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This study aims to build on the well-documented case of the Olympus scandal to dissect how social networks and corporate culture enabled corporate elites to commit fraud across multiple generations of leaders.

A flexible pattern matching approach was used to identify matches and mismatches between behavioural theory in corporate governance and the patterns observed in data from diverse sources.

The study applies the behavioural theory of corporate governance from different perspectives. Social networks and relationships were essential for the execution of the fraud and keeping it secret. The group of corporate elites actively created opportunities for committing misappropriation. This research presents individuals committing embezzlement because the opportunity already exists, and they can enrich themselves. The group of insiders who committed the fraud elaborated the rationalizations to others and asked outside associates to help rationalise the activities, while usually individuals provide rationalizations to themselves only.

The social processes among actors described in this case can inform the design of mechanisms to detect these behaviours in similar contexts.

This study provides both perspectives on the fraud scandal: the one of the whistle-blowers, and the opposing side of the transgressors and their associates. The extant case studies on Olympus presented the timeframe of the scandal right after the exposure. The current study dissects the events during the fraud execution and presents the case in a neutral or a negative light.

IN recent years there have been many papers covering the choice of powerplant for the supersonic transport aeroplane and several relating specifically to the Concorde. The subjects which have been covered include the choice of engine cycle, development history, propulsion controls and other design aspects. In the majority of these papers the environmental conditions which the supersonic engine experiences have been stressed but only brief references have been made to the ways and means whereby these conditions can be simulated on the test bed or in altitude test facilities.

The purpose of this paper is to offer a theoretical framework of whistleblowing that gives due recognition to the emotional and reflexive processes that underpin it. Modes of anger are integrated into the model based on a reading of Geddes and Callister (2007), and developed by Lindebaum and Geddes (2016) work on moral anger.

The model is derived by interrogation of the extant literature on whistleblowing with due recognition accorded to emotional and reflexive dimensions that have been underrepresented in previous research. The model was tested by a qualitative study that uses memoir analysis to interrogate a board level whistle-blower’s account of the complex, traumatic and like-changing nature of his experience.

The paper identifies key stages in whistle-blower thinking before, during and subsequent to a decision to expose corporate wrongdoing. It demonstrates how emotional and reflexive processes influence a whistle-blower’s mode of anger expression, and how different perspectives by the whistle-blower and the focal organisation may view this expression as moral or deviant anger.

The complexity of the whistleblowing process, together with possible alternative perspectives of it, makes identifying every influencing variable extremely challenging. Also, reliance on a whistle-blower’s own account of his experience means that recall may be partial or self-serving. The model can be used to analyse other whistle-blower accounts of their experience, and further confirm its applicability.

This is the first application of memoir analysis to a whistle-blower’s account of his experience that relates modes of anger expression to stages in the whistleblowing episode. It addresses a significant imbalance in whistleblowing research that hitherto has emphasised rationality in whistle-blower decision making and downplayed the influence of reflexivity and emotion.

ALTHOUGH the first formal specification for the TSR.2 was formulated in the shape of General Operational Requirement 339, in 1956, the industry and the Royal Air Force had for some time previously been ‘sketching’ the outlines for a Canberra replacement. The English Electric Canberra was designed to specification B.3/45 as a high‐altitude medium bomber and, since its conception, has been produced and operated in a wide range of roles; including bomber, photographic reconnaissance, trainer, night interdictor, and target drone.

The purpose of this paper is to argue for an integrated explanation of financial fraud. Greater emphasis must be placed on the structural and situational factors that are the elements of fraud risks and fraud.

The paper is based on a review of the literature on the explanation of financial fraud. Both micro- and macro-theoretical explanations of fraud were analysed to allow for a broader picture of the types of individuals that were involved in fraud, the rules governing their conduct and the types of law they broke.

The main reason why people commit fraud is that their crime propensity interacts with the elements present in criminogenic environments. Indeed, because most of the research on structural theories of fraud focuses on general criminality, not much has been done in the area of financial fraud. More research needs to be carried out to excavate the subterranean cluster of narrative on fraud risks and fraud.

To address the future contingency of fraud risks, the paper adopted a similar position of prior accounting research on financial crimes. The structural explanation of fraudulent behaviour considers individuals’ actions to be less the result of individual deviance and more the cause of societal forces. Structural theories take into consideration the individual psychology of the offenders and position it to reflect the various realities – institutional, structural and cultural life – they are caught up in. Future research must endeavour to address these concerns.

The manuscript is among a new stream of literature that addresses the structural elements of financial fraud.

Market entry strategies range from foreign direct investment to licensing with varying levels of commitment, risk and opportunity. Exporting products or services is one of the most common of the intermediate market entry strategies. It is typically accomplished through authorized international channels of distribution. However, when significant price differences exist between markets, alternative, parallel channels of distribution are almost certain to arise. These parallel channels, often referred to as gray marketing, are generally legal but unauthorized distribution channels that create an alternative export market entry. After a review of the literature, a case study highlights these complex issues from the perspective of both manufacturer and parallel marketer. The case study provides a tool for evaluating theory and a basis for discussing this important alternative mode of market entry. The case and the discussion which follows also highlight the role of international trade shows as an important element of the marketing mix for entering many foreign markets.

There has been growing concern worldwide regarding audit quality in Japan after the Kanebo and Olympus accounting scandals. The purpose of this paper is to examine the Japanese audit market from 2001 to 2011 to determine whether audit quality differs between Big N and Non-Big N audit firms and whether this difference, if existed, changed during 2007 when the number of big audit firms declined from four to three and the requirements of audit quality became more rigorous.

This study employs a sample of Japanese listed firms from fiscal year 2001 to 2011. Five proxy variables for audit quality are used and the data are analyzed using the propensity score matching method.

The authors show that irrespective of their size, all audit firms in Japan provide the same quality of service, when controlling for client characteristics including keiretsu, foreign sales ratio and bankruptcy risk measured in Japan. Additionally, the results suggest that although only three major audit firms remain in the Japanese audit market after the dissolution of PricewaterhouseCooper’s Chuo-Aoyama firm in 2007, the audit quality difference between Big N and Non-Big N remained unchanged before and after 2007.

The study contributes to the lack of existing empirical evidence on audit quality in Japan, a country characterized with low audit litigation risk and more emphasis on auditor reputation, given the influence of the notable change in Japanese audit market competition from Big 4 to Big 3. The study’s research design contributes to the extant literature by using multiple proxies of audit quality.

THE ATTENTION which has been paid in both the lay and technical press to the Concorde has revealed the many problems associated with the design and construction of aircraft flying at supersonic speeds. They relate to both aerodynamic design and the materials of construction where, particularly for the latter, one of the main influencing factors is the high surface temperature caused by skin friction. In the case of the Concorde which, it is stated, has a mximum speed of Mach 2‐2 and will fly for some 60 per cent of the time at a cruising speed of Mach 2‐1, the airframe can still be made mainly from conventional aluminium alloy as are today's jets. But the surface temperature starts to rise rapidly as speed exceeds Mach 2‐2 and this will mean that before long aluminium alloys will have to be replaced by harder metals with higher weight‐to‐strength ratio, for example titanium or stainless steel alloys. At the same time it is known that surface temperatures will range from, say, minus 65°F to 450°F with some—areas e.g., engine mounts—well above 1000°F.

This chapter adopts Porter’s ‘audit trinity’ approach comprising internal audit, external audit and audit committee to discuss the role auditing can play in the management of corporate fraud.

The chapter maps the historical background of and the developments in external audit as an assurance service, the internal audit function and the audit committee. Based on this, it explains the nature, types and possible causes of corporate fraud within the context of business risk with a view to establishing how auditing can help in managing such frauds.

The chapter highlights the relationships that should exist between the three audit types in order to support a sound internal control system as a tool for preventing and detecting corporate fraud.

The chapter identifies cost, opportunity, connivance and managerial override as factors that could limit the ability of auditing to manage corporate fraud. It also suggests ways of addressing these limitations.

As the current upward trend in IT adoption for corporate operations continue to open new sets of corporate fraud windows, this chapter examines how an entity’s internal controls can be used to prevent and detect these growing fraud schemes.

The chapter’s unique strength is its adoption of a holistic approach to auditing to suggest ways of managing corporate fraud – a novelty in the corporate fraud literature. It is hoped that future research in the area will bring empirical insights to the issues raised and perspectives covered in the chapter.

On show for the first time, a new and unique super lightweight headset to be known as the Minilite will be the main feature of the Amplivox Communications stand at the Paris Salon.