scholarly journals Has it become more readable? Empirical evidence of key matters in independent audit reports,

2021 ◽  
Author(s):  
Vagner Antônio Marques ◽  
Lanna Nogueira Pereira ◽  
Idamo Favalessa de Aquino ◽  
Viviane da Costa Freitag
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Descriptive Statistics ◽  
Informational Content ◽  
Regression Analyses ◽  
Audit Report ◽  
Accounting Standard ◽  
Non Linear ◽  
Audit Reports ◽  
Independent Audit

ABSTRACT The aim of this study was to analyze the effect of the adoption of Brazilian Accounting Standard - Auditing Technique 701 (NBC TA 701, in its Portuguese initialism) over the readability of audit reports. The study fills a gap in the literature by obtaining empirical evidence regarding the effect of NBC TA 701 on the readability and comprehensibility of audit reports. The study is important for verifying whether the disclosure of key audit matters (KAMs) improves the ease of reading and understanding audit reports after the adoption of NBC TA 701. Unlike in the previous literature, it was observed that the effect of KAMs has a non-linear, U-shaped relationship, which suggests additional benefits to readability based on a certain quantity of key matters reported. The data from a sample of 240 listed companies on the B3 S.A. -Brasil,Bolsa,Balcão (B3), in the period from 2013 to 2018, were assessed using content analysis, descriptive statistics, difference of means tests, and panel data correlation and regression analyses. The results showed that the adoption of NBC TA 701 significantly affected the Flesch readability index (FRI) of the independent audit reports. They also confirmed that the quantity of KAMs reported increases the FRI in a non-linear way, and that the types of key matters affect readability differently according to their complexity. The results provide evidence that the new audit report improves the level of readability in a non-linear way, thus contributing to the informational content of the audit report used by the various users for decision making.

Minimizing Missed Opportunities: Modeling Relationships between the State and Business in Russia

2009 ◽  
pp. 42-61
Author(s):  
A. Oleynik
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Common Good ◽  
The State ◽  
Power Relationships ◽  
Individual Decision ◽  
Missed Opportunities ◽  
Power Domination ◽  
Individual Decision Making ◽  
Optimal Outcomes

Power involves a number of models of choice: maximizing, satisficing, coercion, and minimizing missed opportunities. The latter is explored in detail and linked to a particular type of power, domination by virtue of a constellation of interests. It is shown that domination by virtue of a constellation of interests calls for justification through references to a common good, i.e. a rent to be shared between Principal and Agent. Two sources of sub-optimal outcomes are compared: individual decision-making and interactions. Interactions organized in the form of power relationships lead to sub-optimal outcomes for at least one side, Agent. Some empirical evidence from Russia is provided for illustrative purposes.

Is the Deductive Falsification Approach a Better Basis for Clinical Trial Appraisal?

2019 ◽  
Vol 14 (3) ◽  
pp. 224-228
Author(s):  
Steffen Mickenautsch
Keyword(s):  
Clinical Trial ◽  
Decision Making ◽  
Empirical Evidence ◽  
Clinical Decision Making ◽  
Inductive Reasoning ◽  
Clinical Decision ◽  
Future Trial ◽  
Grading Systems ◽  
Component Scores ◽  
Current Clinical Trial

Background: Inductive reasoning relies on an infinite regress without sufficient factual basis and verification is at any time vulnerable to single contrary observation. Thus, appraisal based on inductive verification, as applied in current clinical trial appraisal scales, checklists or grading systems, cannot prove or justify trial validity. Discussion: Trial appraisal based on deductive falsification can identify invalid trials and give evidence for the recommendation to exclude these from clinical decision-making. Such appraisal remains agnostic towards corroborated trials that pass all appraisal criteria. The results of corroborated trials cannot be considered more robust than falsified trials since nothing within a particular set of complied trial criteria can give certainty for trial compliance with any other appraisal criterion in future. A corroborated trial may or may not reflect therapeutic truth and may thus be the basis for clinical guidance, pending results of any future trial re-appraisal. Conclusion: Trial grading following appraisal based on deductive falsification should be binary (0 = Invalid or 1 = Unclear) and single component scores should be multiplied. Appraisal criteria for the judgment of trial characteristics require a clear rationale, quantification of such rationale and empirical evidence concerning the effect of trial characteristics on trial results.

Timeliness of Tunisian Audit Reports: An Empirical Investigation based on Ownership and Partnership Visions

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Mondher Fakhfakh
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Qualitative Feature ◽  
Transmission Delays ◽  
Emerging Country ◽  
Audit Reports ◽  
Audit Information

Timeliness of audit reports is a qualitative feature that enhances the usefulness of audited financial statements. As an emerging country, Tunisia has modernized its accounting legislation to enhance the quality of financial reporting. This legislation encourages independent auditors to optimize the transmission delays of audit reports. The authorities assume that the satisfaction of stakeholders is secured by regulating disclosure of audit reports. Our research analyses the date of issue of Tunisian audit reports and timeliness of audit information for shareholders and all users of financial statements (stakeholders). This paper provides new empirical evidence about the timeliness of audit reports in Tunisia. It holds two dates that influence the needs of users of financial statements: the date of signature of the auditors and the date of publication of the audit reports in the financial bulletin. The same article discusses the variability of the timeliness of audit reports and the factors that explain the delay information.

A Comparative Analysis of Investor and Auditor Materiality Judgments

2018 ◽  
Vol 38 (3) ◽  
pp. 149-166 ◽  
Author(s):  
F. Todd DeZoort ◽  
Travis P. Holt ◽  
Jonathan D. Stanley
Keyword(s):  
Decision Making ◽  
Comparative Analysis ◽  
Empirical Evidence ◽  
Professional Standards ◽  
Policy Capturing ◽  
Cue Utilization ◽  
Critical Domain ◽  
Extant Literature

SUMMARY Materiality remains a challenging concept for auditors to implement in practice. The challenges underlying auditor materiality assessments are compounded by the fact that courts, regulation, and professional standards emphasize that materiality should be based on a “reasonable investor” perspective. Despite the investor orientation and ambiguous nature of the “reasonable investor” criterion, the extant literature lacks empirical evidence about investor materiality judgments and decision-making. To address this problem, we model sophisticated and unsophisticated investors' materiality judgments in a policy-capturing study and compare them to experienced auditors charged with assessing materiality from an investor perspective. The results indicate significant differences in materiality judgments, judgment consensus, and cue utilization among the three participant groups. We conclude the paper with discussion of the study's implications, highlighting that the overall results suggest the need for further consideration of ways to help auditors meet standards and expectations in this critical domain.

scholarly journals Skill and strategic control

Synthese ◽  
2021 ◽  
Author(s):  
Ellen Fridland
Keyword(s):  
Decision Making ◽  
Empirical Evidence ◽  
Mental Imagery ◽  
Sports Psychology ◽  
Mental Practice ◽  
Strategic Control ◽  
Cognitive Representations ◽  
Personal Level ◽  
The Right ◽  
Better Than

AbstractThis paper provides an account of the strategic control involved in skilled action. When I discuss strategic control, I have in mind the practical goals, plans, and strategies that skilled agents use in order to specify, structure, and organize their skilled actions, which they have learned through practice. The idea is that skilled agents are better than novices not only at implementing the intentions that they have but also at forming the right intentions. More specifically, skilled agents are able formulate and modify, adjust and adapt their practical intentions in ways that are appropriate, effective, and flexible given their overall goals. Further, to specify the kind of action plans that are involved in strategic control, I’ll rely on empirical evidence concerning mental practice and mental imagery from sports psychology as well as evidence highlighting the systematic differences in the cognitive representations of skills between experts and non-experts. I’ll claim that, together, this evidence suggests that the intentions that structure skilled actions are practical and not theoretical, that is, that they are perceptual and motor and not abstract, amodal, or linguistic. Importantly, despite their grounded nature, these plans are still personal-level, deliberate, rational states. That is, the practical intentions used to specify and structure skilled actions are best conceived of as higher-order, motor-modal structures, which can be manipulated and used by the agent for the purpose of reasoning, deliberation, decision-making and, of course, the actual online structuring and organizing of action.

scholarly journals Public health decisions in the COVID-19 pandemic require more than ‘follow the science’

2021 ◽  
pp. medethics-2020-107134
Author(s):  
Thana Cristina de Campos-Rudinsky ◽  
Eduardo Undurraga
Keyword(s):  
Public Health ◽  
Decision Making ◽  
Health Policy ◽  
Empirical Evidence ◽  
Empirical Data ◽  
Public Health Policy ◽  
Scientific Evidence ◽  
Ethical Reasoning ◽  
Reliable Data ◽  
Good Decision

Although empirical evidence may provide a much desired sense of certainty amidst a pandemic characterised by uncertainty, the vast gamut of available COVID-19 data, including misinformation, has instead increased confusion and distrust in authorities’ decisions. One key lesson we have been gradually learning from the COVID-19 pandemic is that the availability of empirical data and scientific evidence alone do not automatically lead to good decisions. Good decision-making in public health policy, this paper argues, does depend on the availability of reliable data and rigorous analyses, but depends above all on sound ethical reasoning that ascribes value and normative judgement to empirical facts.

Working Women’s Decision-Making Power at Home: Evidence from Four North Indian Urban Clusters

Urbanisation ◽  
2021 ◽  
pp. 245574712110258
Author(s):  
Megan Maxwell ◽  
Milan Vaishnav
Keyword(s):  
Decision Making ◽  
Labour Market ◽  
Empirical Evidence ◽  
Working Women ◽  
Human Agency ◽  
Significant Heterogeneity ◽  
Household Decision ◽  
Household Decision Making ◽  
Theoretical Foundations ◽  
Shed Light

Do working women enjoy greater levels of human agency? While the theoretical foundations underlying this connection are clear, the empirical evidence is quite mixed. We leverage detailed, new data on intra-household decision-making and labour market behaviour from four north Indian urban clusters to shed light on this question. We find that women who work exercise greater say in important decisions around the home. However, this ‘work advantage’ exhibits significant heterogeneity across decision types, decision-making domains, and definitions of work.

DECISION MAKING BY VARIABLE CONTRIBUTION IN DISCRIMINANT, LOGIT, AND REGRESSION ANALYSES

2004 ◽  
Vol 03 (02) ◽  
pp. 265-279 ◽  
Author(s):  
STAN LIPOVETSKY ◽  
MICHAEL CONKLIN
Keyword(s):  
Decision Making ◽  
Logistic Regression ◽  
Regression Analysis ◽  
Statistical Models ◽  
Regression Analyses ◽  
Discriminant Functions ◽  
Multivariate Statistical ◽  
Linear Discriminant ◽  
Variable Contribution ◽  
Linear Aggregate

Comparative contribution of predictors in multivariate statistical models is widely used for decision making on the importance of the variables for the aims of analysis and prediction. However, the analysis can be made difficult because of the predictors' multicollinearity that distorts estimates for coefficients in the linear aggregate. To solve the problem of the robust evaluation of the predictors' contribution, we apply the Shapley Value regression analysis that provides consistent results in the presence of multicollinearity both for regression and discriminant functions. We also show how the linear discriminant function can be constructed as a multiple regression, and how the logistic regression can be approximated by linear regression that helps to obtain the variables contribution in the linear aggregate.

Design and Application Research of Audit Risk Control Program

2013 ◽  
Vol 310 ◽  
pp. 718-721
Author(s):  
Li Ya Ma ◽  
Shu Feng Wang
Keyword(s):  
Risk Model ◽  
Risk Control ◽  
Control Program ◽  
Audit Report ◽  
Audit Risk ◽  
Specific Content ◽  
Auditing Standards ◽  
Audit Reports ◽  
Independent Auditing ◽  
And Control

Strict procedures for prevention and control of audit risk is one of the most effective measures, so the research on design of audit risk control standardization program has very great practical application value. Combined with the research needs, the CPA practices respectively utilize means of summarizing method, for example, analysis method and enumeration method. The CPA practice also revealing the audit risk and audit report risk associated with different basis, combining with the traditional audit risk model. The specific content concludes the report of audit risk and then designs including audit reports preparation, audit draft, final review report to track a feedback of visit to the control standard operating requirements, and then puts forward the independent auditing standards. The auditing standards should be added to the proposal of audit report program.

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