Reports from Miami University Provide New Insights into Acute-Phase Proteins (Beyond Risk Shifting: the Knowledge-transferring Role of Audit Liability Insurers*)

2021 JUL 08 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- New research on Proteins - Acute-Phase Proteins is the subject of a report. According to news reporting out of Oxford, Ohio, by NewsRx editors, research stated, “Regulators and researchers tend to focus primarily on the risk-shifting benefits of audit liability insurance. We obtain field data from the US audit insurance industry (16 interviews and 83 survey responses) to examine whether insurers also possess characteristics favorable to transferring their private risk management knowledge to the audit firms they insure.”

Our news journalists obtained a quote from the research from Miami University, “Possessing such characteristics would enable insurers to use their relative knowledge advantage to provide a benefit to audit firms beyond risk shifting. Thus, examining this issue helps broaden our understanding of insurers’ role in auditing. We examine our data through the lens of the knowledge transfer theory and find evidence that audit liability insurers have the motivation and capacity to accumulate and transfer risk management knowledge to the audit firms they insure. We find that audit firms, particularly the small resource-constrained firms (i.e., non-Big 4 and non-second-tier), rely on and benefit from their insurers’ risk management knowledge. We also find that insurers transfer such knowledge through multiple mechanisms, including free consultative services, policy premium incentives, and continuing professional education classes. Our results highlight the important role of audit insurers as transferors of risk management knowledge to audit firms.”

According to the news editors, the research concluded: “Broadly, our results extend knowledge transfer theory and suggest areas for future research in US and international contexts.”

This research has been peer-reviewed.

For more information on this research see: Beyond Risk Shifting: the Knowledge-transferring Role of Audit Liability Insurers*. Contemporary Accounting Research, 2021. Contemporary Accounting Research can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Contemporary Accounting Research - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1911-3846)

Our news journalists report that additional information may be obtained by contacting Michele Frank, Miami University, Farmer School of Business, Oxford, OH 45056, United States. Additional authors for this research include Andrew Reffett, Eldar Maksymov and Mark Peecher.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1911-3846.12670. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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