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1 – 10 of 103Zeena Mardawi, Aladdin Dwekat, Rasmi Meqbel and Pedro Carmona Ibáñez
Reacting to the calls in the contemporary literature to further examine the relationship between board attributes and firms’ decisions to obtain corporate social responsibility…
Abstract
Purpose
Reacting to the calls in the contemporary literature to further examine the relationship between board attributes and firms’ decisions to obtain corporate social responsibility assurance (CSRA) through the use of pioneering techniques, this study aims to analyse the influence of such attributes together with the existence of a corporate social responsibility (CSR) committee on the adoption of CSRA using fuzzy set qualitative comparative analysis (Fs-QCA).
Design/methodology/approach
Fs-QCA was performed on a sample of nonfinancial European companies listed on the STOXX Europe 600 index over the period 2016–2018.
Findings
The study findings indicate that the decision to obtain a CSRA report depends on a complex combination of the influence of the CSR committee and certain board attributes, such as size, experience, independence, meeting frequency, gender and CEO separation. These attributes play essential contributing roles and, if suitably combined, stimulate the adoption of CSRA.
Practical implications
The study findings are important for policymakers, professionals, organisations and regulators in forming and modifying the rules and guidelines related to CSR committees and board composition.
Originality/value
To the best of the authors’ knowledge, this study represents the first examination of the impact of board attributes and CSR committees on the adoption of CSRA using Fs-QCA method. It also offers a novel methodological contribution to the board-CSRA literature by combining traditional statistical (logistic regression) and Fs-QCA methods. This study emphasises the benefits of Fs-QCA as an alternative to logistic regression analysis. Through the use of these methods, the research illustrates that Fs-QCA offers more detailed and informative results when compared to those obtained through logistic regression analysis. This finding highlights the potential of Fs-QCA to enhance our understanding of complex phenomena in academic research.
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Nathanaël Betti, Steven DeSimone, Joy Gray and Ingrid Poncin
This research paper aims to investigate the effects of internal audit’s (IA) use of data analytics and the performance of consulting activities on perceived IA quality.
Abstract
Purpose
This research paper aims to investigate the effects of internal audit’s (IA) use of data analytics and the performance of consulting activities on perceived IA quality.
Design/methodology/approach
The authors conduct a 2 × 2 between-subjects experiment among upper and middle managers where the use of data analytics and the performance of consulting activities by internal auditors are manipulated.
Findings
Results highlight the importance of internal auditor use of data analytics and performance of consulting activities to improve perceived IA quality. First, managers perceive internal auditors as more competent when the auditors use data analytics. Second, managers perceive internal auditors’ recommendations as more relevant when the auditors perform consulting activities. Finally, managers perceive an improvement in the quality of relationships with internal auditors when auditors perform consulting activities, which is strengthened when internal auditors combine the use of data analytics and the performance of consulting activities.
Research limitations/implications
From a theoretical perspective, this research builds on the IA quality framework by considering digitalization as a contextual factor. This research focused on the perceptions of one major stakeholder of the IA function: senior management. Future research should investigate the perceptions of other stakeholders and other contextual factors.
Practical implications
This research suggests that internal auditors should prioritize the development of the consulting role in their function and develop their digital expertise, especially expertise in data analytics, to improve perceived IA quality.
Originality/value
This research tests the impacts of the use of data analytics and the performance of consulting activities on perceived IA quality holistically, by testing Trotman and Duncan’s (2018) framework using an experiment.
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Bita Mashayekhi, Ehsan Dolatzarei, Omid Faraji and Zabihollah Rezaee
This study aims to identify the intellectual structure of expanded audit reporting (EAR), offers a quantitative summation of prominent themes, contributors and knowledge gaps and…
Abstract
Purpose
This study aims to identify the intellectual structure of expanded audit reporting (EAR), offers a quantitative summation of prominent themes, contributors and knowledge gaps and provides suggestions for further research.
Design/methodology/approach
This research uses various bibliometric techniques, including co-word and co-citation analysis for EAR science mapping, based on 123 papers from Scopus Database between 1991 and 2022.
Findings
The results show EAR research is focused on Audit Quality; Auditor Liability and Litigation; Communicative Value and Readability; Audit Fees; and Disclosure. Regarding EAR research, Brasel et al. (2016), article is the most cited paper, Bédard J. is the most cited author, Laval University is the most influential university, The Accounting Review is the most cited journal and USA is the leading country. Furthermore, the results show that in common law countries, in which shareholder rights and litigation risk is high, topics such as disclosure quality and audit litigation have been addressed more; and in civil legal system countries, which usually favor stakeholders’ rights, topics of gender diversity or corporate governance have been more studied.
Practical implications
This research has practical implications for standard setters and regulators, who can identify important, overlooked and emerging issues and consider them in future policies and standards.
Originality/value
This paper contributes to the literature by providing a more objective and comprehensive status of the accounting research on EAR, identifying the gaps in the literature and proposing a direction for future research to continue the discussion on the value-relevance of EAR to achieve more transparency and less audit expectation gap.
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Md Khokan Bepari, Shamsun Nahar and Abu Taher Mollik
This paper aims to examine the perspectives of auditors, regulators and financial report preparers on the effects of key audit matters (KAMs) reporting on audit effort, fees…
Abstract
Purpose
This paper aims to examine the perspectives of auditors, regulators and financial report preparers on the effects of key audit matters (KAMs) reporting on audit effort, fees, quality and report transparency.
Design/methodology/approach
The authors conducted 21 semi-structured interviews with stakeholders (13 Audit Partners, 5 Chief Financial Officers and 3 regulators) and thematically analysed the interviews. They use the frame of “Paradox of Transparency” to explain the findings.
Findings
Auditors perceive that the overall quality control of their audits has improved both in the planning and execution stages, and such improvement can mostly be attributed to the coercive pressures from professional bodies and regulators. Nevertheless, audit fee remains unchanged. Auditors disclose industry generic items and descriptions of KAMs, sometimes masking the real problem areas of the clients. Even after improving the performative audit quality, transparency of audit reporting has not improved. Issues that warrant going concern qualifications or audit report modifications are now reported as KAMs. Hence, KAMs reporting might make the audit report less transparent.
Practical implications
Localised audit environments and institutions affect the transparency of KAMs reporting. Without attention to corporate governance and auditors’ independence issues, paradoxically, performative improvement in audit quality (due to the KAMs reporting requirement) does not enhance the transparency of audit reports.
Originality/value
To the best of the authors’ knowledge, this study is the first to provide field-level evidence in Bangladesh and other developing countries about the perceptions of auditors, financial report preparers and regulators on the effects of KAMs reporting on audit efforts, fees, quality and report transparency.
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Ewald 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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Yahya Skaf, Zouhour El Abiad, Hani El Chaarani, Sam El Nemar and Demetris Vrontis
This paper aims to examine how gender diversity and women’s empowerment influence the performance of family entrepreneurships and explores the role of firm characteristics as a…
Abstract
Purpose
This paper aims to examine how gender diversity and women’s empowerment influence the performance of family entrepreneurships and explores the role of firm characteristics as a moderating factor.
Design/methodology/approach
The study used a structured questionnaire as the survey tool to collect data from 91 women managers working in family entrepreneurships, which originated from entrepreneurial initiatives, located in various Lebanese regions. The validity of the construct was assumed using the fitness of extracted index, incremental fit-index, non-normal fit-index, root mean square of residuals and standard root mean square residual. Composite reliability, Cronbach's alpha and value confirmatory factor analysis were used to measure the internal consistency. Data were analyzed using the structural equation modeling method.
Findings
This study reveals that gender equality, education level and family support significantly affect women's empowerment while an insignificant association was found between empowerment and earning social status and achieving financial independence. This paper also showed a significant interaction between women’s empowerment and the performance of family entrepreneurships. Additionally, the results showed that women holding managerial positions in family entrepreneurships is positively associated with firm performance. Finally, it was concluded that the location of the family firm moderates the relationship between gender diversity and firm performance.
Originality/value
This research contributes to theory and practice regarding the role of women in family entrepreneurships and sheds light on gender differences influencing family entrepreneurships and women empowerment issues.
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Ferdy van Beest and Robert Pinsker
The purpose of this study is to construct and test a new measure of auditor orientation using two audit quality-related tasks.
Abstract
Purpose
The purpose of this study is to construct and test a new measure of auditor orientation using two audit quality-related tasks.
Design/methodology/approach
The sample consists of 66 Dutch and US graduate auditing students. Participants complete two tasks: one involving a lease classification and another, supplemental experiment involving a contingent liability judgment. The purpose is to construct a new measure for rules-based/ principles-based orientation. Rigorous, psychometric testing confirms that parts of tolerance for ambiguity (TOA) and need for cognition (NFC), together, form a new construct the authors identify as auditor orientation. The authors next conduct a main and supplemental experiment with novice auditor participants from both the USA and the Netherlands.
Findings
The authors begin with rigorous, psychometric testing using participants from the USA and the Netherlands. The resulting 10-item scale combines parts of TOA and NFC to reflect auditor orientation. The common themes across scale items are high (low) adaptability to complexity and a substance-over-form (form-over-substance) preference for principles-oriented (PO) (rules-oriented [RO]) auditors. Conducting two experiments, results from two distinct tasks confirm our research question; novice auditors classified as RO (PO) are more (less) likely to recommend a more aggressive/client-favorable disclosure judgment.
Originality/value
Auditor orientation (i.e. rules or principles) has a significant impact on the application of rules-based or principles-based standards. How the standards are applied, therefore, influences auditor decision-making and thus audit quality. However, there is a paucity of auditor orientation research to date, including a validated measure. The study contributes a new measure for future research in the related accounting standards and audit quality literatures, while also identifying a potentially important construct in auditor training.
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Hamada Elsaid Elmaasrawy and Omar Ikbal Tawfik
This paper aims to examine the impact of the assurance and advisory role of internal audit (ADRIA) on organisational, human and technical proactive measures to enhance…
Abstract
Purpose
This paper aims to examine the impact of the assurance and advisory role of internal audit (ADRIA) on organisational, human and technical proactive measures to enhance cybersecurity (CS).
Design/methodology/approach
The questionnaire was used to collect data for 97 internal auditors (IAu) from the Gulf Cooperation Council countries. The authors used partial least squares (PLS) to test the hypotheses.
Findings
The results show a positive effect of the ADRIA on each of the organisational proactive measures, human proactive measures and technical proactive measures to enhance CS. The study also found a positive effect of the confirmatory role of IA on both human proactive measures and technical proactive measures to enhance CS. No effect of the confirmatory role of IA on the organisational proactive measures is found.
Research limitations/implications
This study focused on only three proactive measures to enhance CS, and this study was limited to the opinions of IAu. In addition, the study was limited to using regression analysis according to the PLS method.
Practical implications
The results of this study show that managers need to consider the influential role of IA as a value-adding activity in reducing CS risks and activating proactive measures. Also, IAu must expand its capabilities, skills and knowledge in CS auditing to provide a bold view of cyber threats. At the same time, the institutions responsible for preparing IA standards should develop standards and guidelines that help IAu to play assurance and advisory roles.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind that deals with the impact of the assurance and ADRIA on proactive measures to enhance CS. In addition, the study determines the nature of the advisory role and the assurance role of IA to strengthen CS.
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This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also…
Abstract
Purpose
This study aims to examine how woman leadership (i.e., woman board chairperson, woman chief executive officer (CEO) and board gender diversity) affects audit fee and also ascertained the interactive effect of woman leadership and gender diversity on audit committee on audit fee.
Design/methodology/approach
The study applied ordinary least square and fixed-effect estimators on the data of 21 universal banks in Ghana for the period 2010–2021 to estimate the empirical results.
Findings
It is revealed that under the leadership of women (woman CEO and board gender diversity), higher external audit quality is ensured as higher audit fee is paid. Interestingly, it was found that with the presence of women on the audit committee, the integrity of internal controls and internal audit procedures are enhanced, which leads to quality financial reporting, calls for lower audit effort, hence lower audit fee.
Practical implications
The result indicates that firms can rely on the leadership of women in ensuring quality external audit and quality financial reporting, which ultimately helps to minimize the information risk to all stakeholders.
Originality/value
The paper contributes to extant literature by establishing that, under the leadership of women in banking entities from a developing country context, external audit quality and financial reporting are achieved.
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This paper aims to examine the roles of quality managers at community colleges, their experiences balancing accountability and improvement and their insights into the future of…
Abstract
Purpose
This paper aims to examine the roles of quality managers at community colleges, their experiences balancing accountability and improvement and their insights into the future of quality assurance.
Design/methodology/approach
This phenomenological, qualitative study used semi-structured interviews with eight community college quality managers to investigate their roles, experiences and perspectives. A reflexive thematic approach was used to analyze the interview data.
Findings
Four themes were identified from participant responses: quality managers frame and enable program quality, quality managers drive program change, quality managers cultivate a culture of quality and quality managers seek system change. The findings illustrate the roles played by quality managers as they work to improve college education at program, institution and system-wide levels.
Research limitations/implications
The decision of participants to accept the recruitment invitation might reflect particular attitudes, perspectives or experiences.
Practical implications
Quality assurance has emerged as a key mechanism for ensuring postsecondary programs are current, relevant and meeting the evolving needs of students and employers. This study advances the understanding of how quality assurance processes play out at the operational level and explores the experiences of quality managers as they navigate various quality tensions.
Originality/value
Quality managers play key roles in leading, evaluating and influencing quality assurance processes in postsecondary education yet they are underrepresented in the literature. The findings of this study shed new light on the aspirational and influential roles they play in advancing quality assurance.
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