scholarly journals The copycat effect: do social influences allow peer team members' dysfunctional audit behaviors to spread throughout the audit team?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rebecca J Wetmiller
Keyword(s):  
Internal Control ◽  
Audit Quality ◽  
Team Member ◽  
Social Influences ◽  
Sample Selection ◽  
Control Sample ◽  
Content Type ◽  
Team Members ◽  
Team Interactions ◽  
Audit Team

PurposeThis study seeks to identify the role that peer team members' behaviors and superiors' preferences play in influencing the likelihood that staff auditors engage in dysfunctional audit behavior (DAB).Design/methodology/approachThis study uses an experiment that manipulates peer team member behavior (DAB present or DAB absent) and superior preference (efficiency or effectiveness). Students enrolled in a graduate accounting course, proxying for inexperienced staff auditors, receive an internal control sample selection task. Participants assess the likelihood that a typical staff auditor would engage in DAB or non-DAB.FindingsFirst, staff auditors with a peer team member who engages in DAB are more likely to engage in DAB. Second, staff auditors who have a superior with a preference toward efficiency are more likely to engage in DAB. Finally, when considered simultaneously, the effect of the superior's preference on the likelihood of staff auditors engaging in DAB is not different for staff auditors, subject to a peer engaging in DAB versus those subject to a peer who engaged in a non-DAB.Research limitations/implicationsThis study uses a hypothetical audit team, a written script of team member communication, and students proxying for inexperienced staff auditors. As such, future studies might consider improving the realism of the team setting, the manner in which a message is portrayed, and implications at higher levels within the audit team hierarchy.Practical implicationsTeam interactions contribute to the prevalence of DAB within the profession. Specifically, inexperienced auditors are influenced by the behavior of peer and superior team members and this may be one cause of the prevalence of DAB within the profession. As such, future firm considerations could include well-structured mentorship programs and rewards structures.Originality/valueThis study adds to the audit team literature by investigating the influence of audit team dynamics on staff auditors' behaviors. This paper extends the current audit team literature, that is mostly focused on supervisor–subordinate relationships, by investigating social influences from peers and superiors. This study's findings inform public accounting firms of areas in which personnel may negatively affect audit quality through intra-team interactions.

Media and Familiarity Effects on Assessing Trustworthiness

2011 ◽  
pp. 56-74 ◽  
Author(s):  
Mark A. Fuller ◽  
Roger C. Mayer
Keyword(s):  
Virtual Environments ◽  
Media Effects ◽  
Team Member ◽  
Virtual Team ◽  
Media Synchronicity ◽  
Team Members ◽  
Team Interactions

This chapter explores the role media effects and familiarity play in the development of trust in CMC environments. As team members interact with one another via technology, each team member assesses information and makes assessments about the trustworthiness of their teammates. Such trustworthiness assessments are known to influence trust, a factor which has been established to have significant effects on the functioning of teams. This research uses media synchronicity theory and the concept of interpersonal familiarity to examine virtual team interactions and the formation of trust. Implications are drawn for researchers and managers as they seek to understand how teams operate in virtual environments.

Diversity climate perceptions and its impact on multicultural team innovation and performance

2020 ◽  
Vol 24 (3) ◽  
pp. 301-318 ◽  
Author(s):  
Raavee Kadam ◽  
Srinivasa A. Rao ◽  
Waheed Kareem Abdul ◽  
Shazi Shah Jabeen
Keyword(s):  
Cultural Diversity ◽  
Cultural Intelligence ◽  
Team Member ◽  
Diversity Climate ◽  
Content Type ◽  
Team Members ◽  
Team Diversity ◽  
Team Innovation ◽  
Climate Perceptions ◽  
And Performance

Purpose This study aims to examine the influence of diversity climate perceptions (DCPs) on team member’s contribution to team innovation and team performance in a multicultural team (MCT). The authors also investigate the moderating effect of cultural intelligence on these relationships. Design/methodology/approach The authors draw upon the interactional model for cultural diversity to build their hypotheses. Data was gathered from 43 teams consisting of 217 members using a structured questionnaire. Ratings were obtained from both team members and supervisors. The data collected was analyzed using structural equation modeling. Findings Results indicated that when team members have positive DCPs, it had a positive impact on their innovation and performance in the team. Cultural intelligence was also found to have a direct impact on team member innovation but not on team member performance. Furthermore, cultural intelligence was found to positively moderate the DCPs – team member performance relationship but not the DCPs – team member innovation relationship. Practical implications Managing diversity is a key concern for organizations worldwide given the exponentially rising cultural diversity within the workforce. This study would enable practitioners to understand that developing positive DCPs and cultural intelligence of team members are critical to the success of MCTs. Originality/value Literature has documented mixed results pertaining to team diversity and its effect on performance, resulting in scholars urging the need to explore how the negative effects of team diversity can be mitigated. This research establishes that positive DCPs and cultural intelligence as two key factors contributing to the performance of MCTs.

Timing of auditor terminations and client firm risk

2019 ◽  
Vol 34 (6) ◽  
pp. 650-672
Author(s):  
Young-Won Her ◽  
Jennifer Howard ◽  
Myungsoo Son
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Quality ◽  
Operating Performance ◽  
Firm Risk ◽  
Content Type ◽  
Auditor Resignation ◽  
Client Firm ◽  
Auditor Switches ◽  
Available Information

Purpose The purpose of this study is to examine whether the timing of auditor terminations signals the riskiness of client firms. Design/methodology/approach This empirical study uses a sample of auditor switches during 2003-2014 to conduct univariate tests and multivariate regression analyses. Auditor switches occurring after the audit report date but before the shareholders’ meeting are classified as “planned” terminations and auditor switches that occur outside of this window are classified as “abrupt” terminations. Findings First, abrupt terminations are more strongly related to client risk factors than planned terminations. Second, relative to planned terminations, abrupt terminations are more likely to result from an auditor resignation rather than a client dismissal. Third, abrupt termination firms are more likely to have internal control weaknesses and experience delistings in the following year. Future operating performance is also worse after an abrupt termination. Finally, auditors and investors view abrupt terminations as riskier than planned terminations. Practical implications As the timing of the auditor termination is publicly available information, it can provide an important signal of deteriorating financial performance to shareholders and potential investors. Abrupt terminations could be costly to shareholders because those firms likely have lower quality financial reporting (due to internal control weakness) and deterioration of future operating performance. Originality/value While concurrent studies investigate the relation between the timing of new auditor appointment and audit quality, this is the first study to document the relation between the timing of auditor termination and the riskiness of client firms.

The role of audit quality in firm valuation

2016 ◽  
Vol 58 (5) ◽  
pp. 575-598 ◽  
Author(s):  
Mishari M. Alfraih
Keyword(s):  
Audit Quality ◽  
Value Relevance ◽  
Accounting Information ◽  
Institutional Setting ◽  
Content Type ◽  
Book Value ◽  
Big 4 ◽  
Audit Firms ◽  
Audit Team

Purpose The purpose of this paper is to examine the effect of audit quality on the value relevance of earnings and book value. Because joint audit is mandated for all Kuwait Stock Exchange-listed firms, it is hypothesized that the higher the quality of the audit team (as measured by the number of Big 4 audit firms in the joint audit team), the higher the value relevance of earnings and book values for equity valuation. Design/methodology/approach Consistent with prior research, the value relevance of earnings and book value is measured by the adjusted R2 derived from the Ohlson’s 1995 regression model. The number of Big 4 audit firms represented on the firm’s audit team is used as a proxy for audit quality. Three tiers of audit quality exist, namely, two non-Big 4 audit firms, one Big 4 and one non-Big 4 audit firms or two Big 4 audit firms. To address this paper’s objective, the association between audit quality and the value relevance of earnings and book value were examined using four approaches. The final sample consists of 1,836 firm-year observations and covers fiscal years from a 12-year period (2002-2013). Findings Taken together, the four approaches used collectively provide empirical evidence that audit quality positively and significantly affects the value relevance of accounting measures to market participants. Importantly, the results reveal significant variations in the value relevance of earnings and book value jointly across the three possible auditor combinations. Research limitations/implications Although using auditor size as a proxy for audit quality is well established in the auditing literature, a limitation of that proxy is that it measures audit quality dichotomously, which implicitly assumes a homogeneous level of audit quality within each group. Practical implications The findings show the importance of high-quality and rigorous external audits in improving the value relevance of accounting information. Originality/value This study contributes to the extent literature on audit quality by exploring the role of audit quality in a unique institutional setting that imposes mandatory joint audits. Although prior studies have investigated the effect of joint audit pair choice on earnings management and audit fee premium, this study is the first to investigate the effect of joint audit pair choice on the value relevance of accounting information.

Cohesion and individual well-being of members in self-managed teams

2014 ◽  
Vol 35 (5) ◽  
pp. 429-441 ◽  
Author(s):  
Gergana Markova ◽  
John T. Perry
Keyword(s):  
Well Being ◽  
Business Environment ◽  
Team Cohesion ◽  
Future Research ◽  
Critical Examination ◽  
Leader Emergence ◽  
Content Type ◽  
Team Members ◽  
Group Potency ◽  
Team Interactions

Purpose – The purpose of this paper is to investigate interactions among members of self-managed teams (SMTs). The authors were interested in how leader emergence, group potency, and opinion compliance were related to team cohesion and member well-being. Design/methodology/approach – In a simulated business environment, the authors surveyed 236 students working in 54 SMTs. Participants reported their interactions and experiences at several points of time during class. Individual responses about team cohesion and group potency were aggregated for the purposes of the analysis. Findings – The paper found that leader emergence was associated with reduced cohesion among members and diminished individual well-being. Group potency was modestly associated with better cohesion among team members. Participants of more cohesive groups reported higher individual well-being. Opposite to the predictions, opinion compliance was not significantly related to individual well-being. Research limitations/implications – Within the limitations of the study design, the results suggest that leader emergence may have adverse effect on team interactions. Future research should investigate the positive and negative implications of an emerging leader in SMTs. Practical implications – The broad application of SMTs in organizations necessitates a critical examination of team dynamics and individual experiences of members. Along with team productivity, managers should consider the effects of team interactions on employees’ well-being. Employees who are drawn to more discretionary work such as SMTs may not favor leader emergence. Originality/value – The findings suggest that leader emergence may have negative implications for other team members and the overall team functioning.

scholarly journals Does Engagement Partners’ Effort Affect Audit Quality? With a Focus on the Effects of Internal Control System

Risks ◽  
2021 ◽  
Vol 9 (12) ◽  
pp. 225
Author(s):  
Suyon Kim
Keyword(s):  
Internal Control ◽  
Audit Quality ◽  
Vital Role ◽  
Fiscal Year ◽  
Audit Process ◽  
Client Characteristics ◽  
Audit Firms ◽  
Audit Reports ◽  
It Departments ◽  
Audit Team

An audit team includes engagement partners, CPAs, and staff. Among them, partners play a vital role in performing tasks that require expertise and experience, such as analyzing and understanding the industry, and supervising the overall audit process. In detail, the partners establish an audit plan, determine the overall audit time, provide the audit input ratio of the engagement team, and review the audit reports. This study examines for association between the partner’s audit hour ratio and audit quality depending on the client firms’ characteristics. Although the role of partners is important, the information about partner audit hours is limited. However, the Korean government requires audit firms to disclose the partner hour information in the audit report starting in the 2014 fiscal year. By the disclosure, it is possible to examine the association between partner audit hours and audit quality. In this study, the information on partner audit hour is hand-collected from the firms’ business reports. Using 6340 observations from 2014 to 2017, the partner audit hour ratio is associated with audit quality, under the characteristics of client firms. Firms’ risks are adopted for client characteristics, and we focused on the operation of internal control. The internal control operation level is measured by the following: (1) the ratio of internal control personnel and (2) experience of the internal control personnel in the accounting and IT departments. The result suggests that for the firms where internal control is not effectively operated, partners make more effort to enhance audit quality.

Media and Familiarity Effects on Assessing Trustworthiness

2009 ◽  
pp. 1474-1492 ◽  
Author(s):  
Mark A. Fuller ◽  
Roger C. Mayer ◽  
Ronald E Pike
Keyword(s):  
Virtual Environments ◽  
Media Effects ◽  
Team Member ◽  
Virtual Team ◽  
Media Synchronicity ◽  
Team Members ◽  
Team Interactions

This chapter explores the role media effects and familiarity play in the development of trust in CMC environments. As team members interact with one another via technology, each team member assesses information and makes assessments about the trustworthiness of their teammates. Such trustworthiness assessments are known to influence trust, a factor which has been established to have significant effects on the functioning of teams. This research uses media synchronicity theory and the concept of interpersonal familiarity to examine virtual team interactions and the formation of trust. Implications are drawn for researchers and managers as they seek to understand how teams operate in virtual environments.

Engaging by releasing: an investigation of the consequences of team autonomy on work engagement

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rocco Palumbo
Keyword(s):  
Organizational Climate ◽  
Work Engagement ◽  
Team Member ◽  
Least Square ◽  
Mediation Effect ◽  
Full Potential ◽  
Comparison Theory ◽  
Content Type ◽  
Team Members ◽  
Serial Mediation

Purpose Team autonomy involves empowering employees to achieve greater control over organizational dynamics. Such empowerment may augment the employees’ vigor, dedication and absorption at work. However, there is limited evidence on the contents of the relationship between team autonomy and work engagement. This paper aims to fill in this gap, shedding light into the manifold implications of team autonomy on employees’ work engagement. Design/methodology/approach A serial mediation analysis was designed to collect evidence of the effects of team autonomy on work engagement. Drawing on self-determination theory, social comparison theory and social facilitation theory, team member-supervisor exchanges and organizational climate were contemplated in the analysis as mediating variables. An ordinary least square regression-based model relying on 5,000 bootstrap samples was implemented. The study focused on a large sample of Europeans employed in the manufacturing sector (n = 4,588). Findings Team autonomy had tiny, but statistically significant effects on work engagement. Good relationships between team members and supervisors positively mediated the effects of team autonomy on work engagement. Conversely, the organizational climate did not have a significant mediating role. A statistically significant serial mediation effect linked team autonomy and work engagement via team member-supervisor exchanges and organizational climate. Practical implications Team autonomy contributes to increasing the employees’ vigor, dedication and absorption at work. The enhancement of team member-supervisor relationships fosters the engagement of team members who experience a greater autonomy at work. The effects of team autonomy on organizational climate are ambiguous and mediated by an improvement of the relationships between team members and supervisors. Originality/value The paper originally investigates the implications of team autonomy on work engagement, emphasizing the importance of social exchanges at work to realize the full potential of team autonomy.

Knowledge4Scrum, a novel knowledge management tool for agile distributed teams

VINE ◽  
2014 ◽  
Vol 44 (3) ◽  
pp. 394-419 ◽  
Author(s):  
Roopesh Kevin Sungkur ◽  
Mayvin Ramasawmy
Keyword(s):  
Data Mining ◽  
Knowledge Management ◽  
Software Development ◽  
Knowledge Creation ◽  
Team Member ◽  
Management Tool ◽  
Distributed Teams ◽  
Content Type ◽  
Team Members ◽  
Distributed Development

Purpose – The purpose of this paper is to propose Knowledge4Scrum, a novel knowledge management tool for agile distributed teams. Agile software development (ASD) refers to a group of software development methodologies based on iterative development, where requirements and solutions evolve through collaboration between self-organizing cross-functional teams. The two most widely used methodologies based on the agile philosophy are scrum and extreme programming. Whichever methodology is considered, agile teams usually consist of few members and are collocated under the same roof. However, nowadays, agile practices for distributed development are gaining much momentum. The main reasons behind such practice are cheaper skilled labour, minimizing production cost, reducing time to market and increasing the quality and performance of projects. Along with the benefits obtained through globally distributed development, there are, however, many difficulties faced by various organisations. These problems are caused mostly due to distance, time and cultural differences. To meet up with the level of complexity of projects, ASD also has to keep up with many challenges, especially in cases of distributed teams. Four major challenges have been identified. First, the introduction of global software development entails a number of difficulties, especially related to knowledge sharing. For instance, lack of transparency is frequently observed within such teams, whereby a team member is totally unaware of the activities of his/her colleagues. Second, the unavailability of team members due to time zone differences adds up to the list of problems confronted by distributed teams. Third, there can be misunderstanding amongst the team member due to communication problems, especially in cases where the mother language of the team members is different. Fourth, a common issue faced by distributed teams is the loss of knowledge when an employee resigns from his/her post. Design/methodology/approach – Based on the main problems outlined above, what has been proposed is Knowledge4Scrum, a novel knowledge management tool for agile distributed teams. Knowledge4Scrum will act as a global repository for knowledge sharing in Scrum distributed teams with the possibility of creating new knowledge through data mining techniques. Valid past projects data have been collected to train and test the data mining models. The research also investigates the suitability of knowledge management in Scrum distributed teams to address the various challenges addressed above. Findings – Knowledge4Scrum supports the four knowledge management processes, namely, knowledge creation/acquisition, knowledge storage, knowledge dissemination and knowledge application. It has been found that the aforementioned tool satisfactorily addressed issues of distance, time and cultural differences that crop-up in distributed development teams. Data mining has been the main aspect for the knowledge creation and application processes, whereby new knowledge has been determined by examining and extracting patterns from existing data found in the repository. Originality/value – A major feature of the Knowledge4Scrum tool lies in the knowledge creation and application section, where a number of data mining techniques have been utilised to identify trends and patterns in past data collected. When compared to the COnstructive COst MOdel to estimate project duration, Knowledge4Scrum gives more than satisfactory results. Such functionalities will actually help managers for future project planning and in decision-making.

Positioning, conflict, and dialogue in management teams

2019 ◽  
Vol 14 (4) ◽  
pp. 444-464
Author(s):  
Pasi Hirvonen
Keyword(s):  
Interaction Analysis ◽  
Positioning Theory ◽  
Management Teams ◽  
Content Type ◽  
Team Members ◽  
Management Board ◽  
Novel Approach ◽  
Social Positioning ◽  
Team Interactions ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the dynamics of social positioning and interpersonal conflicts in management teams. This paper utilizes positioning theory to analyze team conflicts by combining microlevel interaction analysis and explicit, meso-level team research in the context of managerial work. Design/methodology/approach This research is based on an analysis of 34 conflict episodes that occurred during management board meetings conducted by two Finnish public research institutions. By analyzing naturally occurring interactions and video material, this paper presents a discursive analysis of conflict from the perspective of positioning theory, focusing on local moral orders, social positions and the construction of dialogue. Findings This study’s findings illuminate how team conflicts may be understood in terms of positioning theory, as well as how positioning is connected to managing conflicts and constructing either degenerative or generative dialogue in teams. The present study indicates possibilities for applying positioning theory as a methodological tool when studying team interactions and dialogue. Practical implications The study offers practical implications regarding team conflict management. By developing an understanding of the positioning dynamics of managers and other team members, one can help create constructive and generative dialogue in teams. Originality/value From a methodological perspective, this paper presents a novel approach to the study of team conflicts and outlines several suggestions regarding the theoretical approach in the analysis of team interaction and dynamics.

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