Accounting Commons^™

Issues Related To The Assessment Of The Effectiveness Of Management Review Controls: Roundtable Summary, Douglas F. Prawitt

Faculty Publications

The Center for Audit Quality and the Financial Education & Research Foundation(FERF) of Financial Executives International (FEI) commissioned John Fogarty, Mark Beasley and Doug Prawitt to conduct an independent qualitative research study on Internal Control over Financial Reporting (ICFR) management review controls (MRCs), Perspectives on Management Review Controls: Challenges and Solutions (the Research Report). The research focused on subjective, judgmentbased MRCs. Through a series of detailed, semistructured interviews with preparers – in particular the control owners and control performers – the researchers gathered perspectives on how management determines what constitutes effective design, precision, implementation, execution and documentation of MRCs. The …

Archival Evidence On The Audit Process: Determinants And Consequences Of Interim Effort*, Brant E. Christensen, Nathan J. Newton, Michael S. Wilkins

Faculty Publications

Using proprietary data from a global accounting firm, we investigate the determinants of auditors’ interim effort as well as the impact of interim effort on audit quality, client disclosure timeliness, audit hours, and audit fees. Public statements from accounting firms and regulators suggest various benefits from accelerating auditor effort, but these claims remain largely untested. We find that interim effort is higher for large, complex clients that require integrated audits of both financial statements and internal control over financial reporting. With respect to consequences, we find that allocating relatively more work to the interim period is associated with a reduced …

Surrogation Fundamentals: Measurement And Cognition, Paul Black, Thomas Meservy, William B. Tayler, Jeffrey O. Williams

Faculty Publications

Measurement is a fundamental part of accounting. A primary purpose of measurement is to provide more concrete representations of abstract strategic objectives. A potential consequence of using measures to proxy for less-tangible strategic constructs is the tendency for managers to fall prey to surrogation, losing sight of strategic constructs and behaving as though measures are the constructs of interest. We show that surrogation is a nonconscious process. We also extend understanding of the conditions necessary for surrogation to occur by showing that mere awareness of measurement (even absent compensation) is sufficient to induce surrogation. These findings have implications for any …

Do We Matter? The Attention Policy Makers, Academics, And The General Public Give To Accounting Research, F. Greg Burton, Scott L. Summers, T. Jeffrey Wilks, David A. Wood

Faculty Publications

Many question the value of accounting scholarship to society. We compared the attention the general public, policy makers, and academics give to academic accounting research relative to other business disciplines and other more general disciplines (economics, psychology, and other sciences). The results indicate that accounting research receives significantly less attention from the general public than all other disciplines and also performs relatively poorly in receiving policy makers’ attention compared to both economics and finance. Articles in other disciplines’ elite journals cite relatively little of accounting’s elite-level publications, but non-elite journal articles cite accounting research in similar numbers to other disciplines. …

Prepare For Takeoff: Improving Asset Measurement And Audit Quality With Drone-Enabled Inventory Audit Procedures, Margaret H. Christ, Scott A. Emett, Scott L. Summers, David A. Wood

Faculty Publications

Auditors increasingly employ technologies to improve audit quality. Using a design science approach, we examine whether using drones and automated counting software can improve audit quality and thereby improve financial reporting. We assess three dimensions of audit quality—efficiency, effectiveness, and quality of audit documentation. We provide evidence that auditors can perform inventory counts with these technologies much more efficiently than they can with manual techniques, decreasing count time in our study from 681 hours to 19 hours. At the same time, auditors can maintain or improve audit effectiveness with these technologies, decreasing error rates in our study from 0.15% to …

New Frontiers For Internal Audit Research, Margaret H. Christ, Marc Eulerich, Ronja Krane, David A. Wood

Faculty Publications

Internal audit provides useful and valuable services to organizations and research has established its importance in improving corporate governance. However, the body of internal audit research is still small. Further, there are many new and emerging topics for which little is known and practitioners would like guidance. Based on surveys, interviews, and discussions with practitioners, we identify three broad areas for additional research: information technology, staffing and personnel development, and agile auditing. In each area, we describe the current practices and discuss the relevant accounting literature, noting gaps where additional inquiry is needed. We also provide a list of testable …

Internal Audit Stigma Impairs Internal Audit Outcomes, Marc Eulerich, Joleen Kremin, K. Kelli Saunders, David A. Wood

Faculty Publications

Prior research finds that the internal audit function (IAF) plays a critical role in organizations, yet there is still a stigma toward the profession. We examine how this stigma affects internal audit outcomes, using three different data sources: survey results from parts of Europe and the United States and an experiment. We find that when practicing internal auditors in parts of Europe and the U.S. believe there is a negative stigma about internal auditing, they report negative work outcomes, including less ability to add value, less influence in the organization, more resistance to implementing their recommendations, and more pressure to …

The Effects Of Pornography On Unethical Behavior In Business, Nathan W. Mecham, Melissa F. Lewis-Western, David A. Wood

Faculty Publications

Pornography is no longer an activity confined to a small group of individuals or the privacy of one’s home. Rather, it has permeated modern culture, including the work environment. Given the pervasive nature of pornography, we study how viewing pornography affects unethical behavior at work. Using survey data from a sample that approximates a nationally representative sample in terms of demographics, we find a positive correlation between viewing pornography and intended unethical behavior. We then conduct an experiment to provide causal evidence. The experiment confirms the survey—consuming pornography causes individuals to be less ethical. We find that this relationship is …

Implicit Attitudes And U.S. Tax Professionals’ Reliance On Offshore Tax Professionals’ Recommendations, Brian C. Spilker, Bryan W. Stewart, David A. Wood

Faculty Publications

Large accounting firms offshore a significant amount of tax work to professionals in India. Prior research suggests that individuals can have negative implicit attitudes toward people from different nationalities and that negative implicit attitudes can have undesired consequences. In this study, we measure a sample of U.S. tax professionals’ implicit attitudes toward Indian persons using an implicit association test (IAT) and assess whether the U.S. tax professionals respond differently to work produced by Indian versus U.S. tax professionals and whether implicit attitudes affect the U.S. professionals’ assessments of Indian tax professionals’ work product. We document that participants in our study …

Are Internal Audits Associated With Reductions In Perceived Risk?, Joseph V. Carcello, Marc Eulerich, Adi Masli, David A. Wood

Faculty Publications

We examine whether internal auditing provides value to organizations by reducing risk. We compare the changes in risks between audited business units and matched non-audited units within the same company. This design allows us to isolate the importance of an internal audit while holding constant changes in risk due to the organization and time period. Based on ratings from the heads of audited and non-audited units, we find that managers of audited units perceive a greater decline in risk as well as a greater increase in performance compared to managers of non-audited units. We also find that companies that have …

Aicpa Technical Questions And Answers, 2021, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.

Stanley Surrey, The Code And The Regime, Reuven S. Avi-Yonah, Nir Fishbien

Articles

Stanley Surrey (1910-1984) was arguably the most important tax scholar of his generation. Surrey was a rare combination of an academic (Berkeley and Harvard law schools, 1947-1961 and 1969-1981) and a government official (Tax Legislative Counsel, 1942-1947; Assistant Secretary for Tax Policy, 1961-1969). Today he is mostly remembered for inventing the concept of tax expenditures and the tax expenditure budget. This paper will argue that while Surrey was influential in shaping domestic tax policy for a generation and had an impact after his death on the Tax Reform Act of 1986, his longest lasting contributions were in shaping the international …

Implications Of Fraud Detection Decisions, Marie Rice

Graduate Theses, Dissertations, and Problem Reports (ETD)

This dissertation is comprised of three studies that examine the implications of fraud detection decisions. The first study examines whether auditors’ mindfulness practices influence their ability to accurately detect fraud risk factors. The second study evaluates whether organization type influences whether and how perpetrators are punished. The third study evaluates whether management’s decision to increase controls when fraud occurs has unintended negative consequences for other employees. Together, these studies contribute to accounting literature related to fraud detection.

Exploring The Impact Of Incentives On Management Behavior, Chen Zhao

Graduate Theses, Dissertations, and Problem Reports (ETD)

This dissertation is comprised of three studies that examine the impact of incentives on management behavior to complement agency problems literature. The first paper studies whether incentives associated with firm life cycle stages impact management disclosure quality. The second paper explores these incentives more deeply and investigates whether the likelihood of fraud is different across life cycle stages. The third paper examines whether rating agencies play a role in alleviating agency problems in nonprofit organizations by increasing public exposure and reducing information asymmetry.

Study one examines the relationship between firms’ life cycle stages and disclosure quality. Life cycle stages are …

Redefining Sustainable Tourism In Covid-19: A Political-Economy Approach, Eylla Laire M. Gutierrez

DLSU Business & Economics Review

Tourism has emerged as a critical sector generating economic growth and development across countries in the world. However, in the face of the outbreak of the COVID-19 pandemic, it is also considered as one of the most heavily hit sectors. Given the backdrop of all the measures implemented to prevent the spread of the outbreak and the changing mindset of actors towards travel, sustainable tourism is expected to play a more critical role in the face of the new normal. This article aims to provide a better understanding of sustainable tourism by utilizing a political economy approach. Specifically, this article …

Does The Organizer’S Reputation Affect Exhibitors’ Satisfaction?, Luz Suplico, Reynaldo Bautista Jr., Carlo Saavedra

DLSU Business & Economics Review

This research surveyed 229 exhibitors of the Manila FAME Trade Fair held last October 19–21, 2018, in the Philippines to find out if the trade fair organizer’s reputation was significant to exhibitors’ satisfaction. The other variable that was studied to determine if they affected exhibitors’ satisfaction was the quality of service dimensions of booth design and layout, exhibition logistics, venue services, and show management. The quality of these service dimensions was tested using structural equation modeling to determine if there is a relationship between the quality of the service dimensions and the trade fair organizer’s reputation, exhibitors’ satisfaction, and behavioral …

Risk Perception In Respect Of Equity Shares: A Literature Review And Future Research Agenda, Ranjit Singh, K. Kajol, Jayashree Bhattacharjee

DLSU Business & Economics Review

The purpose of this paper is to systematically review the literature published on various aspects of risk perception about equity investment. It also aims to raise specific questions for future research. A comprehensive and systematic literature review is done to get the insights of the available literature with an objective to identify the determinants of equity-share-related risk perception and identify its impact that influences equity investment behavior. The study found that risk perception can be measured mainly by using the axiomatic approach, socio cultural group approach, emotional reactions, marketing mix approach, and psychometric approach. It is also found that the …

Eagle Accountant - 2021, Georgia Southern University

Eagle Accountant

• Note from the Director
• SOA at a Glance & Advisory Council
• Remembering Tim Pearson
• Eagle Eye: Accounting at Southern
• Accounting Day 2021
• Scholarships
• Parker Accounting Scholars
• Special Thanks to Sponsors
• Congratulations to Graduates
• BBA Graduates
• MAcc Graduates
• Honors Graduates
• Parker College of Business Scholars
• Beta Alpha Psi
• Accounting Association
• NABA
• ACFE
• VITA
• Faculty Awards
• Promotion & Tenure
• New Face in the SOA & Moving On
• Faculty Research & Publications
• Faculty Notes
• Alumni Notes & Promotions
• Diversity at the SOA
• We want to hear from you
• In Memoriam

Eagle Accountant, Parker College Of Business

College of Business: News & Publications

• Note from the Director
• SOA at a Glance & Advisory Council
• Remembering Tim Pearson
• Eagle Eye: Accounting at Southern
• Accounting Day 2021
• Scholarships
• Parker Accounting Scholars
• Special Thanks to Sponsors
• Congratulations to Graduates
• BBA Graduates
• MAcc Graduates
• Honors Graduates
• Parker College of Business Scholars
• Beta Alpha Psi
• Accounting Association
• NABA
• ACFE
• VITA
• Faculty Awards
• Promotion & Tenure
• New Face in the SOA & Moving On
• Faculty Research & Publications
• Faculty Notes
• Alumni Notes & Promotions
• Diversity at the SOA
• We want to hear from you
• In Memoriam

Three Papers Examining The Impact Of Non-Financial And Supplier Diversity Disclosures On Investors' Judgments And Decisions., Andria Hill

Electronic Theses and Dissertations, 2020-2023

Sustainability reporting is standard practice for large and mid-cap global companies. Sustainability reports are voluntary in nature and are used by companies to report on their sustainability activities to investors and other stakeholders. The supplier diversity disclosure is common amongst sustainability reports; however, current standards provide limited guidance on the information that is pertinent to the users of the information. Supplier diversity and inclusion is an important strategic business initiative, and yet the topic has garnered little attention in academic research. To further examine this topic, I conduct three studies examining the topic using multiple methods. The first study presents …