scholarly journals Non-audit fees and auditor independence: Nigerian evidence

2019 ◽  
Vol 34 (8) ◽  
pp. 1029-1049
Author(s):  
Paul Nnamdi Onulaka ◽  
Moade Fawzi Shubita ◽  
Alan Combs
Keyword(s):  
Audit Fees ◽  
Auditor Independence ◽  
Structured Interviews ◽  
Content Type ◽  
Face To Face ◽  
External Auditors ◽  
Fund Managers ◽  
Expectation Gap ◽  
Audit Firms ◽  
Economic Necessity

Purpose This study aims to investigate the extent to which the provision of non-audit services (NAS) by external auditors to audit clients affects auditors’ independence and the audit expectation gap in Nigeria. Design/methodology/approach The study adopts an interpretivist approach. In total, 30 semi-structured, face-to-face interviews were conducted to explore the views expressed by audit partners and pension fund managers in Nigeria; group responses were evaluated and presented separately. After transcribing the interview audio recordings, a thematic data analysis of the two groups’ responses was performed. Findings Interpretation of the interview responses indicates that the provision of NAS by audit firms to their audit clients is regarded by auditors as a matter of economic necessity. Nevertheless, it is also perceived as impeding auditors’ independence and increasing the gap between the auditor and public expectations. Practical implications This study contributes to the debate surrounding the need for an independent body to oversee auditing standard setting distinct from the current practice to enhance transparency. Originality/value A qualitative analysis of the nuanced responses obtained from the semi-structured interviews reveals starkly the perceived economic pressures on auditors to accept non-audit work. Moreover, it endorses the regulation to restrict non-audit work in support of a sustainable fee level for an independent audit.

The relationship between audit components and audit expectation gap in listed companies on the Tehran stock exchange

2019 ◽  
Vol 18 (1) ◽  
pp. 199-222 ◽  
Author(s):  
Mahdi Salehi ◽  
Fariba Jahanbin ◽  
Mohammad Sadegh Adibian
Keyword(s):  
Regression Model ◽  
Multiple Regression ◽  
Stock Exchange ◽  
Audit Fees ◽  
Listed Companies ◽  
Multiple Regression Model ◽  
Content Type ◽  
Expectation Gap ◽  
Audit Firms ◽  
The Relationship

Purpose The expectation gap between auditors and users has recently been the topic of many controversies. This paper aims to evaluate the relationship between auditor’s characteristics and audit expectation gap among information users in listed companies on the Tehran stock exchange market. In other words, the study attempts to find whether there is a significant relationship between audit components and the audit expectation gap or not. Design/methodology/approach The multiple regression model is used to test the hypotheses. Research hypotheses are tested using a sample of 78 listed companies on the Tehran stock exchange during 2012-2016, by using integrated data technique of the multiple regression model. Findings The findings show that standard audit fees are not significantly associated with the audit expectation gap. Furthermore, audit fees are negatively associated with the audit expectation gap, which provides that allocated audit price in financial statements gives useful information for external and internal individuals. Predictably, it is recommended that audit opinion significantly determines the level of the audit expectation gap. The authors also find that the independence of the director boards and audit committee members fulfill the expectation gap of individual users. Moreover, finding the negative impact of audit firms ranking on the expectation gap, supports the idea of higher ranked audit firms provide high quality services, and consequently, more reliable information. Finally, the results show that the audit record is positively associated with the audit expectation gap. Originality/value As all recent studies on the expectation gap were qualitative, the present study is the first paper, which measures the expectation gap quantitatively through the statistical method.

scholarly journals Auditing versus consultancy: a critique of the EU law reforms on the new form of auditing

2016 ◽  
Vol 5 (3) ◽  
pp. 90-97 ◽  
Author(s):  
H. Kubra Kandemir
Keyword(s):  
Audit Fees ◽  
Auditor Independence ◽  
Eu Law ◽  
Financial Reports ◽  
External Auditors ◽  
Consulting Services ◽  
Expectations Gap ◽  
Auditor Tenure ◽  
Audit Firms ◽  
New Form

Auditors used to serve the interest of the shareholders only. However, there have been significant changes in terms of auditors’ role and their function. Auditors are now expected to verify financial statements, but at the same time give an assurance regarding the financial sustainability of the entity. Regarding the latter role, audit firms provide consulting services, including risk assessment and management services. However, the law does not assign the latter role to external auditors. This situation results in an expectations gap in relation to both the role of the auditors and the scope of the external auditing. In addition, the growing economic importance of consulting and the long years of auditor tenure is likely to impair auditor independence. This paper submits that the new form of auditing is not problematic but creates issues. First, the expectations between the users of the financial reports and auditors are wider. Second, auditors’ independence is damaged due to the long years of auditor tenure and dependence of non-audit fees generated from consultancy services that not related to audit. The recent law reforms issued by the European Commission has brought some important provisions in terms of filling the expectations gap, reinforcing auditor independence and reducing the familiarity threat. EU’s relatively strict rules on provision of non-audit services and audit firm rotation are expected to have an important impact in the audit market. A critical analysis of the new EU law is submitted with some policy recommendations.

New Zealand venture capital funds and access to new financing: an exploratory study

2014 ◽  
Vol 26 (3) ◽  
pp. 196-225 ◽  
Author(s):  
Sujit Kalidas ◽  
Andrew Kelly ◽  
Alastair Marsden
Keyword(s):  
New Zealand ◽  
Venture Capital ◽  
Design Methodology ◽  
Early Stage ◽  
Equity Capital ◽  
Structured Interviews ◽  
Content Type ◽  
Face To Face ◽  
Fund Managers ◽  
Qualitative Research Design

Purpose – This paper aims to explore the challenges the Venture Capital (VC) funds industry in New Zealand (NZ) faces when sourcing new capital. In NZ, there is a significant gap currently for companies seeking VC funding of between $2 and $10 million to commercialise new products and ideas. Also, the estimated financing needs of the next generation of early stage NZ enterprises are around $2 billion of investment over the next 10 years (NZVIF, 2011). Design/methodology/approach – A qualitative research design is applied, given the exploratory nature of this research. In this study, 15 face-to-face semi-structured interviews with VC fund managers, investors and intermediaries were undertaken. Findings – The findings suggest that the lack of observable proven historical returns from NZ domiciled VC funds is a significant impediment to raising new equity capital. Fund managers and intermediaries also note that there is a lack of domestic entities in NZ that have the capacity and current appetite to invest in VC. In part, this may indicate that VC investors are unwilling to invest further capital in NZ VC funds until the current funds realise their existing investments. Originality/value – Overall our findings support recent initiatives by the NZ VC funds industry to track and monitor the performance of NZ VC funds.

Is this mine? Psychological ownership and the social media follower

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Caroline S.L. Tan
Keyword(s):  
Social Media ◽  
Design Methodology ◽  
Vital Role ◽  
Psychological Ownership ◽  
Structured Interviews ◽  
Content Type ◽  
Face To Face ◽  
The Social ◽  
Social Currency ◽  
Different Levels

Purpose The purpose of this study is to examine psychological ownership (PO) experienced by followers of social media influencers toward both influencer and the product. Design/methodology/approach Data were collected using face-to-face semi-structured interviews that were conducted with 30 respondents and analyzed using thematic analysis. Findings The study demonstrated that the PO experienced by the follower changes under different conditions resulting from perceived value, social currency and follower activity. Social currency plays a vital role in determining the target of PO, often affecting the narrative by the follower. Originality/value To the best of the author’s knowledge, this is the first paper to examine the transference of PO between product and influencer as experienced by the follower. It provides an understanding on PO that is experienced in different levels of intensity and changes depending on the motive of the follower; hence, transference of PO occurs and it is not a static.

Technology in audit engagements: a case study

2014 ◽  
Vol 29 (4) ◽  
pp. 350-365 ◽  
Author(s):  
Miklos A. Vasarhelyi ◽  
Silvia Romero
Keyword(s):  
Cross Sectional ◽  
Content Type ◽  
Support Teams ◽  
External Auditors ◽  
Use Of Technology ◽  
Audit Firms ◽  
Integration Of Technology ◽  
Employee Competencies ◽  
Audit Team ◽  
Tools And Techniques

Purpose – The audit of corporations is now dependent on the examination of corporate computer systems. Although tools and techniques have been available for decades, there are major limitations on the audits of corporate systems by external auditors. This paper aims to examine external auditor usage of technology benefiting from a unique opportunity of reviewing a large CPA firm's audit work papers and interviewing their audit staff to examine the following questions: are auditors using the available technological tools? What are the difficulties they face in using these tools? Are there mediators to enhance usability? Why and what circumstances surround their absence? Design/methodology/approach – The authors use a cross-sectional, case-based field study comparing four engagements in a major audit firm. Findings – This paper concludes that the characteristics of the audit team largely determine the levels of technology utilization. Furthermore, the integration of technology support teams and auditors may improve usability, and, consequently, increase technology adoption. Research limitations/implications – The paper includes information about four audit engagements. Given that audit firms have different cultures, practices and employee competencies, and hence emphasize the use of technology to varying degrees, it would be desirable to expand this study to reflect these variations. Practical implications – The paper presents a discussion of the reasons why auditors do not fully use technology and provide tools to increase its usability. Originality/value – The paper benefits from a unique opportunity of interviewing audit teams of a large firm, as well as through reviewing their work papers.

The experiences leading to resignation of female audit managers: an interpretative phenomenological analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jurika Groenewald ◽  
Elza Odendaal
Keyword(s):  
Gender Inequality ◽  
Interpretative Phenomenological Analysis ◽  
Role Theory ◽  
Gender Diversity ◽  
Phenomenological Analysis ◽  
Research Approach ◽  
Structured Interviews ◽  
Homogeneous Sample ◽  
Content Type ◽  
Audit Firms

Purpose Considering the benefits that gender diversity could bring to audit firms, especially in a time when the audit profession faces criticism and the COVID-19 pandemic has widened the gender inequality gap, this study aims to explore the lived experiences of female former audit managers from a social role theory and role congruity theory perspective, to understand the factors that contributed towards their resignations. Design/methodology/approach An exploratory qualitative research approach and an interpretative phenomenological analysis design were used. Semi-structured interviews were conducted with senior female audit managers who had resigned from Johannesburg Stock Exchange-accredited audit firms. Findings The female former audit managers reported their unique experiences in terms of a lack of transparent career progression discussions, audit firms being run by “old boys’ clubs” and unfair treatment linked to bias, job overload and indistinct ambitions to become audit partners. Research limitations/implications The homogeneous sample included a small number of female participants from a limited number of audit firms. Originality/value The findings could inform audit firms how to address the factors contributing to female audit managers’ resignations and to challenge stereotypes to retain more women for promotion to audit partner-level, thereby capitalising on the benefits of a diversified management structure that could lead to higher quality audits and address gender inequality.

scholarly journals Political connections: a threat to auditor independence?

2015 ◽  
Vol 5 (2) ◽  
pp. 222-246 ◽  
Author(s):  
Effiezal Aswadi Abdul Wahab ◽  
Mazlina Mat Zain ◽  
Rashidah Abdul Rahman
Keyword(s):  
Design Methodology ◽  
Institutional Environment ◽  
Audit Fees ◽  
Auditor Independence ◽  
Political Connections ◽  
Panel Regression ◽  
Data Set ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach – This study employs panel regression analysis. The panel data set consists of 379 firm-year observations for three years from year 2001 to 2003. Findings – Based on 379 firm-year observations for the period of 2001-2003, grounded on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, the authors find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for Bumiputra-dominated firms connected firms. Originality/value – This study contributes to the extant literature by examining the role of political connections in the context of auditor independence. In addition, this study is conducted in Malaysia, which provides a unique institutional environment with the existence of political connections that is built on ethnic grounds.

The employment landscape and LIS education in Pakistan: challenges and prospects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amara Malik ◽  
Kanwal Ameen
Keyword(s):  
Information Science ◽  
Future Orientation ◽  
Library And Information Science ◽  
Structured Interviews ◽  
Job Market ◽  
Content Type ◽  
Face To Face ◽  
Job Titles ◽  
The Future ◽  
Information Landscape

Purpose This study aims to explore the current and future employment opportunities for library and information science (LIS) graduates. It identifies future employers and emerging competitors in the information landscape. The strategies that may be used to respond to and capture the future job market are also presented for LIS schools in the light of the study findings. Design/methodology/approach The qualitative approach coupled with the interview technique was used for collecting insight into the phenomena. Face-to-face and telephonic semi-structured interviews were conducted with 17 faculty members (professors, associate professors and assistant professors) from 8 LIS departments. A thematic analysis approach was used to analyze the data to present the participants’ opinions regarding various aspects of the job market in the country. Findings It was found that the job market was still traditional (library) and would continue to be so for the next five to seven years. However, the findings also indicated the emergence of a non-traditional job market in the country. New job titles and functions relevant to the emerging job sector other than libraries in the information environment were noted. Originality/value Findings may have a direct impact on the future orientation, survival and sustainability of LIS programs in the country. The study may inform curriculum revision and updating efforts to make it more relevant and responsive to future needs.

scholarly journals Digital or human touchpoints? Insights from consumer-facing in-store services

2019 ◽  
Vol 33 (1) ◽  
pp. 296-310 ◽  
Author(s):  
Virginia Vannucci ◽  
Eleonora Pantano
Keyword(s):  
Human Services ◽  
Design Methodology ◽  
New Technology ◽  
Structured Interviews ◽  
Content Type ◽  
Face To Face ◽  
Human Interactions ◽  
Key Drivers ◽  
Service Channels ◽  
Digital Or

Purpose Prior research highlights the extent to which consumers largely appreciate the possibility to choose among different digital touchpoints during the in-store experience, which results in a pervasive introduction of digital touchpoints as the first point of contact between retailers and consumers. However, consumers also give value to the human interactions in the service channels. The previous studies do not conclusively indicate the best balance of digital and human services. The purpose of this paper is to understand consumer-facing in-store services in new technology-enriched retail settings. Design/methodology/approach A qualitative approach involving face-to-face semi structured interviews was applied. To this end, the authors recruited 26 participants in Northern Italy between October and November 2017. Findings Results reveal motivations, preferences and discouraging factors leading consumers’ interactions with digital or human touchpoints. Findings ultimately provide useful guidelines to managers on understanding consumers’ attitudes toward digital vs human touchpoints phenomenon. Originality/value By identifying the key drivers of either digital and human touchpoints selection in offline retail settings, the present study figured out the attributes playing the crucial role in determining consumers’ preference regarding the in-store alternatives. Findings allow a further greater clarification of the practical issues, with emphasis on the new of human–machine integration.

The impact of fair value estimates on audit fees: evidence from the financial sector in Jordan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rateb Mohammad Alqatamin ◽  
Ernest Ezeani
Keyword(s):  
Positive Relationship ◽  
Stock Exchange ◽  
Random Effect ◽  
Audit Fees ◽  
Fair Value ◽  
Financial Information ◽  
Content Type ◽  
External Auditors ◽  
The Right ◽  
The Impact

PurposeThis study investigates the association between the estimates of fair value and external auditor's fees.Design/methodology/approachBased on a sample of 32 Jordanian financial companies listed on the Amman Stock Exchange (ASE) over the period 2005–2018. We employ random effect models to test our hypothesis.FindingsWe found a positive relationship between audit fees and the proportion of fair value assets, which implies that external auditors are more likely to spend more effort for complex estimates, thereby increasing audit fees. We examined the relationship between audit fees and three levels of fair value inputs and found a positive relationship between the level of effort spent on assessment of higher uncertainty fair value inputs and audit fees. The findings are consistent with the expectation that more audit effort is required in a highly regulated environment due to the possibility of a higher cost of litigation.Practical implicationsThe findings of this study could be beneficial for a number of users of financial information, such as investors, regulators, auditors. This group of users might consider the results of this study when they are using a company's financial information, and consequently, better able to make the right decisions.Originality/valueAlthough prior studies have researched fair value, no study to date among developing countries has investigated its relationship with audit fees. This study, therefore, provides new empirical evidence that the complexity and risk of fair value estimates significantly influences auditors' motivation to expend additional effort, resulting in higher audit cost.

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