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11 – 20 of 730This paper aims to explore the relationship between market share and performance of large accounting firms. It also investigates whether the performance of international…
Abstract
Purpose
This paper aims to explore the relationship between market share and performance of large accounting firms. It also investigates whether the performance of international accounting firms is better than that of non-international accounting firms.
Design/methodology/approach
This paper divides the empirical analysis into two stages. The first stage constructs a multiple regression model to explore the relationship between market share, international operations and the performance of large accounting firms. The second stage uses the Tobit regression model to identify the determinants of market share of international accounting firms.
Findings
Empirical results show that there is a significant, positive relationship between market share and performance, and that the performance of international accounting firms is better than that of non-international accounting firms. Second, from the perspective of business characteristics, the scope of the most international accounting firms is traditional auditing services; namely financial attestation and tax business services.
Practical implications
From the clients' viewpoint, market share is one of the key indices in determining the quality of the accounting firms' service.
Originality/value
As the market for auditing services in Taiwan is saturated, in the future, the accounting industry will be concerned with non-auditing services. It is suggested that the large accounting firms could follow the demand changes of their clients: employ professionals in various fields to provide specialized services, adjust the range of transnational and management consultant services, and operate management consultant services more aggressively. These measures would have advantages in a fiercely competitive market.
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A mid-semester request for help from a local neighborhood association turned into a graduate auditing class service-learning project. Service-learning projects have the potential…
Abstract
A mid-semester request for help from a local neighborhood association turned into a graduate auditing class service-learning project. Service-learning projects have the potential to provide accounting students with valuable opportunities to integrate and apply auditing, accounting, and business knowledge, to acquire new knowledge, and to practice exercising professional judgment, due professional care, and communications skills in rich settings and to provide clients with useful information. However, the use of service-learning cases in the classroom poses significant risks. Common concerns are that such cases use too much class time relative to learning achieved using more traditional methods, students might not be able to provide a satisfactory work product for the client, instructors must plan and prepare too extensively, and instructors will assign grades based primarily on subjective grading criteria. I offer a standards-based framework for incorporating service-learning projects into existing graduate auditing courses that allows educators to manage potential risks while exploiting pedagogical benefits.
Joe Garcia, Russell Shannon, Aaron Jacobson, William Mosca, Michael Burger and Roberto Maldonado
This paper aims to describe an effort to provide for a robust and secure software development paradigm intended to support DevSecOps in a naval aviation enterprise (NAE) software…
Abstract
Purpose
This paper aims to describe an effort to provide for a robust and secure software development paradigm intended to support DevSecOps in a naval aviation enterprise (NAE) software support activity (SSA), with said paradigm supporting strong traceability and provability concerning the SSA’s output product, known as an operational flight program (OFP). Through a secure development environment (SDE), each critical software development function performed on said OFP during its development has a corresponding record represented on a blockchain.
Design/methodology/approach
An SDE is implemented as a virtual machine or container incorporating software development tools that are modified to support blockchain transactions. Each critical software development function, e.g. editing, compiling, linking, generates a blockchain transaction message with associated information embedded in the output of a said function that, together, can be used to prove integrity and support traceability. An attestation process is used to provide proof that the toolchain containing SDE is not subject to unauthorized modification at the time said critical function is performed.
Findings
Blockchain methods are shown to be a viable approach for supporting exhaustive traceability and strong provability of development system integrity for mission-critical software produced by an NAE SSA for NAE embedded systems software.
Practical implications
A blockchain-based authentication approach that could be implemented at the OFP point-of-load would provide for fine-grain authentication of all OFP software components, with each component or module having its own proof-of-integrity (including the integrity of the used development tools) over its entire development history.
Originality/value
Many SSAs have established control procedures for development such as check-out/check-in. This does not prove the SSA output software is secure. For one thing, a build system does not necessarily enforce procedures in a way that is determinable from the output. Furthermore, the SSA toolchain itself could be attacked. The approach described in this paper enforces security policy and embeds information into the output of every development function that can be cross-referenced to blockchain transaction records for provability and traceability that only trusted tools, free from unauthorized modifications, are used in software development. A key original concept of this approach is that it treats assigned developer time as a transferable digital currency.
Details
Keywords
- Software development
- Blockchain
- Cybersecurity
- Operational flight program
- Secure development environment
- Secure virtual machine
- Zero trust
- Embedded systems
- Mission-critical systems
- OFP
- DevOps
- DevSecOps
- Software support activity
- SSA
- SDE
- Permissioned blockchain
- Cryptocurrency
- Time-limited authorization for developer action
- TADA
- Code signing
- Trusted software guard
- SGX
- Trusted eXecution technology
- TXT
- Trusted platform module
- Self-hosting
- Controlled access blockchain
- CABlock
- Role-based access control
- RBAC
This paper aims to examine, through the lens of language expectancy theory (LET), how sustainability assurors use optimism and certainty in possible persuasion attempts. The paper…
Abstract
Purpose
This paper aims to examine, through the lens of language expectancy theory (LET), how sustainability assurors use optimism and certainty in possible persuasion attempts. The paper also explores a number of explanatory variables that could offer insights into the use of these verbal tones in sustainability assurance reports.
Design/methodology/approach
First, the paper relies on DICTION standard normalised optimism and certainty ranges in conjunction with descriptive statistics to analyse how sustainability assurors use optimism and certainty. Second, the paper uses quantile regression with robust standard errors to investigate the association between the measures of verbal tone used in this study and several possible explanatory variables.
Findings
Consistent with LET, the study documents that sustainability assurors exercise caution in using both certainty and optimism in persuasion attempts. The paper also finds that possible explanatory variables significantly associated with optimism include praise, assurance level, legal system and report location. However, reference to sustainability management control (SMC), status of assurance providers, praise, legal system and financial performance appear to explain the use of certainty.
Research limitations/implications
The paper does not, at this stage, claim causality between the two measures of verbal tone, on the one hand, and the possible explanatory variables explored, on the other hand. It rather reports their possible associations. Furthermore, the study only measures reference to management control system and not reliance on it.
Practical implications
The main findings of this study imply that the use of optimism and certainty exhibits likely cautious practice by assurors. Nevertheless, assurors are more likely to use certainty more flexibly and appear more discreet when using optimism.
Social implications
The findings of this paper also indicate how societal expectations play an important role in ensuring cautious persuasive behaviour by sustainability assurors in using verbal tones within sustainability assurance statements. This suggests that stakeholders may place reliance on attestations expressed in these statements.
Originality/value
The paper represents the first attempt to test LET in sustainability accounting by analysing verbal tones used by sustainability assurance providers. It contributes to the sustainability assurance literature in that it empirically demonstrates how sustainability assurors, as expert communicators, use optimistic tone and verbal certainty in careful persuasion attempts.
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This chapter examines some emerging topics and trends as it connects cryptoassets to accounting, auditing, and financial reporting. It discusses the treatment of cryptoassets from…
Abstract
This chapter examines some emerging topics and trends as it connects cryptoassets to accounting, auditing, and financial reporting. It discusses the treatment of cryptoassets from a financial reporting perspective under the US and international accounting standards, frequently asked questions about auditing and attestation, and potential best practices for auditing various cryptoassets. It also discusses accounting for now and potential in the future. The chapter outlines how the rapidly changing cryptoasset landscape could lead to differentiated accounting treatment and audit best practices for practitioners seeking to attest to certain aspects of cryptoassets.
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Wan Amalina Wan Abdullah, Majella Percy and Jenny Stewart
The paper aims to contribute to the discussion on Shari'ah governance systems by examining the extent of disclosure on the Shari'ah Supervisory Board (SSB) as well as the content…
Abstract
Purpose
The paper aims to contribute to the discussion on Shari'ah governance systems by examining the extent of disclosure on the Shari'ah Supervisory Board (SSB) as well as the content of the Board's report in the annual reports of 23 Islamic banks in Malaysia and Indonesia. The paper also investigates the disclosures about zakat (Islamic levy).
Design/methodology/approach
The study is a cross-sectional analysis of annual report disclosures in the year 2009. The paper uses both disclosure indices and content analysis to measure the extent of disclosures about SSB and zakat. The paper also tests hypotheses examining the relationship between SSB characteristics and the extent of the SSB-related and zakat disclosures.
Findings
The results indicate that SSB-related and zakat disclosures are still limited, with only four banks disclosing more than half of the SSB Index. What is noticeable is the low level of disclosure on sensitive matters. Among the factors associated with SSB-related disclosures are cross-membership with other SSBs and the expertise of SSB members in accounting, banking, economics or finance
.
Originality/value
Originality/value
The study is the first to provide an in-depth analysis of Shari'ah disclosures in Malaysian and Indonesian Islamic banks. As such, this study makes an important contribution to the debate on Shari'ah governance systems and has implications for regulators and standard setters. The Malaysian and Indonesian standard setters could play an important role in ascertaining appropriate disclosure requirements relating to the SSB as the study suggests that the level of disclosure is less than expected. The evidence also suggests the need for mandatory enforcement of standards on these types of disclosures.
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Tatiana Mazza, Stefano Azzali and Luca Fornaciari
This paper aims to test the positive relationship between audit quality (AQ) of outsourced information technology controls (ITC) and information technology audit quality (ITAQ)…
Abstract
Purpose
This paper aims to test the positive relationship between audit quality (AQ) of outsourced information technology controls (ITC) and information technology audit quality (ITAQ).
Design/methodology/approach
Factor analysis, ordinary least squares (OLS) regressions and simulations.
Findings
Scoping and planning phases of the audit cycle account for about 69 per cent of ITAQ. The AQ of outsourced ITC is strongly and directly related to ITAQ. Improvement of AQ of outsourced ITC may be achieved through evaluation of control design and operating effectiveness by service auditor as well as direct evaluation by the client in service provider location.
Research limitations/implications
Sample size and input items in factor analysis.
Practical implications
Companies and auditors could improve ITAQ through a better organization of the scoping and planning activities; they could also improve the AQ of outsourced ITC using direct evaluation in the service provider location supplemented with service auditor reports. Regulators could refine or change laws and frameworks to take into account the factors of ITAQ and the methodology of evaluation of outsourced ITC.
Originality/value
Private data collected by questionnaire. The measures of ITAQ and the OLS model could be tested in future research, in countries with different frameworks and regulations related to AQ, different weight of outsourced information technology and other characteristics related to clients, service providers and service auditors.
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Large numbers who have received “certificates of attestation” are the better class producers, who, mostly, have always produced clean milk. Many of them are “estate” farms, and…
Abstract
Large numbers who have received “certificates of attestation” are the better class producers, who, mostly, have always produced clean milk. Many of them are “estate” farms, and some sell no milk at all, but they all enjoy the free services of the nation's servants. I think I am quite right in saying that actually the promoters of the “attestation” scheme (not being the Ministry of Health), are not really concerned with the milk production—as to whether it is clean or not. All the various activities which this memorandum exposes have some good in them, but altogether they make for very little. The experience born of them should be now pooled, and a real compulsory plan proceeded with. An idea which might come to fruition in, say, five years occurs to me, and it is as follows: (1) Frequent inspection of methods and milk sampling at all farms and dairies (both wholesale and retail). (2) Every producer's milk should be tested by animal inoculation for tubercle infection, at least twice per annum. Microscopic examinations of the same samples would disclose certain other infections, such as streptococci. Tests of the same sample for cleanliness (Methylene Blue and Coli) should be applied, with subsequent following inspection of methods to enforce cleanliness. (3) Frequent sampling of milk at various points of transit to consumer for quality. Often milk for delivery to wholesaler or retailer would be sampled on same occasions as visits under item 2. A new regulation should require all receptables containing milk, when placed out of his physical possession, to be sealed, pending collection by the wholesale buyer. The placing of such receptacles exposed to the sun, as is now done in thousands of cases at farm gates, should be prohibited by regulation. It is a common sight to see such receptacles on roads for hours, exposed to the hot sun, awaiting the arrival of the collecting lorry. Often the lids of the churns are raised, with consequent risk of contamination. Some of this milk being the previous afternoon's production, is eighteen to twenty hours old before being collected for transmission to the collecting depot. At such an age, and subjected to such exposure, milk, even of good production, will almost always prove to be of poor keeping quality, indeed it is often on “the turn” on arrival at the depot. (4) The Government should encourage by monetary assistance the renovation of cowsheds and dairies, with emphasis on the provision of a good water supply and means of sterilising utensils. All milk sold to the consumer should be in closed bottles, cartons, or other closed receptacle. (5) Results of tuberculous and other disease‐infected milk discovered by item 2 to be forwarded to the Ministry of Agriculture and Fisheries, Animal Health Division, co‐operative consideration being given on finding extent of disease in any cow as to whether legal proceedings should be instituted for failing to report animal and/or for selling tuberculous milk. (6) Statutory authority should be given providing for the tuberculin test of all cattle, and the sale of reactors should be prohibited. In connection with this, two or three years notice should be given to all cattle keepers (including non‐producers) that a survey tuberculin test would be carried out (the notice being for the purpose of enabling cattle owners to rear sufficient young T.T. stock to replace reactors found on first survey test, and so avert serious reduction in milk yields). The reacting animals would become the property of the State, appropriate compensation being paid to the owner before immediate removal to a district farm establishment adequately segregated, and managed by, say, the Ministry of Agriculture and Fisheries—one such establishment could serve several counties. The best of such animals could be marketed for food, thereby reclaiming a substantial part of the monetary outlay paid in compensation. The reactors would be replaced by the young T.T. stock provided by each owner during the two or three years prior to the first survey. A second test should be made, and any eliminating process necessary via the Ministry's reacting establishments repeated. Afterwards it should be made a serious offence to permit the addition to any herd of any animal which has not passed the tuberculin test. Home‐bred stock should be tested as soon after birth as possible (say 14 days). The test relating to the addition to herds should be the responsibility of the owner, and the cost of tuberculin testing by a private veterinary surgeon should be a fixed, reasonable charge. Certificates showing the result should be furnished to the Animal Health Division office. Thereafter an annual tuberculin test of all herds, with accompanying clinical examination by the Ministry of Agriculture and Fisheries, should be made, when compliance with the regulations respecting animals added since the previous inspection could be checked. If some such scheme as outlined was proceeded with, gone would be the necessity of all the present halfhearted voluntary schemes which are only touching a very small percentage of cattle. As all milk would be clean, tuberculin tested milk, controlled by bacteriological tests, no need would exist for the Milk (Special Designations) Orders: these could be repealed. No more milk need be “pasteurised.” “Approval” of milk for schools, with all its complications, would be redundant, as it would not matter which producer's milk was consumed by the children. The National Milk Testing Scheme would be redundant also.
Zabihollah Rezaee, Ahmad Sharbatoghlie, Rick Elam and Peter L. McMickle
The digital economy has significantly altered the way business is conducted and financial information is communicated. A rapidly growing number of organizations are conducting…
Abstract
Summary
The digital economy has significantly altered the way business is conducted and financial information is communicated. A rapidly growing number of organizations are conducting business and publishing business and financial reports online and in real-time. Real-time financial reporting is likely to necessitate continuous auditing to provide continuous assurance about the quality and credibility of the information presented. The audit process has, by necessity, evolved from a conventional manual audit to computer-based auditing and is now confronted with creating continuous electronic audits. Rapidly emerging information technology and demands for more timely communication of information to business stakeholders requires auditors to invent new ways to continuously monitor, gather, and analyze audit evidence. Continuous auditing is defined here as “a comprehensive electronic audit process that enables auditors to provide some degree of assurance on continuous information simultaneously with, or shortly after, the disclosure of the information.” This paper is based on a review of related literature, innovative continuous auditing applications, and the experiences of the authors. An approach for building continuous audit capacity is presented and audit data warehouses and data marts are described. Ever improving technology suggests that the real-time exchange of sensitive financial data will place constant pressure on auditors to update audit techniques. Most of the new techniques that will be required will involve creation of new software and audit models. Future research should focus on how continuous auditing could be constantly improved in various auditing domains including assurance, attestation, and audit services.