Search results

1 – 10 of 16
To view the access options for this content please click here
Book part
Publication date: 24 August 2011

Anne Norris, Deborah Saber, David Morrison, Daven Morrison and Greg Trompeter

The purpose of this study is to identify a psychological profile for public accounting firm partners who are likely to place the partnership and client shareholder at…

Abstract

The purpose of this study is to identify a psychological profile for public accounting firm partners who are likely to place the partnership and client shareholder at risk. Proprietary data from an executive counseling firm provided a unique opportunity to compare two groups of partners: those identified by their senior partners as placing the firm at risk (n=31) and those not so identified (n=64). The groups were compared using psychological measures, lifestyle measures, personal measures, and work history variables. Results found no significant measurable difference between the audit partners who were identified as posing a risk and those not so identified. This suggests that specific factors cannot lead a partner to engage in risky behaviors, but rather several, in combination, may be necessary. Implications for research include learning more about concepts such as resistance to temptation, motivation, and rationalization. Implications for practice are to focus on structuring business practices to provide early warning signs and minimize opportunities to engage in risky behavior. Continued and increased diligence in the client screening and client continuation and review process remain essential for best practices.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-78052-086-5

To view the access options for this content please click here
Book part
Publication date: 23 July 2020

Philip Beaulieu and Alan Reinstein

Extant theory tends to treat Organizational Culture (OC) and fraud-related values as static, characterizing culture as synonymous with potential ethical values − but…

Abstract

Extant theory tends to treat Organizational Culture (OC) and fraud-related values as static, characterizing culture as synonymous with potential ethical values − but devoting less attention to how the culture and values arose and where they are headed. Buffer/conduit theory proposes that accountants learn to use a taxonomy containing three dynamic layers: collective fraud orientation, a buffer/conduit layer, and individual fraud orientation. The middle layer contains OC-related internal controls that buffer the orientation layers from spreading fraud-encouraging values, and serve as conduits transmitting fraud-deterring values − or, when controls do not function as intended, transmitting fraud-encouraging values. A factor analysis of 11 indicators of this three-layer taxonomy suggests that older generations of accounting practitioners apply the taxonomy, but millennials do not. Predisposition to commit fraud is especially salient to internally focused millennials, who uniquely perceive recruitment and training as compensating mechanisms and as collective buffers.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-83867-402-1

Keywords

To view the access options for this content please click here
Book part
Publication date: 6 September 2016

Natalie Tatiana Churyk, Alan Reinstein and Lance Smith

This exercise exposes students to complex lease transactions, requiring research in the FASB Accounting Standards Codification, archived standards, and future standards…

Abstract

Purpose

This exercise exposes students to complex lease transactions, requiring research in the FASB Accounting Standards Codification, archived standards, and future standards (exposure drafts (ED)).

Design/methodology/approach

Case study/exercise/assignment.

Findings

Students analyze how a retail establishment examines lease transactions to ensure its practices are in line with its mission. Students gain experience researching archived, current, and future standards. Student feedback suggests that students feel the exercise is valuable because it reinforces what they learned in earlier courses and it requires them to understand all aspects related to capital and operating leases. Furthermore, direct assessment data based on grading rubrics indicates that most students meet instructor expectations and indirect assessment data based on student perceptions indicates students are meeting the exercise learning outcomes.

Originality/value

This learning exercise fosters critical thinking skills; emulating professional practice issues and enhancing written and communication skills. It reinforces graduate students’ undergraduate learning related to leases.

Details

Advances in Accounting Education: Teaching and Curriculum Innovations
Type: Book
ISBN: 978-1-78560-969-5

Keywords

To view the access options for this content please click here
Book part
Publication date: 1 October 2015

Mohammad Abdolmohammadi and Alan Reinstein

Prior research suggests that perceived levels of a subordinate auditor’s competence affects audit reviewers’ judgments. We extend this line of research by investigating…

Abstract

Prior research suggests that perceived levels of a subordinate auditor’s competence affects audit reviewers’ judgments. We extend this line of research by investigating the effects of perceived client competence (hereafter, ClientComp) and its interaction with subordinate auditor’s competence (hereafter, AuditorComp) on audit reviewers’ judgments. Using data from highly experienced CPA audit managers, senior managers, and partners, we find a significant main effect for AuditorComp, but not for ClientComp. We also find that when AuditorComp is high, levels of ClientComp do not affect audit reviewers’ judgments. However, we cannot support the hypothesis that when AuditorComp is low ClientComp will significantly affect audit reviewers’ judgments. These mixed results suggest that in the post-SOX (2002) era regulatory environment, audit reviewers may be exercising heightened professional skepticism about ClientComp whenever they consider clients’ assertions.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-78441-635-5

Keywords

To view the access options for this content please click here
Book part
Publication date: 24 August 2011

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-78052-086-5

To view the access options for this content please click here
Book part
Publication date: 28 July 2008

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-84663-961-6

To view the access options for this content please click here
Book part
Publication date: 8 July 2010

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-0-85724-137-5

To view the access options for this content please click here
Book part
Publication date: 24 August 2011

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-78052-086-5

To view the access options for this content please click here
Book part
Publication date: 10 June 2009

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-84855-739-0

To view the access options for this content please click here
Book part
Publication date: 10 September 2021

Alan Reinstein, Eileen Z. Taylor and Cathleen L. Miller

Materiality is a critical and challenging auditing concept. To help auditors improve their materiality judgments, the authors provide examples from Judaism, primarily due…

Abstract

Materiality is a critical and challenging auditing concept. To help auditors improve their materiality judgments, the authors provide examples from Judaism, primarily due to its longevity and the richness and variety of its stories. The authors show how Judaism interprets and applies materiality in many contexts. For each, the authors provide guidance on how auditors might apply these lessons to improve their materiality judgments. The authors examine five areas where Judaic examples can inform modern auditing including: (1) considering both quantitative and qualitative measures; (2) recognizing that small quantitative changes can lead to material qualitative effects; (3) understanding that ignoring small issues can become a slippery slope; (4) considering the importance of financial statement users’ needs in developing materiality criteria; and (5) prioritizing substance over form. In all examples, context is a critical factor to consider when applying materiality. These results should be of interest to auditors, financial statement users and others.

Details

Research on Professional Responsibility and Ethics in Accounting
Type: Book
ISBN: 978-1-80071-758-9

Keywords

1 – 10 of 16