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The purpose of this study is to examine the impact of service-related independence impairments on perceptions of local and regional non-Big 4 Firms’ financial reporting reliability. This study is motivated by recent public policy, which proposes that service-related independence impairments may improve financial reporting reliability.

Commercial lending officers respond to a within-subjects experiment. The variables of interest are client importance, expertise and their related interaction. These variables are regressed on the perceived reporting reliability of local and regional firms.

Client importance is positively and significantly associated with the lenders’ selection of non-Big 4 firms, which supports Taylor et al.’s (2003) assertions that service-related independence violations improve financial reporting reliability. However, client importance is negatively associated with regional firms.

Client importance is significantly associated with regional firms only, which suggests that cross-sectional differences exist among non-Big 4 firms. The negative association between regional firms and client importance confirms Goldman and Barlev’s (1974) concerns that large firms are not exempt from client pressure. Client importance is also significantly (and positively) associated with lenders’ selection of the type of non-Big 4 firm to perform the engagement, which supports recent public policy’s proposal for joint attest and non-attest services (Exposure Draft for Statement for Accounting and Review Services No. 18).

The study overcomes within-subjects design limitations to provide a natural environment to understand lending officers’ perceptions of non-Big 4 firms. The results continue to fill the void in the literature which examines cross-sectional differences in non-Big 4 firm quality.

Outlines the role of the Uniform Accountancy Act published jointly by the National Association of Accountancy and the American Institute of Certified Public Accountancy, showing it is a vehicle to align state accountancy laws. Discusses the need to do this as travel and communication makes clients easily accessible from any area. Covers the perceived benefits and looks at the barriers to implementation. Reports the results of a survey of State Board of Accountancy Members and the State Society of CPA officers about the proposals. Looks at the concerns expressed and concludes that the main principles are supported but there are areas which need to be addressed before these regulations would be adopted by all states.

Ambient service provisioning with the least human participation in a pervasive computing environment, which is composed of interconnected devices and sensors, raises several trust and security issues. Accurate measuring of the integrity of the nodes that are willing to interact in this intimate environment can boost the trust evolution process, particularly in the uncertainty state and initiation phase. The paper aims to discuss these issues.

The paper presents a unified approach in calculating the trust value among the nodes by leveraging some trusted computing functionalities. The approach aggregates different trust metrics like context, recommendation, and history to compute the trust index of each party more accurately. The paper also describes several existing remote attestation techniques including the chosen attestation technique for the model. The paper simulated the behaviour of the model in different scenarios and evaluates its responsiveness when the trustworthiness among peer nodes can be attested.

The results obtained from different simulated scenarios demonstrate the usefulness of the proposed model. It is shown that trust evaluation process in the proposed model is very granular and also can be fine-tuned according to the application and context. The model strength in solving the uncertain situations and assigning appropriate initial trust values is shown, as well. Finally, the paper describes the future research plan to evaluate the accuracy of the model.

The novel idea of applying remote attestation in trust determination may open up new avenues of research in the study of trust management and trust models.

The purpose of this study is to examine the impact of public accounting firms' mix of service revenue on their average productivity measured by total revenue per partner.

Using data from Public Accounting Report on top public accounting firms by revenue, an OLS regression model is applied by regressing revenue per partner on the percentage of revenue generated from auditing and attest, tax, management consulting, and other services independently.

Results show that the proportion of auditing and attest service revenue is negatively associated with public accounting firms' productivity. However, the proportion of other services revenue, other than tax and management consulting services, is positively associated with productivity. Additional investigation shows that if public accounting firms provide other services in their mix of services, then tax and management consulting services do not contribute to these public accounting firms' productivity.

Results of this study cannot be generalized beyond the top 100 public accounting firms, and the measurement of revenue per partner ignores the exact number of partners within different service areas.

Although auditing and attest services are considered core services of public accounting firms, they do not increase the productivity of the firm.

This study helps in assessing whether average productivity of public accounting firms is affected by the proportion of a specific type of service in the post‐SOX era.

The new cattle movement regulations of 1st March, 1960, mark the final stages of the plan to eradicate tuberculosis from cattle in this country. The last “ specified area ” under the Tuberculosis (Area Eradication) Order, 1950, it is hoped to declare about the same date. It comprises districts in the northeast and north midlands ; Scotland and Wales are already fully attested areas. Because of the need to prevent the re‐introduction of infection to the national herd now that the Scheme of eradicating bovine tuberculosis is moving towards completion—(it is estimated that 300,000 cattle remain to be tuberculin tested and that the eradication scheme costing about £130 millions will be finally completed by October 1st next)—cattle imported for immediate slaughter, unless “ accredited ” (attested) or of the “ once tested ” status, will be licensed from the landing places at ports only to a limited number of slaughter‐houses, mainly public, named in the regulations. Accredited or “ once tested ” cattle accompanied by the requisite veterinary certificate will be licensed to any slaughterhouse, subject to the provisions of the Tuberculosis (Area Eradication) Order, 1950, as amended, which means there will be no market in this country for untested store cattle after 1st March. This class of cattle will therefore go to swell the number of fat cattle imported from Eire for slaughter. Last year (1959) the latter numbered 72,000.

Financial shenanigans are the omissions or actions undertaken with the purpose of misrepresenting an organisation's financial statements. Many examples now exist of such behaviour emerging in the context of a desire to deceive the users of financial reports. In this context, research has illustrated how investors can find themselves impacted by such behaviour, with incorrect decision-making around investment decisions being a major issue. However, auditors' perspectives, of obvious importance in such scenarios, given these individuals' role in attesting to the veracity of financial disclosures, have not been investigated. The aim of this study is to address this gap by seeking the experiences of auditors in the developing nation of Pakistan, an environment in which the significant impact of financial improprieties is well-documented.

Interviews with 50 Pakistani-based auditors were conducted to gather perceptions about the nature and prevalence of financial shenanigans. The questions posed were structured to address issues relating to both the drivers of and methods used to operationalise financial malfeasance.

The views expressed by the participants suggest that this type of malpractice is common, with a variety of forms employed and a level of audacity and shamelessness is striking. The results indicate the absence of the three institutional pillars conventionally associated with motivating organisational attempts to legitimise behaviour and maintain social contracts. When considered alongside recent findings that the audit profession in Pakistan may not always play an effective monitoring role, we argue that the evidence suggests the existence of motivations for legitimising strategies are not yet fully understood.

This contention helps address recent calls for investigation of issues around legitimising tendencies where theoretical understanding is incomplete. A full understanding of the embedded practices will provide capital providers with the opportunity to make more informed decisions regarding their investments in Pakistani firms by highlighting the financial shenanigans involved, including the sheer audacity apparently associated with the observed behaviour.

Earnings management and auditing have not been studied widely in Pakistan despite the abundant and persistent nature of corporate scandals across the nation for many decades. Whilst implementation (and enforcement) of some accounting and auditing standards have taken place recently, the financial collapses continue, and understanding regarding the on-going fraud is urgently needed. The extent and shameless nature of the perceived behaviour are striking, suggesting that those closest to financial reporting in Pakistan see fraudulent financial reporting as being close to, if not yet fully representative of, normal practice.

Competitive pressures in the audit market have led to aggressive fee renegotiation and tendering by companies. This paper reviews microeconomic tender theory and finds it to be of limited value in the audit context. Content analysis of semi‐structured interviews conducted with the finance directors of 12 UK listed companies which had recently tendered and/or changed auditor are used to investigate the tender/change process. Contrary to popular belief, fee levels do not necessarily dominate the decision to change auditors, rather changes within the client company, audit staffing, and auditor’s professionalism and competency issues dominate. Nor is the selection of a tender “winner” generally based solely on price, as predicted by tender theory and as would be expected when the consequences of audit failure do not fall on the directors. However, consistent with economic theory, the winning bid appears frequently to be too low, resulting in attempts by auditors to subsequently increase fees and resentment by the finance director. Directors generally appear to view the audit tender as relating to not only the attest function per se, but to a larger package of services concerning the financial reporting function. The relative importance of price versus non‐price competition in auditor choice is found to vary across companies. Auditor choice is influenced strongly by both economic and behavioural factors, in particular, by directors’ assessment of the quality of non‐attest services and the expected quality of working relationships, in addition to price and audit quality.

The financial reporting requirements for publicly traded companies have undergone a significant transformation due to the passage of the Sarbanes‐Oxley Act (SOX). Companies are now required to report on the operating effectiveness of their internal controls over financial reporting. Additionally, the independent auditor is required to assess and report on the effectiveness of their client's internal controls, and they must attest to management's internal control assessment. The purpose of this paper is to examine the costs and benefits associated with Section 404 of the SOX of 2002.

Qualitative analysis and deductive reasoning are used to evaluate the net benefits of Section 404 to the securities markets.

Qualitative analysis demonstrates that the new internal control reporting requirements have negative net benefits to the securities markets because of excessive cost and ambiguous interpretation. Elimination of formal internal control reporting is recommended.

This paper demonstrates that major revisions of Section 404 of the SOX are desirable for optimal allocation of resources related to financial reporting.

Examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to foster auditor independence domestically and abroad. Focuses specifically on the role played by the American Institute of Certified Public Accountants, the Institute of Internal Auditors (IIA), the Securities and Exchange Commission and the US Government Accounting Office. Also looks at other professional associations in banking, industry, and manufacturing sectors dealing with sensitive issues of auditors′ involvement in such matters as management advisory services, operating responsibilities, outsourcing, opinion shopping, auditor rotation, and other conflicts of interest which may impair auditor independence.

Many companies can today attest to having obtained significant progress in their performance using some improvement processes (six sigma, 5S, business process reengineering, etc.). But they can also attest to experiencing difficulties in sustaining the use of these processes over time. The aim of this paper is to describe all the specific actions which can contribute to the sustaining of these processes.

An empirical research methodology is used by carrying out a survey of 40 Swiss and French manufacturing companies regarding their approach to the sustaining of some of their improvement processes.

A model of sustainability for an improvement process is proposed. This model is founded on three axes: organic state, return on effort and facilitation. To sustain an improvement process over time consists in taking these three axes into account by managing their relative importance in space and over time. The paper details the generic actions associated with each of the three axes. These actions are then illustrated using the context of a sustained statistical process control project.

The survey detailed in this paper confirms the difficulty of companies have in sustaining their improvement processes over time, since the average sustainability ratio for all the different processes mentioned rarely exceeds 40 per cent. The paper gives all the specific actions which can contribute to sustain these processes better.