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This paper aims to introduce the emerging artificial-intelligence-based readability metrics (Coh-Metrix) to examine the effects of firm size on audit proposal readability.

Coh-Metrix readability measures use emerging computation linguistics technology to better assess document readability. These metrics measure co-relations of words, sentences and paragraphs on multi-dimensions rather than adopting the unidimensional “bag of words” approach that examines words in isolation. Using eight Coh-Metrix orthogonal principal component factors, the authors analyze the Chang and Stone (2019) data set comprised of 370 hand-collected audit proposals submitted by audit firms for the US state and local governments’ audit service contracts.

Audit firm size has a significant impact on the readability of audit proposals. Specifically, as measured by the traditional readability metric, the proposals from smaller firms are more readable than those submitted by larger firms. Furthermore, decomposed readability metrics indicate that smaller firm proposals evidence stronger (deep) text cohesion, whereas larger firm proposals evidence a stronger narrative structure and higher connectivity (relational indicators) among proposal elements. Unlike the traditional readability metric, however, the emergent readability metrics are uncorrelated with auditor selection.

Work remains to develop and validate Coh-Metrix measures that are specific to the context of accounting and auditing practice. Future research can use emerging readability measures to examine various textual features (e.g. text cohesion) in finance or accounting related documents.

The results provide practitioners with insight into the proposal writing strategies and practices of larger and smaller firms. In addition, the results highlight the differing audit firm selection outcomes from traditional and Coh-Metrix readability metrics.

This study introduces new data and holistic readability measures to the auditing literature.

This paper aims to examine the effects of firm size on audit proposal readability and audit proposal readability on auditor selection using readability metrics.

Adopting the Flesch reading ease readability formula, the authors analyze the readability of 370 hand-collected audit proposals submitted by audit firms for US state and local governments’ audit service contracts.

The authors find differences in readability across audit firm size, specifically the proposals written by smaller firms are more readable than those submitted by larger firms. The results further indicate that readability metrics correlate with auditor selection, i.e. an increase in audit proposal readability from the first to third quartile improves the likelihood of a firm winning the engagement by about 6 per cent, ceteris paribus. In addition, while audit fees and an existing auditor–client relationship are associated with engagement success, proxies for audit quality (i.e. audit firm size, audit experience of lead partner) are not.

The Flesch reading ease measure is a simple linear combination of text attributes, which assumes that readability is a single, unidimensional construct. Simple readability metrics, such as the Flesch reading ease, may confound environmental complexity with readability.

Readability improves audit proposal success.

The results provide insight to accounting stakeholders regarding the potential influence of readability on audit firm selection. In short, readability matters.

The purpose of this paper is to propose an indexing and teaching focus mining system for lecture videos recorded in an unconstrained environment.

By applying the proposed algorithms in this paper, the slide structure can be reconstructed by extracting slide images from the video. Instead of applying traditional shot‐change detection methods for general videos, a new edge‐based shot‐change detection algorithm is designed specifically for lecture videos. Besides, light influence and occlusions in the lecture video can be removed to obtain more accurate results. Moreover, the teaching focus can be extracted according to instructors' behavior based on the analyses of visual and audio information extracted from the lecture video.

Experiment results show the feasibility of the proposed method, that is, the slide shots can be correctly detected even if the illumination conditions are variant or the slides are obstructed by the instructor or students, and the teaching focus can be extracted to provide learners with an efficient way to study.

This paper provides only technical experiments, but lacks complete educational study. In the future, more subjective tests will be designed to examine the educational effects on students.

This paper proposes a practical indexing and teaching focus mining system for lecture videos which can help students learn.

The proposed algorithms for indexing and teaching focus mining are derived and applied in lecture videos in this paper.

This paper aims to investigate the relation between audit firms’ switch to limited liability partnership (LLP) from limited liability company (LLC) and client firms’ earnings comparability. If LLP auditors, who have a higher liability exposure than LLC auditors, are more consistent in implementing generally accepted accounting principles and executing firm-wide audit methodologies, client firms’ earnings comparability will increase.

Using data from China, the authors examine whether client firm-pairs of LLP auditors have higher earnings comparability than client firm-pairs of LLC auditors. The authors also perform cross-sectional tests to shed light on the mechanisms through which auditors’ litigation exposure affects client firms’ comparability.

The authors find that firm-pairs in which both firms are audited by LLP auditors exhibit higher earnings comparability than other firm-pairs. This result is stronger when client firms are audited by the same auditor, when client firms are audited by the top 10 auditors and when the auditors are less dependent on the client firms. The authors also document that firm-pairs in which both firms are audited by LLP auditors have lower average analyst earnings forecast error and forecast dispersion.

To the best of the author’s knowledge, this study is the first to examine the relation between auditor’s litigation exposure and client firms’ earnings comparability. It also extends the literature on audit firm organizational form and audit quality.

As the application of gamification is gaining great attention and has grown increasingly, thousands of these applications can be easily obtained from mobile phone stores, thus causing intensified competition and discontinuance of use accordingly. Besides, though understanding what factors influence the discontinuance of use of information systems (ISs) is critical for theoretical as well as practical reasons, studies pertaining to the saliency of the final phase, termination of an IS, are still limited. As such, the purpose of this paper is to propose a holistic view to fulfill the above-mentioned research gaps based on the expectation-confirmation model with other salient factors such regret, habit and gamification app values.

The context of a fitness gamification app is investigated. A total of 210 valid responses were received, and structural equation modeling was applied for data analysis.

The findings of this paper are as follows: among all factors influencing discontinuance intention, regret is the strongest, habit is second and gamification is third; among all factors affecting user satisfaction, gamification app value is the strongest, confirmation is second, perceived usefulness (PU) and perceived ease of use are third and regret is the last one; for factors influencing users’ habits, satisfaction is the strongest, following by PU and frequency of prior use; confirmation negatively influences the degree of regret; and confirmation positively influences PU.

This study highlights the important determinants influencing users’ discontinuance intentions in the context of gamification apps by incorporating two overlooked factors, regret and habit. Besides, this study suggests that app designers can not only increase user’s perceived value through external cooperation with other alternatives, but can be through internal enhancement with diverse services development as well.

Integrated reporting (IR) aims to improve the quality of information available to capital providers. While IR is associated with decreases in investor uncertainty and increases in firm value, it is unclear how IR information directly influences investment decisions. This paper aims to investigate the investment considerations of Taiwanese investors and their initial impressions of the International Integrated Reporting Framework (IIRC Framework). In doing so, this study examines the relationships between investment considerations and the IIRC Framework’s concepts.

Semi-structured interviews were undertaken with 16 investors in Taiwan. Thematic analysis was used to analyse the data collected.

In addition to economic and financial outlook, competitive advantages and ownership structure, Taiwanese investors emphasise management credibility as an important factor that influences investment decisions. Investors are reliant on private information sources and quantitative data. Sustainability disclosures and sustainability performance beyond legal requirements are often not considered. Taiwanese investors lack awareness of the IIRC Framework and are sceptical about the premise that integrated reports can provide information material to investment appraisal. The assertion that integrated reports reduce information asymmetry and influence investment decisions has to be treated with caution.

Self-selection bias and a potential lack of transferability in the findings are issues inherent in the research method and sample used.

IR information needs to be frequently updated rather than disclosed in a periodic report. Furthermore, integrated reports need to demonstrate a direct link between non-financial performance and financial value creation.

Mandating the supply of integrated reports is unlikely to influence investors’ capital allocation decisions unless investor demand is a driver of the regulation.

This study is one of the few to investigate IR from the investor’s perspective. Observations from this preliminary study warrant further investigations into the relevance of IR to investment communities globally.