Impact of the CFO's affiliation on auditor independence

2011 ◽  
Vol 26 (8) ◽  
pp. 656-671 ◽  
Author(s):  
Nonna Martinov‐Bennie ◽  
Jeffrey Cohen ◽  
Roger Simnett
Keyword(s):  
Auditor Independence ◽  
Archival Studies ◽  
Signal Loss ◽  
Professional Background ◽  
Corporate Fraud ◽  
Content Type ◽  
Professional Skepticism ◽  
Recent Experimental Study ◽  
The Usa ◽  
Aggressive Accounting

PurposeThe purpose of this paper is to examine the potential impact of two affiliation factors, as encapsulated by the chief financial officer's (CFO) prior organizational (alumnus vs non‐alumnus) and professional background (audit vs non‐audit ex‐partner), on auditor independence in post‐Enron and post‐HIH era.Design/methodology/approachThe study is a 2×2 factorial between subjects experimental design with 52 audit partners and managers as participants. The two manipulated independent variables are client CFO prior firm affiliation (alumni vs non‐alumni) and professional background (audit partner vs non‐audit partner providing taxation, accounting and other non‐audit services).FindingsThe results of the study do not appear to signal loss of independence and professional skepticism in auditors' judgment when dealing with an alumni or ex‐auditor CFO. On average, auditors' endorsement of the client's preferred aggressive accounting treatment is low and the audit adjustment is material and significantly greater than the client's proposed adjustment.Originality/valueThe 2001 corporate collapses of Enron in the USA and HIH in Australia have reshaped the auditing profession. HIH, the most publicized corporate fraud in Australia resulting in estimated losses of $5 billion, was partly blamed on Arthur Andersen yielding to management's aggressive accounting policies and failure to display independence as a result of close relationships between the former partners and the audit team. As distinct from a number of prior studies conducted pre‐Enron and pre‐HIH, the results of this study, conducted with experienced audit professionals in Australia, do not support a loss of independence and professional skepticism by auditors in the current post‐Enron and post‐HIH environment and are consistent with the findings of the only other recent experimental study by Kerler III and Killough examining the closeness of the auditor‐client relationship. The results are also consistent with results of recent archival studies which find a decline in earnings management behavior, either because of reduced management incentives or reduced auditor willingness to consent. The evidence of this study lends supports to the latter explanation.

scholarly journals Independence, professionalism, professional skepticism

2018 ◽  
Vol 3 (1) ◽  
pp. 61-71 ◽  
Author(s):  
Agus Widodo Mardijuwono ◽  
Charis Subianto
Keyword(s):  
Audit Quality ◽  
Auditor Independence ◽  
Partial Least Square ◽  
Least Square ◽  
Significant Variable ◽  
Content Type ◽  
Professional Skepticism ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this paper is to obtain empirical evidence of the relationship of independence, professionalism and skepticism with the quality of audit produced. Design/methodology/approach This research was conducted with questionnaires distributed to all auditors working in KAP Surabaya and Sidoarjo. The population in this study was all auditors working in KAP 45 Surabaya and KAP 1 Sidoarjo. Hypothesis testing was performed by using the partial least square test with the help of SmartPLS software version 3.0. Findings The results from this study found that auditor independence is positively related to audit quality but is not significant. Variable auditor professionalism is positively related to audit quality and proved significant, while the skepticism variable of auditor professionalism is positively related to audit quality and is significant. Originality/value The results of this study indicate that auditor independence, professionalism and skepticism are positively related to audit quality.

Knowledge discovery from within

2016 ◽  
Vol 26 (3) ◽  
pp. 259-278
Author(s):  
Donald C. Force ◽  
Jane Zhang
Keyword(s):  
Professional Organizations ◽  
Records Management ◽  
Data Sets ◽  
Archival Studies ◽  
Research Project ◽  
Content Type ◽  
Archival Education ◽  
Course Syllabi ◽  
The Usa ◽  
The Relationship

Purpose The purpose of this paper is to report the findings of a research project that analyzed records management (RM) and electronic records management (ERM) course syllabi from North American archival studies’ programs. By identifying the convergences and divergences of the topics and literature found within the syllabi, the authors sought to understand the relationship between the two courses and gain insight about how these courses continue to serve as an integral component of archival studies education. Design/methodology/approach The paper is based on a qualitative analysis of 23 RM and 12 ERM course syllabi from 26 academic institutions from North America. The research examined three different aspects of the syllabi: textbooks, required articles and weekly topics. The syllabi were analyzed as separate data sets (RM syllabi and ERM syllabi), which was followed by a comparative analysis of the two types of syllabi. Findings The findings of this study reveal that RM, ERM and (to a lesser extent) DA (digital archives) knowledge as represented in archival education converges in some course contents but diverges in others. Archival educators should pay close attention to overlapping areas so that the courses can better complement each other and advance knowledge representation within archival studies. Research limitations/implications This study only considered graduate-level programs in the USA and Canada. The study did not include syllabi or instructional guides from associate-level programs or professional organizations such as the International Certification of Records Managers or Association of Records Managers and Administrators (ARMA) International. Practical implications The results of this study lead the authors to present two different approaches for how RM and ERM knowledge may be incorporated into archival curriculum. Originality/value This is the first research project to analyze RM and ERM syllabi with regards to the enhancement of records and information management education and archival curriculum development.

Auditor independence and accounting conservatism

2015 ◽  
Vol 23 (1) ◽  
pp. 80-104 ◽  
Author(s):  
Michael Crockett ◽  
Muhammad Jahangir Ali
Keyword(s):  
Economic Reform ◽  
Audit Quality ◽  
Auditor Independence ◽  
Accounting Conservatism ◽  
Response Regulators ◽  
Market Mechanisms ◽  
Content Type ◽  
High Profile ◽  
Reform Program ◽  
The Usa

Purpose – The purpose of this paper is to examine the efficacy of the current legislative provisions that protect auditor independence in Australia. The collapses of several high-profile companies (Enron and WorldCom in the USA, HIH insurance and OneTel in Australia) in the early 2000s has raised questions about audit quality and independence. In response, regulators have introduced new regulations and guidance to improve audit quality. In Australia, the Corporations Act 2001 (2001) was amended via the Corporate Law Economic Reform Program Act 2004. This study poses the question: do non-audit service fees influence the level of accounting conservatism? Design/methodology/approach – The sample used in this analysis consists of all available Australian listed companies from the years 2006 till 2010. Findings – Using multiple measures of accounting conservatism and the auditor-client economic bond, our results suggest that the level of the economic bond between the auditor and the client does not significantly influence the level of accounting conservatism. Originality/value – Our results demonstrate that the combination of intrinsic market mechanisms and regulation in Australia sufficiently protect auditor independence.

Colchones Eldorado: dreaming of innovating

2012 ◽  
Vol 2 (8) ◽  
pp. 1-11
Author(s):  
Delio I. Castaneda ◽  
Luisa F. Manrique
Keyword(s):  
Latin American ◽  
Innovation Process ◽  
Subject Area ◽  
Organizational Dynamics ◽  
Case Discussion ◽  
Content Type ◽  
Organizational Conditions ◽  
Challenge Testing ◽  
The Usa ◽  
Creativity And Innovation

Subject area Innovation and creativity in small to medium-sized enterprises (SMEs) in Latin America. Study level/applicability The case is recommended for creativity and innovation subjects, in undergraduate and MBA levels. The case is also suggested for subjects associated with the organizational dynamics on SMEs. Case overview Colchones Eldorado is a Colombian company dedicated to the bedding industry. The company was founded in 1957 by Gumercindo Gómez Caro, a creative man who in 1959 invented a machine to make springs, which allowed the company to grow steadily for several decades. On November 18, 2004, the founder's daughter, Martha Luz Gomez, was appointed as General Manager. On April 2011 it obtained a license from Sealy, the biggest mattress making company in the USA. The license implied a challenge - testing the company's innovative capacities to adapt Sealy mattresses to satisfy consumers in the Colombian market. Expected learning outcomes Students are shown the characteristics of the creative and innovation process in a Latin American SME, and the innovation challenges which are faced. From the reading and the case discussion, the students should be able to: analyse the manifestations of the creative process in an SME; identify examples of the innovation types of an SME; and discuss the organizational conditions to answer the creativity and innovation challenges in an SME. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Effects of parental cultural capital on purchase intention of cognac

2019 ◽  
Vol 31 (3) ◽  
pp. 344-361 ◽  
Author(s):  
Yujie Wei ◽  
Blaise Bergiel ◽  
Lingfang Song
Keyword(s):  
Cultural Capital ◽  
Consumer Choice ◽  
Purchase Intention ◽  
Parental Influence ◽  
Value Orientations ◽  
Content Type ◽  
Consumer Purchase Intention ◽  
The Usa ◽  
Managerial Implications ◽  
Willingness To Purchase

Purpose The purpose of this paper is to examine the possibility that individual differences in consumer choice of cognac are at least partially influenced by parental cultural capital. Also examined are ten value orientations factors (e.g. hedonism and self-direction) and attitudes toward France, cognac’s country-of-origin that may affect the degree of this intergenerational influence. Design/methodology/approach The survey research measures parents’ cultural capital, value orientations and attitude toward France and purchase intention using recognized scales. Data were collected from the faculty and students of a major university located in the southeast of the USA. The sample size was 234. Findings The results confirm that parental cultural capital, consumer value orientations and attitudes toward France have significant impacts on the consumer’s willingness to purchase cognac. Adult children of high cultural capital parents are more likely to buy cognac. Practical implications The findings of this paper provide meaningful insights into intergenerational influences on consumer purchase intention of cognac and socialization theory. The paper provides several managerial implications for segmentation, targeting and positioning of cognac in the US market. Originality/value As the first of its kind, this paper introduces the parents’ cultural capital into the consumer research regarding cognac. The longer-term effects that parents can have on grown children’s consumer behavior are confirmed, suggesting that parental influence persists well into adulthood and has impact on their brand preference.

Do information technology (IT) capabilities affect hotel competitiveness?

2020 ◽  
Vol 11 (3) ◽  
pp. 447-460
Author(s):  
Nan Hua
Keyword(s):  
Design Methodology ◽  
Financial Data ◽  
Content Type ◽  
It Systems ◽  
Study Results ◽  
It Capabilities ◽  
The Usa ◽  
Lagged Effects ◽  
The Individual ◽  
Direct Measures

Purpose This paper aims to examine the impacts of IT capabilities on hotel competitiveness. Design/methodology/approach This study adapts and extends Hua et al. (2015) and O’Neill et al. (2008) by incorporating the specific measures of IT expenditures as proxies for the relevant IT capabilities to explore the impacts of IT capabilities on hotel competitiveness. Findings This study finds that expenditures on IT Labor, IT Systems and IT Websites exert different impacts on hotel competitiveness. In addition, IT capabilities exert both contemporary and lagged effects on hotel competitiveness. Originality/value This study is the first that uses financial data to capture direct measures of individual IT capabilities and tests the individual impacts of IT capabilities on hotel competitiveness from both contemporaneous and lagged perspectives. It uses a large same store sample of hotels in the USA from 2011 to 2017; as a result, the study results can be reasonably representative of the hotel population in the USA.

Regional tourism at the farmers’ market: consumers’ preferences for local food products

2019 ◽  
Vol 13 (1) ◽  
pp. 37-54 ◽  
Author(s):  
Benjamin Garner ◽  
Cesar Ayala
Keyword(s):  
Geographic Area ◽  
Farmers Markets ◽  
Farmers Market ◽  
Content Type ◽  
Regional Food ◽  
The Usa ◽  
Regional Brand ◽  
Consumer Habits ◽  
Food Identity ◽  
Number Of Customers

Purpose The purpose of this paper is to examine farmers’ market consumer behavior through a regional food and culinary tourism lens to see the ways these festive and atmospheric markets can be used to develop a regional brand or identity surrounding food production. Design/methodology/approach This study was based on a survey of 270 participants in a farmers’ market in the USA. A combination of descriptive and statistical analyses was used to analyze consumer habits and spending. Findings The findings in this study suggest that while most of the customers live in a town where the market is located, a significant number of customers come from other locations, with some traveling significant distances, to participate in this market, particularly for the Saturday market. Many of the customers come to purchase organic and local foods. Research limitations/implications This work is limited, in that it is a case study at one farmers’ market in the USA, and the work is exploratory in nature. Practical implications This work has implications for market managers seeking to increase their consumer base. Markets that want to increase their reach would do well to promote their events to a wider geographic area. The results presented here showed that consumers are willing to drive upward of 40 miles to attend a high-quality market. Originality/value This work expands our conceptualization of farmers’ markets by suggesting that these markets have the potential to form the backbone of a region is food identity through the creation of a food destination.

The morphing assessment terrain for English learners in US schools

2017 ◽  
Vol 16 (1) ◽  
pp. 110-126
Author(s):  
Mary Hutchinson ◽  
Xenia Hadjioannou
Keyword(s):  
No Child Left Behind ◽  
Language Proficiency ◽  
English Learners ◽  
English Language ◽  
Proficiency Tests ◽  
Content Type ◽  
State Tests ◽  
The Usa ◽  
Key Policy ◽  
Every Student Succeeds Act

Purpose The purpose of this paper is to provide an overview of the public policy reshaping the assessment terrain for English learners (ELs) across the USA and to consider the implications and impact of these practices on sustaining and supporting a diverse student population in today’s schools. Design/methodology/approach The authors review the literature and publicly available policy documents to trace key policy trends over the past 15 years that have shaped the current educational landscape and assessment practices for ELs in the USA. Findings In the USA, the 2015 Common Core State Standards (CCSSs) assessments generated worrisome results for ELs, as significant numbers had failing scores in English language arts and math. These results are juxtaposed to public policies that impact the educational experience of ELs, including No Child Left Behind and the CCSS, and which, despite their stated intentions to ameliorate the achievement gap, are found to be assimilationist in nature. Indeed, a review of the initiatives of developing common EL standards and English language proficiency tests and the recommendations for EL accommodations in state tests suggests several areas of concern. The recently passed Every Student Succeeds Act focuses on this vulnerable population, but there are concerns that the continued focus on accountability and testing will do little to facilitate academic progress for these students. Practical implications The paper recommends a need to reevaluate the support and testing process for ELs to stem widespread failure and ascertain the sustenance of democratic and diversified schools. Originality/value The study provides an overview of key policy trends, outlines and critiques recent changes in the assessment of ELs and draws implications for practice.

scholarly journals Variations in American marketing practices of early 19th-century ceramic importers and dealers, reflecting culture and identity

2020 ◽  
Vol 12 (3) ◽  
pp. 345-375
Author(s):  
Neil Ewins
Keyword(s):  
19Th Century ◽  
Design Methodology ◽  
Marketing Research ◽  
Early 19Th Century ◽  
Content Type ◽  
Advertising Strategy ◽  
Political Views ◽  
The Usa ◽  
Anglo American ◽  
The 19Th Century

Purpose This paper explores the advertising strategy of crockery importers and dealers in relationship to their origins and backgrounds. This is a departure from earlier ceramic-history literature which tended to focus on the Staffordshire producers, with limited awareness on how the identity of importers and dealers influenced what products were sold, and their individual approaches to marketing. Design/methodology/approach Within a context of historical marketing research, this paper analyses newspaper advertising and commentary. It combines an examination of marketing practices with a wider consideration of the cultural identities of ceramic importers and dealers. The digitalization of historical records, combined with sophisticated search engines, makes it more feasible to examine a broader range of sources. Thus, modern research methods can enhance our understanding of production and demand and reveal how marketing strategy was diverse. Findings Awareness on how advertising was influenced by the backgrounds and socio-political views of importers and dealers demonstrates ways in which Anglo-American ceramic trade could be far more market-led. More significantly, marketing approaches were not necessarily responding to American demand, but rather that importers could engage in commissioning goods which reflected their own views on politics, religion or slavery. Originality/value Examining the advertising of importers demonstrates the complex relationship between production and ceramic demand. This paper opens up debates as to how far the advertising of other merchandise in the USA shows evidence of taking a more individual approach by the 19th century.

They did not start the fire: reviewing and resolving the issue of physician stress and burnout

2017 ◽  
Vol 31 (4) ◽  
pp. 410-417 ◽  
Author(s):  
Julie Christine Babyar
Keyword(s):  
Design Methodology ◽  
Intervention Studies ◽  
Future Research ◽  
Organizational Strategies ◽  
Physician Burnout ◽  
Content Type ◽  
Current State ◽  
The Usa ◽  
Research Accountability ◽  
Physician Stress

Purpose Physician stress and burnout is a serious and common concern in healthcare, with over half of physicians in the USA meeting at least one criterion for burnout. The paper aims to discuss these issues. Design/methodology/approach A review on current state of physician stress and burnout research, from 2008 to 2016, was undertaken. A subsequent perspective paper was shaped around these reviews. Findings Findings reveal research strength in prevalence and incidence with opportunities for stronger intervention studies. While descriptive studies on causes and consequences of physician burnout are available, studies on interventions and prevention of physician burnout are lacking. Future research on physician stress and burnout should incorporate intervention studies and take care to avoid limitations found in current research. Accountability and prevention of physician burnout is the responsibility of the healthcare industry as a whole, and organizational strategies must be emphasized in future research. Originality/value The value of this research comes in the original comprehensive review, international inclusion and succinct summary of physician burnout research and strategies.

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