Areas of Expertise

Auditing, financial reporting, corporate governance, auditing and financial reporting standards

Academic Degrees

• Ph.D., University of Texas at Austin, 2011
• M.S., University of Texas at Austin, 2009
• B.A., Michigan State University, 1998

Professional Experience

• Research and Teaching Assistant, Assistant Instructor, The University of Texas at Austin, McCombs School of Business, 2006 – 2011
• Audit Manager, Deloitte & Touche LLP, San Diego, 2002 – 2006
• Audit Senior, Arthur Andersen LLP, San Diego, 1998 – 2002

Awards, Honors & Certificates

• Certified Public Accountant, California
• University of Texas Continuing Fellowship, 2010 – 2011
• Deloitte & Touche Michael J. Cook Doctoral Consortium Fellow, 2010
• Deloitte & Touche Foundation Doctoral Fellowship, 2009 – 2010
• University of Texas McCombs School of Business Doctoral Fellowship, 2007 – 2009
• University of Texas Pre-emptive Recruiting Fellowship, 2006 – 2007
• California Society of CPAs Doctoral Fellowship, 2006 - 2009

Selected Publications

• Bhaskar, L. S., Schroeder, J. H., and Shepardson, M. (2019). Integration of Internal Control and Financial Statement Audits: Are Two Audits Better than One? The Accounting Review, 94(2), 53-81.

  Abstract

  Abstract

  The quality of financial statement (FS) audits integrated with audits of internal controls over financial reporting (ICFR) depends upon the quality of ICFR information used in, and its integration into, FS audits. Recent research and PCAOB inspections find auditors underreport existing ICFR weaknesses and perform insufficient testing to address identified risks, suggesting integrated audits – in which substantial ICFR testing is required – may result in lower FS-audit quality than similar FS-only audits. We compare a 2007 – 2013 sample of small, U.S. public company firm-years receiving integrated audits (accelerated filers) to firm-years receiving FS-only audits (non-accelerated filers) and find integrated audits are associated with higher likelihood of material misstatements and discretionary accruals, consistent with lower FS audit quality. We also find evidence of (1) auditor judgment-based integration issues and (2) low-quality ICFR audits harming FS audit quality. Overall, results suggest an important potential consequence of integrated audits is lower FS audit quality.

• Shepardson, M. (2019). Effects of individual task-specific experience in audit committee oversight of financial reporting outcomes. Accounting, Organizations and Society, 74, 56-74.
• Schroeder, J. H., and Shepardson, M. (2016). Do SOX 404 Control Audits and Management Assessments Improve Overall Internal Control System Quality? The Accounting Review, 91(5), 1513-1541.

  Abstract

  Abstract

  We address whether SOX 404(b) internal control audits under two auditing standards regimes and SOX 404(a) management assessments are associated with improved internal control system quality, an important and largely unstudied potential benefit. In 2013, the PCAOB disclosed fifteen percent of inspected control audits were ineffective, suggesting the current control auditing standard may not be sufficient to induce implementation of high quality control systems. We use an indirect measure of internal control system quality – future unaudited accruals quality – to proxy for internal control quality because sustained internal control improvements should be exhibited in future quarterly financial reports unaltered by contemporaneous financial statement audits. We find internal control audits initially provided internal control quality benefits. After the 2007 auditing standards change, internal control quality deteriorated for ICFR audited versus unaudited firms. Finally, we find limited evidence that management assessments affect internal control quality. Results indicate recent PCAOB concerns may have merit.

• Kinney, W., Martin, R., and Shepardson, M. (2013). Reflections on a decade of SOX 404(b) audit production and alternatives. Accounting Horizons, 27(4), 799–813.
• Kinney, W., and Shepardson, M. (2011). Do control effectiveness disclosures require SOX 404(b) internal control audits? A natural experiment with small U.S. public Companies. Journal of Accounting Research, 49(2), 413-448.

Edited on January 24, 2024