitioners Process is as important as the others in matters that will be presented before court. * An investigation should only be performed if it can be performed properly and in a manner that provides clarity and value to the engagement and its objectives. For this purpose, a Commercial Forensic Practitioner should only accept an assignment if free of conflicts and any independence issues. It is imperative for Commercial Forensic Practitioners to adequately assess not only their relationship to the client and the particular engagement, but also their relationship to any opposing party. This assessment should be done in the context of all other work of the practice, not only that work that is performed by the particular Commercial Forensic Practitioner and direct colleagues. * The Commercial Forensic Practitioner must design, implement and use a robust client and engagement acceptance process that is documented, standardised and, where relevant, agreed with the client. * The role of a Commercial Forensic Practitioner in an investigation process is, therefore, to gather evidence, interrogate and examine the financial evidence, develop computer applications that help in analysing and presenting the evidence, putting forward all the findings in the form of reports, exhibits and documents, and finally taking part in civil actions or litigation as an expert witness, and testifying to the court and presenting all the evidence obtained through documentation or visual aids. It is therefore of the essence that a Commercial Forensic Practitioner be well versed in financial issues and legal concepts and proceedings. * The study found that the majority of respondents (69.3%) were male, while only 30.7% were female. The majority of Commercial Forensic Practitioners fall within two age categories, namely, 35 to 44 and 45 to 54 years. These age categories fall into the productive stage of a working career in the human life-cycle. It is furthermore inferred that the level of experience is of importance, as the majority of participants were well experienced, mostly with at least ten years‟ experience. * A total of 22.7% of respondents indicated that they do not use a formalised investigation process. The majority of respondents (77.3%) thus make use of a formalised investigation process. * The study found that formalised investigation processes are not implemented for the following reasons: -- Managerial and governance processes within practices were sufficient to address the risks posed (41.2%); -- Commercial Forensic Practitioners do not have a formalised investigation process at their disposal (35.3%); -- Commercial Forensic Practitioners are not aware of a formalised investigation process being utilised in industry that could be used (23.5%); and -- The implementation of a formalised investigation process proved too difficult (23.5%). * The most important reasons for implementing a formalised investigation process included reputational risks and quality control of investigative work. It was notable that the study revealed that the industry does not require practitioners to follow any procedures. * It is noteworthy that practitioners did not regard monitoring and management review of compliance with the provisions of their formalised investigation process as an important requirement. The study revealed that the majority of Commercial Forensic Practitioners would measure compliance as an occasional requirement (33.3%); only 23.3% placed compliance as an agenda item for each monthly management meeting and 16.7% as a quarterly agenda item. * The majority (56.3%) of practitioners recognised that integration of a formalised process with the budgeting process could enhance productivity and financial benefits. * The majority of respondents (88.1%) were of the view that there was an improvement in financial performance and/or productivity after the implementation of the formalised investigation process. * 62% of respondents were of the view that there was a significant improvement in financial performance and productivity since the implementation of the formalised investigation process. This finding is significant, as it proves that a formalised process for Commercial Forensic Practitioners in South Africa can have a positive effect on a practise‟s financial performance. The suggested sub-processes, as described, are accepted by the respondents, namely: * Client acceptance, service considerations, risk management procedures, independence and engagement agreements; * Planning and strategic objectives of an engagement, including documented investigative plan incorporating the relevant disciplines (accounting, law, IT, investigative and risk management skills); * Gathering information and evidence, documenting evidence in an evidence file or system and safeguarding evidence as important; * Interviewing, using best practice interviewing skills, by planning the interview to achieve strategic objectives, recording the interview and using technology; * Analysis and verification of evidence; * Quality management, with all reported findings included in referenced working papers supported by documented physical evidence; and * Reporting on findings in a detailed forensic report, clearly and concisely reflecting on the sequence of events, supported by financial information and documents, in a format that could be used in disciplinary enquiries and/or proceedings in civil and criminal courts. These findings fulfil the objective of the study, which was to establish an integrated generic investigation process that could be utilised by Commercial Forensic Practitioners in South Africa and secondly to determine which investigation processes are currently being utilised in South African forensics practices. It was clarified whether the implementation of a formalised process can lead to an improvement in financial performance and what the result of the integration of a formalised process into a practise‟s budgeting process is. It was established that there is indeed a relationship between the integration of the formalised process into the budgeting process and the improved financial performance of a practise. The findings of this study have significant implications for the management of South African Commercial Forensic Practitioner practices. Based on the study findings, the following general and specific recommendations can be made: * The investigation process for Commercial Forensic Practitioners should be fully integrated with the budgeting process of the practise, as this will ensure improved investigative performance by the business; and * Education and research on the investigation process for Commercial Forensic Practitioners should be conducted by the management of a practice before implementing such a process. / MCom (Forensic Accountancy), North-West University, Potchefstroom Campus, 2015

Many external parties such as investors, creditors, and regulatory agencies, use a company’s financial statements in their decision-making. In doing so, they rely on audit opinions on whether financial statements are fairly stated. However, evidence suggests that there are factors in the audit environment that influence auditor judgments. For example, nondiagnostic client information dilutes auditor judgments when compared to judgments based on diagnostic information alone, especially for less experienced auditors (Hackenbrack 1992; Hoffman and Patton 1997; Glover 1994; Shelton 1999). High time pressure conditions mitigate this effect by refocusing auditor attention toward relevant client information, therefore reducing the impact of nondiagnostic information (Glover 1994, 1997). This research study examines other common audit environment factors to determine if they too influence audit judgment results. An online questionnaire of 149 auditors, CPAs and other accounting professionals indicate that the inclusion of nondiagnostic client information results in a significant change in auditor judgments. The direction of this change follows a theorized pattern; risk assessments that were initially high are reduced, while those that were initially low are increased. Significance was not consistently found for a workload and PCAOB effect on auditor judgment. However, a comparison of the absolute value of dilution effect means across conditions reveals some trending for the proposed unwanted effect of high workload, and the beneficial effect of PCAOB guidance. These results have important implications for auditing research and practice. It extends previous archival research on workload effects and uses a unique questionnaire design to reexamine workload pressures in a behavioral setting. The results of hypothesis testing on workload pressure and PCAOB guidance, although lacking consistent statistical significance; exhibit trends that agree with proposed theoretical relationships. Tests on the effects of nondiagnostic information show strong statistical support for previous studies in the area of psychology and audit. This study’s greatest contribution suggests that audit pressures do not produce equivalent effects on auditor judgment; time pressure improves audit judgment, while workload pressure does not (Glover 1994, 1997). These results can be explained by examining the relationship between stress and audit judgment performance (Choo 1995, Yerkes and Dodson 1908). Different types and different degrees of audit pressures may correspond to different levels of audit pressure. Low to moderate levels of audit pressure, such as the level of time pressure used in Glover’s (1994, 1997) study improve audit performance. Higher audit pressures, such as high workload during an auditor’s busy season, may lower audit performance.