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This paper traces the development of Enron Corp. from a regulated natural gas distribution company to a worldwide energy trading company to its ultimate demise in bankruptcy in December 2001. The paper examines whether Enron should be viewed as an accounting failure, with investors and creditors being severely misled by false financial statements, or whether it was a business failure that was obscured by accounting practices that strained the limits of credibility. It is the contention of this paper that astute financial analysis would have revealed the instability of the Enron business model, thereby alerting investors and creditors to the lack of credit worthiness of the company. At the same time, the paper argues that had there been an appropriate level of transparency in the financial statements, investors and creditors would have been provided with a more realistic view of the company’s financial position and its results of operations, thereby facilitating their ability to assess the viability of the company and avoid their bankruptcy losses.

The aim of this paper is to extend the prior auditing literature by examining audit engagement challenges arising during government tax compliance audits. The prior auditing literature has examined how audit engagement challenges have been resolved through auditor/auditee negotiations.

The empirical evidence for the paper was gathered during a participant observation study conducted by the primary researcher over a period of six years while working as an auditor for the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the US Department of Treasury.

This paper discusses various challenges faced by government auditors and how these challenges were resolved. The path to resolution was not always clearly marked. Resolution depended a great deal on the individual auditor’s judgment, interpretation of the Code of Federal Regulations (CFRs), and the willingness of the auditee to change the methods and techniques they use in operating and reporting wine operations. Materiality was determined by compliance with the regulation criteria [CFRs and the US Code (USC)] – any non-compliance was considered to be material. Resolution of many of the challenges resulted in an increased payments of excise taxes or penalties by the auditee entities. In other cases, the audit agency allowed the auditees to agree to change or amend their practices to correct a violation or a lack of compliance with US federal government regulations. As such, while the difference in the role and status of the government tax compliance auditor as compared with the independent external auditor did not necessarily lead to a different set of audit procedures, the pattern of communications between the auditor and the auditee in a government tax compliance audit were quite different from an external audit of financial statements. The government tax compliance environment is often complex, but the auditor may draw on a number of sources of knowledge and communication: CFRs, USC, Generally Accepted Government Auditing Standards, national audit planning, national experts, winery management, local peers, local government supervision, legal counsel and other auditors.

The primary contribution of the paper lies in the fact that little or no prior research in auditing has been conducted using participant observation as a research methodology. The use of participant observation provides new perspectives on the resolution of audit engagement challenges and auditor/auditee communication and negotiation.

Investigates the negative effect on employee welfare caused by economic decisions taken by corporate managements which they attribute to the adoption of an accounting standard, focusing on the case of McDonnell Douglas Corporation, which ended health‐care benefits for non‐union employees as a result of adopting the Financial Accounting Standards Board′s Statement 106 (FASB 106). It is estimated that the adoption of FASB 106 caused $148 billion in charges to earnings to be recorded by companies in the Standard & Poor′s 500 Index. Despite the large negative effect on earnings, FASB 106 had little or no impact on the economic condition of the affected firms. Nevertheless, managements have taken economic actions that have negatively affected employee welfare, and these actions have been attributed to FASB 106. Some of the hardest hit are employees at older industrial companies with mature workforces hired during the 1950s and 1960s. Some companies ended retirement health plans abruptly, while others required workers and retirees to pay more towards insurance premiums, or prevented new hires from receiving retirement health coverage.

The purpose of this Special Issue of Qualitative Research in Accounting & Management is to focus on qualitative research in accounting from a North American perspective. The goal is to highlight the possibility of greater contributions to qualitative research in accounting from researchers based in North America and to highlight some significant contributions produced by authors in North American universities in the qualitative domain.

The paper is conceptual in nature.

This sample of North American qualitative research in accounting provides an example of some of the different types of qualitative work being done. In most respects the articles are similar to qualitative research being done in other parts of the world. Perhaps the key difference is that the research has been undertaken for the most part by senior researchers who have been able to take some risks with a research paradigm that may not be widely accepted at their universities or they may be fortunate to be located at universities which value such research.

The paper broadens the view of qualitative research to North America where it appears that qualitative research has been relatively undervalued in recent years.

The purpose of this paper is to explore the temporal relationship of information to decision making (based on shared intentions and common desired end‐states) by proposing a moment of temporal convergence when the human perception of events in time, and the time‐depreciating‐value of knowledge in the face of opposition and uncertainty, may map onto a future goal‐state. The concept of temporal convergence was developed to help apply information and knowledge management theory to some of the complex military processes addressed under Network‐Centric Warfare, such as: commander's intent, course of action, situational awareness and self‐synchronisation.

The approach is grounded in a pragmatist philosophy and constructivist epistemology. The argument is intuitive and uses common‐sense examples to elucidate the concepts.

The framework is shown to be useful in describing and reasoning about the knowledge requirements and prerequisites for distributed decision‐making through the sharing of situational knowledge and common intentions, with practical application to the planning and execution of operations. And to the designers of knowledge management systems seeking to address this space, it presents a real and practical challenge that could generate novel temporal approaches to data and information management.

The importance of time and epistemology has been neglected in the knowledge and information management literature, especially in the operational context. Time and knowledge have been conceptualised in conventional knowledge management systems as either “timeless” recordings of procedures, or time‐stamped records of past events and states. This paper explores relatively new conceptions of time‐and‐knowledge, which should be of significance and interest to the wider community.

This investigation/report/reflection was motivated largely by the occasion of the first Centre for Social and Environmental Accounting Research (CSEAR) “Summer School” in North America.¹ But its roots reach down as well to other recent reflection/investigation pieces, in particular, Mathews (1997), Gray (2002, 2006), and Deegan and Soltys (2007). The last of these authors note (p. 82) that CSEAR Summer Schools were initiated in Australasia, at least partly as a means to spur interest and activity in social and environmental accounting (SEA) research. So, too, was the first North American CSEAR Summer School.² We believe, therefore, that it is worthwhile to attempt in some way to identify where SEA currently stands as a field of interest within the broader academic accounting domain in Canada and the United States.³ As well, however, we believe this is a meaningful time for integrating our views on the future of our chosen academic sub-discipline with those of Gray (2002), Deegan and Soltys (2007), and others. Thus, as the title suggests, we seek to identify (1) who the SEA researchers in North America are; (2) the degree to which North American–based accounting research journals publish SEA-related research; and (3) where we, the SEA sub-discipline within North America, might be headed. We begin with the who.

Today's online catalogs typically access machine‐readable records for books, journal titles, and audio‐visual materials, and indicate their circulation status. In the future, the database of these traditional records may be dwarfed by additional databases that will become part of the future electronic library. A few libraries are already experimenting with the addition of other text files to their catalogs. Broad‐band telecommunications networks and supporting technologies are being developed rapidly and will significantly affect the evolution of online catalogs. Growing applications of online catalogs, and network access to them, will require more sophisticated and powerful processing. Six prominent consultants—Joseph Becker, Gayla Kraetsch Hartsough, Raymond DeBuse, Jose‐Marie Griffiths, Rick Richmond, and Wilson Stahl—address these and related issues.

Public organisations face increasing challenges to attract young and highly qualified staff. Previous studies have shown that public service motivation (PSM) is associated with a higher propensity to apply for public sector jobs, but the implications from these findings for the design of the recruitment process are still unclear. The purpose of this paper is to investigate how differently framed recruitment messages (i.e. inspirational and rational) affect perceptions of person-job (PJ) and person-organisation (PO) fit, how these associations are moderated by PSM and how they translate into application intentions.

The authors conducted a survey experiment and tested the hypotheses in a sample of 600 students in Germany. The experimental stimuli were hypothetical job advertisements in which inspirational and rational messages on organisational missions and job tasks were varied.

Results show that recruitment messaging, as mediated by perceived PJ and PO fit, can increase application intentions depending on the framing of the messages. Inspirational framings are more effective in attracting personnel than rational framings, especially when such messages convey specific and extensive information about job tasks. The extent to which recruitment messages translate into perceptions of fit depends, in part, on the level of the applicant’s PSM.

By focusing on recruitment messages and their framings, this study is among the few that explore how human resource management can capitalise on previous findings of research on PSM. The findings have implications for the selection and presentation of information on organisational missions and job tasks in the recruitment process. In a more theoretical vein, results contribute to the emerging consensus on the role of perceived PJ and PO fit in the attraction to public sector jobs. The authors deepen this reasoning by introducing self-discrepancy theory to the field of public management.

Guided by the importance ascribed to the self-cultivation of virtue, the authors examined virtues-centered moral identity (VCMI) as a mediator of the positive relationship between virtuous leadership and several valued personal and organizational outcomes.

Hypotheses were tested using data from 131 leader–subordinate dyads based in the USA and Canada, using the SPSS Statistics Software 27.0 PROCESS Macro v 3.5.

Leaders’ VCMI mediates the positive effects of virtuous leadership (subordinate-rated) on leaders’ moral behavior (subordinate-rated) and their self-rated happiness. Followers’ VCMI mediates the positive effects of virtuous leadership on organizational citizenship (as judged by leaders) and self-rated happiness of followers. Followers’ VCMI did not mediate between virtuous leadership and followers’ moral behavior.

Although participants of this study were from a variety of industries, the sample was based in the USA and Canada; hence, any culture-specific leader behaviors and processes were likely missed. Moreover, some of the relationships examined involved data from the same source such that these associations may have been artificially inflated by common method variance. Even so, in each case, the sources we used (leader and follower) were appropriate to the research question. Nonetheless, for example, to collect Virtuous Leadership Questionnaire (VLQ)-based assessments from other stakeholders (e.g. peers and customers) remains of interest.

A practiced strong sense of VCMI has the potential to short-circuit unethical behavior and contribute to happiness among both subordinates and leaders. VCMI is implicated in the fostering of subordinates’ organizational citizenship as well.

The authors' findings imply that leaders and followers can acquire knowledge structures associated with moral virtues and virtuous acts through formal and informal learning, suggesting an affirmative answer to the question, “Are virtuous acts teachable? This is an important starting point in developing theoretically sound programs for promoting virtuous acts as called for by many scholars and practitioners. The authors' study highlights the importance of virtues-related education because VCMI is likely developed through formal learning.

The authors' VCMI mediation-based findings offer a completely new explanation for the positive functioning of virtuous leadership, which formerly had been grounded in attribution and social learning processes only.