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This study contributes to the cognitive processes and expertise research in judgment and decision-making in auditing. It uses the levels-of-processing theory (Craik & Lockhart, 1972) to investigate the amount of auditor attention given to information during internal control documentation procedures, and the effect of this attention on internal control information acquisition and risk assessment. Based on levels-of-processing, the attention required to complete an internal control questionnaire (ICQ) is predicted to result in the acquisition of more internal control information than when a completed ICQ is reviewed. In addition, auditors who complete an ICQ should assess control risk more like experts’ than auditors, who review an ICQ completed by another individual. Results suggest that the audit seniors who completed an ICQ retained significantly more internal control information than audit seniors who reviewed an ICQ completed by another individual. This result held when separately examining the internal control strengths and weaknesses. In addition, audit seniors who completed an ICQ-assessed control risk at a level comparable to the control risk assessments of audit managers in the same firm.

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Purpose – This study attempts to explore further the relation between performance information and trust as the main control levers in inter-firm transactional relationships.

Design/methodology/approach – After discussing the interaction between information and trust from different theoretical perspectives, the study examines the case of a multinational company working in the pharmaceutical industry. Material has been collected through interviews with managers and documental analyses, focusing on the relations between the company and its partner suppliers.

Findings – A theoretical systematisation is provided, distinguishing three main perspectives: (1) the transactional perspective, strictly derived from transaction cost economics assumptions, which denies any role to trust; (2) the relational perspective, which, in examining inter-firm trust, assumes similarities with inter-personal trust; (3) the institutional perspective, which, based on the sociological distinction of “trust in abstract systems” and “trust in persons”, is intended to identify institutional factors explaining management accounting changes. Case discussion shows that the institutional propositions fit the empirical evidence better, for both trust in persons and in systems are important as control levers, but their relevance differs along the value chain: while trust in persons is more relevant in the less-programmable phases, trust in systems is more developed in the more programmable one.

Research implications – The paper contributes to the literature on inter-organisational control by providing more insights into the interaction between information and trust as control levers.

Originality/value – The focus on value chain phases enables us to analyse how different control patterns or archetypes can be co-present in a given relationship.

Section 404 of the Sarbanes–Oxley Act (SOX) altered the relationship between auditors and their clients by requiring an external audit of companies’ internal controls. Regulatory guidance is interpreted and applied by external auditors to comply with SOX. The purpose of this paper is to apply service operations management theories and techniques to the internal control audit process to better understand the role regulatory guidance plays in audit services. We discuss service operations management theories that apply to the production of audit services and employ the operations management technique of simulation to examine the effects of a historical relationship between the client and the auditor, information sharing between the client and the auditor, and the auditor’s perceived risk of the client on the internal control audit process. The application of service operations management theories and the simulation results illustrate that risk and information sharing are key factors for the audit process. The results suggest the updated Public Company Accounting Oversight Board guidance from Auditing Standard 2 to Auditing Standard 5 appropriately increased audit effectiveness by encouraging risk-based judgments and information sharing. This paper merges accounting and service operations management research to examine the effects of regulatory guidance on the internal control audit process. The paper uses simulation to illustrate the importance of interpreting regulatory guidance and the specific effects of risk and information sharing on the internal control audit process.

This study takes the position that the vitality of academic libraries is grounded in the working experiences of its librarians. It suggests that a full understanding of problems facing contemporary information professionals in the post-industrial workplace requires an analysis of the labouring aspects as well as the professional nature of their work. The study of changes in the academic library work experience thus depicts the state of the library, and has implications for other intellectual workers in a social environment characterized by expanding information technologies, constricted economic resources, and the globalization of information production. Academic librarians have long recognized that their vocation lies not only in the classical role in information collection, organization, and dissemination, but also in collaboration with faculty in the teaching and research process, and in the contribution to university governance. They are becoming increasingly active in the protection of information access and assurance of information quality in view of information degradation on the Internet and various compromises necessitated by interaction with third party commercial information producers.

Organizations are reorganizing into collaborative subunits or teams in order to generate innovative ideas and stay ahead of the competition. Traditional control systems were established to direct employees and prevent control problems, such as fraud or theft, and were designed for vertically managed systems where managers and supervisors made decisions and their subordinates performed tasks. As companies evolve into a team-based structure, decisions are made at lower levels. Restructuring for teams makes information more available and decisions more transparent. Traditional controls no longer apply and can be detrimental to empowerment and the generation of innovative ideas. With increased empowerment there will be a need for different controls and maybe even more control. Innovation can thrive when collaboration takes place and collaboration can occur best when teams are empowered. This chapter presents three separate domains – models of empowerment and innovation, decision-influencing and decision-facilitating information, and management control systems – and illustrates how they interact in a holistic way to either enhance innovative culture or inhibit the generation of ideas.

We present a model of organizational monitoring that integrates organizational justice and information privacy. Specifically, we adopt the position that the formation of invasiveness and unfairness attitudes is a goal-driven process. We employ cybernetic control theory and identity theory to describe how monitoring systems affect one's ability to maintain a positive self-concept. Monitoring provides a particularly powerful cue that directs attention to self-awareness. People draw on fairness and privacy relevant cues inherent in monitoring systems and embedded in monitoring environments (e.g., justice climate) to evaluate their identities. Discrepancies between actual and desired personal and social identities create distress, motivating employees to engage in behavioral self-regulation to counteract potentially threatening monitoring systems. Organizational threats to personal identity goals lead to increased invasiveness attitudes and a commitment to protect and enhance the self. Threats to social identity lead to increased unfairness attitudes and lowered commitment to one's organization. Implications for theory and research on monitoring, justice, and privacy are discussed along with practical implications.

The field of Human Resource Management (HRM) has long recognized the importance of interpersonal influence for employee and organizational effectiveness. HRM research and practice have focused primarily on individuals’ characteristics and behaviors as a means to understand “who” is influential in organizations, with substantially less attention paid to social networks. To reinvigorate a focus on network structures to explain interpersonal influence, the authors present a comprehensive account of how network structures enable and constrain influence within organizations. The authors begin by describing how power and status, two key determinants of individual influence in organizations, operate through different mechanisms, and delineate a range of network positions that yield power, reflect status, and/or capture realized influence. Then, the authors extend initial structural views of influence beyond the positions of individuals to consider how network structures within and between groups – capturing group social capital and/or shared leadership – enable and constrain groups’ ability to influence group members, other groups, and the broader organizational system. The authors also discuss how HRM may leverage these insights to facilitate interpersonal influence in ways that support individual, group, and organizational effectiveness.