•  25
    To Sue or Not to Sue: An Experimental Study of Factors Affecting Hong Kong Liquidators Audit Litigation Decisions (review)
    with Michael J. Ferguson
    Journal of Business Ethics 46 (4). 2003.
    We report an experiment examining the effect of three factors on professional Hong Kong liquidators' decisions to bring legal action in negligence against auditors. Factors were (a) the strength (merit) of the supporting evidence (arguable vs. overwhelming), (b) the type of alleged audit failure (failure to report financial statement errors vs. management fraud) and (c) audit firm type (Big 6 vs. non-Big 6). We find evidence that liquidators' litigation decisions are influenced by case merit. We…Read more
  •  53
    An analysis of Hong Kong auditors' perceptions of the importance of selected red flag factors in risk assessment
    with Ferdinand A. Gul and Judy S. L. Tsui
    Journal of Business Ethics 32 (3). 2001.
    This study examined auditors'' perceptions of the relative level of risk of fraud and material irregularities associated with the presence of six red flag factors and also evaluated the quality of auditors'' judgements. The study was conducted in two stages. In the first stage, subjects were asked to rank the importance of 15 factors that proxy the existence of material misstatements. Based on the responses to this questionnaire, 6 of the most important factors were identified and included in th…Read more