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This study investigates whether exposure to a previous client’s earnings management behavior will impact experienced auditors’ judgments of the risk that a current client’s financial statements are materially misstated. Contrast theory predicts the context of previous information can have a priming effect on a current judgment scenario, where the information for the current judgment is contrasted with the previous information. Guided by contrast theory, we exposed auditors to either positive or negative client ethical earnings management behavior. We found the existence of contrast effects, with the positive (negative) context of the previous client resulting in auditors judging a higher (lower) likelihood of material misstatement in the current client’s financial statements. The results have implications for the effectiveness and efficiency of auditors’ judgments as well as provide insight into auditor training efforts.

The purpose of this paper is to investigate the association between auditor industry specialization and audit fees surrounding Section 404 implementation.

With a sample of 1,006 industrial firms over the 2003-2005 reporting periods, an ordinary least square regression model was used to regress change in audit fees on auditor specialization measure and other control variables.

It was found that auditor industry specialization is negatively related to the change in audit fees during the first year of Sarbanes–Oxley Act (SOX) compliance (2003-2004). It was also found that there were no significant cost savings associated with auditor industry specialization in the second year of SOX compliance (2004-2005).

These results suggest that industry-specific expertise may enable auditors to adapt more efficiently to new significant audit standards and regulations, but that such efficiencies are likely to be most pronounced during the initial implementation year.

Auditor competition and auditor specialization are at the forefront of today’s ever-changing accounting industry. Analysis of a contemporary auditing issue (auditor specialization) in the context of major legislation (SOX) provides a research setting that gives both academics and practitioners valuable insight toward how future legislation can impact current accounting industry issues such as the increasing need to have more expertise.

This research provides accounting-ethics authors and administrators with a benchmark for accounting-ethics research. While Bernardi and Bean (2010) considered publications in business-ethics and accounting’s top-40 journals this study considers research in eight accounting-ethics and public-interest journals, as well as, 34 business-ethics journals. We analyzed the contents of our 42 journals for the 25-year period between 1991 through 2015. This research documents the continued growth (Bernardi & Bean, 2007) of accounting-ethics research in both accounting-ethics and business-ethics journals. We provide data on the top-10 ethics authors in each doctoral year group, the top-50 ethics authors over the most recent 10, 20, and 25 years, and a distribution among ethics scholars for these periods. For the 25-year timeframe, our data indicate that only 665 (274) of the 5,125 accounting PhDs/DBAs (13.0% and 5.4% respectively) in Canada and the United States had authored or co-authored one (more than one) ethics article.

Many bureaucracies still exist, and not just in the public sector. Increasingly, however, we would argue that they are more likely to evolve towards polyarchic forms because of the growing centrality of stakeholder resistance, especially that which is premised on empowerment of key employees. We suggest that managerial responses to this resistance are transforming bureaucracies through process of accommodation: upper echelon managers invent responses to contentious acts and voices so as to reintegrate ‘resisters’ while rewarding them for contesting decisions in a cooperative way. Understanding these processes help us understand why traditional bureaucracy is currently transforming itself as a result of the emergence of new forms of resistance in the workplace.

Power and domination once occupied center stage in organizational sociology. But as the field developed, the concept of power was marginalized and its overall significance for the drama of organization life neglected. Normative critiques of domination were recast as puzzles of obedience to authority, while scholars wishing to study the concrete workings of power regimes found themselves groping in the shadows. In this introduction, we advocate putting power and domination back on the agenda. Following the lead of classical theorists of power, we argue that organizations should be seen as scenes of struggles and as political projects to be constantly achieved and reconstructed. We critique structural and abstract perspectives that neglect the constant engagement of people in the negotiation of rules, meanings, and destinies. And we survey novel ideas that can help us to see power not as an abstract entity but as a pattern of interactions and social relationships that is instantiated in specific projects of domination and resistance. It is through this lens that power studies can be reinvigorated.

My approach comprises two main points. I begin by reiterating my proposed argument that corporate social responsibility develops within organisations, over time, in four general phases and that practitioner attitudes are moving away from the dominant phase of social responsibility (SR) as public relations activity (Hemingway, 2013). The financial crash of 2008 was the catalyst for this marked gear shift in the awareness of organisational ‘ethics’ and ‘morality’ (SR) that was previously confined to the concerns of the business ethics scholars. Second, I contend that the legitimacy and credibility of SR in business schools is lagging behind that shift due to misunderstandings about its relevance, the obsession with performance metrics and a lack of political will in some cases. In the final part of this article, I suggest ways forward for research, teaching and practice.

This chapter explores dominant ideologies theoretically in an organizational setting. A framework is developed to advance our understanding of how ‘dominant ideological modes of rationality’ reflect predictability through the reproduction of accepted truths, hence social order in organization. Dominant ideological modes of rationality constitute professional identity, power relations, and rationality and frame prevailing mentalities and social practices in organization. It is suggested that members’ categorization devices structure and constrain social practices. Supplementing the existent power literature, the chapter concludes that professional identity produces rationality, power and truth – truth being the overarching concept assembled through the rationalities assembled in professional members’ categorization devices. Research and managerial implications are discussed.

This paper synthesizes existing experimental research in the area of investor perceptions and offers directions for future research. Investor-related experimental research has grown substantially, especially in the last decade, as it has made valuable contributions in establishing causal links, examining underlying process measures, and examining areas with little available data. Within this review, I examine 121 papers and identify three broad categories that affect investor perceptions: information format, investor features, and disclosure credibility. Information format describes how investors are influenced by information salience, information labeling, reporting and accounting complexity, financial statement recognition, explanatory disclosures, and proposed disclosure changes. Investor features describes investors’ use of heuristics, investor preferences, and the effect of investor experience. Disclosure credibility is influenced by external and internal assurance, management credibility, disclosure characteristics, and management incentives. Using this framework, I summarize the existing research and identify areas that would benefit from additional research.