Business Commons^™

Data Analytics And Audit Quality, Ru Gao, Sterling Huang, Rencheng Wang

Research Collection School Of Accountancy

We examine the impact of data analytics on audit quality. Using hand-collected information on data analytics skills of employees of audit firms, we find that human capital investment in data analytics improves audit quality. The analytics capability of both frontline and back-office employees contributes to audit quality. The effect is more pronounced for audit clients with complex business operations, for clients with complicated accounting estimates, and for clients that are more digitalized. Taken together, our findings suggest that an audit office’s analytics capability represents an important office attribute that can affect audit quality.

Official Release: Temporary Policy Statement Related To Amendments Of Rule 2-01 Of Regulation S-X, Adopted December 21, 2020, American Institute Of Certified Public Accountants. Professional Ethics Executive Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Do Firms Respond To Peer Disclosures? Evidence From Clinical Trial Disclosures, Vedran Capkun, Yun Lou, Clemens A. Otto, Yin Wang

Research Collection School Of Accountancy

We examine whether a firm’s decision to disclose non-financial proprietary information depends on peer disclosures of similar information. Using a sample of 5,035 unique clinical trials by U.S. pharmaceutical firms over the 2007-2014 period, we find that the firm is less likely to disclose its own clinical trial results if peers have published clinical trial results pertaining to the same medical condition. Conditional on disclosing clinical trial results, the firm is also less likely to disclose the trial results on time when peers have disclosed their clinical trial results. Our cross-sectional tests suggest that proprietary costs of disclosure play an …

A Qualitative Study On Predictive Models In Accounting Fraud Detection, Anthony Cecil

Doctoral Dissertations and Projects

Companies lose an estimated 5% of revenue each year due to occupational fraud. This level of fraud can significantly disrupt the capital markets and cause companies to go bankrupt. Unless organizations, the government, and the accounting profession develop a systematic approach for accounting fraud detection, investors and employees will continue to lose money. This study explored subject matter experts’ perceptions of building and deploying artificial intelligence and predictive models to detect accounting fraud. This case study consisted of interviews with 10 participants with expertise in predictive modeling, auditing, and investigating, as well as a systematic literature review of research and …

Examining The Sufficiency And Appropriateness Of Audit Evidence In The United States Banking And Securities Industries, Adama Guilavogui

Doctoral Dissertations and Projects

The substratum of performing an effective and value-added audit engagement centers on the ability of qualified professionals to gather, assess and draw inferences from audit evidence independently. Generally Accepted Auditing Standards (GAAS) in the United States instruct auditors to design and implement audit procedures to gain relevant audit evidence to sustain the opinion conveyed in the auditor's report (AS 1105.03). This research examined the scope of audit evidence sufficiency and appropriateness in the United States banking and securities industries. The thesis aimed at enriching the existing body of knowledge on auditing in the target industries. Specifically, the thesis investigated the …

Accounting For A Hopeful World, Themin Suwardy

Research Collection School Of Accountancy

In a commentary, SMU Associate Provost for Postgraduate Professional Education and Associate Professor of Accounting (Practice) Themin Suwardy noted that environmental reporting has become more common in the last 10 years and that companies are embracing sustainability reporting despite the challenging myriad of seemingly different models, frameworks and regulations. He opined that the IFRS Sustainability Disclosure Standards to be issued by the International Sustainability Standards Board (ISSB) will enable companies to provide comprehensive sustainability information for the global financial markets. He urged accounting professionals to embrace the development wholeheartedly and to help organisations do and report good.

Accounting And Finance Lessons In The Time Of Covid-19: Views From The Pacific Basin: Part 2, Kuan Yong David Ding, Julie Harrison, Martien Lubberink, Chris Van Staden

Research Collection Lee Kong Chian School Of Business

The global COVID-19 pandemic is now in its second year, and we are fast approaching the third. The year 2021 has brought some hope that vaccination will lead to the end of the pandemic. But it has also brought a more infectious variant of COVID-19 and multiple waves of surging cases that show no immediate sign of disappearing. As the pandemic continues to impact global societies and economies, it is imperative that we study its impact to try and understand how it will affect us in both the short-term and long-term. While the longer-term impacts are still unknown, there is …

Wayfair Sales Tax Nexus: An Illustrative Case Study Of Data Analytics And Data Visualization In An Introductory Tax Course, David Horn, Jacob Enger

The North American Accounting Studies

Data analytics and data visualization technologies are changing the skills needed for future tax accountants. Higher education accrediting bodies have recognized the need for incorporating data analytics and emerging technologies into the curriculum of business schools and accounting programs to meet these changing needs. This paper presents a case study developed to accommodate the need for accounting faculty to incorporate data analytics and data visualization technology into an undergraduate tax course. The case study focuses on the impact of the sales tax economic nexus standards established by the U.S. Supreme Court in South Dakota v. Wayfair, Inc. Students must …

Increasing Retention For At-Risk Students, Kc Rakow, Pamela M. Schwer

The North American Accounting Studies

Recognizing both the growing debate on whether the return on investment of a college degree is worth it or not along with the many obstacles that face at-risk students – underrepresented minorities, first-generation college students, and students on Pell grants – we employ a process to attract and retain at-risk students in the accounting program. Our three-pronged approach creates an environment in which the students are not only more informed about the accounting profession but better prepared to be successful once entering the profession. Our efforts proved to be successful, and more importantly, can be utilized and improved by other …

Is Public Accounting Eating Its Seed Corn? An Assessment Of The Outsourcing Of Tax Work, Timothy J. Fogarty, R. Drew Sellers, Dave Jones

The North American Accounting Studies

For many years, public accounting firms have sent much of their tax compliance work to overseas centers for assembly and initial processing. This has achieved labor cost savings for the firms and is made possible by digital data conversion and the belief that the work itself has been commodified. Relocating the work that used to be done by US tax staff may have had some dysfunctional long-term consequences including inhibiting US staff skill and expertise development. This paper offers the data created by 27 interviews with US tax professionals to inform this domain. We also consider possible solutions suggested by …

Virtual Fall Meeting Of Council, October 19-20, 2021 (Four Pages To The Sheet), American Institute Of Certified Public Accountants. Council

Association Sections, Divisions, Boards, Teams

No abstract provided.

Virtual Fall Meeting Of Council, October 19-20, 2021, American Institute Of Certified Public Accountants. Council

Association Sections, Divisions, Boards, Teams

No abstract provided.

Fall/Winter 2021

Business Exchange

Flexibility Is Our New Norm; $8 Million Bequest Supports Student Scholarships; Women in Entrepreneurship Institute Partnership Supports Business Founders of Color; College Named a Bloomberg Experiential Learning Partner; MacArthur Foundation Grant Supports Housing Research; Navigating the New Workplace Norms; Professor Introduces Students to Fintech Innovations; Accounting Graduate Brews Coffee Business with Soul

Auditing Standards Board (Asb), Meeting Agenda, October 12-14, 2021, Video Conference (Zoom) (Times Are Est), American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Auditing Standards Board (Asb), Meeting Highlights, October 12-14, 2021, Videoconference, American Institute Of Certified Public Accountants. Auditing Standards Board

Association Sections, Divisions, Boards, Teams

No abstract provided.

Comment Letters On Proposed Revised Interpretations And Definition: Loans, Acquisitions, And Other Transactions Definition Of "Beneficially Owned" "Client Affiliates" Interpretation "Loans"” Interpretation "Loans And Leases With Lending Institutions" Interpretation "Immediate Family Members" Interpretation, October 5, 2021,, American Institute Of Certified Public Accountants. Professional Ethics Executive Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Proposed Revised Interpretations And Definition: Loans, Acquisitions, And Other Transactions Definition Of "Beneficially Owned" "Client Affiliates" Interpretation "Loans"” Interpretation "Loans And Leases With Lending Institutions" Interpretation "Immediate Family Members" Interpretation, October 5, 2021, Comments Are Requested By January 5, 2022; Exposure Draft (American Institute Of Certified Public Accountants), 2021, October 5, American Institute Of Certified Public Accountants. Professional Ethics Executive Committee

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Syllabus For Auditing Concepts & Applications, Charles Cullinan

Resources

This course presents the basic concepts and procedures involved in an audit of financial statements. Topical coverage includes audit planning, internal control evaluation, and substantive audit testing.

Tdabc Capabilities For Performance Measurement: A Case Study In A Manufacturing Context, Siham Rahoui, Abubakar Ali, John Crowe, Amr Mahfouz

Conference papers

Supply chain costing presents a sophisticated alternative to traditional costing allowing an accurate cost estimation and effective decision making. In exploring different techniques, TDABC was not explored extensively compared to its peers. In addition to the infancy of the technique, there is an on-going debate about the capability of the TDABC specifically in manufacturing context. The present study contributes to the debate by applying TDABC at the logistics function of a manufacturing site and assesses it capability to measure performance in the stated context.

Understanding The Entity And Its Environment And Assessing The Risks Of Material Misstatement; Statement On Auditing Standards, 145 (October 2021), American Institute Of Certified Public Accountants. Auditing Standards Board

Statements on Auditing Standards

No abstract provided.

Driving Marketing Efficiency In The Age Of Big Data: Analysis Of Subprime Automotive Borrowers, Edwin Baidoo, Ryan Matthews, Frances Ann Stott, F. Stuart Wells

Atlantic Marketing Journal

Big Data methodologies are applied to understand subprime borrowers in the U.S. automobile space. The focus on the automobile market is essential as this subsegment is responsible for directly and indirectly employing over one million people and creating payrolls in excess of $100 billion annually in the U.S. It is found in this article that if a subprime borrower is a homeowner, the probability of repaying their auto loan increases by almost 4%. However, if the borrower is renting, the likelihood of repaying their auto loan increases by nearly 1.4%. Applying Big Data in making subprime auto loans can add …

The Contagion Effect Of Compensation Regulation: Evidence From China, Jun Shao, Haiyan Zhou, Na Gong, Junzi Zhang

School of Accountancy Faculty Publications

To shed light on whether and how firms changed compensation practices in response to a shift in the environment in which they operated, we examine whether there is contagion effect of executive compensation regulation on state-owned enterprises (SOEs) in the emerging market of China. Specifically, we investigate whether firms not directly affected by the changing regulatory environment nonetheless changed executive compensation in response to the actions of the directly affected firms, which is called contagion effect. We further examine the specific contagion mechanisms and the economic consequences of regulation on compensation. We find that the regulation has a significant effect …

Non-Gaap Earnings And Stock Price Crash Risk, Charles Hsu, Rencheng Wang, Benjamin C. Whipple

Research Collection School Of Accountancy

We investigate whether non-GAAP earnings disclosures increase stock price crash risk. Consistent with non-GAAP disclosures allowing managers to inflate investors’ perceptions about firm performance, our results indicate that income increasing non-GAAP reporting increases crash risk. We also find that managers can use non-GAAP reporting as a substitute for earnings management to withhold bad news from investors (the traditional explanation for crashes). Finally, we find a positive association between non-GAAP reporting and the likelihood of subsequent events that can trigger a crash. Overall, our evidence is consistent with some non-GAAP disclosures exposing investors to risks of large and sudden price declines.

Local Political Corruption And M&As, Chun Liu, Yang Chen, Shanmin Li, Liang Sun, Mengjie Yang

Research Collection School Of Accountancy

We examine the relation between local political corruption and firms' cross-province M&As using provincial-level data on corruption in China. The results show that firms in more corrupt regions are less likely to engage in cross-province M&As. Further analyses reveal that the effects of local corruption on the probability of cross-province M&As are stronger when corrupt officers have greater impeding benefits or lower impeding costs. Meanwhile, Both ex-ante intervention and ex post punishment are important channels through which corrupt officers hinder firms' cross province M&As. Moreover, informal institutions, such as social capital and informal networks can help to alleviate the negative …

Life And Health Insurance Entities, October 1, 2021; Audit And Accounting Guide, American Institute Of Certified Public Accountants (Aicpa)

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

Effect Of Gamification Narrative Quality On Users’ Value Co-Creation Behavior In Context Of B2c Sharing Economy, Ziwen Wang

Dissertations and Theses Collection (Open Access)

B2C sharing economy is now a major part of the economic system in China and the essence of it is the value co-creation of the users and platforms. However, the means to effectively stimulate users into value co-creation in B2C sharing economy are not well-understood. While gamification marketing is a low cost means to enhance user participation, empirical research of high granularity is lacking. This dissertation seeks to fill the gap by exploring how gamification narrative quality affects users’ value co-creation behavior in the B2C sharing economy model and the underlying mechanism.

Using the bike sharing industry in China as …

An Exploration Of Internal Control Deficiencies And Their Impact On Fraud In Local Churches In Nigeria, Samuel Eze

Doctoral Dissertations and Projects

This research study explores the impact of internal control deficiencies on fraud in local churches in Nigeria and provides church leaders, trusted church members, employees, and volunteers with the necessary tools to guard church funds and assets from fraud and waste of resources. The researcher designed the study to answer six research questions addressed with 16 semi-structured interview questions and the outcome was obtained from 17 church leaders, ministers, employees, and volunteers of local churches in the Enugu area, Nigeria. The six themes that emerged from the study include accountability and stewardship, good internal control procedures, segregation of duties, disciplinary …

The Financial Impact Of Manual Inventory Record Errors, Shamia Wynn

Doctoral Dissertations and Projects

This qualitative case study investigated how the most common inventory errors in a manual manufacturing environment impacted the financial health of the business. All classes of inventory are an equally important asset and are accounted for as money on every business’s balance sheet. The senior leaders of manufacturing businesses are obligated to protect the possession of inventory and to develop strategies to ensure items are converted to revenue. Knowledge of the phenomenon was gained through interviewing and observing participants in their natural setting to discover potential themes and solutions. Inaccurate inventory amounts, waste from utilizing incorrect components in production, and …

Adopting A Risk-Intelligent Approach To Digital Transformation: Four Traits Of Digitally Mature Organisations, Clarence Goh, Gary Pan, Poh Sun Seow, Yuanto Kusnadi, Seah Gek Choo, Cheryl Lim

Research Collection School Of Accountancy

Our objective is to understand how digitally mature organisations are managing the GRC aspects of their digital transformation programmes, and identify any traits or behaviours that could inform the development of best practices.

What Are The Four Traits Of Digitally Mature Organizations?, Clarence Goh, Gary Pan, Poh Sun Seow, Yuanto Kusnadi, Gek Choo Shirlena Tan

Research Collection School Of Accountancy

A study conducted by Deloitte Southeast Asia and the Singapore Management University said there are four traits that could identify digitally mature organisations based on how they manage the governance, risk, and compliance aspects of digital transformation.