Does the Length of the Cooling-off Period Affect Audit Quality?

2021 ◽  
Author(s):  
Rebecca Mattocks ◽  
Ting-Chiao Huang ◽  
Robyn Moroney ◽  
Ashna Lata Prasad
Keyword(s):  
Audit Quality ◽  
Positive Association ◽  
Unintended Consequence ◽  
Negative Association ◽  
Period Length ◽  
Geographic Proximity ◽  
Client Characteristics ◽  
Multiple Measures ◽  
Client Knowledge

This paper examines the association between the length of the cooling-off period and audit quality: (1) when partners rotate back and (2) during the cooling-off period, ahead of an extension to the minimum cooling-off period requirement in Australia. Using multiple measures of audit quality, we find some evidence of a positive association between the cooling-off period length and audit quality when partners rotate back, yet evidence of a negative association between the two, during the cooling-off period. We also find that auditor and client characteristics-such as partner busyness, client knowledge, geographic proximity, and client importance-play important roles in determining the cooling-off period length and whether a partner rotates back onto a client. Overall, we provide timely evidence that extending the cooling-off period only marginally enhances audit quality when a partner rotates back onto a client, and evidence of an unintended consequence of this policy during the cooling-off period.

The Impact of Partners' Economic Incentives on Audit Quality in Big 4 Partnerships

2021 ◽  
Author(s):  
Simon Dekeyser ◽  
Ann Gaeremynck ◽  
W. Robert Knechel ◽  
Marleen Willekens
Keyword(s):  
Audit Quality ◽  
Positive Association ◽  
Economic Incentives ◽  
Negative Association ◽  
Client Characteristics ◽  
Financial Situation ◽  
Audit Firm ◽  
Big 4 ◽  
Audit Firms ◽  
The Impact

Economic incentives are fundamental for understanding auditor behavior. In this paper, we investigate the association between the extent of partners' fee-based compensation, partners' observable net wealth, and audit quality. Using a sample of Belgian Big 4 audit firms and their predominantly private clients, our results suggest a negative association between audit quality and partner fee-based compensation, and a positive association between audit quality and partner observable net wealth. Moreover, our results show that the latter association is most significant when a partner is carrying a lot of debt, which indicates that a partner's financial situation may affect audit quality. The extent of fee-based incentives also varies among partners of the same audit firm. Furthermore, partner and client characteristics differ based on the extent of fee-based compensation. Our findings should be of interest to regulators and audit firms as they suggest that audit partner's economic incentives significantly affect audit quality.

The Association between Audit Office Team Diversity and Audit Quality

2021 ◽  
Author(s):  
Ying (Julie) Huang
Keyword(s):  
Audit Quality ◽  
Positive Association ◽  
Field Studies ◽  
Audit Committees ◽  
Client Characteristics ◽  
Team Members ◽  
Team Diversity ◽  
High Performing ◽  
Selection Decisions ◽  
Audit Team

Surveys and field studies find that high-performing teams are diverse teams. Diverse teams value different perspectives and encourage the participation of team members through psychological safety, leading to higher team performance. This paper argues that team diversity is an office-level characteristic that is distinguishable from other characteristics studied in the prior auditing literature and that has an incremental effect on audit quality. I find a positive association between team diversity and audit quality that is robust to controlling for other audit office and client characteristics. Further, this positive association is stronger for more complex and non-routine audit engagements. These findings should be of interest to regulators who regulate how the auditing industry attracts and retains talent worldwide. In addition, these findings should be informative to audit committees who make auditor selection decisions and to investors and accounting researchers interested in the relation between audit team personnel and audit quality.

Audit Office Industry Diversity and Audit Quality

2020 ◽  
pp. 0148558X2094261
Author(s):  
Erik L. Beardsley ◽  
Nathan C. Goldman ◽  
Thomas C. Omer
Keyword(s):  
Audit Quality ◽  
Negative Association ◽  
Client Characteristics ◽  
Industry Classification

This study examines the association between the industry diversity of an audit office and audit quality, where industry diversity is the extent to which clients differ by industry classification. We find a negative association between industry diversity and audit quality that is robust to controlling for other audit office and client characteristics. We observe this association while holding the level of audit office specialization or expertise in a particular industry constant. The association is most apparent at the low end of the distribution of industry diversity, where audit offices with the least diverse client portfolios have the highest audit quality. We also find that the association exists for both small and large audit offices as well as both industry specialists and non-industry specialists. However, we do not observe the association when the office audits clusters of clients, where clusters are three or more clients in the same industry.

scholarly journals Effect Of Corporate Governance On The Association Between Book-Tax Differences And Audit Quality: Evidence From Korea

2016 ◽  
Vol 32 (4) ◽  
pp. 1097-1114 ◽  
Author(s):  
Hyunmin Oh ◽  
Sambock Park ◽  
Soonwook Hong
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Interaction Effect ◽  
Audit Quality ◽  
Positive Association ◽  
Audit Fees ◽  
Negative Association ◽  
Significant Positive Association ◽  
Social Proof ◽  
The Relationship

We investigate whether auditors input additional audit hours according to the sizes of book-tax differences (hereinafter BTD) and request additional audit fees for additional audit hours. In addition, the interaction effects of corporate governance on the relationships between BTD and audit hours/audit fees are examined using the total corporate governance (TCG) scores, data from the Korea Corporate Governance Service (KCGS). We predict that since auditors have the incentive and ability to consider BTD, audit hours and audit fees will increase when BTD are larger. Empirical results of our study are as follows. First, BTD and audit hours (LnAH) show a negative (-) association that is not statistically significant. Second, audit fees (LnAF) were shown to increase along with BTD. This can be interpreted as a result of requests for additional audit fees for increased audit risks due to individual firms' BTD. Third, the interaction effect of corporate governance on the relationship between BTD and audit hours (LnAH) showed a positive (+) association, but the association was not statistically significant. Fourth, the interaction effect of corporate governance on the relationship between BTD and audit fees (LnAF) showed a statistically significant positive (+) association. This be understood as meaning that firms with better governance make more efforts for financial reporting in order to maintain their reliability in the market. This study contributes to the literature in several important aspects. First, it empirically demonstrates whether auditors properly reflect BTD on audit risks. Next, our study is analyzes the effects of corporate governance on the relationship between BTD and audit hours/audit fees using the total corporate governance (TCG) scores presented by the Korea Corporate Governance Service (KCGS). Finally, our findings empirically showed social proof function of accounting audits as a strategy to reduce information risks. 

Perceived Overprotection and Its Association With Quality of Life in Dementia

GeroPsych ◽  
2019 ◽  
Vol 32 (3) ◽  
pp. 125-134
Author(s):  
Mechthild Niemann-Mirmehdi ◽  
Andreas Häusler ◽  
Paul Gellert ◽  
Johanna Nordheim
Keyword(s):  
Quality Of Life ◽  
Patient Autonomy ◽  
Positive Association ◽  
Well Being ◽  
Negative Association ◽  
Significant Positive Association ◽  
Cross Sectional ◽  
People With Dementia ◽  
Mental Well Being

Abstract. To date, few studies have focused on perceived overprotection from the perspective of people with dementia (PwD). In the present examination, the association of perceived overprotection in PwD is examined as an autonomy-restricting factor and thus negative for their mental well-being. Cross-sectional data from the prospective DYADEM study of 82 patient/partner dyads (mean age = 74.26) were used to investigate the association between overprotection, perceived stress, depression, and quality of life (QoL). The analyses show that an overprotective contact style with PwD has a significant positive association with stress and depression, and has a negative association with QoL. The results emphasize the importance of avoiding an overprotective care style and supporting patient autonomy.

Domestic Integration and Suicide in the Provinces of Canada

Crisis ◽  
1999 ◽  
Vol 20 (2) ◽  
pp. 59-63 ◽  
Author(s):  
Antoon A. Leenaars ◽  
David Lester
Keyword(s):  
Social Factors ◽  
Positive Association ◽  
Negative Association ◽  
Birth Rates ◽  
Marriage Rates ◽  
Suicide Rates ◽  
The Social ◽  
Divorce Rates ◽  
Low Levels ◽  
Over Time

Canada's rate of suicide varies from province to province. The classical theory of suicide, which attempts to explain the social suicide rate, stems from Durkheim, who argued that low levels of social integration and regulation are associated with high rates of suicide. The present study explored whether social factors (divorce, marriage, and birth rates) do in fact predict suicide rates over time for each province (period studied: 1950-1990). The results showed a positive association between divorce rates and suicide rates, and a negative association between birth rates and suicide rates. Marriage rates showed no consistent association, an anomaly as compared to research from other nations.

scholarly journals Can Anhedonia Be Considered a Suicide Risk Factor? A Review of the Literature

Medicina ◽  
2019 ◽  
Vol 55 (8) ◽  
pp. 458 ◽  
Author(s):  
Bonanni ◽  
Gualtieri ◽  
Lester ◽  
Falcone ◽  
Nardella ◽  
...  
Keyword(s):  
Suicidal Behavior ◽  
Affective Disorders ◽  
Suicide Attempts ◽  
Positive Association ◽  
Negative Association ◽  
Schizophrenia Spectrum Disorders ◽  
Post Traumatic Stress ◽  
Significant Positive Association ◽  
Search Terms ◽  
Schizophrenia Spectrum

Background and Objectives: At present, data collected from the literature about suicide and anhedonia are controversial. Some studies have shown that low levels of anhedonia are associated with serious suicide attempts and death by suicide, while other studies have shown that high levels of anhedonia are associated with suicide. Materials and Methods: For this review, we searched PubMed, Medline, and ScienceDirect for clinical studies published from 1 January 1990 to 31 December 2018 with the following search terms used in the title or in the abstract: “anhedonia AND suicid*.” We obtained a total of 155 articles; 133 items were excluded using specific exclusion criteria, the remaining 22 articles included were divided into six groups based on the psychiatric diagnosis: mood disorders, schizophrenia spectrum disorders, post-traumatic stress disorder (PTSD), other diagnoses, attempted suicides, and others (healthy subjects). Results: The results of this review reveal inconsistencies. Some studies reported that high anhedonia scores were associated with suicidal behavior (regardless of the diagnosis), while other studies found that low anhedonia scores were associated with suicidal behavior, and a few studies reported no association. The most consistent association between anhedonia and suicidal behavior was found for affective disorders (7 of 7 studies reported a significant positive association) and for PTSD (3 of 3 studies reported a positive association). In the two studies of patients with schizophrenia, one found no association, and one found a negative association. For patients who attempted suicide (undiagnosed), one study found a positive association, one a positive association only for depressed attempters, and one a negative association. Conclusions: We found the most consistent positive association for patients with affective disorders and PTSD, indicating that the assessment of anhedonia may be useful in the evaluation of suicidal risk.

scholarly journals Maternal Sociodemographic Factors and Antenatal Stress

2021 ◽  
Vol 18 (13) ◽  
pp. 6812
Author(s):  
Maheshwari Andhavarapu ◽  
James Orwa ◽  
Marleen Temmerman ◽  
Joseph Wangira Musana
Keyword(s):  
Birth Outcomes ◽  
Partner Violence ◽  
Household Income ◽  
Maternal Education ◽  
Secondary Analysis ◽  
Positive Association ◽  
Negative Association ◽  
Adverse Birth Outcomes ◽  
Biological Stress ◽  
Antenatal Stress

Antenatal stress has been associated with adverse birth outcomes such as fetal growth restriction, low birth weight, and preterm birth. Understanding key determinants of stress in a vulnerable pregnant population has the potential of informing development of targeted cost-effective interventions to mitigate against these adverse birth outcomes. We conducted a secondary analysis of data from 150 pregnant women attending antenatal care services at a rural referral hospital in Kenya. The participants completed a sociodemographic and clinical questionnaire, the Cohen’s Perceived Stress Scale (PSS) and gave a hair sample for cortisol and cortisone analysis. The association between selected sociodemographic predictors (age, parity, marital status, maternal education, household income, polygyny, and intimate partner violence) and outcomes (hair cortisol, hair cortisone, and PSS score) was examined using univariate, bivariate and multivariate models. We found a negative association between PSS scores and household income (β = −2.40, p = 0.016, 95% CI = −4.36, −0.45). There was a positive association of the ratio of hair cortisone to cortisol with Adolescent age group (β = 0.64, p = 0.031, 95% CI = 0.06, 1.22), and a negative association with Cohabitation (β = −1.21, p = 0.009, 95% CI = −2.11, −0.31). We conclude that household income influenced psychological stress in pregnancy. Adolescence and cohabitation may have an influence on biological stress, but the nature of this effect is unclear.

An Examination of Partner Perceptions of Partner Rotation: Direct and Indirect Consequences to Audit Quality

2012 ◽  
Vol 31 (1) ◽  
pp. 97-114 ◽  
Author(s):  
Brian E. Daugherty ◽  
Denise Dickins ◽  
Richard C. Hatfield ◽  
Julia L. Higgs
Keyword(s):  
Quality Of Life ◽  
Audit Quality ◽  
Negative Impact ◽  
Survey Instrument ◽  
Unintended Consequence ◽  
Data Availability ◽  
Structured Interviews ◽  
Partner Perceptions ◽  
New Industry

SUMMARY Using structured interviews and surveys of practicing audit partners, this study examines their perceptions with regard to mandatory partner rotation and cooling-off periods, and how recently enacted, more stringent rules, may negatively impact auditors' quality of life to the detriment of audit quality. Results suggest rotation, in general, increases partners' workloads and the likelihood of relocation. Additionally, results suggest that in response to accelerated rotation (and an extended cooling-off period), partners would rather learn a new industry than relocate. Importantly, partners perceive audit quality suffers from retraining, but not from relocating. Thus these results suggest an indirect, negative impact, and unintended consequence, of accelerated rotation/extended cooling-off periods on audit quality. Data Availability: The survey instrument is available upon request. Individual audit partner responses are confidential.

scholarly journals Analysis of brain atrophy and local gene expression in genetic frontotemporal dementia

2020 ◽  
Vol 2 (2) ◽  
Author(s):  
Andre Altmann ◽  
David M Cash ◽  
Martina Bocchetta ◽  
Carolin Heller ◽  
Regina Reynolds ◽  
...  
Keyword(s):  
Gene Expression ◽  
Frontotemporal Dementia ◽  
Cell Function ◽  
Neurodegenerative Disorder ◽  
Positive Association ◽  
Negative Association ◽  
Marker Genes ◽  
Gene Set ◽  
Genetic Groups ◽  
Cortical Regions

Abstract Frontotemporal dementia is a heterogeneous neurodegenerative disorder characterized by neuronal loss in the frontal and temporal lobes. Despite progress in understanding which genes are associated with the aetiology of frontotemporal dementia, the biological basis of how mutations in these genes lead to cell loss in specific cortical regions remains unclear. In this work, we combined gene expression data for 16 772 genes from the Allen Institute for Brain Science atlas with brain maps of grey matter atrophy in symptomatic C9orf72, GRN and MAPT mutation carriers obtained from the Genetic Frontotemporal dementia Initiative study. No significant association was seen between C9orf72, GRN and MAPT expression and the atrophy patterns in the respective genetic groups. After adjusting for spatial autocorrelation, between 1000 and 5000 genes showed a negative or positive association with the atrophy pattern within each individual genetic group, with the most significantly associated genes being TREM2, SSBP3 and GPR158 (negative association in C9Orf72, GRN and MAPT respectively) and RELN, MXRA8 and LPA (positive association in C9Orf72, GRN and MAPT respectively). An overrepresentation analysis identified a negative association with genes involved in mitochondrial function, and a positive association with genes involved in vascular and glial cell function in each of the genetic groups. A set of 423 and 700 genes showed significant positive and negative association, respectively, with atrophy patterns in all three maps. The gene set with increased expression in spared cortical regions was enriched for neuronal and microglial genes, while the gene set with increased expression in atrophied regions was enriched for astrocyte and endothelial cell genes. Our analysis suggests that these cell types may play a more active role in the onset of neurodegeneration in frontotemporal dementia than previously assumed, and in the case of the positively associated cell marker genes, potentially through emergence of neurotoxic astrocytes and alteration in the blood–brain barrier, respectively.

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