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Relationship Between The Audit Function And Effective Governance, Keith Duncan
Relationship Between The Audit Function And Effective Governance, Keith Duncan
Keith Duncan
Extract: As early as 1200 A.D. incorporated guilds in the United Kingdom (UK) required annual audits by a committee of members (Watts et al. 1983). The historical evidence suggests that the audit function evolved as an effective monitoring and bonding technology (Watts et al. 1983) that today consists of an international profession fulfilling regulatory requirements for assurance services. Despite auditing’s long history we might well ask, in the light of financial frauds such as Enron and the demise of their auditor Arthur Anderson, and the recent global financial crisis, does the modern audit function enhance effective governance? Is the audit …
Valuation Of Family Firms: The Limitations Of Accounting Information, Tim Hasso, Keith Duncan
Valuation Of Family Firms: The Limitations Of Accounting Information, Tim Hasso, Keith Duncan
Keith Duncan
This conceptual paper explores the extent to which reported accounting information captures unique family firm decision-making and intangible asset factors that impact financial value. We review the family firm valuation-relevant literature and identify that this body of research is predicated on the assumption that accounting information reflects the underlying reality of family firms. This research, however, fails to recognise that current accounting technology does not fully recognise the family firm factors in the book value of the firm or the implications for long-run persistence of earnings. Thus, valuation models underpinning the extant empirical research, which are predicated on reported accounting …
Income Strategies Of Listed And Unlisted Companies: An Empirical Study Of Accounting Method Choices, Keith Duncan
Income Strategies Of Listed And Unlisted Companies: An Empirical Study Of Accounting Method Choices, Keith Duncan
Keith Duncan
This paper explores whether the political and contracting environments for listed and unlisted companies gives rise to different wealth incentives for management to judiciously select a portfolio of accounting procedures for the firm. The analysis indicates significant differences in the method choices made by the managers of listed and unlisted firms. For the listed firms, size as a proxy for political costs is negatively related to portfolio choice, supporting the political cost hypothesis. In addition, leverage and directors' percentage ownership are positively related to portfolio choice and thus support the debt contracting cost hypothesis. In contrast, none of the contracting …