Does Audit Reduce Bias in Financial Reporting?
A 6 page paper seeking to answer the question of the title. Bias in financial reporting was documented more than 100 years ago, and it has been an ongoing problem since that time. Auditing is thought to reduce that bias, but does it have its full intended effect? Research indicates that deep bias begins with management and perhaps away from financial activities. It also indicates that auditing causes alteration of financial reports well before they are made public, meaning that it does indeed reduce bias in financial reporting. Sarbanes-Oxley is causing changes in basic accounting operations in many companies, which in the future will have a wealth of data that should lend itself well to research in auditing's effect on bias. Includes an abstract. Bibliography lists 9 sources.
Filename: KSauditBias.rtf
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