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1 – 10 of 84Ewald Aschauer and Reiner Quick
This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.
Abstract
Purpose
This study aims to investigate why and how shared service centres (SSCs) are implemented as well as how they affect audit firm practice and audit quality.
Design/methodology/approach
In this qualitative study guided by the theoretical framework of institutional theory, the authors conducted 25 semi-structured interviews in seven European countries, including 16 interviews with audit partners from Big 4 firms, 6 with audit team members, 2 with interviewees from second-tier audit firms and 1 with a member of an oversight body.
Findings
The authors show that the central rationale for audit firms to implement SSCs is economic rather than external legitimacy. The authors find that SSC implementation has substantial effects on audit practices, particularly those related to standardisation, coordination and monitoring activities. The authors also highlight the potential impacts on audit quality.
Originality/value
By exploring the motivation for and effects of SSC implementation amongst audit firms, the authors offer insights into the best practices related to subsequent change processes and audit quality.
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Gianluca Ginesti, Rosalinda Santonastaso and Riccardo Macchioni
This paper aims to investigate the impact of family involvement in ownership and governance on the quality of internal auditing.
Abstract
Purpose
This paper aims to investigate the impact of family involvement in ownership and governance on the quality of internal auditing.
Design/methodology/approach
Leveraging a hand-collected data set of listed family firms from 2014 to 2020, this study uses regression analyses to investigate the impact of family ownership, family involvement on the board, family CEO and the generational stage of the family business on the quality of internal auditing.
Findings
The results provide evidence that family ownership is positively associated with the quality of internal auditing, while later generational stages of family businesses have the opposite effect. Additional analyses reveal that the presence of a sustainability board sub-committee moderates the relationship between generational stages of family businesses and the quality of internal auditing function.
Research limitations/implications
This paper does not consider country-institutional factors and other potentially family-related antecedents or governance factors that may affect the quality of internal auditing.
Practical implications
The results are informative for investors and non-family stakeholders interested in understanding under which conditions family-related factors influence the quality of internal auditing functions.
Originality/value
This study offers fresh evidence regarding the relationship between family-related factors and the quality of internal auditing and board sub-committees that moderate such a relationship in family businesses.
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Christiaan Ernst (Riaan) Heyman
This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing…
Abstract
Purpose
This study aims to, firstly, develop a red flag checklist for cryptocurrency Ponzi schemes and, secondly, to test this red flag checklist against publicly available marketing material for Mirror Trading International (MTI). The red flag checklist test seeks to establish if MTI’s marketing material posted on YouTube® (in the form of a live video presentation) exhibits any of the red flags from the checklist.
Design/methodology/approach
The study uses a structured literature review and qualitative analysis of red flags for Ponzi and cryptocurrency Ponzi schemes.
Findings
A research lacuna was discovered with regard to cryptocurrency Ponzi scheme red flags. By means of a structured literature review, journal papers were identified that listed and discussed Ponzi scheme red flags. The red flags from the identified journal papers were subsequently used in a qualitative analysis. The analyses and syntheses resulted in the development of a red flag checklist for cryptocurrency Ponzi schemes, with five red flag categories, containing 18 associated red flags. The red flag checklist was then tested against MTI’s marketing material (a transcription of a live YouTube presentation). The test resulted in MTI’s marketing material exhibiting 88% of the red flags contained within the checklist.
Research limitations/implications
The inherent limitations in the design of using a structured literature review and the lack of research regarding the cryptocurrency Ponzi scheme red flags.
Practical implications
The study provides a red flag checklist for cryptocurrency Ponzi schemes. The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.
Social implications
The red flag checklist can be applied to a cryptocurrency investment scheme’s marketing material to establish if it exhibits any of these red flags.
Originality/value
The study provides a red flag checklist for cryptocurrency Ponzi schemes.
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Municipalities have the potential to become models of the circular economy (CE). This paper aims to examine the impact of the municipal council’s characteristics on municipal CE…
Abstract
Purpose
Municipalities have the potential to become models of the circular economy (CE). This paper aims to examine the impact of the municipal council’s characteristics on municipal CE disclosure and promotion.
Design/methodology/approach
This paper is based on the resource dependence and upper echelons theories. For a sample of the 100 largest cities in Canada, a mixed methodology is used to code and analyze data and test the hypotheses.
Findings
Municipal councillors’ education and experience related to the environment or sustainability are both likely to affect CE disclosure, and their sector membership (public or private) moderates the relationship between CE disclosure and councillors’ experience. This experience may be reinforced by membership in the private sector, which has applied CE principles more extensively than the public sector has. Municipal councils with a greater number of councillors from the private sector appear to perform better in matters of transparency and to disclose more CE information on their public websites.
Practical implications
Municipalities could use the findings to foster their transition to CE by implementing a CE-related training plan for their councillors. A CE-dedicated section on their websites could improve transparency and inform and educate residents about CE.
Social implications
The public sector could learn from the private sector’s best practices regarding CE.
Originality/value
This paper contributes to the literature by providing empirical evidence of the transparency and engagement of municipalities toward CE. The authors extend the resource dependence and upper echelons theories to a new context, that of public organizations.
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Marziana Madah Marzuki, Wan Zurina Nik Abdul Majid, Hatinah Abu Bakar, Effiezal Aswadi Abdul Wahab and Zuraidah Mohd Sanusi
This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the…
Abstract
Purpose
This paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the Malaysian government on risk management practices.
Design/methodology/approach
The sample of this study was based on 257 firm-year observations during the 2012–2017 period. This study employed panel-least square regressions with period fixed effects.
Findings
This study found a significant association between risk management activities in the disclosure and potential fraudulent financial reporting. Nevertheless, this study found there is insignificant effect of the risk-management committee in reducing potential of fraudulent financial reporting.
Originality/value
This study is a pioneer research that relates firms’ risk management practices with potential fraudulent financial reporting measured by F-score. Thus, this study provides an insight to regulators on the extent of risk-management practices in deterring potential fraudulent financial reporting which can be used as an input for greater enforcement of risk-management regulations.
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Abdul Kadir, La Husen Zuada and Muhammad Arsyad
This paper aims to investigate the relationships amongst career patterns, neutrality of the state civil apparatus, and organizational performance of the local government in South…
Abstract
Purpose
This paper aims to investigate the relationships amongst career patterns, neutrality of the state civil apparatus, and organizational performance of the local government in South Konawe District, Southeast Sulawesi Province in Indonesia.
Design/methodology/approach
Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to investigate the relationships between variables through direct and indirect influence testing.
Findings
The findings reveal that career patterns influence neutrality and organizational performance. Neutrality of the state civil apparatus in politics mediates career patterns and local government organizational performance. The findings indicate that, first, promotions most significantly influence the organization’s neutrality and performance. Second, demotions have the least influence on the organization’s robustness and performance.
Originality/value
This paper is among the first to examine the relationships amongst career patterns, neutrality, and organizational performance. Recommendations are provided to improve neutrality and organizational performance, that is, the need to increase promotions and reduce demotions.
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This paper aims to contribute to the development of the European Union (EU) regulatory environment for sustainability reporting by analyzing how materiality is defined in the…
Abstract
Purpose
This paper aims to contribute to the development of the European Union (EU) regulatory environment for sustainability reporting by analyzing how materiality is defined in the Non-Financial Reporting Directive (NFRD) and Corporate Sustainability Reporting Directive (CSRD) and by examining the added value and challenges of legalizing reporting and materiality requirements from both regulatory and practical company perspectives. It provides insights on whether this is reflected by EU pharmaceutical companies and to what extent companies report information on their materiality analysis process.
Design/methodology/approach
Doctrinal analysis was used to examine regulatory instruments. Qualitative document analysis was used to analyze companies’ reports. The added value and challenges were examined using a governance approach. It focused on legalizing reporting and materiality requirements, with a brief extension to corporate management and organization studies.
Findings
Materiality has evolved from a vague concept in the NFRD toward double materiality in the CSRD. This was reflected by the industry, but reports revealed inconsistencies in materiality definitions and reported information. Challenges include lack of self-reflection and company-centric perceptions of materiality. Companies should explain how they identify relevant stakeholders and how input is considered in decision-making.
Practical implications
Managers must consider how they conduct materiality assessments to meet society’s expectations. The underlying processes should be explained to increase the credibility of reports. Sustainability reporting should be seen as a corporate governance tool.
Originality/value
This work contributes to the literature on materiality in sustainability reporting and to the debate on the need for a holistic, society-centric approach to enhance the sustainability of companies.
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Tinna Dögg Sigurdardóttir, Lee Rainbow, Adam Gregory, Pippa Gregory and Gisli Hannes Gudjonsson
The present study aims to examine the scope and contribution of behavioural investigative advice (BIA) reports from the National Crime Agency (NCA).
Abstract
Purpose
The present study aims to examine the scope and contribution of behavioural investigative advice (BIA) reports from the National Crime Agency (NCA).
Design/methodology/approach
The 77 BIA reports reviewed were written between 2016 and 2021. They were evaluated using Toulmin’s (1958) strategy for structuring pertinent arguments, current compliance with professional standards, the grounds and backing provided for the claims made and the potential utility of the recommendations provided.
Findings
Consistent with previous research, most of the reports involved murder and sexual offences. The BIA reports met professional standards with extremely high frequency. The 77 reports contained a total of 1,308 claims of which 99% were based on stated grounds. A warrant and/or backing was provided for 73% of the claims. Most of the claims in the BIA reports involved a behavioural evaluation of the crime scene and offender characteristics. The potential utility of the reports was judged to be 95% for informative behavioural crime scene analysis and 40% for potential new lines of enquiry.
Practical implications
The reports should serve as a model for the work of behavioural investigative advisers internationally.
Originality/value
To the best of the authors’ knowledge, this is the first study to systematically evaluate BIA reports commissioned by the NCA; it adds to previous similar studies by evaluating the largest number of BIA reports ever reviewed, and uniquely provides judgement of overall utility.
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