Business Commons^™

Challenges Of Social Science In Research Management, Shyam Sunder

Shyam Sunder

No abstract provided.

Eco-Friendly Or Eco-Frenzy? A Cost-Benefit Analysis Of Companies’ Environmental Decisions., Dr. Sandria Stephenson, Natalie Rodriquez

Sandria Stephenson

Revised Aicpacode Of Professional Conduct: Analyzing The Ethical Responsibilities For Members In Public Practice And Members In Industry, Steven Mintz

Steven Mintz

On June 1, 2014, the AICPA issued a codification of the principles, rules, interpretations, and rulings in the AICPA Code of Professional Conduct that specify which ethics provisions apply to members in public practice, members in business, and other members. A major improvement of the revised code is the creation of three sections for members in different areas of practice, to assist accounting professionals in each group to determine whether they are in violation of any of provision of the revised code. This paper explains those provisions as they apply to different members of the Institute.

Financial Engineering And The Arms Race Between Accounting Standard Setters And Preparers, Ronald Dye, Jonathan Glover, Shyam Sunder

Shyam Sunder

An Empirical Investigation Of Voluntary Non-Ifrs Earnings Reporting During The Recent Financial Crisis : Australian Evidence, Elisabeth Sinnewe

Dr Elisabeth Sinnewe

This study examines how the financial crisis affected the reporting choice of and market reaction to earnings that are different from the profit firms report on their income statement under International Financial Reporting Standards (IFRS). These non-IFRS earnings reflect management’s subjective of view of earnings. By observing management’s reporting choices and investors’ reaction in Australia prior to, during, and after the financial crisis, this study shows a distinctive effect of the economic condition on reporting non-IFRS earnings. As such, this study contributes to the limited attention hypothesis suggesting that information-equivalent disclosure is perceived as value relevant by management and investors …

Predicting Patients’ Use Of Provider-Delivered E-Health: The Role Of Facilitating Conditions, E. Vance Wilson, Nancy K. Lankton

Nancy K. Lankton

This chapter presents a new rational-objective (R-O) model of e-health use that accounts for effects of facilitating conditions as well as patients’ behavioral intention. An online questionnaire measured patients’ behavioral intention to use a new e-health application as well as proxy measures of facilitating conditions that assess prior use of and structural need for health services. A second questionnaire administered three months later collected patients’ self-reported use of e-health during the intervening period. The new model increased predictions of patients’ e-health use (measured in R2) by more than 300% over predictions based upon behavioral intention alone, and all measured factors …

Maintaining Integrity And Objectivity Avoiding Subordination Of Judgment When Threats Exist, Steven Mintz

Steven Mintz

According to the AICPA Code of Professional Conduct, “in the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others.” Rule 102 thus prohibits a member from knowingly misrepresenting facts or subordinating judgment when performing professional services for a client and employer. The rule was revised to provide guidance for external auditors who might face pressures within the firm to subordinate judgment.

Maintaining Integrity And Objectivity Avoiding Subordination Of Judgment When Threats Exist, Steven Mintz

Steven Mintz

According to the AICPA Code of Professional Conduct, “in the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts of interest, and shall not knowingly misrepresent facts or subordinate his or her judgment to others.” Rule 102 thus prohibits a member from knowingly misrepresenting facts or subordinating judgment when performing professional services for a client and employer. Interpretation 102-4, “Subordination of Judgment by a Member,” was revised to provide guidance for external auditors who might face pressures within the firm to subordinate judgment. This papers describes the new rules and provides a …

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 …

Rate Setting And Disclosure In Continuing Care Retirement Communities (Ccrcs), Seth C. Anderson, Jeffrey E. Michelman, Raymond M. Johnson, Kristi Quick

Jeffrey E Michelman

By 2026, the population of Americans age 65 and older will double to 71.5 million. According to a recent study by Metlife, et al., there are five important issues that impact both current and future retirees: Increased longevity with Americans living longer; Changing economic factors such as increased health care costs; A growing skills shortage in many industries; Different beliefs about work among the aging Baby Boomer generation; and Financial resources available for retirement. All five of these factors affect both the ways seniors plan for retirement and the ways that organizations providing services to seniors must respond. Continuing care …

Information And Accountants In The Role Of Strategic Planning, Michael D. Akers, Grover L. Porter

Michael D. Akers

This article on strategic planning practices is based upon a field study of five world-class companies. The strategic planning practices discussed in this article were extracted from the corporate environment. The information contained in this article, however, is of value alike to CPAs assisting with the enhancement of strategic planning practices in corporations and public accounting firms.

Internal Audit, Sarbanes-Oxley And Athletic Departments: An Examination And Recommendations For Reform, Michael Akers, Gregory Naples

Michael D. Akers

During the past fifteen to twenty years the integrity of intercollegiate athletics has been seriously questioned as a result of an increased awareness of problems associated with institutional controls over athletic departments. Limited empirical evidence has been used in the debate regarding institutional controls pertaining to the athletic department. This paper provides empirical evidence regarding the use of the internal audit function as an institutional control. Our findings indicate that while the internal audits of athletic departments are adequate, the communication of these audit results is inadequate. We also discuss the applicability of recent legislation, Sarbanes-Oxley Act of 2002, to …

An Empirical Examination Of The Usefulness Of The Motley Fool's "Flow Ratio", Don Giacomino, Michael D. Akers

Michael D. Akers

An item in the Motley Fool recently caught our attention. The article “Cisco vs. Lucent: The Flow Ratio Tells All” (by Matt Richey, June 6, 2000, in The Motley Fool.fool.com), introduced a new ratio that Richey claimed to be useful for measuring the investment worthiness of a company. Since our Financial Statement Analysis course covers traditional ratio analysis and since we were exploring some research ideas on measuring liquidity, the Fool Ratio seemed worthy of investigation

Underreporting Chargeable Time: A Continuing Problem For Public Accounting Firms, Michael D. Akers, Charles T. Horngren, Tim V. Eaton

Michael D. Akers

Prior research shows that underreporting chargeable time has been a concern for public accounting firms even though many of these firms have policies and procedures that prohibit "eating" time. The purpose of this study is to examine the current state of this problem and to provide recommendations to manage the problem more effectively. Practicing public accountants at all professional levels were surveyed to determine the extent, opportunity, ethical perception and perceived benefits of underreporting time. The results show that although the majority of the respondents believe underreporting time is unethical, the majority of them did not report all of their …

Strategic Planning At Five World-Class Companies, Michael D. Akers, Grover L. Porter

Michael D. Akers

Most successful executives know that strategic planning offers the best way to deal with their changing world. Information is central to successful strategic planning. A field study of 5 world-class companies revealed details regarding information used for strategic planning and the role of management accountants in this process. Key executives were interviewed at: 1. Johnson Controls, 2. Coors Brewing Co., 3. Schering-Plough, 4. Xerox, and 5. 3M Company. The executives were interviewed to find out how their companies did strategic planning. Issues addressed included the distinction between strategic and long-range planning, the strategic planning process, information used for strategic planning, …

Boards Of Advisors In Small Businesses: An Empirical Profile Of Their Composition And Use, Michael D. Akers, Don Giacomino

Michael D. Akers

This article discusses the literature coverage on Boards of Advisors to date and provides the results of a study designed to determine the formation and composition of Boards of Advisors and the ways in which small businesses use such boards. Our study surveyed the Chief Executive Officers or Presidents of a large sample of small businesses. We found that there is very limited use of Boards of Advisors in small businesses and that many small business managers are not aware of the concept of a Board of Advisors. However, those small business managers (97%) that use a Board of Advisors …

A Review Of Bankruptcy Prediction Studies: 1930-Present, Jodi L. Gissel, Don Giacomino, Michael D. Akers

Michael D. Akers

One of the most well-known bankruptcy prediction models was developed by Altman [1968] using multivariate discriminant analysis. Since Altman's model, a multitude of bankruptcy prediction models have flooded the literature. The primary goal of this paper is to summarize and analyze existing research on bankruptcy prediction studies in order to facilitate more productive future research in this area. This paper traces the literature on bankruptcy prediction from the 1930's, when studies focused on the use of simple ratio analysis to predict future bankruptcy, to present. The authors discuss how bankruptcy prediction studies have evolved, highlighting the different methods, number and …

An Examination Of The Differences Between Personal Values And Value Types Of Female And Male Accounting And Nonaccounting Majors, Michael Akers, Don Giacomino

Michael D. Akers

Research has shown that a person's values affect his or her behavior. While there has been considerable research regarding the ethical perceptions and behavior of business students, there has been limited research regarding the personal values that affect such perceptions and behavior. This study was designed to determine the differences between values and value types of accounting and nonaccounting majors, as well as differences between values and value types of males and females. The values survey questionnaire developed and validated by Schwartz (1992) was used for this study. The instrument, containing 56 values, was administered to business students in three …

Personal Values Of Certified Internal Auditors, Michael Akers, Don Giacomino

Michael D. Akers

Internal auditors are being asked to assist in the development of codes of conduct and to audit ethical compliance and thus are expected to adhere to strict standards of behavior. It is, therefore, important for the Institute of Internal Auditors and other organizations to understand the personal values that underlie behavior in order to determine whether internal auditors' values are consistent with the Standards of Conduct. This article reports the results of a study, which focuses on the personal values of certified internal auditors. The study's main purpose is to determine if the personal values and value systems of CIAs …

An Examination Of Personal Values And Value Systems Of Chinese And U.S. Business Students, Don Giacomino, Xin Li, Michael D. Akers

Michael D. Akers

Using the Rokeach Value Survey and the Musser and Orke typology this paper examines the personal values and value systems of business students in China and compares the results with the results of a recent study that used similar methodology to examine the values and value systems of U.S. students. The study also examines the differences in values and value systems of the Chinese students by gender and by major. While there are few differences for the Chinese students by gender, our findings show several differences in the rankings of values by the Chinese and U.S. students as well as …

Designing And Implementing An Accounting Assessment Program, Michael Akers, Don Giacomino, James Trebby

Michael D. Akers

The Accounting Department at Marquette University responded to the desire to improve processes and to external pressures by designing and implementing an assessment program. The selection and involvement of the assessment team, the development of the 6 intended student outcomes, the establishment of the quantifiable goals, the development of the measurement tools used to evaluate the goals, and the identification of mechanisms used to provide feedback are examined. Results of the implementation indicate that improvement is needed in the following areas: oral communication skills, business writing skills, and microcomputer skills.

Internal Audit's Role In Systems Development: The Ceo's Perspective, Meredith Maher, Michael Akers

Michael D. Akers

For the past 30 years, the development of the role and management's expectations of the internal audit function as related to information technology has been an evolutionary process. A sample of CEOs were surveyed to ascertain their opinions on internal audit's involvement in systems development, including whether internal auditors' independence is compromised by such involvement and whether auditors should act as consultants for systems development projects. The prevailing sentiment among the CEO respondents was that internal auditors should be involved primarily in testing the accuracy of the systems being developed. A comparison of CEOS' and chief audit executives' opinions shows, …

An Examination Of The Use Of The Board Balanced Scorecard By Large Public Corporations, Qianhua Ling, Don Giacomino, Michael Browne, Michael D. Akers

Michael D. Akers

While the Balanced Scorecard (BSC) developed by Norton and Kaplan has gained global prominence as a management tool and there is qualitative accounting literature that discusses the benefits of the Board BSC, there is limited empirical evidence that examines the use of the Board BSC. We surveyed Chairs of large public companies to determine the extent to which they use the Board BSC and the reasons why. Our findings suggest that the Board BSC is currently not a widely used technique by Boards of Directors. We also found that the Sarbanes-Oxley Act of 2002 wasn't an influencing factor for those …

Personal Values Of Japanese Business Managers, Don E. Giacomino, Michael D. Akers, Atsushi Fujita

Michael D. Akers

Researchers have spent many years examining the Japanese business culture, but there is limited empirical evidence about the personal values of Japanese business managers. The research of these authors confirms some previous conclusions, but also might detect new attitudes in Japan at the dawn of the 21st century.

Underreporting Of Chargeable Time: The Impact Of Gender And Characteristics Of Underreporters, Michael D. Akers, Tim V. Eaton

Michael D. Akers

No abstract provided.

Cpas' Perceptions Of The Impact Of Sas 99, Donald C. Marczewski, Michael D. Akers

Michael D. Akers

In November 2002, the Auditing Standards Board (ASB) issued Statement on Auditing Standard 99, Consideration of Fraud in a Financial Statement Audit. Although SAS 99 was developed before the recent accounting scandals, its release came in their wake. The ASB crafted SAS 99 in response to perceived inadequacies in its predecessor, SAS 82. A questionnaire was sent to a random sample of 300 Wisconsin CPAs selected from the membership of the Wisconsin Institute of CPAs, which included 150 partners and 150 managers from Wisconsin public accounting firms. The response rate was 35%, with an almost equal balance of partners and …

An Examination Of Management Accountants’ Use And Perception Of Expert Systems, Michael D. Akers, Robert E. Jordan, Grover L. Porter

Michael D. Akers

Although there has been a number of articles written about the possible use of expert systems by management accountants, there has been limited research to support such predictions. The primary purposes of this paper are to examine management accoun-tants’ use and perceptions of expert systems. A survey instrument was designed to eli-cit responses (Likert scale and open-ended) about management accountants' perceptions of the current and future use of expert systems and to determine their knowledge, interest and involvement with such systems. The findings of this study indicate that although respondents are moderately interested and involved with expert systems, they have …

Your Eq Skills: Got What It Takes?, Michael D. Akers, Grover L. Porter

Michael D. Akers

Your EQ skills: got what it takes? So you thought the CPA exam was your last test? Read on. Question: Is success in life and career determined primarily by rational intelligence (the IQ or intelligence quotient) or emotional intelligence (the EQ or emotional quotient)? In other words, what's more important: intelligence or intuition? Historically the professional accounting literature has placed little emphasis on behavioral issues such as EQ, although human behavior underlies most of what is written and taught about professional accounting. Now managers place increased value on behavioral skills that help people in the workplace. Look at this statistic: …

Ethics And The Accountants’ Code Of Conduct, Michael D. Akers, Don Giacomino

Michael D. Akers

Although the AICPA has established the Professional Code of Conduct to deal with the behavior of CPAs, research has also shown that an individual's behavior is affected by his or her personal values. While there has been considerable research of the ethical behavior of business professionals and business students, there has been limited research of the personal values of public accountants. This study was designed to examine the values and value types underlie the ethics of Big Six public accountants. A survey instrument, consisting of 56 values, developed and validated by Schwartz was administered to audit and tax professionals at …

The Ethics Of Managing Short-Term Earnings: Business Managers And Business Students Rate Earnings Management Practices – Implications For Academia, Don Giacomino, Jodi L. Gissel, Michael D. Akers

Michael D. Akers

In 1990, Bruns and Merchant surveyed the readership of the Harvard Business Review (HBR). Their survey asked HBR readers to rate the acceptability of earnings management practices. Prior to that study, researchers and accounting practitioners paid little attention to the morality of short-term earnings management. However, in the wake of highly publicized financial frauds and failures, the profession and academic journals have emphasized the importance of the concepts of earnings quality and earnings management. The Bruns and Merchant survey provided 13 earnings management situations and asked the HBR readers to rate the acceptability of those practices. In this study, we …