Topics in Auditing Research

Introduction

The overarching objective of this course is to provide students with insights into the economic foundations and aspects of financial statement auditing and assurance. Auditing and assurance services are economic goods that are demanded, produced, and supplied in the audit market at equilibrium prices. In this course, we will focus on a number of economic topics related to auditing and assurance. These include a discussion of the (economic) nature of auditing, the production and pricing of auditing services, audit market structure and auditor competition, economic incentives of audit partners, and the economics of audit regulation. Students will develop an advanced understanding of auditing research by critically analyzing and interpreting research papers and theories. Students will be exposed to contemporary issues in auditing research such as emerging technologies and data analytics, and the role of auditing in corporate governance and its relation to financial reporting.

Course content

Examples of topics that will be covered in the course (a detailed list will be provided at the beginning of the course):

• The nature of auditing
• The regulatory environment (auditing, assurance, financial and non-financial information)
• Economics of auditor regulation
• Audit quality – financial information
• Audit quality – non-financial information (ESG)
• Audit production and pricing
• Audit market structure and competition
• Audit partners and audit teams
• Economic consequences of auditing