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1 – 10 of 335This study aims to investigate the impact of changes in audit processes during the pandemic on auditors’ deviant behavior, considering auditors’ personal characteristics…
Abstract
Purpose
This study aims to investigate the impact of changes in audit processes during the pandemic on auditors’ deviant behavior, considering auditors’ personal characteristics, including demographic variables, spirituality levels and personality traits.
Design/methodology/approach
A survey consisting of five parts was used to gather data from auditors employed at Big Four audit firms in the Middle East. The questionnaire collected data on auditors’ perceptions of changes in audit processes and deviant audit behavior during the pandemic, as well as information about their personal characteristics.
Findings
The findings revealed a significant positive association between changes in audit processes and a heightened perception of deviant audit conduct during the pandemic. Males and extravert auditors expressed less favorable attitudes toward such behavior.
Research limitations/implications
The sample size was limited to 107 auditors due to the challenges of soliciting responses from auditors during the pandemic. The sole focus on the Big Four audit firms limited the generalizability of the results. Upcoming research should integrate qualitative methods alongside surveys and collect data from larger, more diverse samples to enhance the understanding of the pandemic’s impact on audit behavior.
Practical implications
The findings provide guidance and recommendations for audit firms to mitigate deviant behavior during crises while considering auditors’ personal factors. Recommended strategies include the organization of trainings to raise awareness of these risks and the integration of artificial intelligence to modernize audit processes and enhance audit firms’ readiness to confront future crises.
Originality/value
This study offers a novel empirical investigation into how pandemic-driven changes in audit procedures relate to auditors' deviant behavior, while exploring the influence of auditors' individual traits, an unexplored area in the literature. It addresses this gap specifically in the context of the understudied Middle East region.
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Rabih Nehme, ALCheikh Edmond Kozah and Sandra Khalil
This research paper investigates variances in auditors’ attitudes toward dysfunctional audit behavior (DAB) in two different time periods. The purpose of this paper is to explore…
Abstract
Purpose
This research paper investigates variances in auditors’ attitudes toward dysfunctional audit behavior (DAB) in two different time periods. The purpose of this paper is to explore changes in DAB among experienced/inexperienced auditors as well as differences between male/female auditors while facing time budget and time deadline pressures.
Design/methodology/approach
This study uses surveys administered to a group of junior auditors joining a Big 4 firm in the UK and compares the results to surveys completed by the same group of auditors after three years of experience. The survey assesses participant’s perception of DAB in the presence of time budget and time deadline.
Findings
The results of this paper show that experienced auditors have more tolerant views of DAB then inexperienced auditors. In terms of gender, inexperienced male auditors are more accepting of DAB when compared to their inexperienced female counterparts. Female auditors surveyed in both time periods seem to be unfavorable of DAB.
Originality/value
The uniqueness of this study derives from the fact that it explores the same group of auditors and assesses variances in their perception of DAB in two different periods over a passage of three years during which inexperienced auditors become experienced.
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The purpose of this paper is to shed light on factors leading to unethical acts committed by auditors from a cultural and gender perspectives. It investigates differences in…
Abstract
Purpose
The purpose of this paper is to shed light on factors leading to unethical acts committed by auditors from a cultural and gender perspectives. It investigates differences in junior auditors’ attitudes towards audit behavior when a performance evaluation (PE) is anticipated. The objective of this study is to aid academicians and audit executives in developing new models of PE and internship programs that should mitigate dysfunctional behavior.
Design/methodology/approach
A survey adapted from Big Four companies’ performance appraisal templates was administered to junior accountants who have completed their internship programs and their external audit course at accredited universities in Lebanon and the USA. Several statistical tests were conducted to analyze the relationship between the different variables.
Findings
This paper shows how PE affects junior auditors’ attitudes to dysfunctional audit behavior (DAB). From a cultural standpoint, American auditors express more negative views towards DAB than their Lebanese counterparts. This paper also demonstrates that female auditors are less inclined towards DAB than male auditors.
Originality/value
Previous studies on the topic have been mostly conducted in developed countries with a scarcity of studies examining multiple countries. This study focuses on two different cultural contexts, a developed country, the USA and an emerging country, poorly represented in the literature, Lebanon. This paper also observes variances between male and female auditors in DAB when expecting a PE. The originality of this paper stems from its concurrent examination of the impact of gender and culture on DAB by using a sample of less-experienced auditors at the end of their educational path.
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In sharp contrast to television, various sources of market failure currently prevent market forces fulfilling the promise of digital switchover in radio markets. The purpose of…
Abstract
Purpose
In sharp contrast to television, various sources of market failure currently prevent market forces fulfilling the promise of digital switchover in radio markets. The purpose of this paper is to review the strengths and weaknesses, business models and market deployment of the two main platforms, with a view to establishing the economic case for higher regulatory involvement in digital radio markets.
Design/methodology/approach
The paper analyses the relevant broadcaster, engineering and regulatory literature, with particular emphasis on technical compatibilities among terrestrial radio broadcast technologies, and the technological and economic difficulties they face. The exercise is the first of its kind to scope and bring together these multidisciplinary contributions.
Findings
The highly uncoordinated development and deployment of terrestrial digital radio platforms is leading this new digital industry to an impasse. There is a legacy of uncertainty and scepticism amongst market players. Furthermore, prevailing technology and business models have marginalised community radio services and regional audiences.
Research limitations/implications
The analysis does not cover the demand side (contents, culture) nor developments in non‐terrestrial digital platforms, nor in the US‐based IBOC standard.
Practical implications
There is considerable scope, particularly in large, sparsely inhabited countries with sizeable rural audiences to remedy the failings of the current fragmented approach through regulatory intervention through platform integration.
Originality/value
There is a lack of coherent information published on the potential benefits that the new digital platforms are bringing to the audio broadcasting market, and on the current market difficulties they face. The article remedies this gap.
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Christian Hugo Hoffmann and André Dahlinger
The purpose of this paper is to explore socio-economic implications of decentralized autonomous self-owned businesses.
Abstract
Purpose
The purpose of this paper is to explore socio-economic implications of decentralized autonomous self-owned businesses.
Design/methodology/approach
The authors take the approach of a case study analysis.
Findings
Unlike dark scenarios according to which almost half of our jobs are at risk in the wake of new emerging technologies such as AI and Blockchain (Frey and Osborne, 2013), the authors envision a world of decentralized autonomous self-owned businesses, using the example of the taxi market. The authors, first, outline their characteristics and how they work. Second, they elaborate on the socio-economic implications of markets where this novel kind of business enters. Third and most important, the authors argue that so-called robo-economic systems would be tantamount to a post-capitalistic society that is enforced by applying capitalistic principles.
Research limitations/implications
The presented scenario of this paper is very futuristic and furthermore reduces a complex system quite drastically to be able to focus on the two implications of interest. Therefore, we are confronted with the necessity to take assumptions on socio-technical feasibilities and individual preferences. Most of these assumptions can be challenged (see Section 6.3).
Social implications
The scenario presented by the authors stands in contrast to the fear that increased automation inherently leads to increased inequality. There is a general debate going on whether automation and digitalization will lead to a massive loss of employment, because machines will replace humans in many fields of work. Frey and Osborne (2013) estimate that nearly every second job is at risk to disappear in the coming decades because of computerization. Hence, many people fear to be left behind because of this development and inequality will increase tremendously as only those who own the machines will benefit directly from the profit share. In the scenario, however, the profits are mostly distributed among the consumers via reduced prices.
Originality/value
The proposed scenario seems to reconcile socialism (less private property) with liberalism (a radicalization of markets) and shows an effective way to tackle market power, the problem that certain persons and firms would benefit almost exclusively from the increased profit margins promised by automation.
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Rabih Nehme, Amir Michael and Jim Haslam
A survey is here systematically conducted to analyse auditors’ perceptions of dysfunctional auditing behaviour (DAB). As a result of many accounting scandals and litigations faced…
Abstract
Purpose
A survey is here systematically conducted to analyse auditors’ perceptions of dysfunctional auditing behaviour (DAB). As a result of many accounting scandals and litigations faced by audit firms, this paper aims to assess whether factors leading to DAB are embedded in audit firms’ practices.
Design/methodology/approach
The sample used in this study comprises auditors at all levels of employment with the big four audit firms in the United Kingdom (UK). DAB is analysed using two signals/indicators: premature sign-off and under-reporting of chargeable time. Time budget pressure and time deadline pressure are the factors considered here as potentially pushing auditors to exhibit DAB. A careful and considered analysis and interpretation is here articulated. Additionally, the sample individuals are divided into audit trainees and experienced auditors to assess any potential differences in the perception of DAB that reflect the experience factor.
Findings
Coordination with internal auditors, different perceptions between audit trainees and experienced auditors of dysfunctional behaviour, working during their personal time and the box-ticking exercise are amongst the findings that may help practitioners to understand the reasons behind dysfunctional behaviour and identify measures to mitigate it.
Originality/value
The study can aid concerned executives and audit partners to minimise DAB related to different time pressures by casting light on the key ethical issues. The study is conducted on a sample of the big four firms in the UK covering all organisational structure. It assesses if experience plays a role in the perception of DAB.
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This study seeks to identify the role that peer team members' behaviors and superiors' preferences play in influencing the likelihood that staff auditors engage in dysfunctional…
Abstract
Purpose
This study seeks to identify the role that peer team members' behaviors and superiors' preferences play in influencing the likelihood that staff auditors engage in dysfunctional audit behavior (DAB).
Design/methodology/approach
This study uses an experiment that manipulates peer team member behavior (DAB present or DAB absent) and superior preference (efficiency or effectiveness). Students enrolled in a graduate accounting course, proxying for inexperienced staff auditors, receive an internal control sample selection task. Participants assess the likelihood that a typical staff auditor would engage in DAB or non-DAB.
Findings
First, staff auditors with a peer team member who engages in DAB are more likely to engage in DAB. Second, staff auditors who have a superior with a preference toward efficiency are more likely to engage in DAB. Finally, when considered simultaneously, the effect of the superior's preference on the likelihood of staff auditors engaging in DAB is not different for staff auditors, subject to a peer engaging in DAB versus those subject to a peer who engaged in a non-DAB.
Research limitations/implications
This study uses a hypothetical audit team, a written script of team member communication, and students proxying for inexperienced staff auditors. As such, future studies might consider improving the realism of the team setting, the manner in which a message is portrayed, and implications at higher levels within the audit team hierarchy.
Practical implications
Team interactions contribute to the prevalence of DAB within the profession. Specifically, inexperienced auditors are influenced by the behavior of peer and superior team members and this may be one cause of the prevalence of DAB within the profession. As such, future firm considerations could include well-structured mentorship programs and rewards structures.
Originality/value
This study adds to the audit team literature by investigating the influence of audit team dynamics on staff auditors' behaviors. This paper extends the current audit team literature, that is mostly focused on supervisor–subordinate relationships, by investigating social influences from peers and superiors. This study's findings inform public accounting firms of areas in which personnel may negatively affect audit quality through intra-team interactions.
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The diffusion of digital radio has experienced more challenges than for digital TV regarding a digital switchover. The purpose of this paper shows on the specific case of Germany…
Abstract
Purpose
The diffusion of digital radio has experienced more challenges than for digital TV regarding a digital switchover. The purpose of this paper shows on the specific case of Germany, which difficulties the digital sound broadcasting technology of Digital Audio Broadcasting (DAB) has been facing from several points of view. The difficulties are reviewed and outlined to overcoming different barriers and to facilitating its diffusion.
Design/methodology/approach
The paper analyses how the diffusion of digital radio is perceived by industry representatives such as radio consultants and several stakeholders along the value chain of the radio industry. In semi-structured interviews, participants describe and evaluate the challenges for DAB as digital audio broadcasting standard mainly in Germany.
Findings
After two decades of deploying digital radio in Germany, its success is still missing. Various very different aspects have prevented the diffusion of the new technology. Among various barriers, the radio industry sees missing benefits, marketing errors and a lack of inter-industrial collaboration as barriers in a retro-perspective.
Research limitations/implications
The analysis does not cover other countries, where DAB as standard was introduced. Also other standards for digital radio are not considered.
Practical implications
With referring to barriers for digital radio, there is a scope for those countries about to introduce the technology to troubleshoot the failings of overcoming barrier. An idea can emerge, how authorities and industrial stakeholders can help to facilitate the diffusion of digital radio. It also indicates the need of governmental interaction for the coordination of a technology introduction in a network industry.
Social implications
The theoretical model, referred to, gives a good overview of potential diffusion barriers as most identified problems for the German case. The model and the illustrated problems of the paper can be used in practice to manage potential diffusion problems during technology introductions.
Originality/value
There is a lack of published information about the faced challenges for the diffusion of digital radio. The retro-perspective benefits from the broad experience of participants having observed the challenges of the past decade with DAB in Germany. Additionally, the results are mapped to a theoretical framework with limits for the diffusion of innovation for generalising.
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Halil Paino, Malcolm Smith and Zubaidah Ismail
The purpose of this paper is to investigate individual or personal factors contributing to individual auditor differences in acceptance of dysfunctional audit behaviour (DAB)…
Abstract
Purpose
The purpose of this paper is to investigate individual or personal factors contributing to individual auditor differences in acceptance of dysfunctional audit behaviour (DAB). Dysfunctional behaviour and staff turnover are associated with decreased audit quality, and is characterised as premature sign‐off, gathering of insufficient evidence, accepting of weak client explanation, altering or replacing the audit procedures, and under‐reporting of time, and have negative effects on the auditing profession. In this study the organizational behaviour and industrial psychology literatures provide the basis for the development and testing of an individual factors’ model of DAB.
Design/methodology/approach
Using path analysis for direct and indirect effects, survey results from registered Audit Managers are used to provide support for an explanatory model.
Findings
Overall, results indicate that auditors who are more accepting of dysfunctional behaviour tend to possess an external locus of control and exhibit higher turnover intentions.
Originality/value
These results suggest that individual factors play a role in identifying those who are more accepting of dysfunctional behaviour. The results can be useful in the operational and management control mechanism of human and social developments relating to dysfunctional behaviour issues.
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Wayne Tervo, L. Murphy Smith and Marshall Pitman
This study examines the influence of firm management’s ethical “tone at the top” (tone) and the working relationship of an auditor with his/her supervisor (senior) on the…
Abstract
This study examines the influence of firm management’s ethical “tone at the top” (tone) and the working relationship of an auditor with his/her supervisor (senior) on the auditor’s propensity to engage in an unethical, dysfunctional auditor behavior (DAB). Findings indicate that environmental factors influence the staff auditor’s decision of whether or not to follow a course of action suggested by the supervisor that is contrary to both the audit program and generally accepted auditing standards (GAAS). Specifically, auditors are influenced by the tone that the partner sets for the firm and by the working relationship that the staff auditor has with the supervising senior auditor. The results of this research have ramifications for the auditing profession, as they identify specific factors outside of auditing standards and beyond an auditor’s moral reasoning capabilities that can influence the acceptance of unethical, dysfunctional behavior.
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