Do Tax Professionals Act Like Auditors when Evaluating Tax-Related Audit Evidence?

The audit of the financial statement income tax accounts is ultimately the responsibility of the audit engagement team; however, tax professionals are often involved because of their knowledge of the tax functional area. Auditors are expected to exercise professional skepticism and independence when performing audits, while tax professionals are expected to be advocates for their tax clients. This study investigates whether the auditor and/or tax professionals’ typical role influences how they evaluate evidence on an audit engagement, especially when provided evidence by individuals with whom they are closely affiliated. The results of an experiment with experienced auditors and tax professionals, suggest that despite differing in their trait skepticism and client advocacy attitudes, tax professionals and auditors make similar judgments when in the role of an audit engagement team member. We also find evidence both auditors and tax professionals are more persuaded by individuals with whom they have a closer affiliation.

Strategies to Maintain the Relationship

Following the decision to report or not report child maltreatment, many mandatory reporters are concerned with maintaining the relationship with the family, and this concern is examined more extensively in this chapter. This chapter describes typical client feelings and reactions to a report of suspected child abuse and neglect as well as the potential impacts on the relationship. A comprehensive overview of strategies to maintain the relationship is covered, including engagement strategies, reporting strategies, information strategies, affect regulation strategies (for mandatory reporter and client), advocacy strategies, resource strategies, and strategies that take culture and ethnicity into account. At the conclusion of this chapter is a conceptual model outlining the reporting decision-making factors and the strategies to maintain the relationship.

Precision Livestock Farming in Swine Welfare: A Review for Swine Practitioners

The burgeoning research and applications of technological advances are launching the development of precision livestock farming. Through sensors (cameras, microphones and accelerometers), images, sounds and movements are combined with algorithms to non-invasively monitor animals to detect their welfare and predict productivity. In turn, this remote monitoring of livestock can provide quantitative and early alerts to situations of poor welfare requiring the stockperson’s attention. While swine practitioners’ skills include translation of pig data entry into pig health and well-being indices, many do not yet have enough familiarity to advise their clients on the adoption of precision livestock farming practices. This review, intended for swine veterinarians and specialists, (1) includes an introduction to algorithms and machine learning, (2) summarizes current literature on relevant sensors and sensor network systems, and drawing from industry pig welfare audit criteria, (3) explains how these applications can be used to improve swine welfare and meet current pork production stakeholder expectations. Swine practitioners, by virtue of their animal and client advocacy roles, interpretation of benchmarking data, and stewardship in regulatory and traceability programs, can play a broader role as advisors in the transfer of precision livestock farming technology, and its implications to their clients.

A Comparison of U.S. and Offshore Indian Tax Professionals' Client Advocacy Attitudes and Client Recommendations

ABSTRACT This study compares the client advocacy attitudes of U.S. tax professionals who do U.S. tax work in the U.S. and Indian tax professionals who do U.S. tax work offshore. We find that experienced U.S. tax professionals have stronger client advocacy attitudes than experienced Indian tax professionals, while the client advocacy attitudes of inexperienced U.S. and inexperienced Indian tax professionals are not significantly different. Further, client advocacy attitudes of experienced U.S. tax professionals are stronger than advocacy attitudes of inexperienced U.S. tax professionals while the client advocacy attitudes of experienced Indian tax professionals are not different from advocacy attitudes of inexperienced Indian tax professionals. We also provide evidence that the client advocacy attitudes of experienced U.S. tax professionals are positively associated with their recommendations of the client-preferred position, while the client advocacy attitudes of experienced Indian tax professionals are not related to their client recommendations. Given the increasing number of Indian tax professionals performing U.S. tax work, our findings should be of interest to researchers, taxing authorities, firms, and taxpayers. JEL Classifications: M40; M41; M55; H20; C90.

When Ethical Tones at the Top Conflict: Adapting Priority Rules to Reconcile Conflicting Tones

ABSTRACT:While tone at the top is widely regarded as an important predictor of ethical behavior in organizations, we argue that recent research overlooks the various conflicting ethical tones present in many multi-organizational work settings. Further, we propose that the resolution processes promulgated in many firms and professional associations to reconcile this conflict reinforce the tone at the bottom or a tone at the top of the employee’s organization, and that both of these approaches can conflict with the tone at the top of other important organizations such as professional and regulatory organizations. Here we adapt Integrative Social Contract Theory’s priority rules to propose a multi-tone reconciliation process which prioritizes conflicting ethical tones based upon features of the organization and the effects on society. Using three contextualizations (overbilling, worker safety and client advocacy), we demonstrate the effectiveness of the multi-tone reconciliation process over current processes. We conclude with recommendations for future research and implications for practice.

Mr. and Mrs. Smith: A Student Introduction to Federal Tax Compliance and Documentation

ABSTRACT In this case, students assume the role of new accounting staff tasked with the preparation of a personal income tax return and supporting documentation for a client of their firm. Students are provided prior year work papers and client communications, a copy of the prior year's tax return, as well as a letter and supporting documents from the client for the current year. To complete the case, students generate questions based on the initial information provided, meet face-to-face with the client, and roll forward a set of electronic work papers before submitting a complete current year engagement file for senior review. This case adds work papers and client interaction to the traditional tax compliance case to reinforce both the technical and communication skills valued in professional practice. The formulation of questions for the client also allows students to practice discussing technical topics in a non-technical manner and underscores the required balance between attitudes of client advocacy stressed in professional tax practice and legal requirements for “good-faith” tax return reporting. This case is appropriate for an individual income tax course at either the undergraduate or graduate level, and can be easily adapted to increase or decrease difficulty.