Evaluating the performance of auditors: a driver or a stabilizer of auditors’ behaviour

2019 ◽  
Vol 69 (9) ◽  
pp. 1999-2019
Author(s):  
Rabih Nehme ◽  
Christelle AlKhoury ◽  
Abdullah Al Mutawa
Keyword(s):  
Performance Evaluation ◽  
Performance Appraisal ◽  
Developing Country ◽  
Design Methodology ◽  
Developed Countries ◽  
Developed Country ◽  
Content Type ◽  
External Auditors ◽  
The Uk ◽  
Big Four

Purpose The purpose of this paper is to identify differences in auditors’ dysfunctional behaviour when expecting performance appraisal. Its main aim is to examine variances across countries; UK vs Kuwait. Also, it identifies differences between experienced and inexperienced auditors. Design/methodology/approach The paper focuses on dysfunctional audit behaviour (DAB) where premature sign-off and under-reporting of chargeable time are chosen as the two main signalling proxies. A survey made up of statements included in performance appraisal templates is distributed among auditors working for the Big Four firms in both, the UK and Kuwait. Findings The paper shows how performance evaluation of external auditors affects their behaviour in the workplace. From a cultural standpoint, assessing the performance of auditors whilst working in a competitive market in a developed country is regarded as a potential driver for DAB variations. Evaluating auditors’ performance in a developing country is seen as a stabiliser of DAB. This research paper demonstrates that experienced auditors have a greater tendency to behave dysfunctionally as compared to inexperienced auditors. Originality/value Prior studies have been conducted to assess auditors’ performance through using internal and external attributes (Kaplan, 1985), offshoring basic steps of audit work (Downey, 2018), and the perception of audit clients about auditors’ performance (Reheul et al., 2013). Such studies were conducted mostly on developed countries on a standalone basis. In this study, the focus has been shifted from focusing on one country to comparing two different countries. The paper examines DAB between experienced and inexperienced auditors in the UK and in Kuwait when expecting performance evaluation.

scholarly journals Performance appraisal and premature sign-offs and underreporting of chargeable time of external auditors – internal benchmarking of experience and gender

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rabih Nehme ◽  
Amir Michael ◽  
Alcheikh Edmond Kozah
Keyword(s):  
Performance Appraisal ◽  
Performance Appraisals ◽  
Content Type ◽  
External Auditors ◽  
Audit Firms ◽  
Internal Benchmarking ◽  
And Gender ◽  
The Uk ◽  
Level Of Experience ◽  
Big Four

PurposeThe research paper investigates auditors' dysfunctional behaviors in relation to performance appraisals. It explores the dysfunctional audit behavior (DAB) differences among experienced/inexperienced and male/female auditors when expecting performance appraisals, how their perception of DAB changes and how their reactive-outcomes vary.Design/methodology/approachThe survey comprises statements pulled from performance appraisal templates used by the Big Four audit firms in the UK. The sample has been tested during two different periods to highlight variations in the perception of DAB.FindingsExperienced auditors become more tolerant of DAB compared to their perception when they were inexperienced. Inexperienced male auditors are generally more accepting of DAB compared to their inexperienced female counterparts. Experienced female respondents continue to be less accepting of DAB.Originality/valueThe study associates performance appraisal procedures with DAB. The analysis examines the perception of dysfunctional behavior according to the level of experience auditors (males and females) accumulate over time.

Performance evaluations and junior auditors’ attitude to audit behavior: a gender and culture comparative study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Khalil ◽  
Rabih Nehme
Keyword(s):  
Performance Appraisal ◽  
Statistical Tests ◽  
Developed Countries ◽  
Developed Country ◽  
Content Type ◽  
The Usa ◽  
And Gender ◽  
Internship Programs ◽  
Educational Path ◽  
The Impact

Purpose The purpose of this paper is to shed light on factors leading to unethical acts committed by auditors from a cultural and gender perspectives. It investigates differences in junior auditors’ attitudes towards audit behavior when a performance evaluation (PE) is anticipated. The objective of this study is to aid academicians and audit executives in developing new models of PE and internship programs that should mitigate dysfunctional behavior. Design/methodology/approach A survey adapted from Big Four companies’ performance appraisal templates was administered to junior accountants who have completed their internship programs and their external audit course at accredited universities in Lebanon and the USA. Several statistical tests were conducted to analyze the relationship between the different variables. Findings This paper shows how PE affects junior auditors’ attitudes to dysfunctional audit behavior (DAB). From a cultural standpoint, American auditors express more negative views towards DAB than their Lebanese counterparts. This paper also demonstrates that female auditors are less inclined towards DAB than male auditors. Originality/value Previous studies on the topic have been mostly conducted in developed countries with a scarcity of studies examining multiple countries. This study focuses on two different cultural contexts, a developed country, the USA and an emerging country, poorly represented in the literature, Lebanon. This paper also observes variances between male and female auditors in DAB when expecting a PE. The originality of this paper stems from its concurrent examination of the impact of gender and culture on DAB by using a sample of less-experienced auditors at the end of their educational path.

Performance evaluation of auditors: a constructive or a destructive tool of audit output

2017 ◽  
Vol 32 (2) ◽  
pp. 215-231 ◽  
Author(s):  
Rabih Nehme
Keyword(s):  
Performance Appraisal ◽  
Performance Appraisals ◽  
Content Type ◽  
Dysfunctional Behavior ◽  
Accounting Scandals ◽  
Audit Firms ◽  
The Uk ◽  
Big Four ◽  
Evaluation Techniques

Purpose The purpose of this paper is to investigate factors leading to dysfunctional behavior. The role of auditors has been under scrutiny during recent accounting scandals. Auditors, among other parties, are sometimes to be blamed as a result of economic crisis periods. The paper highlights certain auditors’ behavior leading to dysfunctional acts. Design/methodology/approach The survey of this paper is made up of statements extracted from the performance appraisal templates used at the Big Four firms in the UK. Big Four auditors are expected to be under pressure more than non-Big Four auditors. The sample is stratified into non-experienced/experienced auditors to highlight any changes in the perception of dysfunctional behavior when the experience factor exists. Findings The paper finds that certain performance appraisal procedures are leading to dysfunctional acts. Accordingly, audit firms should develop other evaluation techniques that should serve their goals without pushing auditors for dysfunctional behavior. Originality/value This study links procedures embedded in the performance appraisals at the Big Four audit firms to dysfunctional behavior. Also, the study covers all lines of auditors to understand how the perception toward dysfunctional behavior differs when auditors gain experience.

An international comparative analysis of local hazard mitigation plan evaluation for flood

2016 ◽  
Vol 7 (4) ◽  
pp. 406-419 ◽  
Author(s):  
Hwayoung Kim ◽  
Ryuji Kakimoto
Keyword(s):  
Natural Disasters ◽  
Developing Country ◽  
Disaster Response ◽  
Hazard Mitigation ◽  
Developed Countries ◽  
Federal State ◽  
Developed Country ◽  
Content Type ◽  
State And Local ◽  
International Comparative

Purpose This research aims to identify the qualitative differences between local hazard mitigation plan (LHMP) of the developing country when compared to those of developed countries. It also seeks to demonstrate the relative importance of public private partnership and the need for PPs to be integrated into LHMP because they help to create strong LHMP, thereby making communities will become more resilient to not only floods but also other natural disasters. It focuses on the components of hazard mitigation from a developed country perspective and how these influence the contents/focus of the LHMP especially when compared to those of a developing country. Design/methodology/approach Based on official information such as population, climate and major threat that has faced, research sites were selected. Each LHMP can be downloaded from the official city websites, except Korea. Through plan evacuation protocols the LHMP for each city – USA (Baltimore), Japan (Kumamoto) and Korea (Pohang) – were assessed three times by the research team. Plans were evaluated using a plan coding evacuation process. Findings The LHMP of the developing country did not contain maps illustrating to the people who are exposed to flood and evacuation routes and who are vulnerable (both economically and physically), when compared with the developed countries plan. However, quicker response because of simple political hierarchy can be possible in Japan and Korea when compared to the USA, which has three different tiers of political governments – federal, State and Local government – though Korea is a developing country. Originality/value In recent times, pre-disaster response, which is a proactive approach to natural disasters, is an emerging issue rather than post disaster response because of sustainable and resilient ideas of the locals that have repeatedly suffered from natural hazards. This study compares LHMPs of each country to better understand strengths and weakness, as well as to identify strategies that will enhance the quality of mitigation plan for the developed country and developing country. It is hoped that this study will inform and augment existing literature by assisting underdeveloped and developing countries suffering from floods with the preparation of their LHMPs based on the suggestion of this research.

Performance appraisal systems and public sector efficiency in small island developing states

2019 ◽  
Vol 49 (4) ◽  
pp. 974-992 ◽  
Author(s):  
Patricia Loga ◽  
Anand Chand
Keyword(s):  
Developing Countries ◽  
Public Sector ◽  
Performance Appraisal ◽  
Developing Country ◽  
Small Island ◽  
Future Research ◽  
Developed Country ◽  
Content Type ◽  
The Public ◽  
Appraisal Systems

Purpose There is extant literature on performance appraisal systems (PAS) in public sector globally; however, most of the literature focuses on PAS in public sector in large developed and large developing countries. To the best of the authors’ knowledge, there is scant literature on PAS in the public sector of small developing countries. Hence, the purpose of this paper is to fill the research gap and analyse employee perceptions of the annual performance appraisal (APA) system and its implications in the Fiji’s public sector. It examines the APA more specifically in the case study of Ministry of Health and Medical Services in Fiji. Design/methodology/approach A mixed methods approach was undertaken and information collected from each research method was triangulated to ensure the reliability and validity of the findings. Findings This study found that the APA system shows promise of delivering on the expected outcomes for PAS. Similarly, staff morale was found to increase while employee behaviour improved with employee involvement and simple key performance indicators. However, much work needs to be done at the macro, meso and micro level of policy planning and implementation in order to ensure the success of APA. Research limitations/implications The limitations of this research are that it is based solely on Fiji’s experience and future research could expand this study to other developing country contexts, especially small island states. Originality/value After conducting a literature review on developed nations and research in a small developing country (Fiji), this paper produces two models: a PAS model in the developed country context and another in Fiji’s small developing country context. This paper contributes to the existing literature of PAS in the public sector and more specifically in the context of developing small island countries.

Measuring innovation: the use of indicators in developed countries

2015 ◽  
Vol 11 (3) ◽  
pp. 220-230 ◽  
Author(s):  
Hanadi Mubarak Al-Mubaraki ◽  
Ali Husain Muhammad ◽  
Michael Busler
Keyword(s):  
Design Methodology ◽  
Developed Countries ◽  
Structured Interview ◽  
Policy Makers ◽  
Content Type ◽  
Research Findings ◽  
The Uk

Purpose – The purpose of this paper is to describe and identify the ranking of innovation program landscape in the UK. The identification will focus on the average of four categories: policy, culture, economy, and industry. Design/methodology/approach – The nature of this research is mainly qualitative. This investigation uses two semi-structured interview based in the UK, combined with an examination of organizational documents. Findings – The research findings indicated highest ranking of the Petchey Center of Entrepreneurship located in University of East London present culture 60 percent, policy 75 percent, industry 80 percent, and economy 100 percent. Originality/value – The authors conclude with several recommendations for academia and practitioners such as governments, policy makers, funded organizations, and strategic institutions.

scholarly journals Globalization Impact on Multinational Enterprises

World ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 216-230
Author(s):  
Justine Kyove ◽  
Katerina Streltsova ◽  
Ufuoma Odibo ◽  
Giuseppe T. Cirella
Keyword(s):  
Developing Country ◽  
Multinational Enterprises ◽  
Developed Countries ◽  
Global Market ◽  
Data Availability ◽  
Negative Effects ◽  
Developed Country ◽  
Excellent Starting Point ◽  
Starting Point ◽  
The Impact

The impact of globalization on multinational enterprises was examined from the years 1980 to 2020. A scoping literature review was conducted for a total of 141 articles. Qualitative, quantitative, and mixed typologies were categorized and conclusions were drawn regarding the influence and performance (i.e., positive or negative effects) of globalization. Developed countries show more saturated markets than developing countries that favor developing country multinational enterprises to rely heavily on foreign sales for revenue growth. Developed country multinationals are likely to use more advanced factors of production to create revenue, whereas developing country multinationals are more likely to use less advanced forms. A number of common trends and issues showed corporate social responsibility, emerging markets, political issues, and economic matters as key to global market production. Recommendations signal a strong need for more research that addresses contributive effects in the different economies, starting with the emerging to the developed. Limitations of data availability and inconsistency posed a challenge for this review, yet the use of operationalization, techniques, and analyses from the business literature enabled this study to be an excellent starting point for additional work in the field.

“That's not how I see it”: female and male perspectives on the academic role

2007 ◽  
Vol 22 (6) ◽  
pp. 497-515 ◽  
Author(s):  
Sue Shaw ◽  
Catherine Cassell
Keyword(s):  
Gender Differences ◽  
Business School ◽  
Design Methodology ◽  
Business Schools ◽  
School Context ◽  
Empirical Work ◽  
Original Data ◽  
Content Type ◽  
Academic Role ◽  
The Uk

PurposeThe purpose of this paper is to provide a piece of empirical work that examines gender differences in how academics make sense of performance within university business schools in the UK.Design/methodology/approachThe research reported draws on data collected using a life history and repertory grid methodology with male and female interviewees from two university business schools.FindingsThe findings are discussed in relation to how academics understand what is valued about their role and what they believe the organisation rewards and values when it comes to promotion. Gender differences are shown to exist in the ways women and men define the academic role and in what they think is important both to themselves and the institution.Originality/valueThe paper presents original data on gender differences within a business school context.

Is Hong Kong ready for accounting education reform: an analysis of tri-partite views

2014 ◽  
Vol 27 (3) ◽  
pp. 249-265 ◽  
Author(s):  
Theodore T.Y. Chen
Keyword(s):  
Hong Kong ◽  
Education Reform ◽  
Financial Reporting ◽  
Accounting Education ◽  
Accounting Firms ◽  
Content Type ◽  
The Usa ◽  
Accounting Practitioners ◽  
The Uk ◽  
Big Four

Purpose – The purpose of this study is to determine whether Hong Kong is ready for accounting education reform. Design/methodology/approach – The approach for this study is using a Likert-scale questionnaire for the academic institutions, the Hong Kong Institute of Certified Public Accountants and the big four accounting firms, followed by detailed follow-up interviews with each. Findings – There is general agreement among accounting academics and the profession that the Accounting Education Change Commission initiatives should be adopted in Hong Kong. Hong Kong accounting academics in public institutions do not oppose to a balance between teaching and research, but would oppose to an emphasis of teaching over research. This is important as an overemphasis on research could mean less time for teaching and curriculum development. The big four accounting firms are either happy with the way Hong Kong universities have been educating the accounting graduates or have no complaints against them. This is also important as an urge for accounting education reform usually comes from the practitioners as in the USA. Originality/value – The USA was the first country that saw the need for accounting education reform as accounting practitioners felt that curriculum and pedagogical considerations placed heavy emphasis on the technical aspects of accounting at the expense of a general, broad-based education. Similar needs for change were also found in the UK and Australia. As Hong Kong is one of the world’s major financial centres with a large securities exchange, there is a great deal of emphasis on accounting standards, financial reporting, corporate governance, etc., and hence the importance of accounting education. Is Hong Kong ready for the change?

Comparing entrepreneurial communities

2015 ◽  
Vol 9 (3) ◽  
pp. 206-220 ◽  
Author(s):  
Justin Paul ◽  
Archana Shrivastava
Keyword(s):  
Information Technology ◽  
Developed Countries ◽  
Personality Factors ◽  
Asian Countries ◽  
Cross Sectional ◽  
Developed Country ◽  
Content Type ◽  
Mba Students ◽  
Emerging Country ◽  
Survey Responses

Purpose – The purpose of this paper is to compare entrepreneurial attributes of MBA students, the next generation business people, from two important Asian countries, India from South Asia and Japan from East Asia (India, being an emerging country and Japan, a developed country). Design/methodology/approach – Survey responses from MBA students in India and Japan were measured on an entrepreneurial personality index. Bateman and Crant’s scale consisting of 17 traits is used to identify if entrepreneurial traits are a learned cultural behaviour or intrinsic personality factors. Findings – Although the findings indicate that India has benefitted from entrepreneurship in the information technology and information technology-enabled service ventures during the past two decades, the country still has a long way to go when compared to developed countries like Japan, where entrepreneurship is widespread. Research limitations/implications – The results are based on a single survey, using cross-sectional data. Originality/value – The level of entrepreneurship differs considerably across countries and periods. The authors put forward a theoretical framework to denote the linkage between entrepreneurial attitude, pro-active personality and culture, besides highlighting the three pillars of entrepreneurship.

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