An examination of a pragmatic approach to minimizing underreporting of time

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Naomy Palamanga Thiombiano ◽  
Ifeoma Udeh
Keyword(s):  
Time Use ◽  
Design Methodology ◽  
Feasible Solution ◽  
Time Budget ◽  
Accounting Students ◽  
Pragmatic Approach ◽  
Content Type ◽  
Audit Firms ◽  
Time Budget Pressure ◽  
Practical Implications

Purpose This paper aims to propose and examine a pragmatic approach to minimizing auditors’ underreporting of time. Specifically, the study examines the effects of time budget pressure (TBP) and reported time use policy (RTUP) on time underreporting. Design/methodology/approach This paper uses a 2 × 2 between experimental design. The participants are 130 undergraduate accounting students and they completed a ratio-based task. The online experiment manipulated TBP and a RTUP. Findings This study shows a RTUP reduces time underreporting, especially when TBP is high. Practical implications This study is useful to audit firms because it provides a feasible solution to minimizing time underreporting. Social implications Studies show that firm culture affects the dysfunctional behavior of time underreporting. Consequently, this study recommends that firms influence the culture around time reporting through an upfront communication of a use policy. Originality/value Studies on time underreporting exist, but formal studies on solutions to the issue are sparse. The authors propose a solution to the issue of time underreporting, which is a RTUP.

Causality in qualitative market and social research

2019 ◽  
Vol 22 (3) ◽  
pp. 405-413
Author(s):  
Clive Roland Boddy
Keyword(s):  
Qualitative Research ◽  
Design Methodology ◽  
Social Research ◽  
Pragmatic Approach ◽  
Social Phenomena ◽  
Content Type ◽  
The Past ◽  
The Moment ◽  
Practical Implications

Purpose Academic qualitative researchers have been criticized for rejecting the idea that their research can establish causality while market and social researchers, with their realist and pragmatic approach to research, take for granted that it can. This paper aims to explore the ability of qualitative research to determine cause and effect in terms of market and social phenomena. Design/methodology/approach The literature on causality in qualitative research is reviewed and discussed. The discussion is further informed by the author’s own experience of undertaking commercial and academic market and social qualitative research over the past 33 years. Findings In qualitative market and social research, the determination of causality is often needed but rarely discussed. This paper explores this occurrence and brings to the fore, via discussion and the use of example, the ways in which causality can be determined by qualitative research. Practical implications A determination of what events bring about predictable changes in social and market environments can be established via qualitative research particularly at a probabilistic level of causality. This implies that policymakers should give a greater emphasis to qualitative findings than then sometimes do at the moment. Originality/value Causality in market and social research is rarely discussed by practitioners but is nevertheless a premise of much of the qualitative research that is undertaken. This paper is therefore distinctive in that it examines whether this premise is justifiable.

Nurses’ views about unlicensed and off-license medicines in forensic mental health

2014 ◽  
Vol 16 (3) ◽  
pp. 194-202
Author(s):  
Camilla M. Haw ◽  
Jean H. Stubbs ◽  
Geoffrey L. Dickens
Keyword(s):  
Mental Health ◽  
Design Methodology ◽  
Forensic Mental Health ◽  
Pragmatic Approach ◽  
Structured Interviews ◽  
Mental Health Nurses ◽  
Content Type ◽  
Unlicensed Medicines ◽  
Mental Health Settings ◽  
Practical Implications

Purpose – Use of off-license medicines in forensic mental health settings is common and unlicensed drugs are sometimes prescribed. Despite their responsibility for administering medicines little is known about how mental health nurses view these practices. The paper aims to discuss these issues. Design/methodology/approach – In total, 50 mental health nurses working in low and medium secure adolescent and adult mental health wards were presented with a clinical vignette about administration of unlicensed and off-license medicines. Semi-structured interviews about their likely clinical response to, and feelings about, this practice were conducted. Interview data were subject to a thematic analysis. Findings – Analysis revealed six themes: status of unlicensed/off-label medicines; legality of administering unlicensed medicines; professional standards around administering unlicensed medicines; finding out more about unlicensed medicines; trusting medical colleagues; and decision making in uncertain cases. Practical implications – Forensic mental health nurses take a pragmatic approach to the practice of administering unlicensed medicines and most are aware of their professional responsibilities. Originality/value – This study provides the first evidence to inform the development of training for forensic mental health nurses about an issue that is common in forensic mental health practice.

Auditors’ judgment subordination and the theory of planned behavior

2020 ◽  
Vol 35 (8) ◽  
pp. 1189-1211
Author(s):  
Dominic Cyr ◽  
Sylvie Héroux ◽  
Richard Fontaine
Keyword(s):  
Theory Of Planned Behavior ◽  
Planned Behavior ◽  
Design Methodology ◽  
Cash Flows ◽  
Content Type ◽  
Audit Firm ◽  
Factors Associated ◽  
Big 4 ◽  
Audit Firms ◽  
Practical Implications

Purpose The purpose of this paper is to examine circumstances under which auditors subordinate their judgment. More specifically, the authors investigate factors associated with auditors’ propensity to accept client-preferred accounting methods that conform to accounting standards but do not faithfully represent the entity’s financial position, financial performance and cash flows. Design/methodology/approach Based on the theory of planned behavior (TPB), the authors developed a survey that was sent to auditors at a non-Big 4 audit firm. Findings Main results suggest that auditors tend to agree with a client’s preferred accounting method when they anticipate little fallout from this decision, they believe they can easily justify the method, and they perceive that colleagues, shareholders and creditors would also agree with the decision. Practical implications Results benefit auditing standard setters and regulators and are relevant for accounting institutes and audit firms because practitioners can learn about circumstances under which auditors subordinate their judgment. Originality/value This study contributes to the audit literature by using the TPB to identify factors associated with auditors’ judgment subordination. In addition, it applies the TPB in a context where a client-preferred accounting method is considered acceptable but is not the most appropriate in light of the audited entity’s specific circumstances.

The effect of changing fiscal year-ends on audit fees and audit quality

2019 ◽  
Vol 12 (3) ◽  
pp. 365-382
Author(s):  
Angel Arturo Pacheco Paredes ◽  
Clark Wheatley
Keyword(s):  
Design Methodology ◽  
Audit Quality ◽  
Audit Fees ◽  
Policy Implications ◽  
Fiscal Year ◽  
Content Type ◽  
Audit Firms ◽  
Negative Effect ◽  
Practical Implications

Purpose This study aims to extend recent research analyzing the effect of auditor busyness on audit quality. Specifically, this study explores the effect on audit quality of a change of fiscal year-end to or from an audit firm’s busy period. Design/methodology/approach Empirical archival. Findings When firms change their fiscal year-end to a period when the auditor is less busy, client firms are rewarded with lower audit fees and auditors are rewarded with a reduction in required effort. This study finds no difference in the level of audit quality after a change in fiscal year-end. Practical implications There are significant implications for audit firms as they may gain cost advantages by successfully promoting off-season fiscal year-ends, and reduce the negative effect on employees associated with “busy season” stress. Similarly, client firms may find that audit costs are reduced when they adopt a less “busy” fiscal year-end. Social implications These results have policy implications for regulators because regulators often dictate the fiscal year-end for certain industries or traded securities. Such dictates may thus introduce inefficiencies into the market for audit services. Originality/value These results should guide regulators in their decisions to dictate fiscal year-ends and firms in their choice of reporting periods.

scholarly journals Community and union-led Living Wage campaigns

2017 ◽  
Vol 39 (6) ◽  
pp. 825-839 ◽  
Author(s):  
Peter Prowse ◽  
Ana Lopes ◽  
Ray Fells
Keyword(s):  
Union Membership ◽  
Design Methodology ◽  
Social Issues ◽  
Living Wage ◽  
Pragmatic Approach ◽  
Community Groups ◽  
Content Type ◽  
Strategic Approach ◽  
Persuasive Argument ◽  
Practical Implications

Purpose The purpose of this paper is to demonstrate different approaches to effective campaigning in support of the Living Wage and so this paper contributes to the broader debate over the nature of the union movement’s engagement with community groups in pursuit of workplace and social issues. Design/methodology/approach The paper presents a systematic comparison of a union-led and a community-led campaign, drawing primarily upon interview and survey data. Findings Though different, both campaigns met with a measure of success in improving employee pay and in increasing union membership suggesting a pragmatic approach to the building of union-community relationships. Practical implications The paper shows the need for campaigners to adopt a strategic approach in identifying the target for their campaign, and also the importance of shaping a persuasive argument. Originality/value The paper reaffirms the importance of traditional union-led campaigning alongside campaigning through engagement with community groups and so offers a broader framework for exploring the relationships between union and community groups.

Fraud diamond, Machiavellianism and fraud intention

2019 ◽  
Vol 35 (4) ◽  
pp. 531-544
Author(s):  
Intiyas Utami ◽  
Sutarto Wijono ◽  
Suzy Noviyanti ◽  
Nafsiah Mohamed
Keyword(s):  
Design Methodology ◽  
Internet Access ◽  
Accounting Students ◽  
Social Implications ◽  
Personality Factor ◽  
Web Based ◽  
Content Type ◽  
Internet Connection ◽  
Internal And External Factors ◽  
Practical Implications

Purpose This study aims to test the causality of fraud diamond factors (pressure, rationalization, opportunity and capability) and Machiavellian personality on fraud intention. Design/methodology/approach This study used a 2 × 2 × 2 × 2 web-based laboratory experiment. Our subjects are accounting students from various Indonesian universities as surrogates of an accountant of a firm. We analyzed the data using the independent t-test. Findings This study provides empirical evidence that the four aspects of fraud diamond, namely pressure, opportunity, rationalization and capability cause fraud intention. Besides, high Machiavellian attitude also causes high fraud intention. Research limitations/implications This study is a Web-based one that is subject to the instability of internet access. Specifically, some subjects had to redo the completion of their experimental modules because of the unstable internet connection. Practical implications The results of this study suggest organizations to pay attention to their members’ behavioral aspects that can be the symptoms of fraud and to design whistleblowing systems to prevent fraud intention as an opportunity factor within organizations. Social implications Social implications are to develop the appropriate whistleblowing system to mitigate the fraud. Originality/value The novelty of this study lies in combining the experimental test of fraud diamond (internal and external factors) and Machiavellianism as a personality factor as the determinants of fraud intention. Further, another novelty lies in the use of the antifraud system as a proxy of opportunity that has not yet extensively investigated by previous studies.

Disclosure effects of the PCAOB part II reports

2017 ◽  
Vol 13 (4) ◽  
pp. 568-580
Author(s):  
Ifeoma Udeh
Keyword(s):  
Design Methodology ◽  
Audit Quality ◽  
Financial Statements ◽  
First Year ◽  
Dominant Focus ◽  
Content Type ◽  
Investor Confidence ◽  
Related Literature ◽  
Audit Firms ◽  
Practical Implications

Purpose The purpose of this paper is to examine the effect of the PCAOB part II report disclosures on US triennially inspected audit firms’ deregistration decisions, the likelihood and the timing of audit firms’ dismissals and resignations. Design/methodology/approach The paper anchored on US regulations used 158 publicly available records of disclosed PCAOB part II reports from 2004 to 2012. Findings The number of the quality control deficiencies disclosed in the part II report affects US triennially inspected audit firms’ decisions to deregister from the PCAOB. Additionally, audit firms’ dismissals and resignations, both occur mostly within the first year after the part II report disclosure, although audit firms that subsequently deregister are more likely to be dismissed. Practical implications The paper provides support that the disclosure of the PCAOB part II inspection report motivates audit quality improvement. Social implications The PCAOB inspection and subsequent disclosure of the part II inspection report enhances audit quality, which in turn, enhances investor confidence in the accuracy and reliability of audited financial statements. Originality/value The paper provides insights about the effect of the disclosures of PCAOB part II report, over and above any benefits from the PCAOB part I report disclosures, which is the dominant focus of related literature.

Key audit matters: did IAASB unravel the knots of confusion in audit reports decisions?

2021 ◽  
Vol 36 (8) ◽  
pp. 1025-1052
Author(s):  
Mohamed Abdel Aziz Hegazy ◽  
Noha Mahmoud Kamareldawla
Keyword(s):  
Design Methodology ◽  
Financial Statements ◽  
Reporting Standards ◽  
Content Type ◽  
External Auditors ◽  
Big 4 ◽  
Audit Firms ◽  
Audit Reports ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to investigate how external auditors properly classify the requirements of ISA 701 for key audit matters (KAM) compared with an emphasis of matter or other matters (EOM) in ISA 706 and going concern (GC) in ISAs 706 and 570. Such investigation is important to assess whether the explanatory matters included in ISAs 701, 706 and 570 are appropriate for external auditors so they can properly classify identified audit matters as either KAM, EOM or GC matters and considering the relationship among them. Design/methodology/approach The research used questionnaires sent to a sample of external auditors in five audit firms with international affiliations including two of the Big 4 audit firms. The Z-test for two proportions is conducted to assess whether external auditors were confused when interpreting the explanatory matters included in the ISAs. Findings The research suggests that the current ISA 701 explanations may not adequately help some auditors in their aim of properly identifying all KAM from among the different matters they reach during their audit. When classifying EOM and GC, most of the external auditors misclassified them as KAM. Practical implications This is a timely study. The results have implications for standard setters and regulators through revising the explanations included in the different audit reporting standards including ISA 701 and considering the relationships among them. Originality/value According to the authors’ knowledge, this study is considered among the first that surveyed the appropriateness of the explanations included in ISAs for KAM, EOM, GC and how auditors perceive such explanations when forming their opinion about their clients’ financial statements.

How could external auditors assess the rationalization of fraud?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rasha Kassem
Keyword(s):  
Design Methodology ◽  
Regulatory Environment ◽  
Online Questionnaire ◽  
Content Type ◽  
External Auditors ◽  
Fraud Risk ◽  
Big 4 ◽  
Audit Firms ◽  
The Board Of Directors ◽  
Practical Implications

Purpose This study aims to explore methods that external auditors can use to assess the rationalization of fraud in fraud risk assessment in auditing. Design/methodology/approach An online questionnaire was used to collect data from 150 Big 4 auditors. Findings The results reveal a total of 18 methods that auditors can use to assess the rationalization of fraud. However, some methods were recommended more than others by the auditors in this study. These methods include incorporating the assessment of rationalization into the assessment of motives for fraud and integrity, understanding the client’s business and regulatory environment, inquiring management and the board of directors about past fraud cases and observing management responses and reactions during auditors’ inquiry about fraud-related matters. Practical implications The guidance provided by this study could help enhance auditors’ skills in assessing fraud risks, which, in turn, may increase the likelihood of detecting fraud. The guide could also be helpful for audit firms in their fraud training programs. Originality/value This study is the first to explore methods for assessing the rationalization of fraud by drawing on the experience and insights of Big 4 auditors.

Perceptions of quality of assurance statements for sustainability reports

2014 ◽  
Vol 10 (3) ◽  
pp. 480-499 ◽  
Author(s):  
Silvia Romero ◽  
Belen Fernandez-Feijoo ◽  
Silvia Ruiz
Keyword(s):  
Design Methodology ◽  
Business Students ◽  
Reporting Quality ◽  
Accounting Students ◽  
Content Type ◽  
The Usa ◽  
Master Level ◽  
Sustainability Reports ◽  
Practical Implications

Purpose – The purpose of this paper is to investigate how users perceive the quality of the assurance statement (AS) for sustainability reports (SR). As a complement, the paper also tests the validity of a previous model by evaluating whether the results of its statement of quality agree with the users’ perceptions. Design/methodology/approach – A survey was conducted among 253 master-level business students and advanced undergraduate accounting students in two countries, Spain and the USA, as a proxy for users of SR. To capture their perceptions of quality, the participants were asked to evaluate a measure of quality based on previous research. A measure of quality developed previously was also tested. Findings – An agreement between the students’ perception and the quality measure tested was found. This paper also encounters differences in perception between participants in the two countries studied as well as between accounting and non-accounting students. Practical implications – The results have implications for regulators. In fact, the reform of ISAE3000 (IFAC) deals with the reporting quality. Originality/value – This paper covers two gaps, quality of AS and business students’ approach toward social responsibility, by looking at how users–students perceive AS quality. The validation of a model to assess the quality of SR adds value to the existing literature in the field.

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