Outside auditors should be wary of information provided by management, MU study shows

(University of Missouri-Columbia) Nate Newton, assistant professor of accountancy in the Trulaske College of Business at the University of Missouri, and his co-authors asked practicing auditors to estimate expenses relating to a year-end fire at a fictional company. Newton and his co-authors found that a group given estimates supporting the company's preferred expenses were more than twice as likely to approve of management's preference compared to auditors who received a set of estimates more representative of the full range of potential expenses.

from EurekAlert! - Social and Behavioral Science http://ift.tt/2nsBwmH