Accounting Commons^™

The Foreign Corrupt Practices Act: An Examination Of Cases And Enforcement Actions, Michael D. Akers, Brittany Zeske

Accounting Faculty Research and Publications

No abstract provided.

The Standard Auditor's Report: Preparer, User, And Student Reactions To The Pcaob Concept Release, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

Concerns about the usefulness of the Standard Audit Report (SAR) have been expressed by investors and other users of corporate financial statement for several decades. During 2011 the Public Company Accounting Oversight Board (PCAOB) reacted to those concerns by issuing Concept Release on Possible Revisions to the PCAOB Standards Related to PCAOB Standards (“Release”). This article provides a description of the SAR, a short history (timetable) of the pressures (surveys) to improve the SAR and events that have led to the eventual Release by the PCAOB. Feedback (comment letters and surveys) from professionals and professional organizations regarding the “Release” are …

Disclosure And Cross-Listing: Evidence From Asia-Pacific Firms, Li Li Eng, Qianhua Ling

Accounting Faculty Research and Publications

Purpose – The purpose of this paper is to examine whether both country disclosure environment and firm-level disclosures are associated with cross-listing in the USA or London or otherwise.

Design/methodology/approach – The authors test the association using a sample of Asia-Pacific firms covered in the Standard and Poor's, 2001/2002 disclosure survey, capturing the country-level disclosure using the Center for International Financial Analysis and Research (CIFAR) score. The firm-level disclosure is measured using the S&P disclosure score. The authors conduct a logistic regression analysis and a two-stage least squares analysis to examine whether the outcome, cross-listing or not, is associated with …

Generational Differences Of Personal Values Of Business Students, Don E. Giacomino, Jill Brown, Michael D. Akers

Accounting Faculty Research and Publications

This paper examines the values and value systems of business students from a private mid-western university using the Rokeach Value Survey and the Musser and Orke Typology of Personal Values. The findings of this study are compared with the results of studies in the latter part of the 1990’s and early 2000 in order to provide some insights regarding generational differences. There is evidence of changes in several individual variables during the past decade. For example, the value with the greatest change is National Security. Students in 2010 place more importance on this value than did the students in 1998. …

An Effective And Efficient Analytic Technique: A Bootstrap Regression Procedure And Benford's Law, Ikseon Suh, T. Christopher Headrick, Sandra Minaburo

Accounting Faculty Research and Publications

No abstract provided.

The Effects Of Disclosure Type And Audit Committee Expertise On Chief Audit Executives’ Tolerance For Financial Misstatements, Carolyn S. Norman, Jacob M. Rose, Ikseon Suh

Accounting Faculty Research and Publications

This study involves an experiment where 73 Chief Audit Executives and deputy Chief Audit Executives determine the amount of adjustment required to correct a misstatement. We manipulate the financial reporting location of the misstatement (recognized vs. disclosed) and the level of audit committee expertise (high vs. low). The results indicate that financial reporting location has significant effects on internal auditors’ decisions to correct misstatements. Specifically, internal auditors are more willing to waive disclosed misstatements relative to recognized misstatements. Contrary to expectations, the results do not indicate that increased audit committee expertise and associated increases in audit committee members’ perceived powers …

Examining An Online Investment Research Service: The Motley Fool, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

The Motley Fool has been described as “the most popular Internet stock chat website” (Hirschey et al, Financial Analysts Journal, 1999). Per the company‟s website, the mission of the privately-held multimedia financial services company is to educate, amuse, and enrich” in order “to build the world‟s greatest investment community” (www.fool.com/press/about.htm). The Motley Fool notes that their products are designed to “help people take control of their financial lives”. While other internet financial services exist, this article examines the performance of the investment services/advice provided by The Motley Fool (TMF) because of its notoriety. We use investment publications, information posted on …

Playing The Ratings Game: The Significance Of The Four Star Rating, Qianhua Ling, Daniel G. Neely

Accounting Faculty Research and Publications

This study examines a group of exemplary rated nonprofits, organizations rated four stars by Charity Navigator, to determine if this select group of charities exhibits characteristics associated with top charitable organizations, or if the four-star rating achieved is limited to the more narrow financial metrics employed in the methodology utilized by Charity Navigator. Organizations rated four stars by Charity Navigator report a lower level of excess cash holdings, report lower levels of executive compensation and executive compensation that is less sensitive to performance, and are less financially vulnerable than their lower rated peers. The results shed light on the continuing …

Proposed Financial Statement Changes: Reactions To The Fasb-Iasb Discussion Paper, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

The purpose of this study was to obtain the opinions of future users of the financial statements: current undergraduate and graduate students in accounting and academia. We found that the students show greater agreement with the proposed model than do the CPA’s. In addition, we found that academia, as represented by the Financial Accounting Standards Committee of the American Accounting Association has a number of concerns regarding timing, user learning issues and impediments to learning, objectives and terminology and categorizing activities and assets and liabilities.

Changing The Course: Applying Sarbanes-Oxley To The Classroom, Maureen Francis Mascha, Michael D. Akers

Accounting Faculty Research and Publications

No abstract provided.

The Influence Of Foreign Operations And Their Disclosure On Earnings Quality, Sixian Yang, Fang Hu, Don E. Giacomino

Accounting Faculty Research and Publications

This paper investigates the influence of foreign operations and their financial disclosure on earnings quality in terms of accounting conservatism (timely recognizing losses). In a large (7,311 corporate years) sample of U.S. corporations, we find earnings of firms with multinational operations (MNCs) tend to be of lower quality and are reported less conservatively than those without foreign operations (domestic firms). Further, by looking at the geographic segment information disclosed by MNCs, we find that earnings conservatism gets improved if a MNC reports “clean” segment information of foreign operations; wherein operating results of MNC are broken down by geographic regions (continent …

A Comparative Analysis Of The Bootstrap Versus Traditional Statistical Procedures Applied To Digital Analysis Based On Benford’S Law, Ikseon Suh, T. Christopher Headrick

Accounting Faculty Research and Publications

No abstract provided.

An Examination Of Underreporting Of Time And Premature Signoffs By Internal Auditors, Qianhua Ling, Michael D. Akers

Accounting Faculty Research and Publications

The passage of the Sarbanes-Oxley Act of 2002 (SOX) heightened the importance of internal controls and accordingly, a key control - the internal audit junction. Consequently, management and external auditors have both increased their reliance on internal auditors' work. While there has been considerable research regarding the impact of the underreporting of time and premature sign-offs on the external audit, there has only been one study that has examined the impact of these two items on the internal auditors' work. Such research is dated (1994) and prior to the passage of SOX. We surveyed members of the Institute of Internal …

Formation And Consequences Of Going Concern Opinions: A Review Of The Literature, Jodi L. Gissel

Accounting Faculty Research and Publications

Shortly after the passage of SAS No. 59, Asare (1990) summarized the evolution of research on the going concern opinion (GCO) in order to evaluate the Auditing Standards Board's assumptions regarding the signals sent to the market via the GCO. Over the past twenty years, researchers have continued to investigate the importance of GCOs. The authors objectives are to bring current the evolution of standards, regulations, and literature concerning GCOs, to synthesize a body of research that still presents inconsistent findings, and to suggest future research that could further our understanding of GCO formation and consequences. Given the large volume …

Goodwill And Goodwill Write-Downs: Their Effects On Earnings Quality For 2008 And 2009, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

This paper examines goodwill on corporate balance sheets. Specifically, the paper measures the extent to which goodwill exists on corporate balance sheets and the degree of goodwill write-downs that have occurred recently. We report on our study and a study by Intangible Business, which show that many firms carry substantial amounts of goodwill on their 2008 balance sheets. Thus, because of the recent downturn in the economy and the markets, the potential for big bath earnings management for 2008 and 2009 exists. In addition, because of reductions in expected returns on pension plan assets, many firms are likely to record …

Testing The Financial Literacy And Expertise Of Audit Committee Members, Don E. Giacomino, Michael D. Akers, Joseph Wall

Accounting Faculty Research and Publications

No abstract provided.

Revisiting Financial (Accounting) Literacy: A Comparison Of Audit Committee Members And Business Students, Don E. Giacomino, Joseph L. Wall, Michael D. Akers

Accounting Faculty Research and Publications

While financial literacy is important for an audit committee in discharging its duties there is no authoritative guidance or definition and limited empirical research as to what constitutes financial literacy of audit committees and business students. Coates et al. conducted a study that examined the financial literacy of corporate board members and MBA students at the University of Chicago using an instrument developed by Schipper and WeiL Their findings suggest that both groups lack the appropriate level of financial literacy. This paper extends that research by using the same instrument to examine the financial literacy of undergraduate accounting finance students …

Applying Sarbanes-Oxley Principles To Colleges And Universities, Sean L. Goins, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

In the wake of the financial scandals that have occurred in the corporate sector, the public is demanding more accountability not only from corporations but also from nonprofit organizations such as universities. Institutions can enhance corporate governance by implementing some of the principles and procedures the Sarbanes-Oxley Act of 2002 (SOX) have mandated for public companies. Because public accounting firms audit universities, the firms can provide a valuable service to such clients by recommending ways in which universities can implement SOX practices that are appropriate and applicable. Although SOX does not currently apply to colleges and universities, it has created …

Reduced Income Can Translate Into Larger Tax Deductions And Credits, James Trebby

Accounting Faculty Research and Publications

No abstract provided.

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

Accounting Faculty Research and Publications

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 …

International Perception Of Corruption, Bina Menon, Michael D. Akers

Accounting Faculty Research and Publications

The discussion of corruption and bribery in most auditing textbooks focuses only on the Foreign Corrupt Practices Act which is an amendment to the Securities Exchange Act of 1934. As the US moves toward the implementation of International Financial Reporting Standards (IFRS) and international auditing standards, an understanding of international legislation pertaining to corruption and the perception of corruption in specific countries are important. This paper provides an overview of the Foreign Corrupt Practices Act (FCPA) and the Organization for Economic Co-operation and Development (OECD) Anti-bribery Convention. While prior literature has discussed the impact of both the FCPA and OECD …

Trading In Co2 Credits: Tax Issues To Consider, Maureen Mascha, J. William Harden, James Trebby

Accounting Faculty Research and Publications

The issue of limiting carbon emissions has recently commanded international attention. Starting with the 1997 Kyoto Protocol, world markets have begun to coalesce around the notion that carbon dioxide (CO₂) emissions should be controlled or capped. There are three generally accepted methods for limiting the emission of CO₂: 1) a carbon tax that charges producers a fee for emissions that exceed a prespecified amount; 2) an auction, in which organizations bid on credits that are then used to offset the amount of actual CO₂ emitted; and 3) a “cap and trade” system.

An Empirical Examination Of Whistleblowing Policies And Mechanisms At Universities, Michael D. Akers, Tim V. Eaton

Accounting Faculty Research and Publications

This study empirically examines the implementation of whistleblowing policies and mechanisms at universities.

Fin 48: The Impact On Staffing, Internal Control Processes And Expertise Of Privately-Held Companies, Reed C. Kirschling, Michael D. Akers

Accounting Faculty Research and Publications

While FASB Interpretation 48 (FIN 48), Accounting for Uncertainty in Income Taxes-An Interpretation of Statement of Financial Accounting Standards (SFAS) 109, Accounting for Income Taxes applies to both privately-held and publicly traded companies, privately-held companies have characteristics that can impact implementation. This paper reports the findings of a survey of the top 100 privately-held companies to determine how these organizations are addressing the staffing of tax department personnel, process controls and knowledge acquisition during the implementation of FIN 48.

Earnings Management And Its Implications, Michael D. Akers, Don E. Giacomino, Jodi L. Gissel

Accounting Faculty Research and Publications

In the wake of continuing, highly publicized financial frauds and failures, the accounting profession has placed renewed emphasis on issues related to earnings management and earnings quality. Staff Accounting Bulletin 101, Revenue Recognition in Financial Statements, which was issued in December 1999 in response to the Committee of Sponsoring Organizations of the Treadway Commission report, illustrates the importance of earnings to the SEC. The SEC and the public are demanding greater assurance about the quality of earnings. Notwithstanding the grave threat that abusive earnings-management practices pose to the reliability and accuracy of financial statements, the accounting profession may be reluctant …

Whistleblowing And Good Governance, Tim V. Eaton, Michael D. Akers

Accounting Faculty Research and Publications

The Sarbanes-Oxley Act of 2002 (SOX) has forever changed corporate governance for publicly held corporations. Recent data suggest that the costs of compliance with the provisions of SOX can be very significant. Problems exist in the government and nonprofit sectors just as they do in the corporate sector. Recent alleged problems at the World Bank include kickbacks, payoffs, bribery, embezzlement, and collusive bidding. In 2002, the United Way scandal came to the public's attention. Its aftermath has had a dramatic impact on fundraising. Even universities are not immune from scandals. Organizations of all kinds should better understand what whistleblowing is, …

The Accounting Ph.D. Crisis And The Profession's Response, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

No abstract provided.

A Review Of Going Concern Prediction Studies: 1976 To Present, Jodi L. Gissel, Don E. Giacomino, Michael D. Akers

Accounting Faculty Research and Publications

In 1962, the Securities and Exchange Commission (SEC) was the first to address going concern issues with Accounting Series Release (ASR) No. 90. Then, in 1963, the AICPA issued Statement on Auditing Procedures (SAP) No. 33, in response to ASR No. 90. Both ASR No. 90 and SAP No. 33 addressed qualifications for issues that were unresolved and the results of which were indeterminable at the statement date. Soon after the issuance of Statement on Auditing Standards (SAS) No. 2 in 1974, researchers began to conduct studies on going concern issues. This paper provides a comprehensive review of the literature …

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

Accounting Faculty Research and Publications

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 …

Sox Goes To College, Craig Piotrowki, Robert Yahr

Accounting Faculty Research and Publications

No abstract provided.