b'Mission Statement and 2021-2022 Research Workshopsemployees, using earnings opacity as a shield to conceal jointto offer additional training to external reviewers on evaluating benefitextractionsattheexpenseofshareholders.D&A-driven audit evidence. Furthermore, given the poten- Mission Statement of the School of AccountancyKhuranas findings spotlight the potential pitfalls of thetial bias against D&A procedures, regulators might need to shift from shareholder primacy to a more stakeholder-centricdevelop explicit guidance and standards on the quality criteriaBuilt on a tradition of excellence, supported by its historical background as a founding member of model. It highlights the unintended consequences of robustfor evaluating D&A audit approaches.the School of Accountancy movement in the nation, and noted for its unique integrated 150-hour labor protection laws, which could insulate managers fromHer paper, Auditing with Data and Analytics: Externalprogram, the mission of the School of Accountancy at the University of Missouri is to:shareholder scrutiny, compromising financial reportingReviewers Judgments of Audit Quality and Effort, is forth-Prepare students for success in a diverse Collaborate with professional partners quality.coming in Contemporary Accounting Research.and global professional environment throughto advance the flagship mission The study, Management-Employee Alliance and Earningsa combination of excellent instruction,of the University of MissouriOpacity, written with Rong (Irene) Zhong, PhD 15, isThe Link Between Client Importance and early exposure to career opportunities Ignite the human potential of the next published in Contemporary Accounting Research 2023 40(2),Conservatism in Complex Accounting Estimates and experiences, extensive interactiongeneration of leaders of the accounting 1280-1314. Zhong serves as an assistant professor in thewith accounting firms and businessprofession by teaching and preparing Department of Accounting at the University of IllinoisAccounting estimates play a central role inprofessionals, and a comprehensivestudents for stewardship, planning and adding accurate financial reports.Some estimatesprofessional development programvalue to decision making, insuring integrity Chicago.are characterized by high levels of measure-Conduct and disseminate scholarlyof information, and ethical decision making.Evaluating the Quality of Data & Analytics ment uncertainty and are susceptible toresearch that impacts the understanding in Audit: The Role of Effort Heuristic management bias. Even seemingly smalland improvement of accounting and adjustments in such estimates can signifi- business environments, practices, andFor more information, follow us on.In an age where data-driven approaches areKen Shaw cantly impact reported net income innovations, while preparing the nextaccountancy.missouri.eduincreasingly relevant, auditing is no excep- General Motors increased one years pre-tax income by $120generation of scholars tion. Professor Elaine Mauldins studymillion by using a pension plan discount rate of 6.75% instead Engage thought leaders, leaders in thefacebook/MizzouAccountancyshinesalightontheperceptionsof the 6.5% recommended by its auditor. accounting profession, and dedicatedUniversity of Missouri School of Accountancysurrounding the use of data and analyticsProfessor Ken Shaws research studies the connectionalumni to enrich our classroom (D&A) in the auditing process, specificallybetween a clients importance to its local audit office, basedinstruction and connect our studentsEmail: accountancy@missouri.eduElaine Mauldin through the lens of external reviewers. on the amount of fees the audit office earns, and the clients Mauldin and her co-authors hypothesize that audit firms areaccounting estimate choices.tentative in harnessing the full potential of D&A in theirOn one hand, important clients create an economic depen-procedures, primarily due to uncertainties regarding thedence that could impair auditor independence, and lead to2022-23 Research Workshopsevaluations of these approaches by external reviewers. Hermore income-increasing estimates.Alternatively, more experiments reveal that these external reviewers are likely toimportant clients impose greater litigation risk and greater employ an effort heuristica cognitive shortcut whereinreputation loss if the auditor performs a poor audit, leadingOktay Urcan Biqin XieJane Song procedures perceived as less effortful are deemed of lowerto more income-decreasing estimates. University of IllinoisPennsylvania StateUniversity of Georgia quality.Shaw and his co-author, James Whitworth, PhD, 10, anUrbana-ChampaignUniversity Friday, December 2, 2022 Through two meticulously designed experiments, Mauldinassociate professor at the University of South Florida, examine Wednesday, August 31,Friday, October 21, 2022 Justin Kim and her co-authors deduced that external reviewers perceiveestimatesforstock-basedcompensationplansand2022 Joao Granja University of Florida D&A audit procedures to be of lesser quality than their tradi- defined-benefit pension plans, complex accounting areas ofShawn Huang University of Chicago Monday, December 5, 2022tional counterparts, attributing this disparity to the perceivedhigh audit risk that have attracted scrutiny from regulators Arizona State University Friday, October 28, 2022reduced effort associated with D&A procedures. Interestingly,like the Public Company Accounting Oversight Board.Vivek Raval when provided with a theory-based intervention, the relianceThe authors find that more important audit clients use Friday, September 23, 2022 David Koo University of Illinoison the effort heuristic by these reviewers was diminished,conservative accounting estimates, that is, estimates that resultAndy Imdieke George Mason UniversityChicago leading to a more balanced evaluation of both D&A and tradi- in lower net income.These findings suggest that auditor University of Notre Dame Monday, November 7, 2022Friday, September 29, 2023tional audit procedures.independence remains unscathed with respect to complex Friday, September 30, 2022 Steven UtkeWuyang Zhao Mauldins study points to several intriguing avenues foraccounting estimates for more important clients, aligningBrian Rountree University of Connecticut University of Texasfuture research. Exploring the influence of individual will- with a reputation protection framework. The study also lays Rice University Friday, November 11, 2022 at Austin ingness to adopt technology, understanding how cultural andthe groundwork for further research, potentially exploring Friday, October 7, 2022 Gus DeFranco Friday, October 13, 2023sociological factors across different countries might affectthe impact of individual audit partners on conservatism andAdrienne Rhodes Tulane University perceptions and studying potential interventions that canexpanding the scope to international settings. University of Iowa Friday, November 18, 2022shift these perceptions are just a few of the many directionsThis paper, Client importance and unconditional conser-Friday, October 14, 2022that future studies could take.vatism in complex accounting estimates,is published in From a public policy perspective, the implications of thisAdvances in Accounting, September 2022. study can be profound. It underscores the need for regulators 20 School of Accountancy2023 Newsmagazine 21'