Auditor Commitment and Turnover Intentions Following Negative Inspection Findings: The Effects of Regulator Enforcement Style and Firm Response

2020 ◽  
Vol 39 (4) ◽  
pp. 143-165
Author(s):  
Kristian Martinow ◽  
Robyn A. Moroney ◽  
Noel Harding
Keyword(s):  
Turnover Intentions ◽  
Jel Classification ◽  
Data Availability ◽  
Professional Commitment ◽  
Audit Process ◽  
Firm Response ◽  
Firm Commitment ◽  
Firm Turnover ◽  
Process Structure

SUMMARY We examine the effect of the regulator's style (critical versus supportive) when enforcing negative inspection findings and the audit firm's response to those findings (increase or decrease audit process structure) on auditor professional and firm commitment and turnover intentions. We find no evidence that enforcement style impacts professional commitment, but that auditors are more inclined to leave the profession when the regulator adopts a critical enforcement style and when their firm increases audit process structure. We further find that firm commitment is lower when the firm increases audit process structure, and that this is most pronounced when the regulator adopts a supportive enforcement style. We find no evidence of firm turnover intentions being impacted by either enforcement style or firm response. Recognizing the importance of retaining competent and motivated auditors, our results highlight the care needed, and alternatives available, when regulators enforce, and firms respond to, negative inspection findings. Data Availability: Data are available from the authors upon request. JEL Classification: M42.

Is Professional Commitment The Reason For Turnover Intentions of IT Professionals?

2019 ◽  
Vol 5 (1) ◽  
pp. 124
Author(s):  
Mohamed Buhari Mufitha ◽  
Su Teng Lee ◽  
Chen Chen Yong
Keyword(s):  
Job Satisfaction ◽  
Structural Equation ◽  
Turnover Intentions ◽  
Equation Model ◽  
Professional Commitment ◽  
Turnover Rates ◽  
It Professionals ◽  
Professional Advancement ◽  
Software Engineers ◽  
Job Satisfactions

Compared to others, professionals share distinguish workplace characteristics: one such is the high commitment to the professions over to working organizations. Information Technology (IT) professionals demonstrate higher turnover rates compared to others: their commitments to the profession has been suspected as a source of turnover. Considering their job satisfactions the present study aimed to investigate the influence of professional commitment on IT professionals’ turnover intentions. Data were collected from a sample of software engineers from Sri Lank using a survey questionnaire. The results of the structural equation model analysis concluded that professional commitment weakens IT professionals’ turnover intentions, which is partially mediated by job satisfaction. Professional commitment stimulates IT professionals’ job satisfaction. The findings challenge the presumption that IT professionals leave their organizations due to high commitments to the profession. Few factors were identified as significant in their job satisfactions: supervision, co-workers and work design. Pay and promotions were the least influencing job satisfaction factors. Managers may employ few strategies in their retention strategies: facilitate professional advancement needs within organizations, closely monitor supervision activities occurs and provide challenging and meaningful jobs. The study contributes to the turnover literature through empirical evidence on the influence of professional commitment on knowledge workers’ turnover intentions.

Motivating Compliance: Firm Response to Mandatory Disclosure Policies

2018 ◽  
Vol 32 (2) ◽  
pp. 103-119
Author(s):  
Colleen M. Boland ◽  
Chris E. Hogan ◽  
Marilyn F. Johnson
Keyword(s):  
Conflict Of Interest ◽  
Low Cost ◽  
Cost Effective ◽  
Data Availability ◽  
Policy Adoption ◽  
Future Research ◽  
Regulated Firms ◽  
Firm Response ◽  
Disclosure Rules ◽  
The Impact

SYNOPSIS Mandatory existence disclosure rules require an organization to disclose a policy's existence, but not its content. We examine policy adoption frequencies in the year immediately after the IRS required mandatory existence disclosure by nonprofits of various governance policies. We also examine adoption frequencies in the year of the subsequent change from mandatory existence disclosure to a disclose-and-explain regime that required supplemental disclosures about the content and implementation of conflict of interest policies. Our results suggest that in areas where there is unclear regulatory authority, mandatory existence disclosure is an effective and low cost regulatory device for encouraging the adoption of policies desired by regulators, provided those policies are cost-effective for regulated firms to implement. In addition, we find that disclose-and-explain regulatory regimes provide stronger incentives for policy adoption than do mandatory existence disclosure regimes and also discourage “check the box” behavior. Future research should examine the impact of mandatory existence disclosure rules in the year that the regulation is implemented. Data Availability: Data are available from sources cited in the text.

Whistle Blowing in The Police Sector: The Importance of Control Behaviour Factor and Professional Commitment

2017 ◽  
Vol 2 (2) ◽  
pp. 09-14
Author(s):  
Raja Adri Satriawan Surya ◽  
Arumega Zarefar ◽  
Nanda Fito Mela
Keyword(s):  
Police Officers ◽  
Police Department ◽  
Original Data ◽  
Jel Classification ◽  
Professional Commitment ◽  
Whistle Blowing ◽  
Behaviour Factor ◽  
Finance Department ◽  
Control Behaviour ◽  
Whistleblowing Intention

Objective - This study aimed to examine the effect of perceived behaviour control and professional commitment to the interest of doing whistleblowing. This research was conducted at the police department in Riau province. Methodology/Technique - The sample in this study was taken by using the method of data collection is called purposive sampling. The samples used in this research were 90 respondents which were all police officers working in the finance department. Data were analysed using SPSS version 20. Findings - The results showed that perceived behaviour control affects the interests do whistle blowing. Secondly, professional commitments do affect the interest of whistle blowing. Novelty - The research contributes to the related literature with its original data. Type of Paper: Empirical Keywords: Police Sector; Perceived Behaviour Control; Professional Commitment; Whistleblowing Intention and SPSS. JEL Classification: J53, M41, M54.

scholarly journals Corporate governance practices in the banking sector of Bangladesh: do they really matter?

2017 ◽  
Vol 12 (1) ◽  
pp. 27-35 ◽  
Author(s):  
Samiul Parvez Ahmed ◽  
Rahatul Zannat ◽  
Sarwar Uddin Ahmed
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Stock Exchange ◽  
Financial Sector ◽  
Jel Classification ◽  
Data Availability ◽  
Time Period ◽  
Governance Practices

A well governed institution is expected to use its resources optimally and, thus, perform more efficiently and contribute positively to economic development of a nation. However, often, it can be seen that poor management of the stakeholders leads to less than optimal strategic directions for an institution. Due to recent global financial crisis and rising issues of the Bangladeshi banking sector, corporate governance is one of the factors that have gained considerable attention. Recent drive of the governance issues of the banking sector of Bangladesh is expected to bring positive change in the financial sector and, hence, it is crucial to assess whether complying with governance codes leads to desired outcome or not. Specifically, the main purpose of this study is to examine the relationship between performances of commercial banks with corporate governance factor along with some internal and macroeconomic variables. Thus, the listed commercial banks in the Dhaka Stock Exchange (DSE) of Bangladesh were considered for the study. Subsequently, considering data availability of the time period (2011-2014), 29 listed commercial banks in the DSE have been considered and, hence, Ordinary Least Squared (OLS) regression models were used through Eviews 8.0 for analyzing the data. Though the study shows a positive relation between corporate governance and performances of banks, the statistical insignificance of the relation raises concern regarding various issues of corporate governance in the financial sector of Bangladesh. Keywords: corporate governance, financial institutions, performances of commercial banks. JEL Classification: G21, G30, G38, G39, O16

The Effects of Auditors' Accessibility to “Tone at the Top” Knowledge on Audit Judgments

2014 ◽  
Vol 26 (2) ◽  
pp. 73-96 ◽  
Author(s):  
Regan N. Schmidt
Keyword(s):  
Mental Representation ◽  
Decision Aid ◽  
Audit Quality ◽  
Mental Representations ◽  
Data Availability ◽  
Control Environment ◽  
Audit Process ◽  
Mediation Analyses ◽  
Fraud Risk ◽  
Tone At The Top

ABSTRACT: This study examines how external auditors' accessibility to “tone at the top” knowledge impacts subsequent audit judgments. To examine this relationship, a decision aid is investigated that differentially facilitates the auditors' retrieval of “tone at the top” evidence from memory. Results of an experiment indicate that, holding the client's “tone at the top” constant, the structure of a control environment decision aid influences the auditors' mental representation of the “tone at the top.” Further, favorable “tone at the top” mental representations transfer to induce relatively favorable control environment and fraud risk assessments, and greater reliance on management's explanation for variances detected in analytical procedures. Mediation analyses identify the control environment assessment as a mediator between the influenced mental representation and the subsequent fraud risk and analytical procedure judgments. The results of the paper underscore the importance of how auditors develop their “tone at the top” mental representations, the influence of these mental representations on subsequent audit judgments, and the stage in the audit process where interventions can improve audit quality. Data Availability: Contact the author.

SOX 404(b) Audits: Evidence from Auditing the Financial Close Process of the Accounting System

2019 ◽  
Vol 34 (3) ◽  
pp. 77-103
Author(s):  
Diane J. Janvrin ◽  
Maureen Francis Mascha ◽  
Melvin A. Lamboy-Ruiz
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Internal Controls ◽  
Data Availability ◽  
Financial Statement ◽  
Accounting System ◽  
Audit Process ◽  
Financial Statement Audit ◽  
Multiple Method ◽  
Access Controls

ABSTRACT Auditing Standard No. 5 requires that auditors integrate their evaluation of large issuers' internal control over financial reporting (ICFR) into their financial statement audit process, but the PCAOB warns that auditors may not adequately test related manual and systems internal controls. We use a multiple method approach to examine how auditors evaluate one important component of ICFR, the financial close process, and whether they evaluate it differently when conducting a SOX 404(b) integrated versus a financial statement audit. Interviewees relied heavily on walkthroughs, and tended to perform only cursory reviews of entity-level controls related to the financial close process. In addition, they often failed to test the link between the general ledger and supporting systems, including evaluating related access controls. Financial statement-only auditors were more likely to re-perform key controls than rely on cursory walkthroughs. Auditors performing integrated audits appeared to over-rely on ICFR findings when conducting financial statement audits. Data Availability: Interview data are available from the first author. PCAOB inspection reports are publicly available.

Customer-Base Concentration: Implications for Audit Pricing and Quality

2018 ◽  
Vol 31 (1) ◽  
pp. 129-152 ◽  
Author(s):  
Gopal V. Krishnan ◽  
Panos N. Patatoukas ◽  
Annika Yu Wang
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Customer Relationships ◽  
Data Availability ◽  
Audit Process ◽  
Audit Pricing ◽  
External Auditors ◽  
Customer Base ◽  
Conventional View ◽  
Audit Fee

ABSTRACT What are the implications of major customer dependency, i.e., the degree of a supplier firm's dependency on its major customers, for external auditors? While the conventional view emphasizes the negatives of major customer dependency for client business risk, we find that suppliers with more concentrated customer bases spend less on audit fees. The evidence is consistent with reduced audit effort due to efficiency gains in the audit process, especially when suppliers with more concentrated customer bases share the same auditors with their long-standing major customers. The audit fee discount we identify does not imply that audit quality declines with customer-base concentration. In fact, we find that suppliers with more concentrated customer bases are less likely to experience material restatements of previously audited financial statements. Taking the external auditors' perspective, our study provides new managerial insights on the costs and benefits of major customer relationships for supplier firms. Data Availability: All data are available from sources identified in the text.

Good Governance, Komitmen Profesional dan Akuntabilitas Layanan Publik, Locus of Control Sebagai Intervening

2015 ◽  
Vol 2 (01) ◽  
pp. 78-88
Author(s):  
Iro Jationo ◽  
Widarto Rachbini
Keyword(s):  
Locus Of Control ◽  
Public Service ◽  
Good Governance ◽  
Control Variable ◽  
Jel Classification ◽  
City Government ◽  
Professional Commitment ◽  
Goods And Services ◽  
The Government ◽  
Service Procurement

A B S T R A C T This research aims to empirically examine the relationship between good governance and professional commitment to accountability of public service procurement of goods/services through the government’s locus of control as an intervening variable. The population in this research are all service personnel procurement of goods/services certified government spread across 42 SKPDs (working units) in Tangerang City Government which is responsible for the procurement of goods/services of the government, as many as 70 people. In this research, variables used consisted of the dependent variable accountability of public service procurement of goods/services of the government while the independent variable is good governance and professional commitment, and locus of control variable as an intervening variable. The results showed that the governance and professional commitments do not affect the accountability. locus of control significantly influence accountability. In this study, locus of control is not a variable pemediasi on accountability procurement of goods and services. A B S T R A K Penelitian ini bertujuan untuk menguji secara empiris hubungan antara tata kelola yang baik dan komitmen profesional terhadap akuntabilitas pengadaan pelayanan publik barang/jasa melalui locus of control pemerintahan sebagai variabel intervening. Populasi dalam penelitian ini adalah seluruh tenaga pelayanan pengadaan barang/jasa pemerintah bersertifikat yang tersebar di 42 SKPD (satuan kerja) di Pemerintah Kota Tangerang yang bertanggung jawab untuk pengadaan barang/jasa pemerintah, sebanyak 70 orang. Pada penelitian ini, variabel yang digunakan terdiri dari akuntabilitas pengadaan pelayanan publik barang/jasa pemerintah sebagai variabel dependen sedangkan variabel independen adalah tata kelola yang baik dan komitmen profesional, dan locus of control sebagai variabel intervening. Hasil penelitian menunjukkan bahwa tata kelola pemerintah dan komitmen profesional tidak berpengaruh terhadap akuntabilitas. Locus of control berpengaruh signifikan terhadap akuntabilitas. Pada penelitian ini, locus of control bukan merupakan variabel pemediasi pada akuntabilitas pengadaan barang dan jasa. JEL Classification: H53

An Examination of the Interactive Effect of Feedback Source and Sign in the Offshoring Environment: A Social Identity Perspective

2018 ◽  
Vol 30 (2) ◽  
pp. 1-21 ◽  
Author(s):  
Lindsay M. Andiola ◽  
Denise Hanes Downey ◽  
Brian C. Spilker ◽  
Tracy J. Noga
Keyword(s):  
Performance Feedback ◽  
Turnover Intentions ◽  
Interactive Effect ◽  
Data Availability ◽  
Work Outcomes ◽  
Accounting Firms ◽  
Staff Members ◽  
Future Performance ◽  
Feedback Sign ◽  
Feedback Source

ABSTRACT Public accounting firms regularly rely on offshore professionals to assist with client work. However, differences in interpersonal dynamics between offshore staff members and the supervisors they report to may yield positive and/or negative work outcomes. We examine how feedback source (offshore or onshore supervisor) and feedback sign (negative or positive) interact to affect offshore staff members' satisfaction with feedback. This is an important issue because subordinate satisfaction with performance feedback is a key determinant of future performance and turnover intentions. We find that offshore staff members are less satisfied with negative feedback from an offshore (local Indian) supervisor, a member of their in-group, than an onshore (remote U.S.) supervisor, a member of their out-group. However, their satisfaction with positive feedback does not significantly differ between feedback sources. Further analysis reveals that greater satisfaction is associated with increases in the effort the staff member plans to put forth in the future. JEL Classifications: M40; M41; M54; D91. Data Availability: Please contact the authors.

Auditors' Consideration of Material Income-Increasing versus Material Income-Decreasing Items during the Audit Process

2012 ◽  
Vol 32 (2) ◽  
pp. 33-51 ◽  
Author(s):  
Naman K. Desai ◽  
Gregory J. Gerard
Keyword(s):  
Cognitive Effort ◽  
Data Availability ◽  
Litigation Risk ◽  
Audit Process ◽  
The Future ◽  
Versus Material ◽  
Poor Memory

SUMMARY: We examine how auditors' consideration of material items is affected by each item's directional impact on income. Prior research indicates that auditors face greater litigation risk for non-detection of fraudulent income-increasing items compared to income-decreasing items. Therefore, we expect that auditors will spend greater cognitive effort evaluating material income-increasing (as opposed to income-decreasing) items, resulting in superior memories for such items. However, in an effort to direct auditors' attention to both increasing and decreasing material items, we manipulate whether or not auditors were asked to form expectations about the future effects of material items. Our results indicate that auditors' memories for income-increasing items are significantly greater than that for income-decreasing items when auditors are not asked to form expectations about the future effects of the items. However, this difference is not observed when auditors are asked to form expectations about future effects of each item. Furthermore, our results indicate that auditors are less likely to refer back to the work papers to verify the accuracy of income-decreasing items compared to income-increasing items. This suggests that auditors are not inclined to compensate for their poor memory of income-decreasing items by referring to working papers. However, it also suggests that auditors compensate for the greater risk associated with income-increasing items by requiring greater verification of such items. Data Availability: Contact the authors.

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