Going GAGAS for due process: examining Yellow Book standard participation

2020 ◽  
Vol 32 (2) ◽  
pp. 197-216
Author(s):  
Renee Flasher ◽  
Michelle Lau ◽  
Dara M. Marshall
Keyword(s):  
Federal Government ◽  
Due Process ◽  
Stakeholder Participation ◽  
Standard Setting ◽  
Content Type ◽  
Setting Process ◽  
The Us ◽  
Auditing Standards ◽  
Comment Letters ◽  
Government Auditing

PurposeThe US federal government requires auditors to follow governmental auditing standards when performing audits of entities expending significant federal government dollars. This study explores stakeholder participation during the comment letter phase of government auditing standard setting to determine if participation is symbolic or substantive.Design/methodology/approachResearchers conduct an analysis of the 179 comment letters submitted to the US Government Accountability Office (GAO) and received for their 2010 and 2017 exposure drafts of government auditing standards.FindingsThe distribution of stakeholder participation groups in the government auditing standard-setting process differs from the distribution in the private company auditing standard-setting process. On average, participants submit letters that are greater than two pages in length. Participants also contribute feedback on topics that the GAO directly solicits. Taken together, the results demonstrate stakeholder behaviors that are consistent with a substantive rather than symbolic due process involvement for government auditing standards.Research limitations/implicationsStakeholder beliefs are inferred based on the observed behavior of comment letter submissions. Also, there is a subjective element to the classification of the comment letters for the study.Practical ImplicationsGiven the far-reaching implications of Yellow Book auditing standards on public, private and nonprofit entities, the findings are relevant to a heterogeneous audience. This study reveals opportunities for users of government auditing standards, practitioners and academics for greater involvement in due process standard setting to bring additional legitimacy to the GAO and its standard-setting activities.Originality/valueBeyond the current study, little empirical research examines Yellow Book auditing standards or the due process through which these standards are established. This is the first study to examine the complete set of comment letters for the 2010 and 2017 exposure drafts of government auditing standards.

Stakeholder participation in the governmental accounting standard-setting process

2018 ◽  
Vol 30 (2) ◽  
pp. 252-268 ◽  
Author(s):  
Linda Kidwell ◽  
Suzanne Lowensohn
Keyword(s):  
Due Process ◽  
Stakeholder Participation ◽  
Accounting Standards ◽  
Standard Setting ◽  
Accounting Standard ◽  
Content Type ◽  
Governmental Accounting ◽  
Comment Letters ◽  
Accounting Standard Setting ◽  
Over Time

Purpose Accounting standards are issued only after a comprehensive due process, which includes opportunities for external constituents to participate via public hearings and comment letters. The purpose of this paper is to identify stakeholders unique to government and evaluate the extent to which they respond to 13 due process documents issued by the Governmental Accounting Standards Board (GASB). The results provide insight into the comment letter element of due process – who participates, in what way do they participate, and why do they participate? Design/methodology/approach Comment letters received by the GASB in response to eleven exposure drafts and three preliminary views (PV) documents from 2010-2013 were examined, and respondents were categorized according to Cheng’s (1994) model as modified by Kidwell and Lowensohn (2011), resulting in the following 16 participant types: academics, budget officers, bureaucratic managers, state auditors/controllers, citizens, financial markets, elected officials, external auditors/CPA firms, finance officers, government accountants, government auditors, interest groups, media, professional associations, standard setters, and other governments. The authors next examined responses in favor of and opposed to for each document by group and responses by stakeholder group over time. Findings The authors find that participants came from various stakeholder groups. Consistent with findings in different standard-setting environments, the primary financial statement preparers – finance officers – were the most frequent individual respondents; however, there was participation from a wide variety of stakeholders. Responses are generally constructive and relatively consistent in their balance of favorable and unfavorable feedback over time, with a few exceptions. Closer examination of comment letters in response to the financial projections PV document reveals both conceptual and practical considerations underlying respondent participation. Research limitations/implications Motivations for participation were discerned from the letter content, but direct data on motivation was not measured, limiting the conclusions to apparent motivation. Future research might examine the extent to which comment letter content is incorporated into the basis of conclusions section of issued standards to assess the direct impact of comment letters on the governmental accounting standard-setting process. It would also be relevant to trace specific projects that advanced from a PV stage to the exposure draft stage to assess whether the proportional participation of these stakeholder groups is different throughout due process. Practical implications The GASB has long been receptive to constituent feedback (Lowensohn, 2000) and can glean useful input from comment letters. By closely examining arguments impounded within comment letters, including conceptual and practical considerations, and by utilizing a more delineated understanding of the stakeholders in governmental accounting standard setting, the Board can better forge into the future. Originality/value Much of the extant research documents that stakeholder participation is relatively low, given the number of parties affected by accounting standards. Prior research into both public and private sector accounting standard setting in the USA and abroad has not used all unique actors specific to the public sector. Using a comprehensive stakeholder model designed for the governmental environment, the authors examine who participates in the GASB comment letter process, assess the nature of GASB comment letter participant responses, determine whether relative participation by stakeholder group is relatively constant over time, and consider why the participants respond.

The Development of Auditing Standards at the PCAOB and Related Audit Practitioner Input

2020 ◽  
Author(s):  
L. Tyler Williams ◽  
W. Mark Wilder
Keyword(s):  
Standard Setting ◽  
The Public ◽  
Setting Process ◽  
Public Company ◽  
Auditing Standards ◽  
Audit Standard ◽  
Comment Letters ◽  
Feedback Responses

The Public Company Accounting Oversight Board (PCAOB; Board) maintains that constituent feedback plays an essential and dynamic role in its audit standard-setting process. We examine a major source of constituent feedback, responses to standard-setting questions, using a sample drawn from the original proposals of fourteen PCAOB auditing standards. We find that after receiving comment letter feedback to the standard-setting questions, the Board revises approximately half of its guidance tied to those questions before it finalizes auditing standards-a finding consistent with the Board's assertion that it carefully considers constituent perspectives as it develops new regulation. We also explore the related comment letters of eight professional auditing firms subject to the PCAOB's annual inspection program and discover varying levels of opposition to and support for the PCAOB's proposed authoritative guidance. We observe PCAOB revision to authoritative guidance highly contested by the firms in more than three-fourths of cases of standard-setting questions and PCAOB non-revision to guidance highly supported by the firms in more than ninety percent of cases.

scholarly journals Leading properties of GDT auctions for dairy prices

2020 ◽  
Vol 122 (7) ◽  
pp. 2303-2328
Author(s):  
Jakub Olipra
Keyword(s):  
Milk Powder ◽  
Price Transmission ◽  
Price Expectations ◽  
Content Type ◽  
Vector Error Correction ◽  
Vector Error ◽  
Setting Process ◽  
Dairy Markets ◽  
The Us ◽  
Vector Error Correction Models

PurposeProfessionals from the dairy sector commonly believe that the results of Global Dairy Trade (GDT) auctions are a good leading indicator for prices of dairy commodities. The purpose of this paper is to test that hypothesis for prices of key dairy commodities (skimmed milk powder (SMP), whole milk powder (WMP), butter and cheddar) in the main dairy markets (the US, EU and Oceania).Design/methodology/approachThe leading properties of the GDT auctions are investigated using vector error correction models (VECM).FindingsThe results show that prices at GDT auctions may be treated as a benchmark for global prices of WMP and SMP as they affect prices in all considered markets. However, in case of EU market the relationship with the GDT is bidirectional. GDT prices reveal some leading properties also in cheddar market, however price relationships in this market are much more complex. In case of butter market, GDT can be regarded as a benchmark only for Oceania.Practical implicationsThe results of this paper improve knowledge on price transmission in dairy markets, show the role of the GDT auctions in the price setting process, and thus may help professionals from the dairy sector to formulate their price expectations more precisely.Originality/valueDespite the fact that many professionals from the dairy sector treat GDT auctions as a benchmark, so far their leading properties have not been scientifically proven.

The practices of performance management and low performers in the US Federal Government

2019 ◽  
Vol 41 (4) ◽  
pp. 417-433
Author(s):  
Hyung-Woo Lee ◽  
Dong-Young Rhee
Keyword(s):  
Regression Analysis ◽  
Performance Management ◽  
Federal Government ◽  
Performance Measure ◽  
News Article ◽  
Multinomial Regression ◽  
Cross Sectional ◽  
Content Type ◽  
The Us ◽  
Us Federal Government

Purpose Addressing low performers has been an important issue for government. The purpose of this paper is to examine what practices of performance management are effective in reducing the proportion of low performers in the US federal government. Design/methodology/approach The authors conducted the binary logit regression analysis and multinomial regression analysis. Findings Analyzing the Merit Principle Survey 2016, the authors found that the dismissal of low performing employees and the formal performance improvement plan (PIP) is the most effective in reducing the proportion of low performers. To the contrary, the within-grade-increase did not have a significant influence on the proportion of low performers. Moreover, using the performance appraisal for the purpose of reassigning employees to the position that better match employees’ talent increased the number of low performers in work units. Research limitations/implications Research limitations are as follows. First, the performance measure for this study was the percentage of employees rated as unsuccessful. Second, the pseudo-R2 indicated that the proposed model explained only the small, albeit significant, portion of the total variance in employee performance. Lastly, this study used a cross-sectional research design that may impede the validity of inference of causalities. Practical implications According to a recent news article (Rein, 2018), Trump signed an executive order that limits the stable benefits associated with government employment such as, limiting pay associated with union work and negotiating more stringent union contracts. These measures are largely aimed at eliminating low performing employees rather than attempting to improve their performances through carefully designed training programs. Although removing low performers may be an option, the results indicate that providing assistance in order to develop employee knowledge and skills through the PIP have a comparable impact on reducing low performers. Originality/value These findings imply that the use of performance evaluation for developmental or sanctioning purpose is more effective than reassignment or incentive purpose.

American Libraries and the US Federal Government: an overview of partnerships for enhanced resource access

2015 ◽  
Vol 29 (8) ◽  
pp. 2-6
Author(s):  
Bethany Latham
Keyword(s):  
Federal Government ◽  
Design Methodology ◽  
Government Agencies ◽  
Government Information ◽  
Digital Collections ◽  
Content Type ◽  
The Us ◽  
Us Government ◽  
Us Federal Government ◽  
Partnership Program

Purpose – This paper aims to explore the US Government Publishing Office’s (GPO) partnership program: what it is, how the GPO defines partnership, the types of institutions that are participating and the resources these institutions are making available through partnership. Design/methodology/approach – This paper reviews the available literature and information from the US GPO on its partnership program, examines the institutions contributing to the program and what those contributions entail, surveys the resources made available through these partnerships and examines how this affects access to government information. Findings – Partnership with the US GPO provides benefits to libraries, museums, government agencies and other entities, increasing discoverability and enhancing access to digital collections of government information and other resources. Originality/value – This paper examines the parameters of the US GPO’s partnership program, why libraries and other institutions might wish to partner with the GPO and the effect these partnerships have had on enhancing access to government information resources, an area that has not been extensively covered in library literature.

US climate rules will overcome Congress's opposition

2015 ◽  
Keyword(s):  
Ghg Emissions ◽  
Standard Setting ◽  
Barack Obama ◽  
Hub And Spoke ◽  
Content Type ◽  
The Us ◽  
Global Emissions

Significance President Barack Obama has directed several departments and agencies, most notably the EPA, to issue directives and regulations that would impose progressively lower ceilings on GHG emissions. However, the Republican-controlled Congress has repeatedly targeted these regulations for repeal. Impacts The US market will probably have an standard-setting effect on the air industry, as it accounts for one-third of global emissions. Higher standards, if enacted on a per passenger basis, will favour larger planes. This will, in turn, support a hub-and-spoke model, leading to growth at major airports worldwide.

Restricting immigration will lower US GDP

2018 ◽  
Keyword(s):  
Federal Government ◽  
Unemployment Rate ◽  
Immigration Policy ◽  
Illegal Immigrants ◽  
Border Crossings ◽  
Political Debate ◽  
Content Type ◽  
Deferred Action ◽  
The Us ◽  
Us Federal Government

Subject Immigration policy outlook. Significance Tensions over immigration are bubbling to the surface as the future of the Deferred Action for Childhood Arrivals (DACA) policy is entangled with efforts to pass a spending bill and keep the US federal government open beyond January 19. Against a backdrop of polarising political debate, concerns about the economic impact of lower net immigration risk being overlooked. Impacts Arrests of illegal immigrants rose sharply to September 2017 and deportations could surge this year; workplace raids will also increase. Having fallen to the lowest in 45 years, illegal border crossings are likely to continue to fall as detection processes are improving. With the US unemployment rate at near its lowest this century, some sectors could struggle to find workers. GDP could be cut by one-tenth of a percentage point in each year of Trump's first term as a result of lower immigration, Moody's estimates.

Canada asylum pressures may bring political friction

2018 ◽  
Keyword(s):  
United States ◽  
Federal Government ◽  
Asylum Seekers ◽  
The United States ◽  
Asylum Policy ◽  
Content Type ◽  
The Us ◽  
Us Government ◽  
Federal Politics

Subject Asylum-seekers and Canada. Significance After an uptick in asylum claims in recent months, including via the United States, asylum policy is likely to feature more heavily in Canadian state and federal politics. Impacts New migrant flows to Canada will likely be triggered as the US government reduces its grants of Temporary Protected Status. Quebec’s government will face off against the Ottawa federal government over responsibility for new migrant arrivals. Ottawa and Washington will likely eventually update the Safe Third Country Agreement, but this could require bargaining. Canada may invest more in border policing and associated technologies.

The Big-4’s influence on rules-based accounting standards

2020 ◽  
Vol 18 (4) ◽  
pp. 729-755
Author(s):  
Amy K. Lysak
Keyword(s):  
Accounting Standards ◽  
Standard Setting ◽  
Change Score ◽  
Auditor Independence ◽  
Litigation Risk ◽  
Audit Risk ◽  
Accounting Firms ◽  
Content Type ◽  
Big 4 ◽  
Comment Letters

Purpose This study aims to evaluate whether the Big-4’s commenting efforts influence the characteristics of Financial Accounting Standards Board’s (FASB’s) Final_Standards using the content of their comment letters. Whether auditors lobby standard-setters to help their clients or to help themselves and whether they are successful are questions highly relevant to issues of auditor independence and audit effectiveness. Design/methodology/approach Based on components of Mergenthaler (2009), this study develops a rules-based continuum change score to measure how much more (less) rules-based a Final_Standard is compared to its exposure draft to evaluate the influence of the Big-4 on the FASB’s standard-setting for 63 accounting standards. Findings The findings show that extensive comment letters and increased uncertainty language are associated with increases in the rules-based attributes included in Final_Standards. These results suggest the Big-4 prioritize a reduction in their own litigation risk over the possible preferences of their clients for less rigid standards. Moreover, the results are consistent with their comment letters influencing the FASB’s decision to include more rules-based attributes in Final_Standards. Originality/value This study develops a potential proxy for audit risk by assessing the changes in the rules-based characteristics of proposed accounting standards and using the content of the comment letters to evaluate whether the Big-4 accounting firms may influence the FASB’s Final_Standards. Overall, this study provides a unique perspective on the influence of constituents on the FASB’s standard-setting.

The US federal crop insurance program: a case study in rent seeking

2019 ◽  
Vol 80 (3) ◽  
pp. 339-358
Author(s):  
Vincent H. Smith
Keyword(s):  
Interest Groups ◽  
Federal Government ◽  
Insurance Industry ◽  
Crop Insurance ◽  
Rent Seeking ◽  
Content Type ◽  
Government Subsidies ◽  
Insurance Reform ◽  
Insurance Program ◽  
The Us

Purpose Rent seeking is endemic to the process through which any policy or regulatory initiative is developed in the USA. The purpose of this paper is to show how farm and other interest groups have formed coalitions to benefit themselves at the expense of the federal government by examining the legislative history of the federal crop insurance program. Design/methodology/approach The federal crop insurance legislation and the way in which the USDA Risk Management Agency manages federal crop insurance program are replete with complex and subtle policy initiatives. Using a new theoretical framework, the study examines how, since 1980, three major legislative initiatives – the 1980 Federal Crop Insurance Act, the 1994 Crop Insurance Reform Act and the 2000 Agricultural Risk Protection Act – were designed to jointly benefit farm interest groups and the agricultural insurance industry, largely through increases in government subsidies. Findings Each of the three legislative initiatives examined here included provisions that, when considered individually, benefitted farmers and adversely affected the insurance industry, and vice versa. However, the joint effects of the multiple adjustments included in each of those legislative initiatives generated net benefits for both sets of interest groups. The evidence, therefore, indicates that coalitions formed between the farm and insurance lobbies to obtain policy changes that, when aggregated, benefited both groups, as well as banks with agricultural lending portfolios. However, those benefits came at an increasingly substantial cost to taxpayers through federal government subsidies. Originality/value This is the first analysis of the US federal crop insurance program to examine the issue of coalition formation.

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