Areas of Expertise (4)
Jaime Schmidt is currently an Associate Professor at The University of Texas at Austin McCombs School of Business. She received her Ph.D. from Texas A&M University and her B.S. and M.Acc. from Kansas State University. Prior to pursuing her Ph.D., she worked as CPA and financial statement auditor for BKD LLP in Kansas City, Missouri. Jaime teaches Studies in Auditing in the Texas MPA program. Her research interests include audit policy, audit quality, and auditor litigation.
Texas A&M University: Ph.D., Accounting 2009
Kansas State University : M.S., Education 2005
Kansas State University : Master of Accountancy , Accounting 2001
Kansas State University : B.S., Accounting 2000
Media Appearances (3)
How an auditor’s comment suggests continued uncertainty over BP spill costs
The researchers — Assistant Professor Anne M. Thompson of the University of Illinois Urbana-Champaign College of Business, Keith Czerney, a graduate assistant also at the University of Illinois Urbana-Champaign, and Assistant Professor Jaime J. Schmidt of the University of Texas at Austin McCombs School of Business — say that adding explanatory language is “the auditor’s only practical mechanism to communicate risk” and is often the only thing that separates one boilerplate unqualified audit opinion from another.
UT study: As financial report word count increases, so does investor risk
Austin Business Journal
The report was conducted by McCombs Assistant Professor Jaime Schmidt combined with co-authors Anne Thompson and Keith Czerney from the University of Illinois Urbana-Champaign.
Can Critical Audit Matters Help Protect Auditors?
Accounting Web online
Accounting professor Steven Kachelmeier, associate accounting professor Jaime Schmidt, and accounting doctoral student Kristen Valentine used attorneys who handle class-action lawsuits for securities fraud cases, attorneys for the defense in such cases, financial analysts, and MBA students in their study because “the perceptions of relatively experienced participants are relevant to a legal environment in which actions against auditors are often settled rather than tried before a jury,” the study states.
This study examines local characteristics associated with non-Big 4 local market leadership and the impact of non-Big 4 local market leadership on competition. We identify non-Big 4 local market leaders by collecting accounting firm rankings from business publications for 46 of the largest metropolitan statistical areas from 2005–2010.
We use information extracted from a major proxy advisory service to test predictions from institutional theory regarding when and why audit committee (AC) members experience turnover because of evidence of ineffective governance.
We find that financial statements with audit reports containing explanatory language are significantly more likely to be subsequently restated than financial statements without such language.
Corporate accounting failures and regulatory proceedings that led to the enactment of the Sarbanes–Oxley Act of 2002 increased the scrutiny of auditors. We investigate whether these events resulted in a change in auditor behavior with respect to going concern reporting. Generally speaking, we find that non-Big N auditors became more conservative while Big N auditors became more accurate.
This study investigates whether audit litigants act as if they believe jurors will associate auditor-provided nonaudit services (NAS) with impaired auditor independence, and thus substandard auditor performance. Using GAAP-based financial statement restatements disclosed from 2001–2007 as an indicator for audit failure, I find that the amount of NAS fees and the ratio of NAS fees to total fees is positively associated with the likelihood that a restatement results in audit litigation. I also find that when plaintiff attorneys argue that auditor independence was impaired due to dependence on client fees and, in particular, NAS fees, restatement-related audit litigation is more likely to result in an auditor settlement and a larger amount of settlement. These results suggest that audit litigants act as if they believe NAS fees will strengthen the case against the auditor, and thus affect the court resolution if the lawsuit is taken to verdict.
The accounting profession in the USA has experienced a crisis of legitimacy in the aftermath of a barrage of business scandals. Recent legislation has forced reforms reinforcing the need for additional ethics education. At the same time, the external pressure on university accounting degree programs has been to maintain the status quo of inadequate ethics in the curriculum, even while ethics courses in state CPE programs have grown dramatically. This creates a problem of bad pedagogy in that these new CPE ethics courses, focused on rote delivery of professional codes of conduct, are not grounded in conceptual frameworks which should be provided by university accounting programs. This state of affairs is circular in that it perpetuates inadequate ethics education for the profession. We propose that this deficiency be remedied by the requirement of a stand-alone ethics course delivered early in the accounting curriculum as a foundation for other degree requirements and subsequent CPE courses. The first step in this direction should be the creation of a White Paper that recommends specific content for such a course.