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Prior research finds evidence that audit quality is positively associated with the joint purchase of tax nonaudit services (NAS) and concludes that jointly provided tax services result in audit-related knowledge spillovers that lead to improved audit quality. We extend this line of research. We examine the relation between auditor-provided tax services and restatements and determine whether this relation differs when the auditor is a small or large accounting firm. We also examine whether the Securities Exchange Commission’s restrictions on certain tax consulting practices (SEC, 2006) altered this relation. Specifically, we measure whether the probability of financial statement restatements varies with (1) variation in accounting firm size (measured as PCAOB annually inspected firms versus PCAOB triennially inspected firms), and (2) the joint provision of audit and tax services. We find a negative relation between auditor-provided tax services and restatements which is consistent with prior research. We also find that this relation is significantly more negative when the auditor is a small accounting firm. Finally, we find that the lower probability of a restatement associated with the joint provision of audit and tax services persists regardless of auditor size after the SEC-imposed restrictions on certain tax consulting services in 2006. Our study provides evidence that accounting firms, and particularly small accounting firms, benefit from knowledge spillovers when jointly providing audit and tax services and these benefits lead to improved audit quality. Prior research concludes that large auditors provide higher audit quality and that the provision of tax services improves audit quality. Our results provide evidence that audit quality improvements are greater for small auditors and their clients. This improvement narrows that audit quality gap between large and small auditors. We do not find evidence that the SEC’s restrictions on certain tax consulting services altered the relation between audit quality and tax services.

This chapter presents a research model aimed to investigate internal communication satisfaction (ICS) and employee engagement as prerequisites of employee happiness. Employee engagement is seen as a dependent variable to ICS and as an independent variable to happiness. The research is based on quantitative data collected from 174 employees working in 12 international firms who specialize in IT and creative industries and have representative office in Serbia. Partial least squares structural equation modelling is used to identify relationships between constructs. The results demonstrate that ICS increases employee engagement, which in turn increases employee happiness. Employee engagement represents complementary mediation of the relationship between ICS and subjective happiness. The outcomes reveal how organizations can employ an internal communications strategy in order to enhance engagement of their employees and their happiness as the ultimate goal. This chapter addresses an understudied topic in the public relations and strategic communication field and its findings are opening new questions which may inspire research community to search for detailed explanation of the effect that ICS has on employee happiness.

Purpose – Educating active citizens engaged in civic life is a critical goal of citizenship education. This study examines how citizenship education is practiced in three public high schools in the City of Ottawa, Canada, and how teachers through their instruction prepare their students for active citizenship.Design – This investigation draws on citizenship theories and an examination of citizenship pedagogy through observations of class instruction and interviews with teachers and students.Findings – The research shows that despite shared provincial guidelines, in practice, there are dramatic differences in the design and provision of citizenship instruction across classrooms, shaped largely by teachers’ understandings of what constitutes active citizenship. I detail three distinct understandings of active citizenship that are advanced through class instruction: the duty-based, the make-a-difference, and the politically oriented active citizenship.Value – The article discusses important implications that these differing understandings and pedagogical approaches have as they delineate different expectations and paths for youth citizenship participation in public life.