scholarly journals Do key audit matters (KAMs) matter? Auditors’ perceptions of KAMs and audit quality in Finland

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antti Rautiainen ◽  
Jani Saastamoinen ◽  
Kati Pajunen
Keyword(s):  
Audit Quality ◽  
European Union Country ◽  
Added Value ◽  
Audit Process ◽  
Content Type ◽  
Electronic Survey ◽  
Work Effectiveness ◽  
The Impact ◽  
Audit Effectiveness ◽  
Practical Implications

Purpose Key audit matters (KAMs) in International Standard for Auditing, 701 seek to enhance the value of the auditor’s report by increasing the transparency of how the audit was performed. The purpose of this study is to investigate how professional auditors themselves perceive the impact of KAMs on audit quality and audit effectiveness. Design/methodology/approach Statistical analyses of an electronic survey of certified public auditors (CPAs) in Finland. Findings Regarding the perceptions of KAMs, the authors found two dominant views on auditing: quality and efficiency. In general, the respondents did not consider that KAMs improve audit quality. However, auditors focusing on efficiency considered that KAMs make the audit process more fluent. Further, the use of KAMs may facilitate audit effectiveness and cooperation between auditors and managers. The authors also found three factors related to the KAMs processes and auditing work: effectiveness, risks and workload. Practical implications Auditors may use KAMs to provide focus in their work. This facilitates balancing between the demands for added value while keeping the workload and audit risks at a tolerable level. Originality/value This study contributes to the emerging literature on KAMs as well as to the literature examining practitioner views of changes in auditing regulation. It is, as far as we know, the first study to report survey evidence on how CPAs themselves perceive KAMs and the effects of KAMs on audit work in an European Union country context.

The impact of audit reforms on objectivity during the performance of non-audit services

2014 ◽  
Vol 29 (3) ◽  
pp. 222-236 ◽  
Author(s):  
Richard G. Brody ◽  
Christine M. Haynes ◽  
Craig G. White
Keyword(s):  
Audit Quality ◽  
Content Type ◽  
Auditor Liability ◽  
Internal Auditors ◽  
External Auditors ◽  
Regulatory Perspective ◽  
External Auditor ◽  
The Impact ◽  
Practical Implications ◽  
Non Audit Services

Purpose – This research aims to explore whether recent audit reforms have improved auditor objectivity when performing non-audit services. Design/methodology/approach – In two separate experiments, the authors tested whether external and internal auditors' inventory obsolescence judgments are influenced by their client's (or company's) role as the buyer or seller in an acquisition setting. Findings – External auditors assessed the likelihood of inventory obsolescence objectively, regardless of their consulting role in the acquisition setting. Internal auditors assessed the likelihood of inventory obsolescence as higher when consulting for the buyer than when consulting for the seller, consistent with the supposition that the buyer would prefer to write-down inventory and negotiate a lower purchase price, whereas the seller would prefer the inventory not be written down. Practical implications – From a regulatory perspective, external auditors may be relying too much on the work of internal auditors if internal auditors' lack of objectivity as consultants extends to their assurance role. Originality/value – This paper extends prior research in the area of internal and external auditor objectivity and is the first paper to include both subject groups in the same experiment. It also addresses the current policy issues that may have a significant effect on audit quality and auditor liability.

The impact of corporate social responsibility on firm financial performance: does audit quality matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anissa Dakhli
Keyword(s):  
Corporate Social Responsibility ◽  
Financial Performance ◽  
Audit Quality ◽  
Corporate Financial Performance ◽  
Content Type ◽  
Independent Variables ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

PurposeThe purpose of this paper is to investigate the relation between corporate social responsibility (CSR) and firm financial performance, and how audit quality moderates this relationship.Design/methodology/approachThis study uses panel dataset of 200 French firms listed during 2007–2018 period. The direct and moderating effects were tested by using multiple regression technique.FindingsThe authors find that CSR has a positive impact on firm financial performance proxy with return on assets (ROA), return on equity (ROE) and Tobin's Q (TQ), suggesting that investment in social activities helps firms to achieve better financial results. The authors also find that the improvement effect of CSR on corporate financial performance is more pronounced for firms audited by Big 4 auditors.Research limitations/implicationsOne limit of this study is the selection of independent variables. We are limited to one variable, namely CSR engagement. Further studies may consider other independent variables, such as the age of the company, the type of industry, the composition of the board of directors, etc., in order to provide an in-depth analysis of corporate financial performance drivers.Practical implicationsThe findings have practical implications that may be useful to managers in their management of the firm. They encourage all board members to seriously weigh investing in developing strategies that promote the social behavior components in order to improve overall corporate performance.Originality/valueThe research adds to the current literature on CSR by revealing the impact of external auditor quality on the CSR–financial performance relationship. In addition, it investigates not only the overall CSR ratings but also each of CSR dimensions, namely environmental, social and governance.

The contribution of preoccupation with failure to TQM, crisis management and HR aiming to overcome crises

2020 ◽  
Vol 32 (6) ◽  
pp. 1077-1098 ◽  
Author(s):  
Christina Nizamidou ◽  
Fotios Vouzas
Keyword(s):  
Literature Review ◽  
Crisis Management ◽  
Design Methodology ◽  
Added Value ◽  
Total Quality ◽  
Content Type ◽  
Research Findings ◽  
The Impact ◽  
Practical Implications

PurposeThe purpose of this paper is binary. At first, it explores the contribution of preoccupation with failure to total quality management (TQM) and crisis management (CM). Then, it analyzes how preoccupation with failure can advance the role of human resources department (HRD) in terms of CM.Design/methodology/approachThis paper consists of the theoretical and the empirical part. In the theoretical part an extended literature review takes place. In the empirical part, the research statistical analysis is presented. The research was conducted in organizations that employ the largest number of employees in Greece and represent various corporate sectors.FindingsThe research permitted the authors to confirm their research hypotheses. It presented how preoccupation with failure can advance continuous improvement and CM. Moreover, it illustrated the impact of failure to the key role of HRD against crises.Practical implicationsOrganizations and managers can reconsider their perspective towards failure. Additionally, they can review and redesign their TQM and CM procedures based on the research findings aiming to overcome crises.Originality/valueThe literature review indicated that limited research deals with the benefits of preoccupation with failure regarding TQM and CM. Specifically, the research advances the contribution of failure in relation with the level of CM intimacy to the role of HRD against crisis. The added value of the present is to make organizations and their top management realize the significance of failure and use it to promote learning, TQM and CM.

The impact of Big 4 consulting on audit reporting lag and restatements

2017 ◽  
Vol 32 (1) ◽  
pp. 19-49 ◽  
Author(s):  
Michele D. Meckfessel ◽  
Drew Sellers
Keyword(s):  
Audit Quality ◽  
Empirical Support ◽  
Financial Statements ◽  
Securities And Exchange Commission ◽  
Content Type ◽  
Practice Size ◽  
Big 4 ◽  
Public Company ◽  
The Impact ◽  
Practical Implications

Purpose This paper responds to concerns raised by the Securities and Exchange Commission (SEC), Public Company Accounting Oversight Board (PCAOB) and scholars over the rapid growth of Big 4 consulting practices. This paper aims to explores the question: Does the regrowth of sizable consulting practices by the Big 4 influence audit reporting lag and restatement rates? Design/methodology/approach A population of the SEC-registered US audit clients of the Big 4 was used in this study. Longitudinal data on Big 4 audit clients from 2000 through 2009 were analyzed to determine the impact of consulting practice size on the clients’ audit reporting lag and restatement rate. Findings This paper finds that consulting practice size has a positive and statistically significant influence on audit reporting lag and restatement rate. The results are robust to alternative specifications of the sample and controlling for the level of non-audit services provided to audit clients. Practical implications The findings contribute to the discussion of the scope-of-services issue. They provide empirical support for Zeff’s (2003) and Wyatt’s (2004) intuition that the loss of Big 4 professional focus – not simply conflicts of interests – is a major factor affecting the audit quality. Originality/value The uniqueness of this paper is in how it counts restatements. Each year this paper counts that annual financial statements are restated as opposed to each disclosure of a restatement. This paper’s contribution is to examine the association between the regrowth of Big 4 accounting firm consulting practices with audit reporting lag and restatements.

scholarly journals Professional artefacts: embodying ideas in work-based learning

2014 ◽  
Vol 4 (1) ◽  
pp. 98-108 ◽  
Author(s):  
Paula Nottingham ◽  
Adesola Akinleye
Keyword(s):  
Lived Experience ◽  
Professional Practice ◽  
Added Value ◽  
Student Work ◽  
Content Type ◽  
Study Approach ◽  
Arts Curriculum ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to present and examine the addition of a “professional artefact” to the course requirements for the BA Honours Professional Practice (BAPP) (Arts) programme at Middlesex University. Design/methodology/approach – This paper takes a case study approach using reflection, indicative theories and consideration of student work to evaluate the introduction of the “professional artefact” into the BAPP (Arts) curriculum. Following pragmatist and phenomenological descriptions of the lived experience as embodied (Dewey et al., 1989; Merleau-Ponty, 2002) and using learning models based on experience in the workplace (Boud and Garrick, 1999), the paper's methodology takes the work-based principle of “experience as knowledge” to examine the impact of the professional artefact on students learning. Findings – The professional artefact has proven to be a useful way for the learners on the course to reflect on the purpose of their own study and the ways in which work-based learning can be incorporated into their practice through embodied “ideas”. Practical implications – The paper suggests that the inclusion of a professional artefact to the curriculum provides a flexible means for bridging academic and workplace learning. The inclusion of the professional artefact could be recommended as a strategy for other work-based learning programmes. Originality/value – The added value for professional practice is that the professional artefact provides a flexible and creative means of communication for emerging and establishing workplace professionals.

Perceived workplace gender-bias and psychological impact

2019 ◽  
Vol 43 (3/4) ◽  
pp. 339-353 ◽  
Author(s):  
Siham Lekchiri ◽  
Cindy Crowder ◽  
Anna Schnerre ◽  
Barbara A.W. Eversole
Keyword(s):  
Gender Bias ◽  
Critical Incident ◽  
Psychological Impact ◽  
Working Women ◽  
Content Type ◽  
Treatment Bias ◽  
Male Dominated ◽  
The Impact ◽  
Organizational Mechanisms ◽  
Practical Implications

Purpose The purpose of this paper is to explore the experiences of working women in a male-dominated country (Morocco) and unveil the unique challenges and everyday gender-bias they face, the psychological impact of the perceived gender-bias and, finally, identify a variety of coping strategies or combatting mechanisms affecting their motivation and retention in the workplace. Design/methodology/approach Empirical evidence was obtained using a qualitative research method. The Critical Incident Technique (CIT) was used to collect incidents recalled by women in the select institution reflecting their perceptions of their managers’ ineffective behaviors towards them and the impact of these behaviors. The critical incidents were inductively coded, and behavioral statements were derived from the coded data. Findings The qualitative data analysis led them to structure the data according to two theme clusters: The perceived gender-bias behaviors (Covert and evident personal and organizational behaviors) and Psychological impacts resulting from the perceived bias. These behavioral practices included abusive behaviors, unfair treatment, bias and lack of recognition. The psychological impact elements involved decreased productivity, depression, anxiety and low self-esteem. Practical implications Understanding these experiences can facilitate the identification of strategies geared towards the retention of women in the workforce, and Moroccan organizations can develop and implement strategies and policies that are geared towards eliminating gender-bias in the workplace and to retaining and motivating women who remain ambitious to work in male-dominated environments and cultures. Originality/value This paper provides evidence that sufficient organizational mechanisms to support women in male-dominated environments are still unavailable, leaving them to find the proper coping mechanisms to persevere and resist.

Embedding employability within higher education for the profession of policing

2019 ◽  
Vol 9 (3) ◽  
pp. 319-328
Author(s):  
Ian Pepper ◽  
Ruth McGrath
Keyword(s):  
Higher Education ◽  
Design Methodology ◽  
Research Study ◽  
Longitudinal Research ◽  
Evidence Base ◽  
Content Type ◽  
Educational Provision ◽  
Professional Body ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to evaluate the impact of an employability module, the College of Policing Certificate in Knowledge of Policing (CKP), on students’ career aspirations, their confidence and wish to join the police along with the appropriateness of the module. This will inform the implementation of employability as part of the College of Policing-managed Police Education Qualifications Framework (PEQF). Design/methodology/approach A three-year longitudinal research study used mixed methods across four points in time to evaluate the impact on students studying the employability module. Findings The research suggests that the employability-focussed CKP was useful as an introduction to policing, it developed interest in the police and enhanced the confidence of learners applying to join. Lessons learnt from the CKP should be considered during the implementation of the PEQF. Research limitations/implications The ability to generalise findings across different groups is limited as other influences may impact on a learner’s confidence and employability. However, the implications for the PEQF curriculum are worthy of consideration. Practical implications As the police service moves towards standardised higher educational provision and evolution of policing as a profession, lessons can be learnt from the CKP with regards to the future employability of graduates. Originality/value Enhancing the employability evidence base, focussing on policing, the research identified aspects which may impact on graduates completing a degree mapped to the PEQF. The research is therefore of value to higher education and the professional body for policing.

Employee emotional displays in the extended service encounter

2019 ◽  
Vol 31 (1) ◽  
pp. 115-136 ◽  
Author(s):  
Magnus Soderlund ◽  
Hanna Berg
Keyword(s):  
Marketing Communications ◽  
Emotional Expressions ◽  
Service Firms ◽  
Still Images ◽  
Content Type ◽  
Emotional Displays ◽  
Service Setting ◽  
Low Levels ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to examine the impact of happiness expressed by service firm employees when they are depicted in marketing communications materials, such as printed ads and videos. Design/methodology/approach Two experiments were conducted in a fitness service setting, in which employee display of happiness was manipulated (low vs high). Findings Both experiments showed that expressions of high levels of happiness produced a more positive attitude toward the service employee than expressions of low levels of happiness. Moreover, the impact of the expression of happiness on the evaluation of the employee was mediated by several variables, which suggests that the influence of depicted employees’ emotional expressions can take several routes. Practical implications The results imply that service firms should not only be mindful about which specific employee they select for appearing in marketing communications materials, they should also pay attention to the emotional displays of selected employees. Originality/value The present study contributes to previous research by assessing a set of potential mediators to explain why displays of happiness influence consumers, and by examining these effects in a marketing communications setting in which the customer is exposed to still images or video-based representations of the employee. The present study also focuses explicitly on happiness rather than on smiles.

Understanding how the contextual variables influence political behaviour in strategic decision-making

2014 ◽  
Vol 7 (3) ◽  
pp. 226-250 ◽  
Author(s):  
Said Elbanna ◽  
Ioannis C. Thanos ◽  
Vassilis M. Papadakis
Keyword(s):  
Decision Making ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategic Decisions ◽  
Empirical Examination ◽  
Content Type ◽  
Political Behaviour ◽  
Practitioner Education ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to enhance the knowledge of the antecedents of political behaviour. Whereas political behaviour in strategic decision-making (SDM) has received sustained interest in the literature, empirical examination of its antecedents has been meagre. Design/methodology/approach – The authors conducted a constructive replication to examine the impact of three layers of context, namely, decision, firm and environment, on political behaviour. In Study 1, Greece, we gathered data on 143 strategic decisions, while in Study 2, Egypt, we collected data on 169 strategic decisions. Findings – The evidence suggests that both decision-specific and firm factors act as antecedents to political behaviour, while environmental factors do not. Practical implications – The findings support enhanced practitioner education regarding political behaviour and provide practitioners with a place from which to start by identifying the factors which might influence the occurrence of political behaviour in SDM. Originality/value – The paper fills important gaps in the existing research on the influence of context on political behaviour and delineates interesting areas for further research.

Reducing transportation emissions

2016 ◽  
Vol 23 (3) ◽  
pp. 674-703 ◽  
Author(s):  
Henrik Pålsson ◽  
Ola Johansson
Keyword(s):  
Service Providers ◽  
Freight Transportation ◽  
Industrial Sector ◽  
Content Type ◽  
Logistics Service Providers ◽  
Minor Influence ◽  
Transportation Emissions ◽  
Reduce Emissions ◽  
The Impact ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the intention of companies to reduce transportation emissions by 2020 and the barriers and the discriminating factors that affect the reduction. Design/methodology/approach – A literature review identified potential logistical and technical actions and their barriers, and discriminating factors for reducing transportation emissions. A survey of freight transport-intensive industries in Sweden examined the effects of, intention for implementation of and barriers to 12 actions to reduce CO2 emissions from freight transportation. In total, 172 logistics managers responded, representing a response rate of 40.3 per cent. Findings – Logistics service providers (LSPs) and freight owners are likely to reduce a considerable amount of CO2 emissions from freight transportation by 2020 using a combination of actions. The lowest level of confidence was for reducing CO2 emissions by changing logistics structures, while there was greater confidence by means of operational changes. The actions have few barriers, but there is often a combination of barriers to overcome. Three discriminating factors influence the intention of a firm to reduce transportation emissions: perceived potential, company size and LSP/freight owner. The industrial sector of a freight owner has minor influence. Companies that are particularly likely to reduce emissions are LSPs, large companies, and those that perceive a large reduction potential. Research limitations/implications – Logistical and technical barriers appear to hinder companies from implementing actions, while organisational barriers and external prerequisites do not. Barriers cannot be used to predict companies’ intentions to reduce transportation emissions. The authors examined the impact of three discriminating factors on reduction of transportation emissions. The research is based on perceptions of well-informed managers and on companies in Sweden. Practical implications – The findings can be used by managers to identify firms for benchmarking initiatives and emissions-reducing strategies. Originality/value – The study provides insights into intended CO2 reductions in transportation by 2020. It presents new knowledge regarding barriers and discriminating factors for implementing actions to reduce transportation emissions.

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