scholarly journals Auditor Integration of IT Specialist Input on Internal Control Issues: How a Weaker Team Identity Can Be Beneficial

2021 ◽  
Author(s):  
Cassandra Estep
Keyword(s):  
Information Technology ◽  
Social Identity ◽  
Financial Reporting ◽  
Internal Control ◽  
Social Identity Theory ◽  
Audit Quality ◽  
Identity Theory ◽  
Team Identity ◽  
The Impact ◽  
Insight Into

I investigate how auditors integrate information technology (IT) specialist input into internal control over financial reporting (ICFR) issue classifications. Given the ill-structured nature of evaluating ICFR issues and the impact of these issues on audit quality, combining knowledge from different perspectives is likely beneficial. Drawing on social identity theory, I predict and find that a weaker one-team identity between auditors and IT specialists yields benefits. Auditors with a weaker versus stronger team identity place more weight on IT specialist input for IT-related issues and differentially weight higher and lower quality input for non-IT issues. I also find that more severe ICFR issues drive the predicted results. My study provides insight into how team identity influences auditor integration of input from specialists. The implications of my study are of interest to researchers, regulators, and practitioners, especially as recent firm initiatives encourage a one-team view for auditors and IT specialists.

Social identity and family business: exploring family social capital

2015 ◽  
Vol 5 (2) ◽  
pp. 157-181 ◽  
Author(s):  
Torsten Schmidts ◽  
Deborah Shepherd
Keyword(s):  
Social Capital ◽  
Social Identity ◽  
Family Business ◽  
Social Identity Theory ◽  
Identity Theory ◽  
Family Members ◽  
Content Type ◽  
Family Social Capital ◽  
The Family ◽  
The Impact

Purpose – The purpose of this paper is to use social identity theory to explore factors that contribute to the development of family social capital. Effects are investigated both for the family and the business. Design/methodology/approach – A single in-depth case study focussing on the family unit was coducted within a fourth-generation family business involved in the arts retailing. Findings – The findings suggest that social identity theory is a useful lens to explore the development of family social capital. The six themes identified highlight that there is a normative and an affective dimension, leading to family members’ desire to uphold the status of the business. Evidence suggests that the normative factors may be both positively and negatively related to the development of family social capital, due to their potentially restrictive nature. Originality/value – The paper’s findings imply that social identity can contribute to understanding family dynamics. Evidence highlights various factors for family members that are not involved in the family business to uphold its status. This is attributed to the emotional significance of the business to the family’s identity. Furthermore, this paper suggests that the strong focus on norms and values, which developed gradually, may have adverse effects on the identification with the business and the willingness to uphold its status. Propositions are offered to provide guidance for future research to investigate this controversial evidence regarding the impact of value orientation on family social capital.

A Tale of No Cities: Analysis of Premier Lacrosse League Fan Identity and Fanship

2020 ◽  
pp. 1-22
Author(s):  
Samuel D. Hakim
Keyword(s):  
Social Identity ◽  
Social Identity Theory ◽  
Identity Theory ◽  
Statistical Analyses ◽  
Media Consumption ◽  
Sports Fans ◽  
Team Identity ◽  
Socialization Theory ◽  
The Past ◽  
Fan Identity

The present study examined the Premier Lacrosse League (PLL) and fans’ identity and fanship. The PLL boasts a uniqueness many sports fans are unfamiliar with—non-geographically affiliated teams. Using socialization theory, social identity theory, and fan identity, the author sought to better understand the fan qualities of the PLL, especially surrounding athlete importance. A Qualtrics survey was distributed through reddit.com/r/lacrosse and major lacrosse forums with the goal to assess fanship toward favorite players, favorite teams, and PLL media consumption. Statistical analyses revealed that those who have a previously constructed lacrosse fan identity, consume more lacrosse media, and have been following a professional or college lacrosse athlete in the past are more likely to embrace the PLL. In a league where geographical affiliation is currently absent, research suggests that encouraging fan adoption of a favorite player is key to creating fans who begin to feel investment, loyalty, and increased team identity.

The Impact of Management Alumni Affiliation and Persuasion Tactics on Auditors' Internal Control Judgments

2017 ◽  
Vol 93 (2) ◽  
pp. 97-115 ◽  
Author(s):  
Sudip Bhattacharjee ◽  
J. Owen Brown
Keyword(s):  
Internal Control ◽  
Social Identity Theory ◽  
Audit Quality ◽  
Revolving Door ◽  
Auditor Judgment ◽  
Professional Skepticism ◽  
Sarbanes Oxley ◽  
External Auditor ◽  
One Year ◽  
The Impact

ABSTRACT Concerns over “revolving door” practices of companies hiring directly from their external auditor led to a Sarbanes-Oxley Act provision mandating a one-year cooling-off period before such hires can occur. Yet little is known as to whether these alumni affiliations, still prevalent today, actually impair audit quality. Drawing on Social Identity Theory, we conduct an experiment to examine whether auditors experience heightened identification with an alumni-affiliated client manager and, if so, how this perceived relationship affects their professional skepticism in response to a management persuasion attempt. As predicted, absent the use of a management persuasion tactic, auditors identify more with an alumni-affiliated manager than a non-alumnus with equal professional experience, and this perceived social bond enhances the manager's influence. However, the use of a common persuasion tactic, while effective at influencing auditor judgment when used by an unaffiliated manager, “backfires” when used by an alumni-affiliated manager, leading to diminished persuasion and increased professional skepticism. Evidence suggests that auditors are better able to identify the inappropriateness of the persuasion attempt when the tactic is used by an alumni-affiliated manager.

Comparing Auditor versus Non-Auditor Assessments of Auditor Liability: An Experimental Investigation of Experts' versus Lay Evaluators' Judgments

2012 ◽  
Vol 31 (3) ◽  
pp. 125-148 ◽  
Author(s):  
Andrew Reffett ◽  
Billy E. Brewster ◽  
Brian Ballou
Keyword(s):  
Experimental Investigation ◽  
Social Identity ◽  
Empirical Evidence ◽  
Legal System ◽  
Social Identity Theory ◽  
Audit Quality ◽  
Identity Theory ◽  
Emotional Reactions ◽  
Auditor Liability

SUMMARY Critics of the legal system argue that the use of lay jurors to adjudicate auditor negligence claims results in non-meritorious decisions of auditor liability. Palmrose (2006) therefore proposes that the courts rely on panels of experienced auditors to evaluate the merits of auditor negligence claims and make recommendations to the courts. There is, however, scant evidence to indicate how auditors' and lay evaluators' judgments might differ in cases of alleged auditor negligence. Our study addresses this gap in the literature by providing theory and empirical evidence that elucidates several systematic differences between auditors' and lay evaluators' judgments. Results of an experiment indicate that auditor evaluators are less reliant on plaintiff losses as evidence than lay evaluators, but—consistent with social identity theory—experience greater empathy for auditor defendants. Consequently, auditor evaluators consistently provide lower assessments of auditor liability than lay evaluators, irrespective of audit quality. In addition, results of the experiment indicate that different legally irrelevant inputs primarily determine both auditor and lay evaluators' negligence verdicts—emotional reactions for auditor evaluators and plaintiff losses for lay evaluators. Finally, results are mixed as to whether auditor evaluators' judgments are more sensitive to varying levels of audit quality than lay evaluators' judgments.

Understanding Consumer Fandom

2020 ◽  
pp. 18-37
Author(s):  
Andy Hao
Keyword(s):  
Social Identity ◽  
Social Integration ◽  
Conceptual Framework ◽  
Social Identity Theory ◽  
Word Of Mouth ◽  
Identity Theory ◽  
Subjective Norms ◽  
Self Discovery ◽  
Antecedents And Consequences ◽  
Insight Into

The interest in consumer fandom has been strong in the last two decades and different perspectives have been proposed to examine the issue. However, the current literature only offers limited insight into what consumer fandom means and what the main antecedents and consequences of consumer fandom are. To fill the gap, the aim of this chapter is to integrate various perspectives and theoretical bases on formulating consumer fandom and to present an integrated conceptual framework of the antecedents and consequences of consumer fandom. Grounded on social identity theory, the conceptual framework proposed in this chapter identifies two self-related antecedents: self-identify and self-discovery, and three social-related antecedents: social integration, social enhancement, and subjective norms. In addition, purchase and repurchase intention, loyalty, and word of mouth are highlighted as three consequences of consumer fandom. Level of engagement is identified as the moderator between consumer fandom and its consequences.

Of Hurricanes and Harness Racing: The Accounting Fraud at DHB Industries, Inc.

2012 ◽  
Vol 28 (1) ◽  
pp. 131-152
Author(s):  
Michael C. Knapp ◽  
Carol A. Knapp
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Large Scale ◽  
Audit Quality ◽  
Securities And Exchange Commission ◽  
Accounting Fraud ◽  
Accounting Firms ◽  
Fraud Risk ◽  
Wide Range ◽  
The Impact

ABSTRACT: This instructional case focuses on an accounting and financial reporting fraud involving DHB Industries, Inc., the nation's largest manufacturer of bullet-resistant vests. Three executives of this Securities and Exchange Commission (SEC) registrant, including its founder and CEO, masterminded a large-scale fraud that grossly misrepresented DHB's financial statements. The three executives colluded to conceal their misdeeds from the four accounting firms that served as the company's independent auditors over the course of the fraud. In late 2010, a federal jury convicted DHB's former CEO and COO of multiple counts of fraud and related charges. This case addresses a wide range of auditing issues raised by the DHB fraud, including the identification of fraud risk factors, auditing of related-party transactions, the impact of frequent auditor changes on audit quality, and the internal control reporting responsibilities of auditors.

Information Technology Controls Quality and Audit Fees: Evidence From Italy

2016 ◽  
Vol 33 (1) ◽  
pp. 123-146 ◽  
Author(s):  
Tatiana Mazza ◽  
Stefano Azzali
Keyword(s):  
Risk Assessment ◽  
Information Technology ◽  
Financial Reporting ◽  
Internal Control ◽  
Audit Fees ◽  
Listed Companies ◽  
Audit Risk ◽  
The Impact ◽  
Control Risk

This study analyzes the impact of Information Technology (IT) Controls quality on control risk and audit fees. The impact is expected to occur when regulation increases sensitiveness to audit risk assessment. The research focuses on IT Controls as part of Internal Control over Financial Reporting, particularly on scoping quality, segregation of duties, and Controls framework compliance. The research was conducted with a questionnaire on a population of Italian listed companies. We find that audit fees are lower for higher IT scoping quality, IT Controls segregation of duties, and IT Controls framework compliance. The overall conclusion is that IT Controls quality is related to lower control risk, audit fees, and audit effort.

Latino Representation on Primetime Television

2005 ◽  
Vol 82 (1) ◽  
pp. 110-130 ◽  
Author(s):  
Dana E. Mastro ◽  
Elizabeth Behm-Morawitz
Keyword(s):  
Social Identity ◽  
Real World ◽  
Social Identity Theory ◽  
Identity Theory ◽  
Cultivation Theory ◽  
World Population ◽  
Primetime Television ◽  
Insight Into ◽  
Made In

This study analyzes the frequency and quality of depictions of Latinos during the 2002 primetime television season. Research on cultivation theory and social identity theory provides insight into the potential implications of exposure to these images. Findings suggest that while advances have been made in terms of the quality of depictions of Latinos, many of these images remain tied to a few, longstanding media stereotypes. In addition, the rate at which Latinos are portrayed on television remains dramatically below that of the real-world population.

Gender disparaging jokes: An investigation of sexist-nonstereotypical jokes on funniness, typicality, and the moderating role of ingroup identification

2015 ◽  
Vol 28 (2) ◽  
Author(s):  
Jessica R. Abrams ◽  
Amy M. Bippus ◽  
Karen J. McGaughey
Keyword(s):  
Social Identity ◽  
Social Identity Theory ◽  
Intergroup Relations ◽  
Identity Theory ◽  
Social Groups ◽  
The Social ◽  
Ingroup Identification ◽  
Moderating Role ◽  
Insight Into

AbstractThis experiment relied on social identity theory to investigate jokes that express superiority and denigration toward social groups. In particular, the social identity of gender is examined in the context of sexist-nonstereotypical jokes. Results revealed that sexist-nonstereotypical jokes had the greatest impact on women. Specifically, women rated jokes about men funnier than jokes about themselves, and highly identified women found jokes targeting men significantly funnier than jokes targeting women. These results, and others relating to prototypicality, offer insight into how disparaging intergroup jokes function to accentuate and attenuate intergroup relations.

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