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1 – 10 of 105Domenico Campa, Alberto Quagli and Paola Ramassa
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Abstract
Purpose
This study reviews and discusses the accounting literature that analyzes the role of auditors and enforcers in the context of fraud.
Design/methodology/approach
This literature review includes both qualitative and quantitative studies, based on the idea that the findings from different research paradigms can shed light on the complex interactions between different financial reporting controls. The authors use a mixed-methods research synthesis and select 64 accounting journal articles to analyze the main proxies for fraud, the stages of the fraud process under investigation and the roles played by auditors and enforcers.
Findings
The study highlights heterogeneity with respect to the terms and concepts used to capture the fraud phenomenon, a fragmentation in terms of the measures used in quantitative studies and a low level of detail in the fraud analysis. The review also shows a limited number of case studies and a lack of focus on the interaction and interplay between enforcers and auditors.
Research limitations/implications
This study outlines directions for future accounting research on fraud.
Practical implications
The analysis underscores the need for the academic community, policymakers and practitioners to work together to prevent the destructive economic and social consequences of fraud in an increasingly complex and interconnected environment.
Originality/value
This study differs from previous literature reviews that focus on a single monitoring mechanism or deal with fraud in a broadly manner by discussing how the accounting literature addresses the roles and the complex interplay between enforcers and auditors in the context of accounting fraud.
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Hany Elbardan, Donald Nordberg and Vikash Kumar Sinha
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Abstract
Purpose
This study aims to examine how the legitimacy of internal auditing is reconstructed during enterprise resource planning (ERP)-driven technological change.
Design/methodology/approach
The study is based on the comparative analysis of internal auditing and its transformation due to ERP implementations at two case firms operating in the food sector in Egypt – one a major Egyptian multinational corporation (MNC) and the other a major domestic company (DC).
Findings
Internal auditors (IAs) at MNC saw ERP implementation as an opportunity to reconstruct the legitimacy of internal auditing work by engaging and partnering with actors involved with the ERP change. In doing so, the IAs acquired system certifications and provided line functions and external auditors with data-driven business insights. The “practical coping mechanism” adopted by the IAs led to the acceptance (and legitimacy) of their work. In contrast, IAs at DC adopted a purposeful strategy of disengaging, blaming and rejecting since they were skeptical of the top management team's (TMT's) sincerity. The “disinterestedness” led to the loss of legitimacy in the eyes of the stakeholders.
Originality/value
The article offers two contributions. First, it extends the literature by highlighting a spectrum of behavior displayed by IAs (coping with impending issues vs strategic purposefulness) during ERP-driven technological change. Second, the article contributes to the literature on legitimacy by highlighting four intertwined micro-processes – participating, socializing, learning and role-forging – that contribute to reconstructing the legitimacy of internal auditing.
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Charalampos Alexopoulos, Tariq Ali Said Al-Tamimi and Stuti Saxena
When the repercussions of COVID-19 were being absorbed by the world, the higher educational institutions (HEIs) were conceiving of strategies to run educational institutions on…
Abstract
Purpose
When the repercussions of COVID-19 were being absorbed by the world, the higher educational institutions (HEIs) were conceiving of strategies to run educational institutions on remote basis too, including the challenges linked with the teaching–learning as well as the management and other departmental needs. Leaning itself on the teaching–learning tectonic shifts amid the COVID-19 climes, the study reviews the status of “readiness” of the HEIs in Oman while bearing this in mind that the usage of information and communications technology (ICT) for distance learning and conventional learning has been considered as one of the parameters to judge the “quality” of the HEIs in Oman.
Design/methodology/approach
Documentary analysis alongside an in-depth reading of the quality audit reports sourced from the Oman Academic Accreditation Authority, which are publicly accessible are being referred for driving home the arguments in the study.
Findings
The study concludes that despite the case being in favor of distance learning from early on, the same doesn’t get reflected in the conclusions derived in the research conducted for assessing the teaching–learning mechanisms during the COVID-19 period. Therefore, the HEIs’ “readiness” in terms of ensuring the smooth transitioning to the remote learning pedagogical arrangements for meeting the challenges of the COVID-19 wasn’t efficacious.
Research limitations/implications
The present study may be followed up with an understanding as to how the HEIs of Oman need to incorporate the perspectives of all the concerned stakeholders for the refurbishment of the teaching–learning process, especially in times of contingencies.
Practical implications
Apart from the policy-makers, the management of the HEIs of Oman needs to appreciate the need to be proactive and appreciative of the inclusion of ICT tools and techniques in the mainstream pedagogical settings.
Originality/value
Notwithstanding the emphasis upon the preparedness and readiness for tackling the challenges posed by the COVID-19 for the HEIs in Oman, no study has attempted to delve into the issue succinctly—the present study fills this gap.
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Piotr Rogala, Piotr Kafel and Inga Lapina
The study aims to determine whether audited organizations experience differences between external audits and official controls.
Abstract
Purpose
The study aims to determine whether audited organizations experience differences between external audits and official controls.
Design/methodology/approach
A survey among 100 organic food producers was conducted to explore differences regarding the usability of external audits and official controls. The survey was conducted in 2020 using the computer-assisted telephone interview (CATI) method supplemented by the computer-assisted web interview (CAWI) method. Organizations processing organic farming products in Poland were chosen for the study.
Findings
Three primary benefits associated with external audits and official controls were identified, i.e. (1) enabling and initiating activities related to the improvement of the organization, (2) improving the financial performance of the organization and (3) enhancing credibility. For most organizations, the assessment of these features was at the same level for both external audits and official control. However, if these assessments differed, commercial audits were assessed at a higher level than official controls.
Research limitations/implications
The study is limited to only one specific type of manufacturing organization and one European country.
Originality/value
The literature review shows some conceptual differences between audits and official controls, but the results of this study show that the business environment does not perceive these differences as significant. Thus, the value of the study is reflected in the conclusion that both external audits and official controls are considered useful and credible approaches to monitoring the quality within the organization, which allows us to state that external evaluation is generally seen as an opportunity to improve the performance of the organization.
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Gaetano Matonti, Giuseppe Iuliano and Orestes Vlismas
This study aims to explore the effects of intellectual capital (IC) on the occurrence of a modified audit opinion decision. The authors expect that high IC intensive firms are…
Abstract
Purpose
This study aims to explore the effects of intellectual capital (IC) on the occurrence of a modified audit opinion decision. The authors expect that high IC intensive firms are positively associated with the occurrence of a modified audit opinion since they are associated with an increased business risk and are more likely to exhibit issues concerning their financial health and stability.
Design/methodology/approach
Using a data sample of 423 listed firms from Greece, Italy, Spain and Portugal over a 10-year period, the authors estimated a logistic regression model to examine the effects of IC on the probability that a modified audit opinion is issued. The authors used organizational capital as a measure of a firm’s intensity on IC.
Findings
Empirical findings indicate a significant and positive relationship between the IC and the likelihood of a firm receiving a modified audit opinion decision.
Originality/value
This study expands prior literature by exploring the predictive ability of IC on the likelihood of a firm receiving a modified audit opinion decision.
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Javier Andrades, Domingo Martinez-Martinez and Manuel Larrán
Relying on institutional theory and Oliver’s (1991) strategic responses framework, the purpose of this paper is to investigate the different strategies adopted by Spanish public…
Abstract
Purpose
Relying on institutional theory and Oliver’s (1991) strategic responses framework, the purpose of this paper is to investigate the different strategies adopted by Spanish public universities to respond to institutional pressures for sustainability reporting.
Design/methodology/approach
Data were collected from a variety of sources, such as a series of email-structured interviews with key personnel from universities, a qualitative analysis of sustainability reports and a consultation of the website of each Spanish public university.
Findings
The findings reveal that Spanish public universities have responded to institutional pressures for sustainability reporting by adopting acquiescence, compromise, avoidance and defiance strategies. The variety of strategic responses adopted by Spanish public universities suggests that these organizations have not fully adhered to institutional pressures.
Practical implications
The results of this paper would be useful for practitioners since it tries to demonstrate whether universities, which are facing increasing institutional pressures and demands from stakeholders, have been developing sustainability reporting practices.
Social implications
Universities have a remarkable social impact that could be used to promote sustainability practices. This paper investigates how these organizations can contribute to sustainability reporting as they should reproduce social norms.
Originality/value
The sustainability reporting context is in a phase of change. This paper tries to contribute to the accounting research by analyzing the extent to which universities are engaged in sustainability reporting. Relying on these premises, Oliver’s (1991) framework might be an insightful theoretical perspective to examine the responses provided by universities to institutional pressures.
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This paper examines the organizational resilience of audit firms during the early stages of COVID-19. The unexpected restrictions placed on travel and on-site working created…
Abstract
Purpose
This paper examines the organizational resilience of audit firms during the early stages of COVID-19. The unexpected restrictions placed on travel and on-site working created unanticipated barriers for auditors in Hong Kong. The authors expect that auditors with greater organizational resilience can respond to unexpected situations and restore expected performance levels relatively quickly.
Design/methodology/approach
The authors utilize a sample of 1,008 companies listed on Hong Kong Stock Exchange (HKEX) with a financial year-end of December 31. The authors identify five proxies contributing to organizational resilience: auditor size, industry specialization, diversity, geographic proximity to the client and auditing a new client. The authors use audit report timeliness as this study's main dependent variable.
Findings
This study's full-sample results suggest that larger auditors, industry specialists and auditors with closer relationships to clients issued more timely audit reports during the pandemic. The analysis of a subsample of companies that initially published unaudited financial statements reveals that industry expertise and longer auditor-client relationships significantly reduced the need for year-end audit adjustments. Finally, the authors find that larger auditors were more likely to offload clients, whereas industry specialists were more likely to retain clients.
Research limitations/implications
The results of the paper suggests that audit firm characteristics associated cognitive abilities, behavioral characteristics and contextual conditions are associated with audit firm organizational resilience and, consequently, helps auditors respond unexpected changes in the audit environment.
Practical implications
The findings of the paper are informative for those involved in audit firm management or auditor hiring and retention decisions.
Originality/value
This study is the first to link organizational resilience to the performance of audit firms in a time of unexpected events. The authors connect three auditor and two auditor-client dimensions to the organizational resilience of the audit firms.
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Mika Luhtala, Olga Welinder and Elina Vikstedt
This study aims to investigate the adoption of the United Nations’ Sustainable Development Goals (SDGs) as the new performance perspective in cities. It also aims to understand…
Abstract
Purpose
This study aims to investigate the adoption of the United Nations’ Sustainable Development Goals (SDGs) as the new performance perspective in cities. It also aims to understand how accounting for SDGs begins in city administrations by following Power’s (2015) fourfold development schema composed of policy object formation, object elaboration, activity orchestration and practice stabilization.
Design/methodology/approach
Focusing on a network of cities coordinated by the Finnish local government association, we analyzed the six largest cities in Finland employing a holistic multiple case study strategy. Our data consisted of Voluntary Local Reviews (VLRs), city strategies, budget plans, financial statements, as well as results of participant observations and semi-structured interviews with key individuals involved in accounting for SDGs.
Findings
We unveiled the SDG framework as an interpretive scheme through which cities glocalized sustainable development as a novel, simultaneously global and local, performance object. Integration of the new accounts in city management is necessary for these accounts to take life in steering the actions. By creating meaningful alignment and the ability to impact managerial practices, SDGs and VLRs have the potential to influence local actions. Our results indicate further institutionalization progress of sustainability as a performance object through SDG-focused work.
Originality/value
While prior research has focused mainly on general factors influencing the integration of the sustainability agenda, this study provides a novel perspective by capturing the process and demonstrating empirically how new accounts on SDGs are introduced and deployed in the strategic planning and management of local governments.
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Abdelmajid Ibenrissoul, Zakaria Benjouid and Souhaila Kammoun
The purpose of the study is to evaluate the compliance of environmental risk management systems implemented by Moroccan banks with ISO 14001 certification or environmental…
Abstract
Purpose
The purpose of the study is to evaluate the compliance of environmental risk management systems implemented by Moroccan banks with ISO 14001 certification or environmental charters.
Design/methodology/approach
Data were collected through the distribution of an environmental risk management questionnaire to all Moroccan banks’ branches, business centers and various central entities. The study uses regression analysis to model the relationship between environmental management system (EMS) compliance and environmental management explanatory variables to identify the most relevant indicators that can explain the effectiveness and reliability of an EMS.
Findings
Empirical evidence reveals that the evaluation of EMS compliance in Moroccan banks should consider two categories of variables: the first category is related to the culture of environmental risk management, and the second one is related to environmental management practices.
Originality/value
The results show that the “information” variables play a key role in the overall design of an EMS and represent essential variables in the general definition of the environmental policy and in raising awareness and providing information on the bank’s commitment to a pro-environmental approach. The “application” variables confirm that environmental management practices need to be put in place to manage the different environmental risks. The study raises some managerial implications and further research directions.
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Niluthpaul Sarker and S.M. Khaled Hossain
The study aims to investigate the influence of corporate governance practices on enhancing firm value in manufacturing industries in Bangladesh.
Abstract
Purpose
The study aims to investigate the influence of corporate governance practices on enhancing firm value in manufacturing industries in Bangladesh.
Design/methodology/approach
The study sample consists of 131 companies from 10 manufacturing industries listed in Dhaka stock exchange (DSE). Using the multiple regression method, the study analyzed 1,193 firm-year observations from 2012 to 2021.
Findings
The outcome reveals that managerial ownership, foreign ownership, ownership concentration, board size, board independence, board diligence and auditor quality have a significant positive influence on firm value. In contrast, audit committee size has no significant influence on firm value.
Originality/value
The practical implications of the current study demonstrated that good corporate governance creates value and must be invigorated for the interest of all stakeholders. Policymakers should formulate specific guidelines regarding firms' ownership structure and audit quality issues.
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