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The purpose of the study is to examine how awareness of the prior year fraud detection testing strategy impacts auditor judgments at differing levels of engagement risk.

A 2 × 2 between-subject experiment was conducted using 64 practicing auditors as participants. The independent variables are manipulated at two levels – awareness of prior-year testing strategy (aware versus unaware) and engagement risk (high versus low). The dependent measures are identified risk factors, targeted areas of auditors’ risk assessments, proposed audit procedures and the desire to consult with a forensic specialist.

Although continuing auditors anchor on prior-year audit strategies, new auditors (who are unaware of prior-year testing strategies) focus on generally known high-risk areas and firm standard procedures while planning the audit.

This paper contributes to the ongoing debate regarding how auditor tenure impacts auditors’ decision-making at a time when the profession and US regulators are focused on enhancing audit quality. The findings further suggest that auditors should take steps to enhance their judgments and avoid potential biases, particularly when planning continuing engagements.

Although the extant literature document anchoring by continuing auditors, this paper is the first to examine successor auditors’ fraud testing strategies. The findings suggest auditors on high-risk engagements who are unaware of the prior-year testing strategy may process information at a deeper level, as they are more likely to seek consultation with a forensic specialist rather than relying on simple heuristics.

Public administration theory suggests that increased accountability in the public sector influences the auditor to lower materiality levels; thereby increasing the audit sample size; which decreases the likelihood of an inappropriate opinion. Accounting theory posits that engagement risk leads the auditor to lower materiality levels to decrease the likelihood of rendering an inappropriate opinion, in an effort to avoid litigation. The results of this study indicate, that in public sector entities, accountability guides the auditors’ materiality decisions.

Risk-based land-use planning is a major tool for reducing risks and enabling communities to design for and mitigate against natural hazard events. Moving towards a risk-based approach to land-use planning involves changes in planning and public communication practice for local government agencies. However, talking to people about how decisions made in the present may increase risk in the future is notoriously hard and requires carefully crafted public discussion. The paper aims to discuss these issues.

This paper explores the case of a local government planning agency (the Bay of Plenty Regional Council (BOPRC)) who adopted a risk-based approach to the development of their regional policy statement (RPS). The BOPRC designed an innovative approach to talking to their communities about future land use and acceptable risk based on a framework and toolkit of resources (the RBPA – risk-based planning approach).

The process addressed several common challenges of risk engagement for land-use planning as it: integrated input from policy and planning professionals, technical experts and community development specialists across local government organisations; used locally relevant community sessions that developed participants’ understanding of risk; linked ideas about risk tolerance to potential policy implications for local government; and built capacity amongst participants for judgment about risk acceptability and options for safeguard.

The process met public engagement planning criteria for robustness, i.e., valid process design and interpretation of feedback, and transparent integration into the final decisions. It enabled public views on natural hazards to be evaluated alongside technical input and incorporated into final decisions on thresholds for acceptable and unacceptable risk.

The approach taken has made significant contribution to risk engagement and land-use planning practice in New Zealand. In 2017, the BOPRC risk-based approach to their RPS received a national award from the New Zealand Planning Institute for contribution to advancing best practice. In 2018, it received further recognition through the Commonwealth Association of Planners Award for Outstanding Achievement in the Commonwealth.

Product market competition may have various impacts on audit fees. On the one hand, according to the agency theory, product market competition can mitigate agency problems between management and shareholders. For clients with higher product market competition, auditors will lower the level of engagement risk assessment and reduce the required level of audit evidence, and hence audit fees will be lower. On the other hand, according to the audit risk model, product market competition will increase client business risk and audit engagement risk. Moreover, for clients with competition advantage, client business risk and audit engagement risk will be lower, and hence a lower audit fee. The paper aims to discuss this issue.

In this paper, the authors collect financial accounting data and audit fee data from CSMAR database. Our sample selection starts with all available observations on the Chinese listed companies during 2006–2011. Since there is a big difference in accounting practices between financial companies and other industries, the authors delete observations on financial companies. The authors further remove observations with missing data, yielding 6,709 observations for the final analysis. To define the industry, the authors use the first two digits of standard industry classification code set by China Securities Regulatory Commission. In order to reduce the effect of extreme observations, the authors also truncate the data at 1 and 99 percent. The authors use the Herfindahl–Hirschman index (HHI) and the natural logarithm of the number of listed companies within the industry to measure product market competition intensity. HHI is calculated as the sum of the squared percentage of revenues of the client firm among the total revenues of all public companies, i.e. HHI = ∑ i = 1 N ( s i / S ) 2 . N is the number of listed companies in the industry, S_i is the revenues for an individual firm and S is the total revenues of all public companies within the same industry. A higher HHI score indicates fewer companies dominate the industry and hence lower intensity of competition in the product market. The second measure of industry competition intensity is LNN, the natural logarithm of the total number of public companies in the same industry of a client firm. A larger value of LNN indicates a larger number of competitors in the industry, and a higher level of competition intensity. Following the literature (Kale and Loon, 2011), the authors use Lerner index (or price-cost margin (PCM)) to measure the listed company’s competitive advantage. It is actually a measure of a firm’s power to influence product prices in the industry. The authors adopt the Peress (2010) method to estimate Lerner index as net operating income, divided by sales, i.e. PCM=(Sales–COGS–Selling expenses–Administrative expenses)/Sales. A higher value of PCM indicates more product pricing power and a higher competitive advantage of a company. The authors also use Lerner index ranking (R_PCM) to measure the competitive advantage of a company in the industry. The authors sort PCM values in ascending order in each industry and divide into ten groups. Then, the authors assign a value from one to ten to each listed company within each group in each industry. A higher R_PCM value represents higher market power and higher competitive advantage of a company. Based on Simunic (1980) framework, the authors develop the following model to test the relationship between product market competition, competition advantage and audit fees: LNAF_it=β₀+β₁ PMC_it+β₂ SIZE_it+β₃ INV_it+β₄ REC_it+β₅ GROWTH_it+β₆ PRELOSS_it+β₇ LEV_it+β₈ QUICK_it+β₉ OPIN_it+β₁₀ IBIG4_it+β₁₁ DBIG10_it+β₁₂ SWITCH_it+β₁₃ LOCATE_it+β₁₄ STATE_it+∑β YearDummies+ε_it.

Using a sample of 6,709 firm-year observations from the Chinese stock market for the period of 2007–2011, the authors find that the product market competition intensity has a negative impact on audit fees, which means that agency cost effect is dominant in audit pricing at industry level. In addition, a company’s competitive advantage in the industry has a significant and negative impact on audit fees, which means that business risk effect also plays a critical role in audit pricing of individual engagement. The findings indicate that, in determining audit fees, auditors in the emerging market of China consider both the competition intensity of their clients’ product market at the industry level and the competitive advantage of the specific clients within the industry.

The findings indicate that, in determining audit fees, auditors in the emerging market of China consider both the competition intensity of their clients’ product market at the industry level and the competitive advantage of the specific clients within the industry.

The purpose of this paper is to assess the progresses made by the Potenza province in implementing #weResilient strategy, a risk-informed sustainable development policy-making action at territorial/local levels based on a structural combination of environmental sustainability, territorial safety and climate change contrasting policies; results obtained in supporting and coordinating the municipalities of the provincial territory for creating local conditions to manage risks and sustainable development with a multiscale and multilevel holistic approach based on a wide-area outlook and so contributing directly to the SFDRR Target E, SDGs 11 and 13 and to other goals and targets; The effectiveness of the accountability system on which the approach is based.

The conceptual basis: A strong governance based on multi-stakeholder and community engagement; The interdisciplinary nature of risk; Enhancing local resilience is an essential pre-condition for achieving all of the SDGs; Downscaling the experience of Potenza Province to the urban context; 10;The design: Description of #weResilient, the multiscale and multilevel approach in Local Resilience and sustainable development adopted by the Province of Potenza: the Vision and institutional commitment; the accountability; the multi-stakeholder engagement; community and people-centered iaction; the achieved results; the critical points. Description and analysis of the performed supportive actions to the municipalities with a subsidiary and wide-area approach.

A significant progress in establishing the basis for a risk-informed decision-making at local level; Further significant progresses in promoting inclusive Resilience across the provincial territory; Progress in Implementation of the Sendai Framework for Disaster Risk Reduction and disaster risk-informed Sustainable Development at local level, including in support of the 2030 Agenda, the Paris Agreement and the New Urban Agenda. Achievements and progresses made in local communities engagement; Achievements in performing actions for including communities and people in relevant institutional decision making processes, building capacities, developing capabilities, raising awareness, increasing political will and public support in local disaster risk reduction and achievement of the SDGs.

The paper is a field-testing of the implementation results of the #weResilient strategy, a risk-informed sustainable development policy-making action at territorial/local levels based on a structural combination of environmental sustainability, territorial safety and climate change contrasting policies; of the coherence of the multiscale and multilevel approach in integrating risk informed and sustainable development pathways; of the improved governance at urban level thanks to the downscaling of the strategy.

Transforming DRR and Resilience to disasters into real “structural” policy-making and actions to be implemented by coordinating territorial and urban development and land-use, with a wide area vision and holistic approach is crucial for the effectiveness of the territorial sustainable development. Moreover, participatory mechanisms can boost althe political will and consequently the related public support. The bottom-up approaches, especially when structured on well defined and clear strategies and supported by concrete actions, are a strategic tool for enhancing the institutional commitment and for enriching the implementation paths also with additional and innovative strategic solution.

In the #weResilient strategy implementation most of the efforts have been devoted to setting-up a complex system of progressive engagement having the main purpose of entrusting and engaging key-actors and community in the institutional policy-making regarding territorial and urban sustainable and resilient development. Engaging community in decision-making processes allows governments to tap into wider perspectives and potential solutions to improve decisions, services and actions. At the same time, it provides the basis for productive relationships, improved dialogue, increased sense of belonging and, ultimately, concrete better democracy.

Multiscale and multilevel holistic approaches in downscaling local well defined Resilience and Sustainable Development integrated strategies (#weResilient) provide for the best approach in terms of future growth. Setting a vision, outlining a strategy and implementing actions on those elements with multiscale and holistic approaches is key- success of every local long-term development; various worldwide leading experiences demonstrated by particularly shining governments are a tangible proof of it. So, the value of this work is to illustrate a concrete example of translation of words into actions so to provide guidance and inspiration to other worldwide governments in performing similar path.

Both the international and US auditing Standards provide guidance to the auditor in searching for material misstatements caused by errors and fraud. Auditors, especially those with clients interested in cross‐border securities markets, should comprehend the similarities and differences in the requirements found in the Standards in these significant audit areas. A comparison of the international Standard for error and fraud to the two US Standards for these topics discloses numerous similarities and a few differences. The findings are reassuring to auditors serving clients with cross‐border interests. Whether the auditor is utilizing the international or the US guidance, comparable audit work in searching for misstatements arising from errors and fraud is being performed.

The purpose of this paper is to examine a University's at risk program and ask is the intervention strategy working? The program seeks to assist at risk students who may be experiencing difficulties transitioning, for example from school into university. The program also seeks to identify problems and suggest remediation strategies before attrition.

The effectiveness of the at risk programs is investigated across a population of at risk students from 2006 to 2010. Effectiveness is judged on the basis of outcomes in subsequent semesters where the University's preferred outcome is these students are not identified as at risk again.

The authors have found that the program has some success in assisting students to improve their academic performance; though simply engaging in the process is not enough to ensure improvement. Other variables are at work. At risk students located in Melbourne appear to be far more likely to be at risk again than those in Singapore.

The at risk program is intended to be part of the University's total system of pastoral care. As such it is designed to assist struggling students to successfully complete their studies. With this in mind, this paper has investigated the influence of student engagement in the at risk program on future academic performance.

This research assists Universities’ implementation of pastoral care programs and notes the roles of student characteristics in “success” at University.

To the authors’ understanding no other research of this kind has been conducted. Much of the previous research focuses on attrition, students already lost to a program. This research focuses on those not yet lost to a program, but at risk.

The objective of this research is to identify areas where audit research can assist the Public Company Accounting Oversight Board (PCAOB) in its deliberation of the auditing standard on engagement quality (EQ) review required by the Sarbanes‐Oxley Act of 2002.

The approach used in this paper is a review of the literature.

The paper links academic research on EQ review to issues raised by the PCAOB. It also identifies questions for future research.

The academic research reviewed in this paper provides important information to the PCAOB staff as it considers EQ review.

In this paper, we aim to understand why consumers often prefer products made using traditional practices even when products made using new practices are not of lower quality. We argue that this resistance, which we call “production process conservatism,” is heightened when the product is used in the performance of a social ritual.

We develop this argument in the context of diamond jewelry, as consumers have generally been resistant to diamonds that are produced in laboratories, i.e., lab-created diamonds. Hypotheses were tested using experiments conducted with an online sample (Experiment 1) and with an MBA student sample (Experiment 2).

In Experiment 1, we find that married female respondents significantly prefer mined diamonds to lab-created diamonds when they are used as part of an engagement gift as opposed to a more routine gift. In Experiment 2, we find the same effect among women; in addition, the perceived risk associated with the ritual is found to mediate this production process conservatism.

This paper contributes to the understanding of a macrosocial phenomenon – acceptance of an innovation – by examining microinteractive processes in groups.

This paper develops an original theory that when individuals deviate from traditional aspects of rituals, they risk signaling a lack of commitment or cultural competence to the group even when such aspects are not explicitly stated.

Business risk and inherent risk both bear on the audit; the audit risk model; and the nature, timing, and extent of work performed. Inherent risk and business risk bear an inverse relationship to detec‐tion risk and have a direct effect on the level of work performed. Neither risk can be eliminated totally and neither is controllable by the auditor. Business risk relates to the financial statements and affects overall audit risk; inherent risk applies to an individual audit area. Inherent risk is explicitly included in the professional standards and the audit‐risk model while business risk is not and has only an indirect bearing on the model. Management can take steps to affect the level of inherent risk, but the perceptions of users of the financial statements bear on business risk.