Allen was recognized for his contribution to the article "Auditor Risk Assessment: Insights from the Academic Literature," published in the June 2006 edition of Accounting Horizons.
The 22-page paper synthesized findings from hundreds of studies, building a crucial bridge between academic research and the efforts to set auditing standards. The need for such a bridge became apparent in recent years after corporate scandals cost investors millions and undermined public confidence in what publicly traded companies report.
"The auditor's job is to give an opinion about companies' financial statements. They want to reduce the risk that their opinion is erroneous, " said Allen, who has taught in the David Eccles School of Business since 1991. He is director of the School of Accounting and Information Systems.
Allen shares the medal and the $7,500 award with co-authors Dana R. Hermanson of Kennesaw State University, Thomas M. Kozloski of Wilfrid Laurier University and Robert J. Ramsay of the University of Kentucky. The prestigious award honors John R. Wildman, a partner with the accounting firm Deloitte from 1918 to 1938, AAA's first president and a New York University professor.
The Public Company Accounting Oversight Board recruited Allen's team to outline ways to assess the risks for auditing errors. The board is a private, nonprofit organization established by congressional mandate to set auditing standards in the wake of the Enron collapse, which left a huge stain on the self-regulated auditing profession and dragged down the nation's top accounting firm, Arthur Anderson.
Tom Ray, the board's chief auditor and director of professional standards, described Allen's study as "the ground-breaking leader in establishing a model of cooperation between academic researchers and standards setters."
"I have high hopes for this cooperation in the future," he said in a statement.
"We were flattered that [the board's] chief auditor considered the paper significant enough to nominate for the Wildman," Allen said. "How it influences the standards remains to be seen."
bmaffly@sltrib.com
