Accounting Commons^™

The Value To Management Of Using The Internal Audit Function As A Management Training Ground, Joseph V. Carcello, Marc Eulerich, Adi Masli, David A. Wood

Faculty Publications

This study examines how using the internal audit function as a management training ground (MTG) impacts manager’s reliance on internal auditor recommendations. While prior research suggests that using internal audit as a MTG can adversely affect financial reporting quality, external audit fees, and internal audit efficiency, many internal audit functions use this practice. We study how this practice influences another important stakeholder—senior management. Based on survey results of 355 chief audit executives (CAEs), we find that CAEs perceive senior management to be more likely to use recommendations from MTG internal auditors than non- MTG internal auditors. To bolster the validity …

Citation-Based Benchmarks And Individual Accounting Faculty Research Rankings By Topical Area And Methodology, Garrison Nuttall, Neal Snow, Scott L. Summers, David A. Wood

Faculty Publications

This paper provides citation rankings and benchmarking data for individual accounting researchers disaggregated by topic and methodological area and studies which factors increase citation totals. Based on Google Scholar data from 7,113 articles published in respected accounting journals, we find that citation totals differ significantly based on accounting topic area (accounting information systems, audit, financial, managerial, tax, other) and methodology (analytical, archival, experimental, other), suggesting the need to separately benchmark authors who publish in these groups. We also find that authors who have a broad collaboration network, graduated from a school that started a journal, are topic specialists, or publish …

Violence, Aggression, And Ethics: The Link Between Exposure To Human Violence And Unethical Behavior, Joshua R. Gubler, Skye Herrick, Richard Price, David A. Wood

Faculty Publications

Can exposure to media portrayals of human violence impact an individual’s ethical decision making at work? Ethical business failures can result in enormous financial losses to individuals, businesses, and society. We study how exposure to human violence—especially through media—can cause individuals to make less ethical decisions. We present three experiments, each showing a causal link between exposure to human violence and unethical business behavior, and show this relationship is mediated by an increase in individual hostility levels as a result of exposure to violence. Using observational data, we then provide evidence suggesting that this relationship extends beyond the context of …

Women’S Initiatives Executive Committee: Educating, Advocating, Advancing, American Institute Of Certified Public Accountants. Women’S Initiatives Executive Committee

Guides, Handbooks and Manuals

No abstract provided.

An Introduction To Case Reports: The Fundamentals Of Accounting, William C. Kemp

Honors Theses

This document is a culmination of twelve case reports completed over the 2016-2017 school year under the direction of Dr. Victoria Dickinson. The cases were assigned in relation to the current topics covered in ACCY 303 and ACCY 304 and were prepared under GAAP and other generally accounting standards. Several cases were a set published by Cambridge Business Publishers, LLC and can be found online. Other cases were provided by Dr. Dickinson. Each case was a series of questions that related to a separate accounting topic, and information in each is not dependent on previous cases. Journal entries, ratios, financial …

European Power Markets–A Journey Towards Efficiency, Lucia Morales, Jim Hanly

Articles

The liberalization process of European electricity markets has been a work in progress since early reforms beginning in the 1990's. A key goal of these reforms was to enable increased integration and attendant efficiency within these markets. In this paper, we analyse three major European electricity markets - (APXUK, NordPool and Phelix) – before and after the 2009/72/EC Directive was introduced, to examine the extent to which those markets are efficient and whether they have become more integrated. We find little evidence of significant long run relationships between the different markets. We also find that the NordPool and Phelix markets …

Long-Run Linkages Of Asean+3 Floating Currencies, Cesar C. Rufino

DLSU Business & Economics Review

The extent with which currencies of the expanded ASEAN grouping commonly known as the ASEAN+3 have attained long-run currency linkages—an important requisite for an eventual monetary integration—is the main focus of this study. High-frequency interbank call rates (nominal exchange rate vis-à-vis the US dollar) data on seven floating currencies of the region with sufficient historical time series covering the period of 1998 to 2012 (weekly: January 7, 1998, to December 26, 2012—average of bid and ask rates on Wednesdays) constitute the primary database of the study. The goal is to establish through cutting-edge econometric procedures three crucial outcomes: the bilateral …

Asean Bond Market Integration: What Drives Cross-Border Bond Investment In Asean?, Angelo Taningco

DLSU Business & Economics Review

Bond market integration in the Association of Southeast Asian Nations (ASEAN) appears to be relatively low or weak especially in terms of intraregional bond investment despite the robust growth in bond market size in recent years and policy initiatives in support of developing bond markets in the region. This paper aims to contribute to the literature on ASEAN financial integration by providing empirical evidence and policy insights on what can help boost intra-ASEAN bond investment. Using panel regression following a gravity model framework and spanning five major ASEAN member countries—Indonesia, Malaysia, the Philippines, Singapore, and Thailand—over the 2001–2014 period, this …

Is A Regional Credit Rating Agency For The Asean Feasible?, Tereso S. Tullao Jr, Christopher James R. Cabuay,, Daniel S. Hofileña

DLSU Business & Economics Review

In the spirit of deepening the bond markets of the ASEAN+3 region, as well as addressing the inadequacies put forth by the underrating of bonds by global credit rating agencies (GCRAs) and their lack of recognition of domestic CRAs’ (DCRAs) ratings, we look into the feasibility of a regional CRA (RCRA). Establishing an RCRA is faced with hurdles related to institutional and reputational constraints, mechanisms of information exchange, compatibility of financial reports, operational limitations, governance structure, and regulatory frameworks. In this light, we provide a brief discussion on potential alternatives such as the credit ratings initiative of the National University …

Testing The Assumptions Of Slippery Slope Framework On Tax Compliance: Evidence From Nigerian Smes, Augustine Ayuba, Natrah Saad, Zaimah Zainol Ariffin

DLSU Business & Economics Review

This paper integrates the assumptions of the Slippery Slope Framework in explaining the tax compliance of small and medium enterprises. This study tests these assumptions in relation to SMEs taxpayers to further reestablish the applicability of the framework with different kinds of taxpayers. Partial Least Squares Structural Equation Modeling (PLS – SEM) further supported the framework in analyzing the data of this study. The findings reveal that perceived corruption along with perceived service orientation strongly interact each other in expounding the paradox surrounding tax compliance.

Market Ambiguity And Individual Investor Information Demand, Rajib Hasan, Abdullah Kumas, Joyce Van Der Laan Smith

Accounting Faculty Publications

We examine whether ambiguity in the market leads to an increase in information demand by individual investors. Drawing on the asset-pricing model proposed by Mele and Sangiorgi (2015), which incorporates market ambiguity, we measure individual information demand using daily Google searches and measure market ambiguity using a metric based on the market trades of institutional investors. We find that individual investors increase their information demand during periods of greater market ambiguity. We also provide evidence that information demand from individual investors spikes around earnings announcement days primarily when market uncertainty is driven by net-selling activity. Overall, these results suggest that …

A Study Of Long-Lived Asset Impairment Under U.S. Gaap And Ifrs Within The U.S. Institutional Environment, Philip K. Hong, Daniel Gyung Paik, Joyce Van Der Laan Smith

Accounting Faculty Publications

This paper explores whether differences in accounting standards influence reporting behavior within the U.S. institutional environment where both IFRS and U.S. GAAP are used for reporting purposes. We focus on the accounting for impairment of long-lived assets, an area where significant differences exist between U.S. GAAP and IFRS. We identify all U.S.-listed firms who have recognized long-lived asset impairment losses during the 2004–2012 period. From these firms, we identify firms following IFRS, then develop a matched sample of U.S. GAAP firms, using a propensity score matching procedure. We examine the relation between impairment loss and unexpectedly high or low earnings …

Anticipation And Reaction To Going Concern Modified Audit Opinions By Sophisticated Investors, Marshall A. Geiger, Abdullah Kumas

Accounting Faculty Publications

The purpose of this paper is to examine whether institutional investors (i) anticipate a distressed firm's receipt of a first‐time going‐concern modified audit opinion, and (ii) react to a first‐time going‐concern modified opinion by engaging in abnormal net selling of firm shares. Using a proprietary database of US institutional investor trades, we find that institutional investors are net sellers of first‐time going‐concern opinion firms beginning 6 months before the release of the report and remain net sellers through the subsequent 3 months. We also find that the severity of the reasons auditors modify their opinions is associated with increased trading …

The Association Between Audit Fees And Accounting Restatement Resulting From Accounting Fraud And Clerical Errors, Daniel Gyung Paik, Taewoo Kim, Kip Krumwiede, Brandon B. Lee

Accounting Faculty Publications

Restatements of financial reporting arise from many sources including changes in accounting rules, changes in reporting entity, accounting errors, and fraud (or “irregularities”). Theory predicts that audit effort (measured by audit fees) and financial report restatements should be negatively associated because more audit effort means that auditors should be more likely to find errors or other issues that could lead to later restatement (Shibano 1990; Matsumura and Tucker, 1992; Lobo and Zhao, 2013). However, other studies have found either a positive association or no association between audit fees and subsequent restatements (Kinney et al., 2004; Stanley and DeZoort, 2007; Cao …

A Study Of Long-Lived Asset Impairment Under U.S. Gaap And Ifrs Within The U.S. Institutional Environment, Daniel Gyung Paik, Keejae Hong, Joyce Van Der Laan Smith

Accounting Faculty Publications

This paper explores whether differences in accounting standards influence reporting behavior within the U.S. institutional environment where both IFRS and U.S. GAAP are used for reporting purposes. We focus on the accounting for impairment of long-lived assets, an area where significant differences exist between U.S. GAAP and IFRS. We identify all U.S.-listed firms who have recognized long-lived asset impairment losses during the 2004 to 2012 period. From these firms, we identify firms following IFRS, then develop a matched sample of U.S. GAAP firms, using a propensity score matching procedure. We examine the relation between impairment loss and unexpectedly high or …

Cryptocurrencies Are Taxable And Not Free From Fraud, Joseph Wall, D. Larry Crumbley, Lewis B. Kilbourne, Caleb Blair

Accounting Faculty Research and Publications

In this report, the authors discuss cryptocurrencies — especially bitcoin — and argue that because the IRS lists them as property, they are taxable, and because they are not as anonymous as once thought, they are not free from fraud.

Cryptocurrencies are digital assets used as a medium of exchange, but they are not really coins. They can be sent electronically from one entity to another almost anywhere in the world with an internet connection. There are many cryptocurrencies in the market, including bitcoin, ethereum, ethereum classic, litecoin, nem, dash, iota, bitshares, monero, neo, and ripple. Many of the cryptocurrency …

Three Studies Examining Auditors' Use Of Data Analytics, Jared Koreff

Electronic Theses and Dissertations

This dissertation comprises three studies, one qualitative and two experimental, that center on auditor's use of data analytics. Data analytics hold the potential for auditors to reallocate time spent on labor intensive tasks to judgment intensive tasks (Brown-Liburd et al. 2015), ultimately improving audit quality (Raphael 2017). Yet the availability of these tools does not guarantee that auditors will incorporate the data analytics into their judgments (Davis et al. 1989; Venkatesh et al. 2003). The first study investigates implications of using data analytics to structure the audit process for nonprofessionalized auditors. As the public accounting profession continues down a path …

Three Studies Examining The Potential For Relational Reasoning To Enhance Expertise In Complex Audit Domains, Matthew Holt

Electronic Theses and Dissertations

This dissertation consists of three studies that explore the potential for relational reasoning to advance research on the facilitation of expertise in complex audit domains. Study One seeks to explicate the potential that theory and methods from relational reasoning and associated research have to advance the audit expertise research stream. The implications for future research on facilitating auditing expertise are discussed in synchrony with future research questions, including whether or not such strategies will be effective in domains with more than minor relational complexity. Studies Two and Three experimentally examine the use of metacognitive skills intended to enhance relational knowledge, …

Strategies To Minimize Direct Care Worker Shortages, Eric Ik Iloabachie

Walden Dissertations and Doctoral Studies

There is a worldwide shortage of direct care workers who help older adults in their own homes. The purpose of this multiple case study was to explore strategies that owners of home health care businesses can use to retain adequate direct care workers for their businesses. Five home care agency owners from Wake County, North Carolina, participated. Each owner had successfully implemented strategies to ensure adequate caregivers to sustain the business. Human relations theory was used to address the business problem. Data collection involved interviewing the 5 owners of home care agency businesses in their offices. Through a process of …

Strategies To Reduce Occupational Fraud In Small Restaurants, Angel Ortiz

Walden Dissertations and Doctoral Studies

Occupational fraud is a growing business risk that is causing greater financial losses in small businesses than large businesses. Business owners lose approximately 5% of their revenues due to occupational fraud. The purpose of this multiple case study was to explore the strategies used by some business owners of small restaurants to reduce occupational fraud. The fraud triangle theory was the conceptual framework for this study. Three small restaurant owners from Puerto Rico participated in face-to-face, semistructured interviews to reveal their successful strategies to minimize fraud. The data collection process also included business documents and researcher observations that assisted in …