Salary perception and career prospects in audit firms

2020 ◽  
Vol 35 (6) ◽  
pp. 759-793
Author(s):  
Ahmad Hammami ◽  
Rucsandra Moldovan ◽  
Elisabeth Peltier
Keyword(s):  
Audit Quality ◽  
Work Outcomes ◽  
Pay Satisfaction ◽  
Content Type ◽  
Salary Level ◽  
Audit Firms ◽  
Career Opportunities ◽  
Audit Efficiency ◽  
Regression Approach ◽  
The Relationship

Purpose This paper aims to examine the role that auditor’s salary perception has on audit quality and delay. The findings contribute to a greater understanding of the audit employee-level factors that influence audit work outcomes. Design/methodology/approach The authors use Big 6 employee reviews, salary data and audit and financial data from 2007 to 2017 to measure how to audit employees’ pay satisfaction affects audit quality (small profits and going concern opinions) and audit delay. The authors use a regression approach to analyze this relationship. In subsequent tests, the authors split the sample on high career opportunities to investigate how this moderates the relationship between salary perception and audit quality. Findings The authors document a discrepancy between pay perception and reality. It is explained, though not completely, by salary level, comparisons to peers and superiors, firm-wide attitudes, cost of living and human capital in the area, work–life balance and perceived career prospects. Surprisingly, the unexplained pay dissatisfaction relates positively to audit quality and audit efficiency (audit delay), after controlling for salary level. Further tests show that an audit employee’s expectation of career opportunities moderates this result. Originality/value This is the first paper that empirically tests the relationship between pay satisfaction and job performance in the context of audit employees in public accounting. The authors contribute to an emerging literature that investigates audit employee-level characteristics and attitudes in relation to audit quality.

New insights into underreporting of time: the audit partner context

2015 ◽  
Vol 28 (4) ◽  
pp. 494-514 ◽  
Author(s):  
Itsaso Barrainkua ◽  
Marcela Espinosa-Pike
Keyword(s):  
Design Methodology ◽  
Detrimental Effect ◽  
Audit Quality ◽  
Content Type ◽  
Audit Firms ◽  
Behavioural Patterns ◽  
Ethical Conflicts ◽  
Ethical Acceptability ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to provide evidence on underreporting of time (URT) by audit partners and the factors that drive URT at their level. In particular the study tests the relationship between URT and the following variables: pressures perceived by auditors related to audit budgets, the ethical acceptability of URT, the influence of peers and superiors on the resolution of ethical conflicts, and organisational ethical culture. A deeper analysis of URT practices is necessary, as failing to correctly report the total hours worked by audit partners poses a threat to audit quality, and can have a detrimental effect on individual auditors, audit firms, and even the auditing profession itself. Design/methodology/approach – A multiple regression data analysis was conducted, based on 84 responses from Spanish audit partners working in small- and medium-sized audit firms. Findings – The results reveal that URT is affected by the pressures perceived by auditors related to audit budgets, the ethical acceptability of URT, and the influence of peers and superiors on the resolution of ethical conflicts. Originality/value – This study contributes to international literature on the organisational context of audit firms by analysing URT from the perspective of audit partners. It also has practical implications, as it focuses on understanding the beliefs and behavioural patterns of audit partners, which is critical to proposing mechanisms for avoiding dysfunctional behaviour at all levels of audit firms.

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.

Examining police officers’ perceptions of stress: the role of Person−environment fit

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rachael Rief ◽  
Samantha Clinkinbeard
Keyword(s):  
Job Satisfaction ◽  
Police Officers ◽  
Well Being ◽  
Work Outcomes ◽  
Cross Sectional Survey ◽  
Organizational Fit ◽  
Cross Sectional ◽  
Content Type ◽  
The Relationship ◽  
Overall Job Satisfaction

PurposeThe purpose of the study was to examine the relationship between officer perceptions of fit in their organization and stress (organizational and operational), overall job satisfaction and turnover contemplation (within the last 6 months).Design/methodology/approachThe authors used cross-sectional survey data from a sample of 832 officers from two Midwest police departments to examine the relationships between fit, stress and work-related attitudes.FindingsPerceived stress and organizational fit were strong predictors of overall job satisfaction and turnover contemplation; organizational fit accounted for the most variation in stress, satisfaction and turnover contemplation. Organizational stress partially mediated the relationship between organizational fit and job satisfaction and organizational fit and turnover contemplation.Research ImplicationsMore research is needed to identify predictors of organizational fit perceptions among police officers.Practical implicationsFindings indicate that agencies should pay close attention to the organizational culture and structure when trying to address issues of officer well-being and retention. Further, the person−environment framework can be a useful tool in examining police occupational outcomes.Originality/valueThe authors findings contribute to research on officer stress by exploring perceptions of organizational fit as a predictor of stress and unpacking how officer stress matters to important work outcomes, including job satisfaction and thoughts of turnover, by considering stress as a mediator between organizational fit and these work outcomes.

Impact of organizational politics on employee work outcomes in higher education institutions of Pakistan

2019 ◽  
Vol 8 (2) ◽  
pp. 185-200 ◽  
Author(s):  
Muhammad Asrar-ul-Haq ◽  
Hafiz Yasir Ali ◽  
Sadia Anwar ◽  
Anam Iqbal ◽  
Muhammad Badr Iqbal ◽  
...  
Keyword(s):  
Higher Education ◽  
Social Capital ◽  
Job Stress ◽  
Turnover Intentions ◽  
Higher Education Institutions ◽  
Organizational Politics ◽  
Work Outcomes ◽  
Employee Outcomes ◽  
Content Type ◽  
The Relationship

Purpose Organizational politics has been a topic of conceptual and empirical interest for researchers and practitioners for many years. The purpose of this paper is to examine the relationship between organizational politics and employee work outcomes in educational institutions. In addition, this paper also aims to assess the moderating role of social capital. Design/methodology/approach Employee perceptions about organizational politics and its impact on their work outcomes have been assessed empirically with a sample of 270 full-time employees in higher education institutions of Pakistan. The data have been collected from faculty members of five universities of Pakistan using survey method. SPSS and AMOS have been used to analyze the data and SEM has been used to test the hypotheses. Findings The results indicate a moderating effect of social capital on the relationship between perceived organizational politics and employee outcomes, and the most significant employee outcomes are job stress, job satisfaction and turnover intentions. The findings of the study support the view that organizational politics has negative association with employee job stress and turnover intentions. Research limitations/implications Higher education sector in Pakistan is facing certain challenges, which affect talent retention. The findings of this study will help the administration of higher education institutions to develop effective strategies to cope with the challenges of organizational politics, such as motivation, satisfaction and retention of their employees. Originality/value The study adds to the literature on organizational politics by highlighting and validating its adverse effects on employee work outcomes in the context of Pakistani higher education.

Corporate political connections, agency costs and audit quality

2016 ◽  
Vol 24 (4) ◽  
pp. 357-374 ◽  
Author(s):  
Arifur Khan ◽  
Dessalegn Getie Mihret ◽  
Mohammad Badrul Muttakin
Keyword(s):  
Agency Costs ◽  
Audit Quality ◽  
Agency Cost ◽  
Political Connections ◽  
Political Connection ◽  
Data Set ◽  
Research Attention ◽  
Content Type ◽  
Big 4 ◽  
The Relationship

Purpose The effect of political connections of agency costs has attracted considerable research attention due to the increasing recognition of the fact that political connection influences corporate decisions and outcomes. This paper aims to explore the association between corporate political connections and agency cost and examine whether audit quality moderates this association. Design/methodology/approach A data set of Bangladeshi listed non-financial companies is used. A usable sample of 968 firm-year observations was drawn for the period from 2005 to 2013. Asset utilisation ratio, the interaction of Tobin’s Q and free cash flow and expense ratio are used as alternative proxies for agency costs; membership to Big 4 audit firms or local associates of Big 4 firms is used as a proxy for audit quality. Findings Results show that politically connected firms exhibit higher agency costs than their unconnected counterparts, and audit quality moderates the relationship between political connection and agency costs. The results of this paper suggest the importance of audit quality to mitigate agency problem in an emerging economic setting. Research limitations/implications The findings of this paper could be of interest to regulators wishing to focus regulatory effort on significant issues influencing stock market efficiency. The findings could also inform auditors in directing audit effort through a more complete assessment of risk and determining reasonable levels of audit fees. Finally, results could inform financial statement users to direct investments to firms with lower agency costs. Originality/value To the knowledge of the authors, this study is one of the first to explore the relationship between political connection and agency costs, and the moderating effect of audit quality of this relationship.

The mediating role of organizational embeddedness on the relationship between quality of work life and turnover

2017 ◽  
Vol 38 (5) ◽  
pp. 696-711 ◽  
Author(s):  
Decha Dechawatanapaisal
Keyword(s):  
Life Quality ◽  
Work Life ◽  
Quality Of Work Life ◽  
Content Type ◽  
Mediating Role ◽  
Career Opportunities ◽  
Organizational Embeddedness ◽  
The Relationship

Purpose The purpose of this paper is to investigate the mediating effect of organizational embeddedness in the relationship between quality of work life (QWL) and turnover under a foundation of conservation of resources theory. Design/methodology/approach Data were collected from 422 healthcare professionals through a questionnaire survey, and analyzed by means of a confirmatory factor analysis and structural equation modeling. Findings The results indicate that organizational embeddedness has a negative impact on employees’ intention to leave, and on actual turnover. For QWL perception, career opportunities, work life balance, and job characteristics are positive and significant predictors of organizational embeddedness. In addition, organizational embeddedness plays an intermediary role that mediates the relationship between the three components of QWL mentioned earlier and turnover intention, and also between the factor of career opportunities and actual turnover. Research limitations/implications The current research took place within two healthcare organizations. Replicating the study in a variety of business sectors or professions with a larger sample of subjects would be useful for the generalizability of the findings. Practical implications Organizations may improve their retention of employees by offering intrinsic resources that can be obtained from the social contexts of the individual through human resource management system, e.g., growth opportunities, a healthy and caring work life quality. Such motivational resources then develop a sense of obligation toward their places of employment, which influences their intention to stay or leave. Originality/value This study examines the mediating role of organizational embeddedness between employees’ perception of their work life quality and their desire and behavior to withdraw, which is an area of inquiry that has not been fully investigated in the literature.

Ownership structure and audit quality: the mediating effect of board independence

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moncef Guizani ◽  
Gaafar Abdalkrim
Keyword(s):  
Ownership Structure ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Audit Fees ◽  
Mediating Effect ◽  
Board Independence ◽  
Government Ownership ◽  
Content Type ◽  
New Perspective ◽  
The Relationship

Purpose This study aims to examine the mediating effect of board independence on the relationship between ownership structure and audit quality. Design/methodology/approach The research uses generalized methods of moments regression to test the relationship between ownership structure and audit quality. The sample consists of 162 non-financial firms listed on the Gulf Cooperation Council stock markets between the years of 2009 and 2016. To test the significance of the mediating effect, this paper uses the Sobel test. Findings Empirical findings show that companies with higher family ownership are less likely to demand extensive audit services and, as a result, pay lower audit fees. Conversely, this study finds that companies with higher active and passive institutional ownership are more likely to engage high-quality auditors and pay larger audit fees. As for government ownership, it has no significant impact on audit fees. The results also reveal that the negative (positive) effect of family (institutional) ownership on audit quality follows the path through reducing (enhancing) board independence. Further tests are conducted and support the main findings. Practical implications This study has important implications for policymakers and regulators to address the conflict between controlling shareholders and minorities by promoting higher standards of audit quality. The study findings may be useful to investors, assisting them in making better-informed decisions and aids other interested parties in gaining a better understanding of the role played by ownership structure in audit quality. The study also contributes to the strategic board behavior by bringing a new perspective on how boards engage in monitoring by requesting external audit services. This behavior is likely to be influenced by the type of controlling shareholder. Originality/value The main contribution of the present paper is to examine the board composition as a potential mediating variable between ownership structure and audit quality. Moreover, it highlights the issue of improving governance mechanisms.

The effect of engagement partner workload on audit quality

2021 ◽  
Vol 36 (8) ◽  
pp. 1068-1091
Author(s):  
Yun Cheng ◽  
Christine M. Haynes ◽  
Michael D. Yu
Keyword(s):  
Audit Quality ◽  
Firm Level ◽  
Content Type ◽  
Big 4 ◽  
The Us ◽  
Performance Benchmarks ◽  
Partner Characteristics ◽  
Partner Firm ◽  
The Individual ◽  
The Relationship

Purpose Auditing studies have shifted the research focus from the audit firm level to the individual audit partner level in recent years. Motivated by the call from Lennox and Wu (2018) to explore the effect of audit partners’ characteristics on audit quality in the US, this study aims to develop a new measure of engagement partner workload (EPW), which includes both the size and number of clients audited to test the effect of EPW on audit quality. This study also examines the moderating effect of the partner firm size on audit quality. Design/methodology/approach To test the effect of the EPW on audit quality, this study runs multivariate regressions of EPW on each specific client’s discretionary accruals and audit report delays. This study also runs a logistic regression of EPW on clients’ probability of having small profit increases to meet performance benchmarks. Findings Results of the hypotheses show that partner workload is positively related to audit quality. The results indicate that partners with larger, but fewer, clients conduct higher quality audits. Further analysis indicates that the relationship between partner workload and audit quality only holds for partners from the non-Big 4 firms. Originality/value This study contributes to the literatures of both audit quality and audit partner characteristics, and the results complement initial research aimed at identifying US partner-related characteristics that influence audit quality.

Contingent worker monetary influence, work attitudes and behavior

2019 ◽  
Vol 48 (7) ◽  
pp. 1669-1684 ◽  
Author(s):  
Daniel Johnson ◽  
Christopher J. Lake
Keyword(s):  
Job Satisfaction ◽  
Organizational Citizenship ◽  
Hierarchical Regression ◽  
Contingent Workers ◽  
Pay Satisfaction ◽  
Contingent Work ◽  
Cross Sectional ◽  
Content Type ◽  
And Behavior ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationships between pay satisfaction, global job satisfaction, loyalty and organizational citizenship behaviors (OCBs) – as they all pertain to contingent workers. The proposed model suggests, due to the nature of contingent work, pay satisfaction will influence the above variables. Additionally, this study aims to explore the relationship between pay satisfaction and OCB directed toward an individual employee. Design/methodology/approach This study used a cross-sectional research design, administering a web-based survey to the participants (n=117) for data collection. Hierarchical regression, correlation and relative importance analyses were used for hypothesis testing. Findings The results suggest pay satisfaction of contingent workers is positively related to global job satisfaction, loyalty to a hiring agency, loyalty to a client company and OCB directed toward a client organization. Originality/value The primary contribution of the current study was the assessment of extrinsic rewards and their relationship to job satisfaction, loyalty and OCBs among contingent workers. This appears to be the first study to assess the relationship between pay satisfaction and loyalty, along with OCBs of contingent workers. The findings establish the importance of pay when loyalty to both staffing agency and client company is considered.

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.

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