scholarly journals Team composition and labor allocation in audit teams: a descriptive note

2019 ◽  
Vol 34 (5) ◽  
pp. 518-548 ◽  
Author(s):  
Limei Che ◽  
Tobias Svanström
Keyword(s):  
Descriptive Statistics ◽  
Future Research ◽  
Team Composition ◽  
Data Set ◽  
Public And Private ◽  
Content Type ◽  
Team Members ◽  
Audit Firm ◽  
Labor Allocation ◽  
Audit Production

PurposeThe purpose of this paper is to describe, illustrate and provide a deeper understanding of team composition and labor allocation in audit teams by quantifying the exact value of resources at different levels of the audit production. Audit teams have been considered as a black box in audit research. Therefore, this paper reports descriptive statistics on (levels and proportions of) hours and costs allocated to auditor ranks (and the number and value, i.e. billing rates, of auditors for different ranks and the entire team) to shed new light on audit teams.Design/methodology/approachThis study uses a proprietary data set containing disaggregated information on hours, costs and billing rates for each team member in each of 908 audit engagements. The data are provided by a Swedish Big 4 audit firm. The study uses a purely descriptive approach and categorizes auditors into seven ranks. As size and the publicly listed status are crucial determinants of audit production, the paper splits engagements in public and private companies and reports statistics for size quartiles of both public and private clients.FindingsThe paper provides descriptive statistics for (1) client size, (2) audit team members, (3) audit hours, (4) audit costs, (5) proportion of audit hours, (6) proportion of audit costs, (7) billing rates and (8) variation of billing rates. Results show that compared to private clients, the audit firm allocates higher effort from auditors in higher ranks and lower effort from auditors in lower ranks to public clients. Another finding is that allocation varies with client size for private clients, but less so for public clients.Originality/valueIn an area with sparse literature, this descriptive study serves as a first step to improve our understanding and guide future research. It provides concrete support for previously known theory.

Why does decomposed audit proposal readability differ by audit firm size? A Coh-Metrix approach

2019 ◽  
Vol 34 (8) ◽  
pp. 895-923 ◽  
Author(s):  
Yu-Tzu Chang ◽  
Dan N. Stone
Keyword(s):  
Firm Size ◽  
Local Governments ◽  
Narrative Structure ◽  
Future Research ◽  
Data Set ◽  
Content Type ◽  
Audit Firm ◽  
Service Contracts ◽  
State And Local ◽  
Text Cohesion

Purpose This paper aims to introduce the emerging artificial-intelligence-based readability metrics (Coh-Metrix) to examine the effects of firm size on audit proposal readability. Design/methodology/approach Coh-Metrix readability measures use emerging computation linguistics technology to better assess document readability. These metrics measure co-relations of words, sentences and paragraphs on multi-dimensions rather than adopting the unidimensional “bag of words” approach that examines words in isolation. Using eight Coh-Metrix orthogonal principal component factors, the authors analyze the Chang and Stone (2019) data set comprised of 370 hand-collected audit proposals submitted by audit firms for the US state and local governments’ audit service contracts. Findings Audit firm size has a significant impact on the readability of audit proposals. Specifically, as measured by the traditional readability metric, the proposals from smaller firms are more readable than those submitted by larger firms. Furthermore, decomposed readability metrics indicate that smaller firm proposals evidence stronger (deep) text cohesion, whereas larger firm proposals evidence a stronger narrative structure and higher connectivity (relational indicators) among proposal elements. Unlike the traditional readability metric, however, the emergent readability metrics are uncorrelated with auditor selection. Research limitations/implications Work remains to develop and validate Coh-Metrix measures that are specific to the context of accounting and auditing practice. Future research can use emerging readability measures to examine various textual features (e.g. text cohesion) in finance or accounting related documents. Practical implications The results provide practitioners with insight into the proposal writing strategies and practices of larger and smaller firms. In addition, the results highlight the differing audit firm selection outcomes from traditional and Coh-Metrix readability metrics. Originality/value This study introduces new data and holistic readability measures to the auditing literature.

Team processes for adaptive and innovative outcomes

2014 ◽  
Vol 20 (1/2) ◽  
pp. 19-38 ◽  
Author(s):  
Manuel London
Keyword(s):  
Group Dynamics ◽  
Team Learning ◽  
Future Research ◽  
Team Composition ◽  
Team Processes ◽  
Content Type ◽  
Team Members ◽  
Team Adaptation ◽  
Study Teams ◽  
Practical Implications

Purpose – The aim of this paper is to consider how exploitative and exploratory team processes contribute to adaptive and innovative outcomes. The paper integrates the team learning and team adaptation literature and examines factors that stimulate and support exploitative and exploratory processes in interdisciplinary and homogeneous teams. This has implications for team learning research and facilitation that fosters adaptation and innovation. Design/methodology/approach – The paper reviews how teams learn to be exploitative and exploratory and the extent to which adaptive and innovative outcomes ensue. The paper suggests the value of teams understanding how different conditions (environment, leadership, member characteristics, and team composition) affect team members' interactions as they learn and apply exploitative and exploratory processes to produce adaptive and/or innovative outcomes. Findings – Teams learn frames of reference for being exploitative and exploratory influenced by environmental conditions, leadership, particularly leadership that creates psychological safety, and team member characteristics and team. Interdisciplinary team composition and resulting possible subgroup formation pose challenges for exploitative and exploratory teams. Research limitations/implications – Future research should study teams over time to observe subgroup formation and integration, and facilitation by leaders, team members, and group dynamics professionals to support exploratory and exploitative frames and the emergence of adaptations and innovations. Practical implications – Teams may be more successful in implementing innovations when they have learned how to weave between exploratory and exploitative frames of behavior. Originality/value – The paper applies exploitative and exploratory processes to teams to increase their capacity to produce adaptive and innovative outcomes.

The Contingent Effect of Team Composition on the Performance of Entrepreneurial Teams

2019 ◽  
pp. 654-680
Author(s):  
Serghei Musaji ◽  
Julio De Castro
Keyword(s):  
Future Research ◽  
Team Composition ◽  
Team Members ◽  
Team Diversity ◽  
Entrepreneurial Teams ◽  
Knowledge Based ◽  
Fertile Ground ◽  
Active Debate ◽  
And Performance ◽  
The Relationship

Despite the continuous interest in studying entrepreneurial teams, the relationship between team composition and, particularly, team diversity and performance remains fertile ground for active debate. Taking roots in the knowledge-based view and organizational learning literatures, this chapter argues that performance in entrepreneurial teams is contingent on (a) the overlap between team members’ knowledge/competences and the content of the performed tasks, (b) the duplication of the team members’ knowledge in the areas with that content, (c) the nature of tasks (exploration or exploitation), (d) the team’s flexibility to adapt to changes in the content and nature of those tasks, and (e) the rate of environmental change. Because an important source of ambiguity in the understanding of how team diversity and performance are linked ties to issues of how team diversity is conceptualized and operationalized, the chapter also proposes a new way of looking at diversity in future research.

Leaving a joint audit system: conditional fee reductions

2014 ◽  
Vol 29 (2) ◽  
pp. 131-152 ◽  
Author(s):  
Claus Holm ◽  
Frank Thinggaard
Keyword(s):  
Audit Quality ◽  
Theory Development ◽  
Future Research ◽  
Research Approach ◽  
Content Type ◽  
Audit Firm ◽  
Audit System ◽  
Interaction Terms ◽  
Audit Firms ◽  
Audit Fee

Purpose – The authors aim to exploit a natural experiment in which voluntary replace mandatory joint audits for Danish listed companies and analyse audit fee implications of using one or two audit firms. Design/methodology/approach – Regression analysis is used. The authors apply both a core audit fee determinants model and an audit fee change model and include interaction terms. Findings – The authors find short-term fee reductions in companies switching to single audits, but only where the former joint audit contained a dominant auditor. The authors argue that in this situation bargaining power is more with the auditors than in an equally shared joint audit, and that the auditors' incentives to offer an initial fee discount are bigger. Research limitations/implications – The number of observations is constrained by the small Danish capital market. Future research could take a more qualitative research approach, to examine whether the use of a single audit firm rather than two has an effect on audit quality. The area calls for further theory development covering audit fee and audit quality in joint audit settings. Practical implications – Companies should consider their relationship with their auditors before deciding to switch to single auditors. Fee discounts do not seem to reflect long-lasting efficiency gains on the part of the audit firm. Originality/value – Denmark is the first country to leave a mandatory joint audit system, so this is the first time that it is possible to study fee effects related to this.

How project managers can encourage and develop positive emotions in project teams

2014 ◽  
Vol 7 (3) ◽  
pp. 449-472 ◽  
Author(s):  
Morten Emil Berg ◽  
Jan Terje Karlsen
Keyword(s):  
Empirical Data ◽  
Positive Emotions ◽  
Project Managers ◽  
Engineering Industry ◽  
Project Teams ◽  
Future Research ◽  
Content Type ◽  
Team Members ◽  
Signature Strengths ◽  
Positive Meaning

Purpose – This study provides insight into how project managers can use leadership tools to encourage and develop positive emotions among the project team members toward greater overall project success. The purpose of this paper is to provide the engineering industry with a closer look at how positive emotions can create good team member relations, reduce stress, develop clearer roles, creativity and joy at the workplace. Design/methodology/approach – The empirical data were obtained using in-depth interviews of three experienced project managers. Findings – The empirical data give insight as to how project managers can use their signature strengths. Additionally, the data also show how they can evolve and draw on positive meaning, positive emotions and positive relations. Various examples of positive meaning, positive emotions, positive relations and signature strengths have been identified and discussed. Research limitations/implications – Future research should apply a more comprehensive research design, for example a survey using a larger sample, so that these findings may be generalized. Practical implications – The paper contributes to portray and analyze positive psychology in a project management setting. Additionally, the paper assists understanding the connections among positive meaning, positive emotions, positive relations and signature strengths by presenting and discussing a model. Originality/value – This research extends current understanding of how project managers use their signature strengths to encourage and develop positive emotions in project teams.

Impact of business model innovations on SME’s innovativeness and performance

2019 ◽  
Vol 14 (4) ◽  
pp. 521-539 ◽  
Author(s):  
Rimantas Gatautis† ◽  
Egle Vaiciukynaite ◽  
Asta Tarute
Keyword(s):  
Business Model ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Future Research ◽  
Data Set ◽  
Content Type ◽  
Innovation Activities ◽  
Organizational Inertia ◽  
Multiple Characteristics

Purpose Business model innovations (BMIs), their drivers and outcomes are attracting increasing attention in academic literature. However, previous studies have mainly focused on large companies, while knowledge of BMI in small-to-medium-sized enterprises (SMEs) is limited. Therefore, the purpose of this paper is to add new insights into how related BMI drivers, practices and outcomes are in relation to SMEs. Design/methodology/approach An extensive review of the existing literature was performed. Consequently, the relationships between BMI drivers, BMI practices and outcomes of BMI were developed as a conceptual framework. An empirical study was carried out. A structural equation modeling (SEM) procedure was used to empirically test the model using a quantitative data set of Lithuanian SMEs (n=73). Findings The study provides insights into the relations between BMI drivers, BMI practices and outcomes of BMI in SMEs. The findings of SEM, four drivers (innovation activities, strategic orientation, market and technology turbulence, respectively) are indicated to contribute to BMI of SMEs. In addition, the results proved that the implementation of BMI practices leads to strategic and architectural changes in firms and has a positive impact on SMEs performance and innovativeness. Research limitations/implications Empirical research is focused on a limited number of internal and external BMI drivers, which have an influence on BMI in SMEs from one geographical region. Consequently, there are many external and internal BMI drivers which also may have an influence on BMI in SMEs, such as industry life cycle, organizational inertia and leadership. Meanwhile, SMEs possess multiple characteristics, i.e. a phase of maturity, gender of CEO, firm size and industry; therefore, the aforesaid aspects are considered to be significant limitations. In addition, the importance of SMEs characteristics as mediators for the effects on a firm’s performance and innovativeness should be considered in future research avenues. Practical implications Findings of this research can be used by SME managers to better understand how firms might actively engage in BMI practices, what drivers lead to BMI and, in turn, affect their firm’s performance and innovativeness. SME managers should be encouraged to pay attention to strategic and architectural changes of BM that can contribute to enterprise performance and innovativeness. Originality/value This paper adds to the stream of BMI research by empirically exploring drivers and outcomes of BMI in SMEs. In addition, this paper fulfills research gaps proposed by Bouwman et al. (2018), Foss and Saebi (2017), Heikkilä, Bouwman and Heikkilä (2018) and Lambert and Davidson (2013), and enhances the current overall understanding of BMIs.

Audit roles and the review process: workpaper preparers’ and reviewers’ differing perspectives

2019 ◽  
Vol 34 (4) ◽  
pp. 438-461 ◽  
Author(s):  
Brandon Ater ◽  
Christine Gimbar ◽  
J. Gregory Jenkins ◽  
Gabriel Saucedo ◽  
Nicole S. Wright
Keyword(s):  
Review Process ◽  
Future Research ◽  
Senior Managers ◽  
Data Set ◽  
Accounting Firms ◽  
Content Type ◽  
Face To Face ◽  
Process Characteristics ◽  
Workpaper Review ◽  
The Face

Purpose This paper aims to examine the perceptions of auditor roles on the workpaper review process in current audit practice. Specifically, the paper investigates how an auditor’s defined role leads to perceived differences in what initiates the workpaper review process, the preferred methods for performing reviews and the stylization or framing of communicated review comments. Design/methodology/approach A survey was administered in which practicing auditors were asked about workpaper review process prompts, methods and preferences. The survey was completed by 215 auditors from each of the Big 4 accounting firms and one additional international firm. The final data set consists of quantitative and qualitative responses from 25 audit partners, 33 senior managers, 30 managers, 75 in-charge auditors/seniors and 52 staff auditors. Findings Findings indicate reviewers and preparers differ in their perceptions of the review process based on their defined roles. First, reviewers and preparers differ in their perspectives on which factors initiate the review process. Second, the majority of reviewers and preparers prefer face-to-face communication when discussing review notes. Reviewers, however, are more likely to believe the face-to-face method is an effective way to discuss review notes and to facilitate learning, whereas preparers prefer the method primarily because it reduces back-and-forth communication. Finally, reviewers believe they predominantly provide conclusion-based review notes, whereas preparers perceive review notes as having both conclusion- and documentation-based messages. Research limitations/implications This paper advances the academic literature by providing a unique perspective on the review process. Instead of investigating a single staff level, it examines the workpaper review process on a broader scale. By obtaining views from professionals across all levels, this work intends to inspire future research directed at reconciling differences and filling gaps in the review process literature. The finding that reviewers and preparers engage in role conformity that leads to incongruent perceptions of the review process should encourage the consideration of mechanisms, with the potential to be tested experimentally, by which to reconcile the incongruities. Practical implications Results support recent regulator concerns that there are breakdowns in the workpaper review process, and the findings provide some insight into why these breakdowns are occurring. Incongruent perceptions of review process characteristics may be the drivers of these identified regulatory concerns. Originality/value This is the first study to examine current workpaper review processes at the largest accounting firms from the perspective of both preparers and reviewers. From this unique data set, one key interpretation of the findings is that workpaper preparers do not appear to recognize a primary goal of the review process: to ensure that subordinates receive appropriate coaching, learning and development. However, workpaper reviewers do, in fact, attempt to support preparers and work to create a supportive team environment.

scholarly journals Tax increment financing and major league venues

2020 ◽  
Vol 10 (4) ◽  
pp. 495-517
Author(s):  
Robert Sroka
Keyword(s):  
Real Estate ◽  
Future Research ◽  
Real Estate Development ◽  
Tax Increment Financing ◽  
General Reference ◽  
Data Set ◽  
Content Type ◽  
Capital Costs ◽  
Major League ◽  
Sports Venues

PurposeThis article intends to shine a light on venue-related tax increment financing (TIF) through the first comprehensive inventory of its use at the major league level.Design/methodology/approachFor each 2018 venue in the five North American major leagues, data was collected on TIF contributions to direct venue capital costs as well as to projects using TIF to enable real estate development ancillary to a venue. Neighborhoods surrounding a venue were also assessed for the presence of a TIF district. With both the direct and ancillary elements, data was collected from government, industry, academic, mapping and media sources. A review of this data set and findings are followed by a discussion of implications and directions for future work.FindingsOver one-third of the TIF eligible permanent stadiums and arenas studied in the five major leagues have a direct or strong TIF connection. Direct TIF contributions to sports venues, as well as TIF use intended to generate real estate development around these venues, are most frequent and financially significant in arenas and soccer-specific stadiums. Additionally, arena and stadium projects using TIF often accompany ancillary real estate development.Originality/valueA primary purpose of this article is to provide a previously missing general reference resource to governments and citizens of jurisdictions considering facility TIF use on the scope, nature, extent and identity of TIF projects related to major league sports venues. More generally, the inventory and assessment of TIF use in professional sports venues offered by this article sets the stage for future research on associative relationships between TIF contributions and facility finance outcomes as well as the normative value of venue-related TIF.

Spatial analysis of Twitter sentiment and district-level housing prices

2019 ◽  
Vol 12 (2) ◽  
pp. 173-189
Author(s):  
Christopher Hannum ◽  
Kerem Yavuz Arslanli ◽  
Ali Furkan Kalay
Keyword(s):  
News Media ◽  
Housing Prices ◽  
District Level ◽  
Future Research ◽  
Scoring Method ◽  
Cross Sectional ◽  
Data Set ◽  
Content Type ◽  
Property Prices ◽  
Price Appreciation

Purpose Studies have shown a correlation and predictive impact of sentiment on asset prices, including Twitter sentiment on markets and individual stocks. This paper aims to determine whether there exists such a correlation between Twitter sentiment and property prices. Design/methodology/approach The authors construct district-level sentiment indices for every district of Istanbul using a dictionary-based polarity scoring method applied to a data set of 1.7 million original tweets that mention one or more of those districts. The authors apply a spatial lag model to estimate the relationship between Twitter sentiment regarding a district and housing prices or housing price appreciation in that district. Findings The findings indicate a significant but negative correlation between Twitter sentiment and property prices and price appreciation. However, the percentage of check-in tweets is found to be positively correlated with prices and price appreciation. Research limitations/implications The analysis is cross-sectional, and therefore, unable to answer the question of whether Twitter can Granger-cause changes in housing markets. Future research should focus on creation of a property-focused lexicon and panel analysis over a longer time horizon. Practical implications The findings suggest a role for Twitter-derived sentiment in predictive models for local variation in property prices as it can be observed in real time. Originality/value This is the first study to analyze the link between sentiment measures derived from Twitter, rather than surveys or news media, on property prices.

Skills and knowledge management in higher education: how service learning can contribute to social entrepreneurial competence development

2019 ◽  
Vol 23 (10) ◽  
pp. 1925-1948 ◽  
Author(s):  
Jantje Halberstadt ◽  
Jana-Michaela Timm ◽  
Sascha Kraus ◽  
Katherine Gundolf
Keyword(s):  
Service Learning ◽  
Social Entrepreneurship ◽  
Qualitative Content Analysis ◽  
Educational Practice ◽  
Future Research ◽  
Small Data ◽  
Learning Approaches ◽  
Structured Interviews ◽  
Data Set ◽  
Content Type

Purpose The purpose of this paper is to elaborate on how service learning approaches are able to foster social entrepreneurship competences. The aim of the paper is to formulate a framework of key competences for social entrepreneurship and to give first insights in how service learning actually has an impact on change in students’ set of competences. Design/methodology/approach This paper uses a mixed-methods approach combining qualitative data collectionmethods of learning diaries of the students and semi-structured interviews, including 40 master’s students studying at a German university in interdisciplinary learning settings and five instructors from the same universities. Analysis was carried out by means of qualitative content analysis. Findings This paper provides empirical insights about the competences that are being fostered by service learning. From these, a framework for social entrepreneurship competences is being derived. Research limitations/implications The set of competences should be further investigated, as it was derived out of a small data set. Therefore, researchers are encouraged to use the set of competences for social entrepreneurship as a basis for future research and on a longer-term perspective, which lead to substantial implications for educational practice. Practical implications This paper includes implications for new perspectives on service learning in the light of the development of a relevant framework for social entrepreneurship competence, having significant implications for educational practice in social entrepreneurship education. Originality/value With this paper, the authors fulfill the need of a framework of social entrepreneurship competences that serves as a foundation for educational practice and further research in the context of service learning and beyond.

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