Speak Up or Shut Up? The Moderating Role of Credibility on Auditor Remedial Defense Tactics

2012 ◽  
Vol 31 (4) ◽  
pp. 65-83 ◽  
Author(s):  
Jonathan Grenier ◽  
Bradley Pomeroy ◽  
Andrew Reffett
Keyword(s):  
Experimental Evidence ◽  
Data Availability ◽  
Audit Failure ◽  
Perceived Credibility ◽  
National Office ◽  
Speak Up ◽  
Moderating Role

SUMMARY In cases of alleged audit failure, auditors can make general statements regarding the quality of their work, or other statements intended to decrease juror assessments of auditor negligence. In this study, we examine how the perceived credibility of these remedial defense tactics moderates their effect on juror assessments of auditor negligence in cases of undetected fraud. We predict and find experimental evidence that remedial tactics result in lower negligence assessments when such tactics are perceived to be credible, but “backfire” (i.e., result in higher negligence assessments) when perceived as not credible. We also predict and find that credibility is compromised either when client importance is high, or when a remedial tactic is implemented by an audit firm's local (as opposed to national) office. As such, we find that remedial tactics result in lower negligence assessments when client importance is low and the tactics are implemented by a firm's national office, but result in higher negligence assessments when client importance is high, irrespective of the tactic's source (local versus national). Data Availability: Available upon request.

External Investigators' Follow-Up Intentions When Whistleblowers Report Healthcare Fraud: The Effects of Report Anonymity and Previous Confrontation

2020 ◽  
Vol 32 (2) ◽  
pp. 91-101
Author(s):  
Steven E. Kaplan ◽  
Danny Lanier ◽  
Kelly R. Pope ◽  
Janet A. Samuels
Keyword(s):  
Experimental Study ◽  
Early Detection ◽  
Data Availability ◽  
Medical Provider ◽  
Perceived Credibility ◽  
The Relationship ◽  
Critical Investigation

ABSTRACT Whistleblowing reports, if properly investigated, facilitate the early detection of fraud. Although critical, investigation-related decisions represent a relatively underexplored component of the whistleblowing process. Investigators are responsible for initially deciding whether to follow-up on reports alleging fraud. We report the results of an experimental study examining the follow-up intentions of highly experienced healthcare investigators. Participants, in the role of an insurance investigator, are asked to review a whistleblowing report alleging billing fraud occurring at a medical provider. Thus, participants are serving as external investigators. In a between-participant design, we manipulate the report type and whether the caller previously confronted the wrongdoer. We find that compared to an anonymous report, a non-anonymous report is perceived as more credible and follow-up intentions stronger. We also find that perceived credibility fully mediates the relationship between report type and follow-up intentions. Previous confrontation is not significantly associated with either perceived credibility or follow-up intentions. Data Availability: Data are available upon request.

scholarly journals Subjective Well-Being and the 2008 Recession in European Regions: The Moderating Role of Quality of Governance

2019 ◽  
Vol 2 (2) ◽  
pp. 111-133 ◽  
Author(s):  
Efstratia Arampatzi ◽  
Martijn J. Burger ◽  
Spyridon Stavropoulos ◽  
Frank G. van Oort
Keyword(s):  
Well Being ◽  
Subjective Well Being ◽  
European Regions ◽  
Quality Of Governance ◽  
Moderating Role

scholarly journals Does the Quality of Institutions Matter for Financial Inclusion? Cross Country Evidence

2021 ◽  
Vol 13 (7) ◽  
pp. 27
Author(s):  
Peter W. Muriu
Keyword(s):  
Rule Of Law ◽  
Fixed Effects ◽  
Financial Inclusion ◽  
Data Availability ◽  
Institutional Characteristics ◽  
Annual Data ◽  
Institutional Reforms ◽  
Cross Country

Despite evidence on the importance of financial inclusion, little is known about the role of institutions in fostering inclusion partly because of data availability. Using annual data corresponding to 120 countries for the period 2004-2019, this study investigates country institutional characteristics associated with the ownership of deposit accounts. A standard regression model is estimated using fixed effects panel data techniques along with financial inclusion proxy and three measures of institutional quality. This paper provides the first empirical justification that financial inclusion is non-negligibly driven by the institutional context. Specifically, rule of law and quality of regulations are crucial in enhancing financial inclusiveness, more so in Africa where they have a stronger effect relative to other regions. Banks and depositors in Africa may be operating in an environment characterized by weak legal systems and excessive or challenging regulations. The evidence presented in this paper may therefore help with the sequencing of institutional reforms that could promote financial inclusion.

Predictors of quality of life and psychological health in infertile couples: the moderating role of duration of infertility

2018 ◽  
Vol 27 (4) ◽  
pp. 945-954 ◽  
Author(s):  
Maria Clelia Zurlo ◽  
Maria Francesca Cattaneo Della Volta ◽  
Federica Vallone
Keyword(s):  
Quality Of Life ◽  
Psychological Health ◽  
Infertile Couples ◽  
Moderating Role

Close social relationships and loneliness: the role of subjective age

2019 ◽  
pp. 1-5 ◽  
Author(s):  
Naama Spitzer ◽  
Dikla Segel-Karpas ◽  
Yuval Palgi
Keyword(s):  
Older Adults ◽  
Social Relationships ◽  
Negative Relationship ◽  
Community Dwelling ◽  
Subjective Age ◽  
Perceptions Of Aging ◽  
The Relationship ◽  
Moderating Role

Abstract Loneliness is considered a major issue, often negatively influencing the quality of life of individuals of all ages, and of older adults, in particular. The aims of this study are: (1) to assess the association between close social relationships and loneliness; and (2) to examine the moderating role of subjective age in this association. Married or cohabiting community-dwelling Israelis in the second half of life (N = 360) were interviewed and reported on their close social relationships, their level of loneliness, and their subjective age. The number of close social relationships was found to have a negative relationship with loneliness. Moreover, subjective age was found to moderate the relationship between close social relationships and loneliness, such that the association was weaker for those with older subjective age. Those with older subjective age are often not able to benefit from close social relationships to alleviate loneliness as much as their younger-subjective-age counterparts. Efforts to address older adults’ loneliness should consider focusing on older adults’ perceptions of aging.

When Do Auditor Defense Tactics Increase Rather Than Decrease Perceived Auditor Negligence?

2012 ◽  
Vol 6 (2) ◽  
pp. P7-P12
Author(s):  
Jonathan Grenier ◽  
Bradley Pomeroy ◽  
Andrew Reffett
Keyword(s):  
Situational Factors ◽  
Mock Jurors ◽  
Audit Firm ◽  
Audit Failure ◽  
Perceived Credibility ◽  
National Office ◽  
Audit Firms ◽  
Practical Implications ◽  
National Local

SUMMARY In cases of alleged audit failure, audit firms and/or their defense teams can make statements intended to decrease jurors' assessments of auditor negligence. For example, Cornell et al. (2009) find that expressing sympathy for the victims of undetected fraud successfully decreases mock jurors' assessments of auditor negligence. Extending this research, Grenier et al. (2012) report the results of an experiment indicating that the effectiveness of defense tactics depends on their perceived credibility, and that credibility depends on at least two prevalent situational factors: the importance of the client to the audit firm and the source of the defense tactic (i.e., the national office or the local office that conducted the audit). Specifically, mock jurors perceive auditor defense tactics to be credible (not credible) when client importance is low (high), and when implemented by the firm's national (local) office. Hence, when client importance is low, defense tactics successfully decrease negligence assessments if implemented by the firm's national office, but “backfire” and increase negligence assessments when client importance is high, regardless of the defense tactic's source (national versus local office). Audit firms should therefore use caution when deciding whether to use defense tactics, particularly in negligence suits involving clients that could be perceived as highly important to the audit firm. This article summarizes Grenier et al. (2012) by discussing its motivation, method, results, and practical implications.

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