Professor | Accounting and Information Systems
Ernst & Young Professor in Accounting
4133C Grainger Hall
(608) 234-1052

Biography

Karla Zehms is the Ernst & Young Professor at the University of Wisconsin – Madison School of Business. She received her PhD from the University of Connecticut in 1997 and has spent her entire career at Wisconsin. She is a Wisconsin alumnus, having earned her MACC in 1991. She has been a visiting Professor at numerous other universities, including the University of New South Wales in Sydney, Australia. Her research interests include auditors' client acceptance and continuance decisions, how fraud risk and fraud brainstorming affect audit planning and audit fees, client-auditor negotiation, and audit budget-setting processes, among others. She has published over 40 papers in leading journals, including Accounting, Behavior and Organizations, Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, and Auditing: A Journal of Practice & Theory. Professor Zehms has served on the Executive Committee of the Auditing Section of the AAA in the role of treasurer, Vice-President, President, and Past-President. She was previously an Associate Editor at Accounting Horizons and an Editor at Auditing: A Journal of Practice & Theory. She serves on numerous other editorial boards, both in the U.S. and internationally. She focuses her teaching in auditing, both at the undergraduate and graduate levels. She is also a co-author on an auditing textbook.

Research

Selected Accepted Journal Articles

Gissel, J. & Zehms, K. (2017). Practitioner Summary of 'Information sharing during auditors' fraud brainstorming: Effects of pscyhological safety and auditor knowledge'" Current Issues in Auditing

Selected Published Journal Articles

Zehms, K. & Dennis, S. (2018). A natural field experiment examining the joint role of audit partner leadership and subordinates’ knowledge in fraud brainstorming Accounting, Organizations and Society

Gissel, J. & Zehms, K. (2017). Information sharing during auditors' fraud brainstorming: Effects of psychological safety and auditor knowledge Auditing: A Journal of Practice & Theory

Dennis, S. & Zehms, K. (2016). A Field Survey of Contemporary Brainstorming Practices Accounting Horizons

Kim, S. & Zehms, K. & Green, W. (2016). Biased Evidence Processing by Multidisciplinary Greenhouse Gas Assurance Teams Auditing: A Journal of Practice & Theory

Keune, M. & Zehms, K. (2015). Audit committee incentives and the resolution of detected misstatements Auditing: A Journal of Practice & Theory

Anderson, U. & Christ, M. & Zehms, K. & Rittenberg, L. (2012). A post-SOX examination of factors associated with the size of internal audit functions Accounting Horizons

Hoitash, R. & Hoitash, U. & Zehms, K. (2012). Internal control material weaknesses and CFO compensation Contemporary Accounting Research

Zehms, K. & Keune, M. (2012). Materiality Judgments and the Resolution of Detected Misstatements: The Role of Managers, Auditors, and Audit Committees The Accounting Review

Ettredge, M. & Zehms, K. & Stone, M. & Wang, Q. (2011). The effects of firm size, corporate governance quality, and bad news on disclosure compliance Review of Accounting Studies

Zehms, K. & Hammersley, J. & Kadous, K. (2011). How Do Audit Seniors Respond to Heightened Fraud Risk? Auditing: A Journal of Practice & Theory

Zehms, K. & Li, C. & Rupley, K. (2011). Changes in corporate governance associated with the revelation of internal control material weaknesses and their subsequent remediation Contemporary Accounting Research

Bedard, J. & Zehms, K. & Smith, E. (2010). Audit quality indicators: A status update on possible public disclosures and insights from audit practice Current Issues in Auditing

Bedard, J. & Zehms, K. (2010). Audit partner tenure and audit planning and pricing Auditing: A Journal of Practice & Theory

Zehms, K. & Rittenberg, L. & Christ, M. & Anderson, U. (2010). Effective sizing of internal audit departments for colleges and universities Institute of Internal Auditors

Zehms, K. & Rittenberg, L. & Christ, M. & Anderson, U. (2010). Effective sizing of internal audit departments Institute of Internal Auditors

Zehms, K. & Brown, H. (2009). Resolving disputed financial reporting issues: Effects of auditor negotiation experience and engagement risk on negotiation process and outcome Auditing: A Journal of Practice & Theory

Bedard, J. & Zehms, K. & Smith, E. (2009). How good is your audit firm? National Association of Corporate Directors - Directorship Magazine

Keune, M. & Zehms, K. (2009). Staff accounting bulletin No. 108 disclosures: Descriptive evidence from the revelation of accounting misstatements Accounting Horizons

Bedard, J. & Ettredge, M. & Zehms, K. (2008). Fee pressure and the longitudinal dynamics of audit engagement budgeting and reporting Advances in Accounting

Ettredge, M. & Bedard, J. & Zehms, K. (2008). Empirical tests of audit budget dynamics Behavioral Research in Accounting

Bedard, J. & Ettredge, M. & Zehms, K. (2007). Using electronic audit workpaper systemsin audit practice: Task analysis, learning, and resistance Advances in Accounting Behavioral Research

Bedard, J. & Ettredge, M. & Jackson, C. & Zehms, K. (2007). Knowledge, experience and work-around behaviors: Electronic media in the professional audit environment Journal of Business and Behavioral Sciences

Bellovary, J. & Zehms, K. (2007). Descriptive evidence from audit practice on SAS No. 99 brainstorming activities Current Issues in Auditing

Zehms, K. (2005). Discussion comments on Negotiations over accounting issues: The congruency of audit partner and chief financial office recalls Auditing: A Journal of Practice & Theory

Adams, F. & Bedard, J. & Zehms, K. (2005). Information asymmetry and competitive bidding in the market for audit services Economic Inquiry

Muzatko, S. & Zehms, K. & Mayhew, B. & Rittenberg, L. (2004). An empirical investigation of IPO underpricing and the change to the LLP organization of audit firms Auditing: A Journal of Practice & Theory

Bedard, J. & Zehms, K. (2004). Earnings manipulation risk, corporate governance risk, and auditors' planning and pricing decisions The Accounting Review

Zehms, K. & Bedard, J. & Ettredge, M. (2004). The effects of competitive bidding on engagement planning and pricing Contemporary Accounting Research

Bedard, J. & Zehms, K. (2004). Audit firm portfolio management decisions Journal of Accounting Research

Mutzako, S. & Zehms, K. & Mayhew, B. & Rittenberg, L. (2004). Does Audit Firm Liability Status Affect IPO Pricing? Evidence from the Shift to Limited Liability Partnerships Auditing: A Journal of Practice & Theory

Zehms, K. & Bedard, J. (2003). Risk management in client acceptance decisions The Accounting Review

Bedard, J. & Jackson, C. & Zehms, K. & Ettredge, M. (2003). The effect of training on auditors' acceptance of an electronic work system International Journal of Accounting Information Systems

Bell, T. & Bedard, J. & Zehms, K. & Smith, E. (2002). KRisk: A computerized decision-aid for client acceptance and continuance risk assessments Auditing: A Journal of Practice & Theory

Zehms, K. & Bedard, J. & Biggs, S. (2002). Aggressive client reporting: Factors affecting auditors' generation of financial reporting alternatives Auditing: A Journal of Practice & Theory

Zehms, K. & Ashbaugh, H. & Warfield, T. (2002). Effects of repeated practice and contextual-writing experiences on college students' writing skills Journal of Educational Psychology

Ashbaugh, H. & Zehms, K. & Warfield, T. (2002). Outcome assessment of a writing-skill improvement initiative: Results and methodological implications Issues in Accounting Education

Zehms, K. (2001). Risk, experience, and auditors' client acceptance decisions National Public Accountant

Zehms, K. & Sutton, M. & Warfield, T. (2001). Antecedents and consequences of independence risk: Framework for analysis Accounting Horizons

Zehms, K. & Bedard, J. (2001). Engagement planning, bid pricing, and client response in the market for initial attest engagements The Accounting Review

Trotman, K. & Grambling, A. & Zehms, K. & Kaplan, S. & Mayhew, B. & Reimers, R. & Schwartz, H. & Wright, B. (2000). Twenty-five Years of Audit Research

Zehms, K. (2000). Client acceptance decisions: Simultaneous effects of client business risk, audit risk, auditor business risk, and risk adaptation Auditing: A Journal of Practice & Theory

Ashbaugh, H. & Zehms, K. & Warfield, T. (1999). Corporate reporting on the internet Accounting Horizons

Zehms, K. & Biggs, S. (1998). Problem-based learning: Introduction, analysis, and accounting curricula implications Journal of Accounting Education

Zehms, K. & Bedard, J. & Biggs, S. (1996). Framing effects and output interference in a concurring partner review context: Theory and exploratory evidence Deloitte & Touche/University of Kansas Symposium Proceedings

Working Papers

Condie, E. & Convery, A. & Zehms, K. (2017). Being in the wrong place at the wrong time? Labor market implications for non-implicated CFOS of fraud firms

Cohen, J. & Zehms, K. & Obermire, K. (2017). Audit committee members' social identity and corporate governance roles: A field interview investigation Accounting, Organizations and Society

Zehms, K. & Downey, D. & Obermire, K. (2014). Audit performance in geographically dispersed teams at the local-office level: The roles of shared context, communication, and accountability

Dennis, S. & Griffin, J. & Johnstone, K. (2014). Auditor Communication of Material Imprecision and Nonprofessional Investors' Judgments The Accounting Review

Practitioner-Oriented Publications

Downey, D. & Rousseau, L. & Zehms, K. (2019). PCOAB Form AP: Leveraging information about audit personnel Current Issues in Auditing

Presentations

European Accounting Congress (2016) The value relevance of managers' and auditors' disclosures about material measurement uncertainty

Research Workshop (2016) On becoming a professional in public accounting: Organizational socialization, transition, and role acquisition

Accounting and Finance Association of Australia and New Zealand Annual Conference (2014) Improving the Quality of Greenhouse Gas Emissions Assurance with an Understanding and Reduction of Biased Processing of Evidence

2013 ANCAAR Conference (2013) Keynote Remarks at 2013 ANCAAR

2013 AAA Annual Meeting (2013) Discussion Comments on "City-level human capital and audit markets"

International Symposium on Audit Research (2012) Client supply chain relationships, audit firm selection, and implications for audit quality and pricing

European Accounting Association Annual Meeting (2012) Client supply chain relationships, audit firm selection, and implications for audit quality and pricing

18th Annual Conference of the Multinational Finance Society (2011) Internal Control Material Weaknesses and CFO Compensation

Mid-year Auditing Section Conference (2011) Audit committee members' and executives' financial incentives and the materiality of financial statement misstatements

University of Kansas/Deloitte LLP Research Symposium (2010) Audit committee members' and executives' financial incentives and the materiality of financial statement misstatements

Annual Meeting (2009) How do manager and auditor incentives affect the correction of detected misstatements? Evidence from Staff Accounting Bulletin No. 108 disclosures

Mid-year Auditing Section Conference (2009) Does control-related information enhance fraud detection?

University of Wisconsin School of Business (2008) How do manager and auditor incentives affect the correction of detected misstatements? Evidence from Staff Accounting Buletin No. 108 disclosures

University of Illinois/KPMG Research Conference (2008) Does control-related information enhance fraud detection?

Annual Meeting (2008) Inferences from the revelation of previously uncorrected accounting misstatements

Deloitte LLP and University of Kansas Auditing Conference (2008) Does control-related information enhance fraud detection?

Research Workshop Brown Bag Presentation (2008) Inferences from the revelation of previously uncorrected accounting misstatements

Mid-year Auditing Section Conference (2008) Internal governance, external governance, and internal control remediation

Mid-Year Auditing Section Conference (2008) The effects of internal control quality, CFO characteristics, and board of director strength on CFO annual compensation

Research Workshop (2007) The dynamics of audit risk response and portfolio change

Research Workshop (2007) The effects of internal control quality, CFO characteristics, and board of director strength on CFO annual compensation

Annual Meeting (2007) Audit time budget dynamics

Research Workshop (2007) The effects of internal control quality, CFO characteristics, and board of director strength on CFO annual compensation

Research Workshop (2007) The effects of internal control quality, CFO characteristics, and board of director strength on CFO annual compensation

Research Workshop (2006) A theory of compliance with disclosure requirements: Empirical tests

Midyear Auditing Section Conference (2006) A longitudinal comparison of auditors' response to client risk in the Sarbanes-Oxley era

Accounting, Behavior and Organizations Conference (2005) Audit time budgeting dynamics

Research Workshop (2005) A longitudinal comparison of auditors' resposne to client risk in the Sarbanes-Oxley era

Research Workshop (2005) A longitudinal comparison of auditors' response to client risk in the Sarbanes-Oxley era

American Accounting Association-Mid-year Auditing Section Conference (2004) Audit-client bid-seeking behavior: Modeling private negotiation versus competitive bidding

(2003) Audit firm portfolio management decisions

International Symposium on Audit Research (2003) Audit firm portfolio management decisions

(2002) Audit firm portfolio management decisions

(2002) Earnings manipulation risk, corporate governance risk, and auditors' planning and pricing decisions

American Accounting Association - Mid-year Auditing Section Conference (2001) Antecedents and consequences of independence risk: Framework for analysis

Accounting, Behavior, and Organizations Section Conference (2000) Risk management in client acceptance decisions

American Accounting Assocation - Auditing Section Conference (2000) Behavioral research in auditing: Past, present, and future research

American Accounting Association Annual Meeting (2000) The effects of competitive bidding on engagement planning and pricing

(2000) Antecedents and consequences of independence risk: Framework for analysis

Boston Area Research Colloquium (2000) Risk management in client acceptance decisions

Mid-year Auditing Section Conference (2000) Engagement planning, bid pricing, and client response in the market for initial attest engagements

(2000) Risk management in client acceptance decisions

University of Illinois Symposium on Audit Research (2000) Risk management in client acceptance decisions

Teaching

Undergraduate Courses

Info Tech Risk&Assurance Serv (AIS 631), Spring 2009.
Operational and information systems auditing; risk analysis, electronic evidence; computerized audit and assurance techniques; internal auditing and outsourcing; analytical techniques; auditor judgment; control concepts, business process risk analysis; reporting on controls and business processes; expanding technology and assurance.

Info Tech Risk&Assurance Serv (AIS 631), Spring 2009.
Operational and information systems auditing; risk analysis, electronic evidence; computerized audit and assurance techniques; internal auditing and outsourcing; analytical techniques; auditor judgment; control concepts, business process risk analysis; reporting on controls and business processes; expanding technology and assurance.

Info Tech Risk&Assurance Serv (AIS 631), Spring 2010.
Operational and information systems auditing; risk analysis, electronic evidence; computerized audit and assurance techniques; internal auditing and outsourcing; analytical techniques; auditor judgment; control concepts, business process risk analysis; reporting on controls and business processes; expanding technology and assurance.

Info Tech Risk&Assurance Serv (AIS 631), Spring 2010.
Operational and information systems auditing; risk analysis, electronic evidence; computerized audit and assurance techniques; internal auditing and outsourcing; analytical techniques; auditor judgment; control concepts, business process risk analysis; reporting on controls and business processes; expanding technology and assurance.

Audit and Assurance Services (AIS 630), Fall 2006.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (AIS 630), Fall 2006.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (AIS 630), Fall 2006.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (AIS 630), Fall 2010.
General principles, including preparation of working papers and various kinds of reports.

Auditing (AIS 630), Fall 2007.
General principles, including preparation of working papers and various kinds of reports.

Auditing (AIS 630), Fall 2007.
General principles, including preparation of working papers and various kinds of reports.

Auditing (AIS 630), Fall 2007.
General principles, including preparation of working papers and various kinds of reports.

Audit and Assurance Services (ACC 630), Fall 2001.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2001.
General principles, including preparation of working papers and various kinds of reports.

Audit and Assurance Services (ACC 630), Fall 2002.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2002.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2002.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2003.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2003.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2003.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2005.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2005.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (ACC 630), Fall 2005.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (AIS 630), Spring 2010.
Evolution of assurance services; role of assurance services as part of corporate governance; professional standards and ethical concepts; evidence concepts and evaluation of evidence, business and information technology risk analysis, the audit risk model, assurance reports, and development of audit and assurance programs.

Audit and Assurance Services (AIS 630), Spring 2009.
General principles, including preparation of working papers and various kinds of reports.

Reading and Research (AIS 399), Spring 2013.
PhD student supervision-Sean Dennis

Reading and Research (AIS 399), Summer 2013.
PhD student supervision-Sean Dennis

Reading and Research (AIS 399), Fall 2013.
PhD student supervision-Sean Dennis

Graduate Courses

Readings and Research PhD (AIS 999), Spring 2008.
Individual work to complete dissertation requirement of Ph.D. program.

Readng & Rsch-Accountng PhD (ACC 999), Fall 2008.
Individual work to complete dissertation requirement of Ph.D. program.

Readng & Rsch-Accountng PhD (AIS 999), Spring 2009.
Individual work to complete dissertation requirement of Ph.D. program.

Learning/Teaching Oriented Publications

Rittenberg, L. & Zehms, K. & Gramling, A. & Schweiger, B. (2009). Auditing: A Business Risk Approach

Warfield, T. & Skaife, H. & Zehms, K. (2002). Effects of Repeated Practice and Contextual Writing Experiences on College Students' Writing Skills Journal of Educational Psychology

Zehms, K. & Muzatko, S. (2002). Resolving difficult accounting issues: A case study in client-auditor interaction Issues in Accounting Education

Ashbaugh, H. & Zehms, K. & Warfield, T. (2001). Enhancing student writing skills with professional experience The Learning Link at the University of Wisconsin - Madison

Ashbaugh, H. & Zehms, K. (2000). Developing students' technical knowledge and professional skills: A sequence of short cases in Intermediate Financial Accounting Issues in Accounting Education

Rittenberg, L. & Schwieger, B. & Zehms, K. Auditing, Concepts for a Changing Environment, 6th ed.

Zehms, K. & Gramling, A. & Rittenberg, L. (2015). Auditing: A risk-based approach to conducting a quality audit Cengage

Service

Editorial and Reviewing Activities

Auditing: A Journal of Practice and Theory - January 2014 - December 2017
Editor

Auditing: A Journal of Practice and Theory - January 2014 - December 2016
Editor

Accounting and Finance - January 2012 - December 2017
Editorial Board Member