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1 – 10 of over 7000
Article
Publication date: 21 March 2008

Diane Janvrin

This research seeks to examine whether two relevant characteristics, source objectivity and internal control effectiveness, influence how auditors evaluate evidence items…

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Abstract

Purpose

This research seeks to examine whether two relevant characteristics, source objectivity and internal control effectiveness, influence how auditors evaluate evidence items supporting accounting estimates.

Design/methodology/approach

A controlled experiment approach with a sample of 24 auditors from one large international firm.

Findings

Results indicate that effective internal controls reduce the impact of relying on internal as opposed to external evidence items. Results also suggest that auditors place reliance on internal control effectiveness when they evaluate external evidence items.

Practical implications

Recent professional trends, such as the demand for faster financial reporting, put pressure on auditors to rely on internal rather than more persuasive external evidence items. Relying on less persuasive evidence items reduces audit effectiveness. Auditors may respond by examining a second evidence characteristic; US audit standards suggest evaluating internal control effectiveness if evidence was generated from internal (i.e. client) sources. Thus, this study explores whether internal control effectiveness reduces the impact of relying on evidence items with lower source objectivity.

Originality/value

Prior research has concentrated on examining the impact of a change in one evidence characteristic on audit judgment; this study expands the understanding of the evidence evaluation process by exploring how auditors evaluate multiple evidence characteristics. Furthermore, as suggested by Bonner, this research identifies an audit judgment deficiency (i.e. reliance on less persuasive internal evidence due to the demand for faster financial reporting) and examines one potential remedy (i.e. consideration of internal control effectiveness).

Details

Managerial Auditing Journal, vol. 23 no. 3
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 24 November 2015

Eldar Maksymov

I synthesize the extant experimental literature examining auditor evaluation of others’ credibility published in six top accounting journals over the last three-and-a-half…

Abstract

I synthesize the extant experimental literature examining auditor evaluation of others’ credibility published in six top accounting journals over the last three-and-a-half decades. I adapt the original definition of credibility by Hovland, Janis, and Kelley (1953): the extent of perceiving someone as competent and trustworthy. Audit guidance requires auditors to consider credibility of management, internal auditors, and staff, yet the research literature on auditor evaluation of others’ credibility is fragmented and scarce, limiting our understanding of determinants and consequences of auditor evaluations. I develop a framework for analysis of research on auditor evaluation of others’ credibility and review extant literature by types of examined effects (determinants of credibility vs. consequences of credibility) and by examined credibility components (competence, trustworthiness, or both). Throughout the literature review I suggest areas for future research.

Details

Journal of Accounting Literature, vol. 35 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

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

Article
Publication date: 1 January 2008

El‐Hussein E. El‐Masry and Kathryn A. Hansen

The purpose of this study is to develop a taxonomy of the major factors that influence auditors' selection and assessment of evidential cues. A discussion of how future…

2479

Abstract

Purpose

The purpose of this study is to develop a taxonomy of the major factors that influence auditors' selection and assessment of evidential cues. A discussion of how future research can help extend the taxonomy is also offered.

Design/methodology/approach

A literature review of prior research on auditors' utilization of evidential cues is introduced, followed by a summary taxonomy of the variables influencing this decision. Then, an exploration of future research directions is introduced.

Findings

A four‐category taxonomy is designed. Auditors' decision to incorporate a certain piece of evidence is a function of one or more categories of factors: individual, environmental, task related, or related to the nature of the cues. With its emphasis on audit quality, and thus on enhanced evidence gathering, the Sarbanes‐Oxley Act (SOX) has the potential to alter and/or expand the structure of the proposed taxonomy.

Research limitations/implications

The taxonomy is based mainly on prior research in accounting and auditing. Incorporating other research on evidence selection and utilization from human behavior and human psychology may enhance the model.

Originality/value

The paper integrates into a model a large body of research on evidential cue selection and use in auditing. The taxonomy is a convenient starting point for researchers attempting to locate prior research in this area. Additionally, the taxonomy is an important guideline for audit partners and managers when planning an audit for two reasons. First, it sheds the light on many variables audit partners and managers need to consider when assigning audit tasks to audit team members with various levels of expertise. Second, it explores the impact of the SOX on current evidence collection practices in auditing.

Details

Managerial Auditing Journal, vol. 23 no. 1
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 18 July 2022

M. Rosario González-Rodríguez, M. Carmen Díaz-Fernández, Anil Bilgihan, Fevzi Okumus and Fangfang Shi

This study aims to investigate the relationships between electronic word of mouth (eWOM) source credibility, perceived risk and information usefulness and how they…

Abstract

Purpose

This study aims to investigate the relationships between electronic word of mouth (eWOM) source credibility, perceived risk and information usefulness and how they influence tourists’ destination visit intention and online review involvement.

Design/methodology/approach

Data for this quantitative study were collected via an online survey from 460 participants and analyzed using a partial least squares analysis.

Findings

All four dimensions of eWOM source credibility reduce travelers’ perceived risk associated with destination visits, among which homophily has the greatest influence. Lower levels of perceived risk are associated with higher perceived information usefulness, thus boosting tourists’ eWOM involvement and intention to visit a destination.

Practical implications

Results offer practical implications for how the tourism industry can exploit eWOM as an information source that consumers frequently consult. The results are also valuable for Destination Marketing Organizations, allowing them to determine what type of information promotes positive tourist attitudes and behaviors toward destinations.

Originality/value

To the best of the authors’ knowledge, this study is one of the first studies to examine the interaction between eWOM credibility, perceived risk and information usefulness and their effect on consumer behaviors in the tourism context.

eWOM 来源可信度对目的地访问意愿和在线参与的影响:以中国游客为例

研究目的

本研究调查了 eWOM 来源可信度、感知风险和信息有用性之间的关系, 以及它们如何影响游客的目的地访问意图和在线评论参与度。

研究设计/方法/途径

这项定量研究的数据是通过对 460 名参与者的在线调查收集的, 并使用偏最小二乘法分析。

研究发现

eWOM 来源可信度的所有四个维度都降低了旅行者与目的地访问相关的感知风险, 其中同质性影响最大。较低的感知风险水平与较高的感知信息有用性相关, 从而提高游客的 eWOM 参与度和访问目的地的意愿。

实践意义

本研究结果为旅游业如何利用 eWOM 作为消费者经常咨询的信息源提供了实际意义。结果对 DMO 也很有价值, 使他们能够确定哪些类型的信息可以促进游客对目的地的积极态度和行为。

研究原创性/价值

本论文是首批研究 eWOM 可信度、感知风险和信息有用性之间的相互作用及其对旅游背景下消费者行为的影响的研究之一。

Details

Journal of Hospitality and Tourism Technology, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1757-9880

Keywords

Article
Publication date: 1 March 2003

Christie L. Comunale, Thomas R. Sexton and Stephen C. Gara

The efficiency and the effectiveness of the audit depend in part on the efficiency and the effectiveness of the client inquiry process. This paper presents a model that…

1426

Abstract

The efficiency and the effectiveness of the audit depend in part on the efficiency and the effectiveness of the client inquiry process. This paper presents a model that helps auditors to understand the stages of the client inquiry process and the factors that influence its reliability. The model serves to illuminate the client inquiry process and thereby assist auditors in evaluating the evidence thus obtained. Our model is a multistage communication channel that connects reality, the client’s perception of reality, the client’s representation of reality, the auditor’s perception of reality, and the auditor’s representation of reality. Distortions of reality occur between adjacent stages as the result of the subjectivity, technical incompetence, untrustworthiness, and poor presentation skills of either the client or the auditor. We discuss our model in the context of the analytical review task.

Details

Managerial Auditing Journal, vol. 18 no. 2
Type: Research Article
ISSN: 0268-6902

Keywords

Book part
Publication date: 11 November 2019

Chris Gentilviso and Deb Aikat

The post-millennial or Generation Z constitutes people born in 1997 or after. This study theorizes how news consumption habits of the post-millennial generation are…

Abstract

The post-millennial or Generation Z constitutes people born in 1997 or after. This study theorizes how news consumption habits of the post-millennial generation are reshaping the news. As the newest generation of media users, Generation Z or the post-millennials, comprising people born in 1997 or after, will inherit the millennial legacy. Generation Z has embraced the visual, verbal, and viral aspects of digital and social media platforms. They rarely engage with traditional news sources, which they deem as nearly extinct.

Based on 2019 meta-analytical research review of 16 key studies (published between 2017 and 2019) of media consumption habits of post-millennials, this research study delineates news consumption habits of post-millennials. It theorizes how this new generation of media users are embracing the visual, verbal, and viral media to reshape news content. The propensity of the post-millennials to participate in the news cycle shapes their rapidly changing preferences and usage patterns.

Over the years, news consumption has varied among different age groups. Newspapers and television were popular with the Silent generation, comprising people born between 1928 and 1945. The Internet significantly transformed media use among baby boomers, the generation born between 1946 and 1964, and Generation X, which constitutes people born between 1965 and 1980. The rise of social media has significantly transformed media use of millennials or Generation Y, born between 1981 and 1996. They were the first generation to come of age in the new millennium.

Unlike Generation X and boomers, the post-millennials or Generation Z sparsely engage with traditional news sources they deem as nearly extinct, including print media such as newspapers and magazines. They rarely watch television news or listen to radio. They report different news values with less concern about accuracy and more attention toward entertainment and interaction.

Article
Publication date: 15 May 2009

Candice Dahl

This paper seeks to suggest that criteria commonly used to teach undergraduates to evaluate online resources are inadequate when dealing with non‐academic items in the…

1614

Abstract

Purpose

This paper seeks to suggest that criteria commonly used to teach undergraduates to evaluate online resources are inadequate when dealing with non‐academic items in the public domain. It aims to argue that these resources should not be ignored by librarians or undergraduates, but that they must still be evaluated. An alternative method of evaluation, based on the concepts of comparison, corroboration, motivation and purpose is to be proposed.

Design/methodology/approach

Inadequacies of current evaluative standards are revealed, specifically in relation to the current context of how and where undergraduates conduct research. Drawing on Meola's contextual framework for evaluation, as well as the thoughts of Metzger, ways to handle the evaluation of non‐academic resources online emerge.

Findings

Librarians must consider the place of non‐academic public domain items in current undergraduate research projects, and the challenges these items pose to common guidelines for the evaluation of sources. Evaluation methods must be rethought and based on a more context‐specific approach in order to be relevant when working with non‐academic resources online.

Originality/value

Librarians who focus mainly on the “peer‐reviewed” designation or other standard evaluative criteria to help students determine what an appropriate research resource is, and who are unsure of how to guide students in their use of non‐academic public domain items, will find here suggestions to guide their thinking and inform their practices.

Details

Reference Services Review, vol. 37 no. 2
Type: Research Article
ISSN: 0090-7324

Keywords

Book part
Publication date: 10 August 2005

Christie L. Comunale, Thomas R. Sexton and Terry L. Sincich

This chapter introduces linguistic delivery style to auditing research, demonstrates how linguistic delivery style relates to client credibility, and shows how linguistic…

Abstract

This chapter introduces linguistic delivery style to auditing research, demonstrates how linguistic delivery style relates to client credibility, and shows how linguistic delivery style and client credibility influences auditors’ judgment. Two hundred auditors participated in an analytical procedures task. The results indicate that high client credibility and powerful linguistic delivery style increase the auditor's assessed likelihood that the explanation accounts for the fluctuation and decrease their intent to perform additional testing. Moreover, powerless linguistic delivery style from an otherwise high credibility client leads to auditor judgments and intentions that are indistinguishable from those that arise from a low credibility client. Finally, evidence indicates that linguistic delivery style is a fourth component of credibility.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-0-76231-218-4

Article
Publication date: 5 October 2012

Travis P. Holt

The purpose of this paper is to assess whether internal audit role and reporting relationships affect investor perceptions of disclosure credibility.

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Abstract

Purpose

The purpose of this paper is to assess whether internal audit role and reporting relationships affect investor perceptions of disclosure credibility.

Design/methodology/approach

The experiment involved a 2 × 2 design with internal audit role and reporting relationship randomly assigned among 84 MBA students serving as proxies for nonprofessional investors.

Findings

The results indicate that participants perceived disclosure credibility to be significantly higher when the Chief Audit Executive reported functionally to the audit committee and administratively to the CEO (versus both strategically and administratively to the CFO). The results reveal no significant differences in perceived disclosure credibility from the differing audit roles (i.e. primarily assurance versus primarily consulting).

Originality/value

The findings contribute to the internal audit and corporate governance literatures by providing further evidence of the importance of internal audit in investor judgement and decision making.

Details

Managerial Auditing Journal, vol. 27 no. 9
Type: Research Article
ISSN: 0268-6902

Keywords

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