Enhancing Knowledge Sharing in Public Accounting Firms

2006 ◽  
Vol 20 (2) ◽  
pp. 133-155 ◽  
Author(s):  
Sandra C. Vera-Mun˜oz ◽  
Joanna L. Ho ◽  
Chee W. Chow
Keyword(s):  
Knowledge Sharing ◽  
Professional Staff ◽  
Future Research ◽  
Audit Process ◽  
Public Accounting ◽  
Accounting Firms ◽  
Cpa Firms ◽  
Public Accounting Firms ◽  
Audit Team

The goal of this study is to advance understanding of factors that may enhance or hinder knowledge sharing in public accounting firms and, in the end, provide practical recommendations for the firms. Attention to this topic is warranted for two reasons. First, today's regulatory environment and new auditing standards have broadened and intensified pressures on CPA firms to enhance the quality, effectiveness, and efficiency of the audit process. Second, knowledge and expertise are unevenly distributed among the members of the audit team. Thus, knowledge sharing can help CPA firms in leveraging the skills, knowledge, and best practices of their professional staff. Against this background, CPA firms' ability to effectively deploy knowledgesharing activities is increasingly vital to their competitive advantage, including gaining tangible benefits in terms of time and cost reductions. We draw upon prior research in accounting, organizational learning, psychology, and knowledge management to examine the role of three factors–information technology, formal and informal interactions among auditors, and reward systems–in encouraging knowledge sharing. We develop recommendations for public accounting firms and suggest several directions for future research.

scholarly journals PEOPLE AND AUDIT PROCESS ATTRIBUTES OF AUDIT QUALITY: EVIDENCE FROM MALAYSIA

2019 ◽  
Vol 18 (2) ◽  
pp. 47
Author(s):  
NOOR ADWA SULAIMAN ◽  
SUHAILY SHAHIMI ◽  
RANJIT KAUR NASHTAR SINGH
Keyword(s):  
Audit Quality ◽  
Internal Quality ◽  
Audit Process ◽  
Public Accounting ◽  
Accounting Firms ◽  
External Auditors ◽  
Public Accounting Firms ◽  
Group 2 ◽  
Audit Team ◽  
Group 1

This study seeks to add to understanding of the concept and attributes of audit quality from the perspective of those responsible for delivery audit services, the auditors, as a key constituent group in the auditing system. The study surveyed two groups of external auditors (group 1- audit partners and managerial level and, group 2 - senior auditors and junior auditors), as a basis to compare their perceptions on important of auditors and audit process attributes in achieving audit quality in practice. The study was conducted in the form of a survey, with data being gathered via questionnaire. Returned surveys from external auditors yielded a 37% response rate. Overall, top 5 highest rated attributes of audit quality reported to be most important in determining audit quality are: compliance with the International Standard Quality Control (ISCQ) 1, obtaining credible and sufficient audit evidence, technical expertise of audit team, audit work meeting the audit firms’ quality standards, and competency of the audit team. Further analysis shows that the two groups of respondents have differential views on attributes of audit quality in practice. Group 1 perceived attributes of audit quality are related to auditor’s assessment of risk and internal quality review procedures within the audit firm. In comparison, group 2 perceived auditors’ competency and compliance with relevant standards as indicators of audit quality. This study suggests differences in underlying view about attributes audit quality in practice by the two groups of auditors. Public accounting firms might be interested to understand such underlying differences so that efforts in improving audit quality in practice would be focusing on the key attributes that perceived to be important on delivery high-quality audit services. This study is significant by extending the literature on audit quality and also provides useful input to public accounting firms in improving audit quality in practice.

Turnover in public accounting firms: a literature review

2020 ◽  
Vol 35 (2) ◽  
pp. 294-321 ◽  
Author(s):  
Hossein Nouri ◽  
Robert James Parker
Keyword(s):  
Audit Quality ◽  
Role Theory ◽  
Future Research ◽  
Extensive Literature ◽  
Public Accounting ◽  
Accounting Firms ◽  
Content Type ◽  
Public Accounting Firms

Purpose This paper reviews and synthesizes the extensive literature that investigates turnover in public accounting firms. Design/methodology/approach This paper initially identifies turnover studies by searching two commonly used business databases, ABI and Business Source. Subsequently, references in these studies are examined. Over 100 published studies of accounting firms are identified. Findings Prior turnover studies can be classified by the underlying theory: psychological attachment; role theory; mentoring; and organizational justice. Using these theories, prior research has examined a wide variety of issues such as the role of gender in turnover. Practical implications Turnover is a significant and long-term problem in accounting firms. Practitioners and researchers have long noted that firms lose the costs of training employees who leave the firm. Recently, many in the auditing field have recognized that employee turnover may reduce audit quality. This paper summarizes prior turnover research, which may provide guidance to future researchers and managers of accounting firms. Originality/value This study fills a void in the accounting literature, which is missing a comprehensive and up to date review of prior studies of turnover in accounting firms. Opportunities for future research are also explored. While much has been learned, some theoretical and methodological issues remain unresolved.

Efficacy of Social Media Utilization by Public Accounting Firms: Findings and Directions for Future Research

2014 ◽  
Vol 29 (2) ◽  
pp. 5-21 ◽  
Author(s):  
Brenda Eschenbrenner ◽  
Fiona Fui-Hoon Nah ◽  
Venkata Rajasekhar Telaprolu
Keyword(s):  
Social Media ◽  
Knowledge Sharing ◽  
Future Research ◽  
Public Accounting ◽  
Accounting Firms ◽  
Business Objectives ◽  
Success Stories ◽  
Big 4 ◽  
Public Accounting Firms ◽  
Second Tier

ABSTRACT Social media presents a new platform for businesses to communicate and interact with others, both internally and externally. Social media may be utilized for activities such as sharing success stories and providing industry updates. Although a plethora of opportunities to achieve business objectives with social media usage exists, the efficacy of its use by public accounting firms is unclear. This article identifies the business objectives that Big 4 and second-tier firms are pursuing with social media. Primary business objectives being fulfilled by social media include Knowledge Sharing, Branding and Marketing, and Socialization and Onboarding. The findings suggest that Big 4 firms are pursuing Knowledge Sharing on Facebook™ and Twitter™ to a greater extent than second-tier firms, while second-tier firms pursue Socialization and Onboarding on Facebook and Branding and Marketing on Twitter to a greater extent than Big 4 firms. Suggestions for business opportunities and future research are also identified.

A Theoretical Framework of the Relationship between Public Accounting Firms and Their Auditors

2005 ◽  
Vol 17 (1) ◽  
pp. 1-22 ◽  
Author(s):  
Elizabeth Dreike Almer ◽  
Julia L. Higgs ◽  
Karen L. Hooks
Keyword(s):  
Future Research ◽  
Public Accounting ◽  
Accounting Firms ◽  
The Public ◽  
Sociology Of Professions ◽  
Rich Description ◽  
Public Accounting Firms ◽  
Current Article ◽  
The Relationship ◽  
Significant Attention

The behavior of auditors in the context of their employment by public accounting firms has received significant attention in the accounting literature. The current article extends this literature by providing a framework that identifies what auditing professionals contribute and receive as a result of their work efforts, as well as related influences. Using agency theory modified with fundamental ideas from the sociology of professions literature, we develop a model of the auditor-public accounting firm employment relationship. This framework is grounded in a timely, contextually rich description of the public accounting work environment, and the pressures and incentives faced by auditors. Propositions for future research are suggested that arise from understanding the auditor-firm relationship.

Materiality Guidance of the Major Public Accounting Firms

2014 ◽  
Vol 34 (2) ◽  
pp. 3-26 ◽  
Author(s):  
Aasmund Eilifsen ◽  
William F. Messier
Keyword(s):  
Data Availability ◽  
Future Research ◽  
Public Accounting ◽  
Accounting Firms ◽  
Public Accounting Firms ◽  
Qualitative Factors ◽  
Research And Education ◽  
High Level ◽  
Implementation Of Standards

SUMMARY This paper examines the materiality guidance for eight of the largest U.S. public accounting firms. Knowledge of how materiality guidance is integrated into a firm's methodology is important for accounting and auditing researchers as well as for practitioners, regulators, and educators. Our results show a high level of consistency across the firms in terms of the quantitative benchmarks (e.g., income before taxes, total assets or revenues, and total equity) used to determine overall materiality, the related percentages applied to those benchmarks, the percentages applied to overall materiality for determining tolerable misstatement, and what constitutes a clearly trivial misstatement. We also find that the firms' guidance for evaluating detected misstatements, including qualitative factors and firm guidance for group audits, is consistent across firms. However, there are differences in how the firms consider the possibility of undetected misstatements when evaluating detected misstatements. The results of this study provide important insights into implementation of standards and valuable information for future research and education. Data Availability: The data used are proprietary to the firms and are not available for distribution.

scholarly journals Moderating Role of Audit Fees on the Effect of Task Complexity and Independence towards Audit Judgment

2020 ◽  
Vol 23 (2) ◽  
Author(s):  
Nur Eny ◽  
Ratna Mappanyukki
Keyword(s):  
Audit Quality ◽  
Task Complexity ◽  
Audit Fees ◽  
Auditor Independence ◽  
Survey Method ◽  
Public Accounting ◽  
Accounting Firms ◽  
Audit Judgment ◽  
Public Accounting Firms

This study examines the effect of task complexity and auditor independence on audit judgment with audit fees as a moderating variable. Samples were obtained from auditors working in public accounting firms in West Jakarta and South Jakarta. Data collection was done using a survey method by distributing questionnaires to 100 auditors as respondents. The method of analysis used was Moderated Regression Analysis. The results show that task complexity hurts audit judgment. Auditor independence has a positive effect on audit judgment. Audit fees can strengthen the effect of task complexity on audit judgment. Besides, audit fees moderate the effect of auditor independence on audit judgment. It is recommended that public accounting firms consider the interaction of variables that affect audit judgment, such as task complexity, independence, and audit fees, to improve audit quality.

Review Partners and Engagement Partners: The Interaction Process in Engagement Quality Review

2010 ◽  
Vol 29 (2) ◽  
pp. 215-232 ◽  
Author(s):  
Craig Emby ◽  
Michael Favere-Marchesi
Keyword(s):  
Review Process ◽  
Interaction Process ◽  
Public Accounting ◽  
Accounting Firms ◽  
Quality Review ◽  
Contextual Features ◽  
Public Accounting Firms ◽  
Comprehensive Picture

SUMMARY: This study examines the engagement quality review (EQR) process from the perspective of the review partner. A questionnaire was administered to 127 audit partners in public accounting firms, experienced in performing EQRs. The questionnaire covered the elements, associations, and contextual features surrounding the EQR process. Partners recalled an engagement of their choosing where they acted in the role of review partner and where the review process involved direct negotiation or discussions with the engagement partner to resolve one or more issues. The results provide a comprehensive picture of a typical EQR; the issues involved, the process, and the outcomes that may result. Taken together, the results describe a professional, collegial, non-adversarial process, primarily focused on the objective of resolving difficult and complex client accounting issues. The ultimate resolution of the issue giving rise to the interaction may be a reflection of the suggestions of the reviewing partner or the engagement partner; frequently it is a new and synergistic solution.

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