scholarly journals Data Visualization in Local Accounting Firms: Is Slow Technology Adoption Rational?

2020 ◽  
pp. 0000-0000
Author(s):  
Steve Buchheit ◽  
Ann Dzuranin ◽  
Candice Hux ◽  
Mark Riley
Keyword(s):  
Technology Adoption ◽  
Data Visualization ◽  
Audit Quality ◽  
Perceived Benefits ◽  
Technology Usage ◽  
Accounting Firms ◽  
Local Firm ◽  
Competing Models ◽  
Visualization Technology ◽  
Slow Technology

We survey highly-experienced professionals from local accounting firms regarding the adoption of and perceived benefits from data visualization in audit practice. Although the majority of respondents have minimal experience with data visualization, local-firm partners have positive perceptions regarding the value that visualization can have on audit quality and client-related benefits. These perceptions are affected by visualization technology usage: perceived audit quality benefits increase with usage but client benefit perceptions decrease with usage. These results are consistent with competing models of technology adoption. In total, whether one labels a firm a ‘laggard’ or a ‘rational non-adopter’ of visualization technology appears to be driven by whether the firm seeks to adopt technology in order to improve audit quality or to add value for their clients.

An Analysis of Cross-Sectional Differences in Big and Non-Big Public Accounting Firms' Audit Programs

2006 ◽  
Vol 25 (1) ◽  
pp. 27-48 ◽  
Author(s):  
Hans Blokdijk ◽  
Fred Drieenhuizen ◽  
Dan A. Simunic ◽  
Michael T. Stein
Keyword(s):  
Risk Assessment ◽  
Empirical Evidence ◽  
Audit Quality ◽  
Audit Fees ◽  
Public Accounting ◽  
Accounting Firms ◽  
Big 5 ◽  
Public Accounting Firms ◽  
Audit Approach ◽  
Control Risk

A significant body of prior research has shown that audits by the Big 5 (now Big 4) public accounting firms are quality differentiated relative to non-Big 5 audits. This result can be derived analytically by assuming that Big 5 and non-Big 5 firms face different loss functions for “audit failures” and is consistent with a variety of empirical evidence from studies of audit fees, auditor changes, and the stock price reaction to audited earnings. However, there is no existing evidence (of which we are aware) concerning the underlying production differences between Big 5 and non-Big 5 audits. As a result, existing empirical evidence cannot distinguish between the possibility that Big 5 audits are simply perceived to be different (e.g., by investors) or actually differ in how they are produced. Our research objective is to identify the production characteristics of audit engagements that may explain the differences in expected audit quality between Big 5 and non-Big 5 firms. In this archival study, we examine the total audit effort and the allocation of effort to four audit phases—planning, (control) risk assessment, substantive testing, and completion—for a cross-section sample of 113 audits of Dutch companies in 1998/99 by 14 public accounting firms. We find that, after controlling for client characteristics: (1) both types of auditors exert about the same amount of total audit effort; (2) Big 5 auditors allocate relatively more effort to planning and (control) risk assessment, and relatively less to substantive testing and completion; and (3) client size, use of the business-risk-based audit approach, and reliance on client internal controls affect audit hours differently for the two auditor types. We conclude that the Big 5 firms actually produce a higher audit quality level, and that this quality difference is related to how audit hours are deployed in a more contextual and less procedural audit approach.

Audit Firm Tenure, Audit Firm Size and Audit Quality

2014 ◽  
Vol 2 (4) ◽  
pp. 69-76
Author(s):  
Padri Achyarsyah ◽  
Molina Molina
Keyword(s):  
Firm Size ◽  
Significant Influence ◽  
Audit Quality ◽  
Hypothesis Test ◽  
Professional Services ◽  
Primary Data ◽  
Accounting Firms ◽  
Client Engagement ◽  
Audit Firm ◽  
Client Relationship

Objective - The objective of this paper is to examine the effect of audit firm tenure and audit firm size on audit quality. This study applies explanatory research in which questionnaire and interviews serve as the primary data. The population of this study is public accounting firms which are registered in the Indonesian capital market. Methodology/Technique - The study presents a survey using professional auditors. The multiple regression methode is used to conduct an hypothesis test of the effect of audit firm tenure and audit firm size on audit quality. Findings - The result of study depicted that audit firm tenure has no significant influence on the audit quality, while the audit firm size has significant influence on the audit quality. Audit quality deteriorate, when the length of the audit firm client engagement is longer. No particular concern to audit firm size since the big audit firm size has extensive training for their staffs and sufficient system in place. Novelty - The study contributes to auditing literature in the areas of audit quality. The length of the audit firm client relationship and audit firm size always rise the contradiction to the audit quality. The audit firm tenure and audit firm size support previous study, additional insight are gained toward in the elections of the audit firm that serves professional services in capital markets. Type of Paper - Empirical Keywords: Audit Firm Tenure; Audit Firm Size; Audit Quality; Auditor

An examination of reduced audit quality practices within the beyond the role stress model

2018 ◽  
Vol 33 (8/9) ◽  
pp. 736-759 ◽  
Author(s):  
Kenneth J. Smith ◽  
David J. Emerson ◽  
Charles R. Boster
Keyword(s):  
Audit Quality ◽  
Role Stress ◽  
Job Outcomes ◽  
Job Stressors ◽  
Satisfaction Scale ◽  
Accounting Firms ◽  
Content Type ◽  
Quality Practices ◽  
Staff Burnout ◽  
Item Scale

Purpose The purpose of this paper is to investigate the role stress model originally developed by Fogarty et al. (2000) using more refined measures, a context-specific performance metric and a targeted respondent group. The investigation uses a sample of working professional auditors to investigate the associations between job stressors, burnout and job outcomes using an industry-specific measure of job performance. Design/methodology/approach The analyses use structural equations modeling procedures to examine a model that postulates that burnout will mediate the relations between job stressors and job outcomes. The data for the study come from 293 survey instruments completed by auditors working at the offices of 11 public accounting firms. A parsimonious job satisfaction scale based on Churchill et al.’s (1985) 27-item scale is developed using classical test-item analysis and is incorporated into the analysis. Findings The results suggest three significant items of note. First, although prior research has found that burnout partially mediates relations between job stressors and job outcomes, this study shows that burnout fully mediates these associations. Second, the study provides support for the reduced audit quality practices (RAQP) scale as an audit-specific construct for job performance. Finally, results show that the 27-item job satisfaction scale can successfully be reduced to a six-item scale. Research limitations/implications While this study is subject to the limitations inherent to all cross-sectional studies that use self-report instruments, the results further the knowledge related to the role stress paradigm in auditor work settings. Practical implications This study’s findings provides a cogent argument for human resource managers at public accounting firms to monitor staff burnout levels and implement interventional strategies (Jones III et al., 2010) when these levels become excessive. Efforts to mitigate staff burnout levels may decrease the likelihood of staff engagement in dysfunctional audit practices and the associated costs to the firm and the individual(s) involved. Originality/value The findings also demonstrate the superiority of the RAQP scale in terms of explaining variance in auditor performance when compared to the modified performance measures utilized in prior research.

scholarly journals Kualitas Audit: Ditinjau dari Fee Audit, Risiko Audit dan Skeptisme Profesional Auditor sebagai Variabel Moderating

2020 ◽  
Vol 8 (1) ◽  
pp. 9
Author(s):  
Muslim Muslim ◽  
Syamsuri Rahim ◽  
Muhammad Faisal AR Pelu ◽  
Alma Pratiwi
Keyword(s):  
Regression Analysis ◽  
Audit Quality ◽  
Audit Fees ◽  
Public Accounting ◽  
Audit Risk ◽  
Accounting Firms ◽  
Professional Skepticism ◽  
Audit Fee ◽  
The Relationship ◽  
Positive Effect

The purpose of this study was to determine the effect of audit fees and audit risk on audit quality with auditor professional skepticism as a moderating variable. This research was conducted at 8 public accounting firms in Makassar city with 40 respondents. The analytical method used is multiple regression analysis (Moderated Regression Analysis) which is used to measure the strength of the relationship between two or more variables. The results of this study found that the audit fee variable had a negative and not significant effect on audit quality. These results illustrate that the higher the audit fee received by the auditor, the audit quality will decrease. While audit risk is not a significant positive effect on audit quality. The results of this study illustrate that the higher the audit risk, the audit quality will decrease. The auditor's professional skepticism as a moderating variable is not able to strengthen the effect of audit fees on audit quality. Furthermore, auditor professional skepticism as a moderating variable is also unable to strengthen the effect of audit risk on audit quality

scholarly journals The Effect of Independence and Integrity on Audit Quality: Is There A Moderating Role for E-Audit?

2021 ◽  
Vol 23 (3) ◽  
Author(s):  
Diza Dianeke Budi Prabowo ◽  
Dwi Suhartini
Keyword(s):  
Industrial Revolution ◽  
Audit Quality ◽  
Practical Implication ◽  
Financial Statements ◽  
Auditor Independence ◽  
Audit Process ◽  
Accounting Firms ◽  
Audit Reports ◽  
The Impact

The financial statements must be reliable and become a benchmark in considering an audit decision on the financial statements. In order for this to be achieved, independence and integrity is required in carrying out the audit process. E-Audit helps overcome challenges in the industrial revolution 4.0 and prevent fraud. This research aims of testing and analyzing the role of e-audit in moderating the impact of auditor independence and integrity on audit quality. The data was collected through a questionnaire distributed to auditors at Public Accounting Firms in Surabaya. There are 36 respondents involved. The data were analyzed using SmartPLS. The results showed that auditor independence positively effect audit quality, auditor integrity positively effect audit quality; e-audit does non moderate the effect of auditor independence on audit quality; ande-Audit negatively moderates the effect of auditor integrity on audit quality. The practical implication of this research is that when determining high audit quality, independent auditors should at least increase their independence and integrity so that the resulting audit reports are of high quality and can be a reference for decision makers.

scholarly journals Research and implementation of big data visualization based on WebGIS

2019 ◽  
Vol 2 ◽  
pp. 1-6
Author(s):  
Wenjuan Lu ◽  
Aiguo Liu ◽  
Chengcheng Zhang
Keyword(s):  
Big Data ◽  
Data Visualization ◽  
Visual Analysis ◽  
Distributed Database ◽  
Research Problem ◽  
Research Area ◽  
Geographical Information ◽  
Data Set ◽  
Visualization Technology ◽  
Thematic Data

<p><strong>Abstract.</strong> With the development of geographic information technology, the way to get geographical information is constantly, and the data of space-time is exploding, and more and more scholars have started to develop a field of data processing and space and time analysis. In this, the traditional data visualization technology is high in popularity and simple and easy to understand, through simple pie chart and histogram, which can reveal and analyze the characteristics of the data itself, but still cannot combine with the map better to display the hidden time and space information to exert its application value. How to fully explore the spatiotemporal information contained in massive data and accurately explore the spatial distribution and variation rules of geographical things and phenomena is a key research problem at present. Based on this, this paper designed and constructed a universal thematic data visual analysis system that supports the full functions of data warehousing, data management, data analysis and data visualization. In this paper, Weifang city is taken as the research area, starting from the aspects of rainfall interpolation analysis and population comprehensive analysis of Weifang, etc., the author realizes the fast and efficient display under the big data set, and fully displays the characteristics of spatial and temporal data through the visualization effect of thematic data. At the same time, Cassandra distributed database is adopted in this research, which can also store, manage and analyze big data. To a certain extent, it reduces the pressure of front-end map drawing, and has good query analysis efficiency and fast processing ability.</p>

PCAOB Inspections and Large Accounting Firms

2011 ◽  
Vol 26 (1) ◽  
pp. 43-63 ◽  
Author(s):  
Bryan K. Church ◽  
Lori B. Shefchik
Keyword(s):  
Audit Quality ◽  
Linear Trend ◽  
Dominant Role ◽  
Data Availability ◽  
Financial Statement ◽  
Public Companies ◽  
Accounting Firms ◽  
Big 4 ◽  
Second Tier ◽  
Over Time

SYNOPSIS The purpose of this paper is to analyze the PCAOB's inspection reports of large, annually inspected accounting firms. The inspection reports identify audit deficiencies that have implications for audit quality. By examining the inspection reports in detail, we can identify the nature and severity of audit deficiencies; we can track the total number of deficiencies over time; and we can pinpoint common, recurring audit deficiencies. We focus on large accounting firms because they play a dominant role in the marketplace (i.e., they audit public companies that comprise approximately 99 percent of U.S.-based issuer market capitalization). We document a significant, downward linear trend in the number of deficiencies from 2004 to 2009. We also identify common, recurring audit deficiencies, determine the financial statement accounts most often impacted by audit deficiencies, and isolate the primary emphasis of the financial statement impacted. Our findings generally are consistent comparing Big 4 and second-tier accounting firms, though a few differences emerge. In addition, we make comparisons with findings that have been documented for small, triennially inspected firms. Data Availability: The data are available from public sources.

The effect of the financial crisis on audit quality: European evidence

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria I. Kyriakou
Keyword(s):  
Financial Crisis ◽  
Audit Quality ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Cross Sectional ◽  
Accounting Firms ◽  
Content Type ◽  
Financial Firms ◽  
The Impact ◽  
Big Four

Purpose This paper aims to examine the impact of the recent financial crisis on audit quality by analysing discretionary accruals. Design/methodology/approach This study considers a sample of German, French, Italian and Spanish non-financial firms from 2005 to 2013 to investigate the auditor’s independence. It uses a cross-sectional and time-series ordinary least squares regression model to control for other predictors of the auditor’s independence when the financial crisis produces a decrease in audit quality. Findings The proportion of the non-financial firms having lower audit quality was higher during the financial crisis. In addition, during the crisis auditors were less likely to provide a higher audit quality for these non-financial firms. The level of audit quality returned to normal levels during the post-crisis years when the crisis had ceased. Originality/value These findings contribute to the literature on the impact of economic and financial changes on audit quality. In addition, this research finds that the Big Four accounting firms provide a higher audit quality in different circumstances from non-Big Four accounting firms, and that audit quality decreased during the crisis and returned to normal in the post-crisis period.

Promoting Voluntariness on Technology Usage in Organisations

2016 ◽  
Vol 5 (2) ◽  
pp. 38-48
Author(s):  
Renatus Mushi ◽  
Said Jafari
Keyword(s):  
Technology Adoption ◽  
Mobile Phone ◽  
Mobile Phones ◽  
Mobile Technology ◽  
Technology Diffusion ◽  
Technology Usage ◽  
Desktop Computer ◽  
Mobile Phone Technology ◽  
Thin Client ◽  
The Impact

Voluntariness in technology adoption and use is vital in promoting technology diffusion and use in organisations. Various technology adoption models have been proposed to explain the adoption of technologies in different settings, such as organizational and individual, as well as in the voluntary and mandatory contexts. Recently, uptake of mobile phones in achieving organisational targets has been increased in developing countries and Tanzania in particular. This is due to the notable improvements in both hardware performance and sophistications. In organisation context, not all users are willing to use technology as required. In such circumstances, they are mandated to use it in order to fulfil their working duties. This leads to poor uptake of technology and results to unclear understanding regarding to their attitudes towards using it. While some studies have discussed the impact of voluntariness in using traditional desktop computer systems and thin client computing, mobile phone technology has not received the deserved attention. Discussing voluntariness in using mobile phone technology in organisations in relation to other technologies is essential especially due to its usage in both working and private purposes. This paper describes the voluntary aspects of using mobile phones in performing activities of the firms in Tanzania and compares it with desktop and thin client technologies. Also, it proposes possible ways of handling such situation in order to improve its use. Among others, the paper has analysed mandotoriness on usage of mobile technology. Further, it highlights key areas which should be addressed in order to improve the usage of mobiletechnology in organisations and eventually cover the gap caused by such mandatory situations.

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