Accounting Commons^™

Nonprofit Financial Assessment And Research Service Learning: Evaluating The Performance Of An Animal Welfare Nonprofit Organization, Karen A. Maguire

Accounting

The objective of this project is to evaluate the current financial and compliance status of an animal welfare nonprofit organization (NPO) by: analysis of trends over time using information reported on tax filings (Form 990); vertical and horizontal analyses of financial statements; analysis of trends over time using information from financial statements; reconciliation of financial statements to Form 990; ratio analysis of Form 990 Information; and comparison of reported information to local analogs and national standards. This project is conducted in collaboration with The Chapin Foundation. This research serves as a research service learning project with the participation of Master …

Ipo Firms' Voluntary Compliance With Sox 404 As Evidence On The Value Relevance Of Internal Control Quality, Qianyun Huang, Kimberly Gleason, Leonard Rosenthal, Deborah Smith

Business Faculty Publications

Newly public firms are not required to comply with SOX 404 for their initial public offerings. This provides a unique setting in which to investigate the benefits of voluntary disclosure with SOX 404 and the value of information revealed as a consequence of compliance. We investigate whether voluntary compliance with SOX 404, either fully or partially, impacts the perceived risk of firms conducting IPOs on the first day of trading (reflected in underpricing) or following the IPO. Our results indicate that neither full compliance with SOX 404 at the time of the IPO, nor a managerial discussion of internal controls …

The Effect Of Hypothesis Framing, Prior Expectation And Professional Trait Scepticism On Experts’ And Novices’ Evidence Selected In A Complex Task, Abhijit Das

Theses: Doctorates and Masters

This study examines evidence selection strategy among external auditors (i.e. professionals) and accounting students (i.e. novices) in a going concern assessment task considering three factors; hypothesis framing, prior expectation and professional “trait” scepticism as measured by Hurtt (2010) scale. Within this context, the study sets out to accomplish three goals: (1) to re-examine evidence selection strategy based on hypothesis framing and prior expectation, (2) to validate the Hurtt (2010) scale using expert reviews and confirmatory factor analysis and (3) to investigate whether professional trait scepticism influences selection strategy.

Owing to the incidence of high-profile accounting and auditing scandals worldwide, the …

An Examination Of How Entry-Level Staff Auditors Respond To Tone At The Top Vis-À-Vis Tone At The Bottom, Jeffrey Pickerd, Scott L. Summers, David A. Wood

Faculty Publications

Prior academic and practitioner literature argues that the ethical tone at the top of an organization is a key factor in establishing an effective internal control environment. Drawing on self-concept maintenance theory and in-group bias theory, we predict that entry-level staff auditors will disregard a company’s ethical standards unless they observe a strong ethical tone from both their partner (tone at the top) and their supervising senior (tone at the bottom). Also, we predict that staff auditors will be more influenced by the tone of their supervising senior than the partner when these two individuals provide conflicting tones. In a …

From Legally Confidential To Financially Confident: Resolving The Tension Between Lawyers And Auditors Over Contingent Liability Disclosure, Samantha Nicole Kunz

CMC Senior Theses

Auditors review documented financial figures to test for their accuracy and materiality. Lawyers analyze evidential facts and records to build sound legal arguments. These parties work toward a mutual purpose: to present their clients as legitimate and compliant businesses. But what happens when the concrete facts upon which lawyers and auditors base their work are obscured by their inability to see into the future? In other words, how can these professions conjunctively handle potential future obligations brought about by contingent liabilities?

This study will attempt to resolve the tensions that emerge between lawyers and auditors when tasked with estimating the …

Narrowing The Gap Of Financial Fraud Detection In Corporations, Solomon Aborbie

Walden Dissertations and Doctoral Studies

Business leaders remain exposed to financial and accounting fraud as well as loss of profitability, despite the dictates of the SOX Act of 2002. The most challenging aspect of corporate management is the unexpected nature of an emerging, existing, or an inherent financial risk. Guided by the evolution of fraud theory, this exploratory case study's purpose was to identify and explore the financial management strategies that corporate financial managers need to adequately protect investors. Twenty participants from a population group of corporate auditors of Fortune 1000 corporations within 70 miles of Columbus, Ohio provided input for this study. Data from …

Proposed Statement On Auditing Standards, An Audit Of Internal Control Over Financial Reporting That Is Integrated With An Audit Of Financial Statements, September 10, 2014, Comments Are Requested By December 10, 2014; Exposure Draft (American Institute Of Certified Public Accountants), 2014, September 10, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Comment Letters On Proposed Statement On Auditing Standards, An Audit Of Internal Control Over Financial Reporting That Is Integrated With An Audit Of Financial Statements, September 10, 2014, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

A Comparison Of Audit Fee Trends For East Tennessee Based Companies And Similar Companies Based In Similar Regions, William J. Saulsbury

Undergraduate Honors Theses

Research examines audit fee trends for a decade. The research focuses on audit fees of companies in the East Tennessee Area and compares the audit fees of these companies to similar companies based in similar regions of the United States. Possible causes for the fluctuations of audit fees during the decade are also discussed.

Using The Work Of Internal Auditors; Statement Of Auditing Standards No. 128, American Institute Of Certified Public Accountants. Auditing Standards Board

Statements on Auditing Standards

No abstract provided.

The Role Of Independence In The Effectiveness Of Continuous Auditing, Dereck D. Barr

Electronic Theses and Dissertations

In this study, I examine whether and how the frequency of internal audits (continuous vs. periodic), functional independence (separate vs. combined internal audit assurance and consulting functions), and the type of earnings management (accrual-based vs. real) affect internal auditors' perception of the likelihood managers will manipulate earnings. I find that earnings management is less likely when the internal audit function uses continuous auditing, regardless of the level of independence. However, the effect of independence is context-dependent such that internal auditors expect that real (accrual-based) earnings management is less likely when the internal audit function is independent (not independent), regardless of …

Redefining Internal Audit Performance: Impact On Corporate Governance, Razimah Binti Abdullah

Theses: Doctorates and Masters

One of the preventive measures to situations akin to world financial crises increasingly forwarded is effective internal audit function (IAF) (e.g., Imhoff, 2003; Mohamad & Muhamad Sori, 2011). Internal audit, a component of corporate governance, continues to evolve due to changes in business strategies and requirements placed on it by legislators. The roles of internal auditors and audit committees (ACs), the key personnel in IAFs, are changing to a more value-added approach as business strategies move towards corporate sustainability and organisational excellence. Suggestions forwarded to improve the performance or determining the quality of IAF include effective involvement of ACs in …

The Impact Of Having Fewer Accounting Firms In The Auditing Profession–A Work In Process, Benjamin V. Titera, Dr. Jeff Wilks

Journal of Undergraduate Research

As time moves on, the number of accounting firms has decreased and the lengths of the remaining firm’s names have increased. Firms such as Arthur Anderson, Coopers & Lybrand, Price Waterhouse, Touche Ross, KPMG, Ernst & Young, Peat Marwick International, Klynveld Main Goerdeler, and Laventhol & Horwath have either evolved or disappeared. Ten years ago, it was the Big 8, by 1993, it was the Big 6, in 2001, it was the Big 5, and today it is the Big 4.

Proposed Statement On Auditing Standards, Using The Work Of Internal Auditors, April 15, 2013, Comments Are Requested By July 15, 2013; Exposure Draft (American Institute Of Certified Public Accountants), 2013, April 15, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Ballots For Proposed Statement On Auditing Standards, Using The Work Of Internal Auditors, April 15, 2013, American Institute Of Certified Public Accountants. Accounting Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Comment Letters On Proposed Statement On Auditing Standards, Using The Work Of Internal Auditors, April 15, 2013, American Institute Of Certified Public Accountants. Auditing Standards Board

Exposure Drafts, Comment Letters, and Statements of Position

No abstract provided.

Detecting Deception In Client Inquiries, D. Kip Holderness Jr.

2013

Auditors frequently gather information by conducting client inquiries (Bennett and Hatfield 2013; Hirst and Koonce 1996; Trompeter and Wright 2010). When clients are attempting to hide frauds and irregularities, auditors need to be alert during inquiries to verbal and nonverbal cues emanating from clients that might be indicative of intentional deception. This dissertation consists of two studies investigating the detection of deception in client inquiries. The first study provides a summary of extant literature examining deception detection, with an emphasis on those studies that have implications for client inquiries. I propose several avenues for future research that will contribute to …

Using A Soc 1sm Report In A Financial Statement Audit; Practice Aid Series, American Institute Of Certified Public Accountants (Aicpa)

Guides, Handbooks and Manuals

No abstract provided.

Internal Control For Today's Smart Business, Jeremy Dillard

Guides, Handbooks and Manuals

No abstract provided.

Fair Value Measurements, Nathan Hatch Cannon

2013

This dissertation consists of two empirical studies that investigate fair value measurement issues currently facing the accounting profession--one from the perspective of the auditor, and the other from the perspective of the financial statement user. The results of each study are described below.

This first study examines experienced auditors' descriptions of specific client experiences in which auditing fair value measurements (FVMs) was particularly challenging. Based on a field survey of high-level engagement team personnel from several large firms, we identify a number of key issues currently facing the profession in auditing FVMs. First, when asked about challenges faced in auditing …

Changes In Auditing: A Three Part Investigation, Denise R. Hanes

2013

This dissertation consists of three studies investigating changes in auditing. This abstract summarizes each study, including purpose, methodology, and findings.

The first study synthesizes the extant literature examining geographically distributed work arrangements in other disciplines such as management and social psychology. Focusing on communication and coordination, knowledge sharing, work design, and social identity in geographically distributed teams, I identify opportunities for future research to expand our understanding of how geographically distributing audit work impacts auditors, the audit process, and audit quality.

My second paper explores a key contributor to the success of geographically distributed work highlighted in my literature review: …

Assessing And Responding To Audit Risk In A Financial Statement Audit, With Conforming Changes As Of March 1, 2012, American Institute Of Certified Public Accountants (Aicpa)

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

Analytical Procedures, With Conforming Changes As Of March 1, 2012; Audit And Accounting Guide, American Institute Of Certified Public Accountants (Aicpa)

Industry Guides (AAGs), Risk Alerts, and Checklists

No abstract provided.

An Examination Of Issues Related To Professional Skepticism In Auditing, Erin Burrell Nickell

Electronic Theses and Dissertations

The third general standard of fieldwork requires auditors to maintain a skeptical mindset with regards to the collection and critical assessment of audit evidence. While professional skepticism is frequently referenced by professional standards, a lack of precision in defining the concept presumably leads to variation in how skepticism is exercised in practice. Drawing on theories from the fields of psychology, economics and organizational justice, this dissertation considers different perspectives of what constitutes sufficient professional skepticism and examines how those perspectives differ between audit practitioners and regulators. First, I consider competing perspectives of professional skepticism – neutral versus presumptive doubt – …

Environmental Risks: Doing Business In China, Jack R. Ethridge, Treba Marsh, Esther Bunn

Faculty Publications

Planning and conducting the audit of financial statements involves understanding the entity and the environment in which it operates. First and foremost this requires identifying the risks faced by the entity. Identifying these risks can be a complex and difficult task since the auditor needs to not only understand the entity’s risk process but also independently understand the risks facing the firm. Tackling this task will involve a comprehensive review of the external and internal factors affecting the business. It is possible many identified business risks are related to financial reporting risk and ultimately to audit risk. Therefore, the auditor …

Factors Influencing The Adoption Of Risk Based Internal Auditing And Its Influence On Internal Auditor's Responsiveness To Risk Management Activities In The Malaysian Context., Hor Puey Wai

Student Works (2010-2019)

This research paper examines the impacts of company specific factors on the adoption of risk based auditing by the auditors as well as to establish whether these factors and risk based auditing influence IA‟s responsiveness to risk management activities of their organization. In total, 5 company specific factors are identified for this research and they are i) size of the organisation; ii) the industry which the organisation is in; iii) the sector ie. public or private sector within which the organisation belongs; iv) the extent of internationalisation of the organisation and v) listing status of the organisation. Convenience sampling method …

Audit Quality And Accrual Persistence: Evidence From The Pre- And Post-Sarbanes-Oxley Periods, Dennis Chambers, Jeff L. Payne

Faculty Articles

Purpose – The purpose of this paper is two-fold: first, to examine whether the quality of accruals, as measured by accrual persistence, improved in the post-Sarbanes-Oxley (SOX) period, and second, to examine the degree to which SOX-related improvement in accrual persistence varies across companies depending on the degree of their auditor's independence.

Design/methodology/approach – The paper compares accrual persistence in the pre- and post-SOX periods to test the first question. Then, partitioning on relative client importance as a measure of auditor independence, the paper compares the SOX-based improvement for clients of low and high independence audit firms.

Findings – The …

Learning The “Craft Of Auditing”: Applications Of The Cognitive Apprenticeship Framework, Kimberly D. Westermann

2011

This dissertation consists of three studies examining component(s) of the cognitive apprenticeship (CA) model applied to on-the-job learning in auditing. This abstract summarizes each study, including purpose, methodology, and findings. The first study provides descriptive evidence on the importance and pervasiveness of CA as a model of on-the-job learning (OTJL) in auditing, investigates changes in its use over time, and assesses factors that promote or hinder auditors’ learning through apprenticeship. We conducted semi-structured interviews with 30 relatively new and more experienced audit partners at a Big 4 firm, seeking their impressions about past and current OTJL practices in public accounting. …

Auditor Stress: Antecedents And Relationships To Audit Quality, Mohd Nazli Mohd Nor

Theses: Doctorates and Masters

Research on Reduced Audit Quality Practices (RAQP) has consistently shown serious negative consequences in the auditing profession. It has found that under certain pressure levels, auditors tend to engage in RAQP. However, most of the previous studies that had investigated RAQP failed to examine RAQP from a stress model perspective which incorporates stressors, stress measures and stress consequences into the model and to measure the interactions among these constructs. Previous research has mainly focused on the direct effect of stressors (e.g., time budget pressure, leadership styles, individual personality etc.) on RAQP; there is no single investigation that has simultaneously examined …

Dysfunctional Audit Behaviour: An Exploratory Study In Malaysia, Halil Paino, Zubaidah Ismail, Malcolm Smith

Research outputs pre 2011

The quality of the opinion provided by audit firms is an important determinant of their long-term survival, but audit quality is difficult to gauge, which makes it particularly sensitive to the behaviour of the individuals who carry on audit work. This paper seeks to identify the incidence of dysfunctional audit behaviours and audit quality reduction behaviours, actions taken by an auditor during engagement that reduce evidence-gathering effectiveness. The paper is based on a survey of 244 auditors working in small/medium and big audit firms in Malaysia. The paper identifies key variables leading to dysfunctional audit behaviour. The paper is subject …