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1 – 10 of 56The purpose of this paper is to examine whether comments made by Big‐Six auditors about their post‐audit perceptions of the client's integrity were influenced by their firm's…
Abstract
Purpose
The purpose of this paper is to examine whether comments made by Big‐Six auditors about their post‐audit perceptions of the client's integrity were influenced by their firm's rating of the client's integrity prior to the start of the current audit.
Design/methodology/approach
The paper uses an established fraud detection case study with a manipulation of client integrity. The participants include 152 managers and 342 seniors from five of the then Big‐Six firms.
Findings
The findings indicates that auditors were insensitive to client integrity ratings in the audit planning/risk assessment stage of the audit.
Practical implications
The very foundation of corporate governance and the value of the audit are weakened when client integrity is questionable and may not result in implementing more rigorous audit procedures suggested by Mautz and Sharaf.
Originality/value
The existent literature cannot be used to determine whether or not Auditing Standards enacted since 1991 have had any effect on the practice of auditing in this area. Consequently, this paper contributes to the literature by establishing a 1991 (i.e. before Statement of Auditing Standards 82) baseline for evaluation purposes. (A baseline being a point of reference to compare the results of future research.)
Madeline N. Neuberger, Richard A. Bernardi, Susan M. Bosco and Erynne E. Landry
The purpose of this study is to extend Landry et al.’s (2016) work and examines the possible association between corporations having three or more female directors and these…
Abstract
Purpose
The purpose of this study is to extend Landry et al.’s (2016) work and examines the possible association between corporations having three or more female directors and these companies being features on corporate recognition lists.
Design/methodology/approach
This study examines a sample of 335 corporations ranked as Fortune 500 corporations in the period 2013–2019. The authors test for the association between the percent of corporations that had three or more female directors and the percent of these corporations on external recognition lists.
Findings
The data indicate that the percent of corporations with three or more female directors more than doubled between 2013 and 2019; this change was accompanied by an increase in the percent of presence of these companies in corporate recognition lists. The percent of corporations that had three or more female directors was significantly associated with the percent of these corporations on external recognition lists.
Research limitations/implications
The first is the sample selection process; this study used only publicly traded corporations that were included in the Fortune 500 between 2013 through 2019. The second limitation is that this study did not include data on board members considered minorities.
Practical implications
The findings imply that there is a strong link between gender diversity on boards and being featured on corporate recognition lists, which means that firms who care about corporate social responsibility-related works, and more instrumentally, care about being on such lists should reconsider the gender balance on their boards.
Originality/value
This study extends this work for a time period in which the number of corporations with three or more female directors has significantly increased.
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Richard A. Bernardi, Taylor L. Delande and Kimberly A. Zamojcin
The purpose of this paper is to examine the trends in accounting-education publications and the influence of journal rankings for authors from Australia, Canada, New Zealand and…
Abstract
Purpose
The purpose of this paper is to examine the trends in accounting-education publications and the influence of journal rankings for authors from Australia, Canada, New Zealand and the UK.
Design/methodology/approach
The authors included the publications in ten accounting-education journals for the 20-year period from 1993 to 2012.
Findings
The data provide insights into the perceptions of accounting-education journals by authors from four countries. The authors found that, while the use of Accounting Education as a publication outlet for accounting authors from Australia and the UK was relatively stable, the use of Accounting Education as a publication outlet increased (decreased) for the accounting authors from New Zealand (Canada). The authors also found that, while coauthoring by the accounting authors from Australia and the UK increased slightly, coauthoring by the accounting authors from Canada and New Zealand increased during the 20-year period.
Research limitations/implications
The data suggests a tendency by the authors from these four countries to publish their accounting-education research in journals that had been ranked as a top accounting journal.
Originality/value
This paper is the first paper to consider trends in international accounting-education publications. The data in this research can be used by accounting faculty wishing to assess which journals their colleagues publish in most frequently.
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Richard A. Bernardi and Karen V. Pincus
Researchers and practitioners have long debated the arguments in favor of and against providing specific mathematical materiality guidelines in auditing standards. Yet, there is…
Abstract
Researchers and practitioners have long debated the arguments in favor of and against providing specific mathematical materiality guidelines in auditing standards. Yet, there is little empirical evidence about the relationship between materiality thresholds and audit risk judgments in the absence of such guidelines. In this study, 152 Big Six managers evaluated materiality and risk for an audit simulation based on an actual case where material fraud was undetected. The auditor subjects were allowed to choose the evidence they would examine before reaching a decision. The major findings of the study are that while auditor materiality judgments differ, these differences were not statistically significantly related to either fraud risk judgments or the amount of evidence the auditors chose to examine before rendering their judgments. This empirical evidence does not support the need for specific quantitative guidance in accounting standards related to materiality. However, other considerations (such as concern for legal liability) could also have an impact on the advisability of providing specific quantitative guidance for setting materiality thresholds.
Richard A. Bernardi, David F. Bean and Kristen M. Weippert
This research examines the differences in presentation of boards of directors in annual reports. Our sample consists of 472 corporations from the Fortune 500; 130 (342) of these…
Abstract
This research examines the differences in presentation of boards of directors in annual reports. Our sample consists of 472 corporations from the Fortune 500; 130 (342) of these corporations included (did not include) pictures of their boards of directors. The proportion of female directors was 11.0 percent for firms that did not include pictures of their boards and 14.5 percent for firms that included pictures of their boards in their annual reports. The difference in the gender mix of these two groups is significant (p = 0.0002). This indicates that firms with a higher percentage of women on their boards signal this fact to stockholders, investors, and other constituents by including pictures of their boards in their annual reports.
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John Dumay, Cristiana Bernardi, James Guthrie and Matteo La Torre
This paper is motivated by the call for feedback by the International Integrated Reporting Council (IIRC) from all stakeholders with knowledge of the International Integrated…
Abstract
Purpose
This paper is motivated by the call for feedback by the International Integrated Reporting Council (IIRC) from all stakeholders with knowledge of the International Integrated Reporting Framework (<IRF>) and specifically of the enablers, incentives and barriers to its implementation. The paper synthesises insights from contemporary accounting research into integrated reporting (IR) as a general concept and <IR> as espoused by the IIRC in the <IRF> (IIRC, 2013). The authors specifically focus on possible barriers and emphasise the specific issues the authors feel could be rectified to advance the <IRF>, along with the areas that may potentially hinder its wider adoption and implementation.
Design/methodology/approach
The paper draws upon and synthesises academic analysis and insights provided in the IR and <IR> academic literature as well as various directives, policy and framework pronouncements.
Findings
The flexibility and lack of prescription concerning actual disclosures and metrics in the <IRF> could allow it to be used for compliance, regardless of the other benefits lauded by the IIRC. Thus the authors see forces, both external and internal, driving <IR> adoption, with one prominent example being the European Union Directive on non-financial reporting. Because of the different ways in which IR is understood and enacted, there are numerous theoretical and empirical challenges for academics. The authors paper highlights potential areas for further robust academic research and the need to contribute to <IR> policy and practice.
Research limitations/implications
The paper provides the IIRC, academics, regulators and reporting organisations with insights into current practice and the <IRF>. The authors highlight the need for further development and evidence to help inform improvements both from a policy and a practice perspective. A key limitation of the authors’ work is that the authors draw upon a synthesis of the existing literature which is still in an early stage of development.
Originality/value
The paper provides the IIRC with several insights into the current <IRF> and specifically with the enablers, incentives and barriers to its implementation. Also, it provides academic researchers with a number of important observations and an agenda upon which the authors can build their future research.
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The following is a complete list of World's Records as officially homologated by the Fédération Aéronautique Internationale up to June 30, 1929
Paul Andon, Clinton Free and Benjamin Scard
– The purpose of this paper is to explore pathways to fraud perpetrated in accounting-related roles, focusing both on situationally driven attitudes and contextual elements.
Abstract
Purpose
The purpose of this paper is to explore pathways to fraud perpetrated in accounting-related roles, focusing both on situationally driven attitudes and contextual elements.
Design/methodology/approach
Drawing on an anomie-based criminological taxonomy developed by Waring et al. (1995) and Weisburd and Waring (2001), which highlights individual attitudes and situational elements and their connection to illegitimate behaviour, the authors perform a qualitative content analysis of available media and court-reported information on a hand-collected database of 192 accountant frauds in Australia during the period 2001-2011.
Findings
The analysis highlights four distinct pathways to accountant fraud – crisis responders, opportunity takers, opportunity seekers and deviance seekers – and the relative distribution of identified cases among these pathways. It also identifies the prevalence of gambling, female offenders, small and medium enterprises as victims, as factors in fraud, as well as the relatively unsophisticated methods in much accountant fraud. In addition, it establishes the importance of situational attitude in moderating inherent character as it relates to fraudulent behaviour and the variable importance of the fraud triangle elements across the pathways to accountant fraud.
Originality/value
This paper provides direct evidence on the nature and pathways to accountant fraud, thus improving understanding of a significant category of occupational fraud. The evidence challenges conventional characterisations of accountant fraud offenders in prior research.
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Richard T.R. Qiu, Brian E.M. King, Mei Fung Candy Tang and Tina P. Fan
This study aims to progress scholarly understanding of the staycation phenomenon by examining customer segments and documenting local customers’ attribute preferences.
Abstract
Purpose
This study aims to progress scholarly understanding of the staycation phenomenon by examining customer segments and documenting local customers’ attribute preferences.
Design/methodology/approach
A stated choice experiment is used to examine customer preferences for staycation package attributes. Latent class discrete choice modeling is deployed to classify customers into market segments based on their preferences. The profile of each segment is enhanced by documenting customer characteristics and consumption styles.
Findings
Six prominent market segments are identified using a combination of sociodemographics, consumption styles and staycation attribute preferences. The findings draw on consumer experiences during the COVID-19 pandemic to generate theoretical insights into preferred staycation packages. Empirically, the estimation results from the research framework and choice experimental method demonstrate that staycation market segments exhibit distinct preference structures.
Research limitations/implications
Practitioners and policymakers can incorporate the findings of this study in designing and/or assessing staycation packages. This can ensure differentiated products for defined segments that resonate within local communities through positive word of mouth, thus offering prospective spillovers to visiting friends and relatives.
Originality/value
This is a pioneering study on preference heterogeneity from the customer perspective, with a focus on staycation markets. The findings can encourage and assist hotel sector leaders to capitalize on local market developments to achieve a more resilient hospitality business model.
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This paper addresses a fundamental issue in financial regulation ‐ that of the auditor’s ability to detect material irregularities. If an auditor is to detect irregularities…
Abstract
This paper addresses a fundamental issue in financial regulation ‐ that of the auditor’s ability to detect material irregularities. If an auditor is to detect irregularities he/she must also be cognisant of fraud aetiology by drawing on such other disciplines as psychology, criminology and sociology. The paper first provides a critique of existing fraud aetiology models and then describes the ROP Fraud Risk‐Assessment Model constructed by the author in a study of convicted serious fraud offenders in Australia. The main concern of the paper is with the eclectic fraud detection model (EFD), of which the ROP model is a component. The EFD model is aimed at enhancing the auditor’s fraud detection ability, it has been constructed by the author and its utility successfully tested in Australia in a survey of auditors. Finally, the policy implications for auditors of the findings obtained are also considered.
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