The Effect of the Social Mismatch between Staff Auditors and Client Management on the Collection of Audit Evidence

2012 ◽  
Vol 88 (1) ◽  
pp. 31-50 ◽  
Author(s):  
G. Bradley Bennett ◽  
Richard C. Hatfield
Keyword(s):  
Social Interactions ◽  
Experimental Evidence ◽  
Audit Quality ◽  
Data Availability ◽  
Email Communication ◽  
The Social ◽  
Audit Evidence ◽  
Client Management ◽  
Materials Used ◽  
Staff Level

ABSTRACT: This study provides both survey and experimental evidence to consider how social interactions between staff-level auditors and client management may affect staff auditors' perceptions and influence their decisions regarding the collection of audit evidence. During fieldwork, staff-level auditors have extensive interaction with client management. Survey evidence suggests that these staff-level auditors are often “mismatched” with client management, in terms of their experience, age, and accounting knowledge. Experimental results indicate that staff-level auditors may reduce the extent to which they collect evidence to avoid these interactions. Finally, the use of email communication with client management helped to mitigate the reduction in evidence collected caused by avoiding in-person interactions. Interestingly, when not collecting all the evidence, approximately half of the participants documented their findings in a vague or inappropriate manner, which would likely reduce the likelihood that reviewing auditors would identify a problem. Given the extent of audit evidence collected by young staff auditors, these findings have direct implications for workpaper and audit quality. Data Availability: Data and materials used in this study are available upon request.

Workplace Mindfulness and its Effect on Staff Auditors' Audit Quality-Threatening Behavior

2018 ◽  
Vol 31 (1) ◽  
pp. 55-64 ◽  
Author(s):  
David N. Herda ◽  
Nathan H. Cannon ◽  
Randall F. Young
Keyword(s):  
Indirect Effect ◽  
Audit Quality ◽  
Review Process ◽  
Effective Means ◽  
Data Availability ◽  
Financial Statement ◽  
Work Setting ◽  
Effective Technique ◽  
Staff Level

ABSTRACT This study investigates the effect of staff auditors' workplace mindfulness on premature sign-off—a serious audit quality-threatening behavior that can go undetected through the review process. We also examine whether supervisor coaching is an effective means to engender workplace mindfulness. Using a sample of 115 auditors, we predict and find that (1) auditors who are coached by supervisors to appreciate the importance of their work to external financial statement users are more likely to be mindful in their work setting, and (2) greater workplace mindfulness about financial statement user considerations is associated with a reduced likelihood of auditor sign-off on an audit procedure not completed. We also find that supervisor coaching has an indirect effect on premature sign-off through workplace mindfulness. The results underscore the importance of workplace mindfulness in reducing audit quality-threatening behavior and indicate that supervisor coaching may be an effective technique in eliciting mindfulness among staff-level auditors. Data Availability: Contact the authors.

Value-driven issues throughout the development of sociological theory

2020 ◽  
pp. 147-160
Author(s):  
Gulbarshyn Chepurko ◽  
Valerii Pylypenko
Keyword(s):  
Social Interactions ◽  
Social System ◽  
Sociological Theory ◽  
Social Scientists ◽  
Social Sphere ◽  
Technological Advances ◽  
The Social ◽  
The Individual ◽  
Different Levels

The paper examines and compares how the major sociological theories treat axiological issues. Value-driven topics are analysed in view of their relevance to society in times of crisis, when both societal life and the very structure of society undergo dramatic change. Nowadays, social scientists around the world are also witnessing such a change due to the emergence of alternative schools of sociological thought (non-classical, interpretive, postmodern, etc.) and, subsequently, the necessity to revise the paradigms that have been existed in sociology so far. Since the above-mentioned approaches are often used to address value-related issues, building a solid theoretical framework for these studies takes on considerable significance. Furthermore, the paradigm revision has been prompted by technological advances changing all areas of people’s lives, especially social interactions. The global human community, integral in nature, is being formed, and production of human values now matters more than production of things; hence the “expansion” of value-focused perspectives in contemporary sociology. The authors give special attention to collectivities which are higher-order units of the social system. These units are described as well-organised action systems where each individual performs his/her specific role. Just as the role of an individual is distinct from that of the collectivity (because the individual and the collectivity are different as units), so too a distinction is drawn between the value and the norm — because they represent different levels of social relationships. Values are the main connecting element between the society’s cultural system and the social sphere while norms, for the most part, belong to the social system. Values serve primarily to maintain the pattern according to which the society is functioning at a given time; norms are essential to social integration. Apart from being the means of regulating social processes and relationships, norms embody the “principles” that can be applied beyond a particular social system. The authors underline that it is important for Ukrainian sociology to keep abreast of the latest developments in the field of axiology and make good use of those ideas because this is a prerequisite for its successful integration into the global sociological community.

Performance Comparison among Meta Classifier Algorithms in WEKA

2019 ◽  
Vol 1 (2) ◽  
pp. 106-112
Author(s):  
Nur Amiratun Nazihah Roslan ◽  
Hairulnizam Mahdin ◽  
Shahreen Kasim
Keyword(s):  
Social Networking ◽  
Performance Comparison ◽  
Data Availability ◽  
Data Mining Tool ◽  
Huge Data ◽  
Technology Advancement ◽  
The Social ◽  
The World ◽  
Media Platform ◽  
Mining Tool

With the rise of social networking approach, there has been a surge of users generated content all over the world and with that in an era where technology advancement are up to the level where it could put us in a step ahead of pathogens and germination of diseases, we couldn’t help but to take advantage of that advancement and provide an early precaution measures to overcome it. Twitter on the other hand are one of the social media platform that provides access towards a huge data availability. To manipulate those data and transform it into an important information that could be used in many different scope that could help improve people’s life for the better. In this paper, we gather all algorithm that are available inside Meta Classifier to compare between them on which algorithm suited the most with the dengue fever dataset. This research are using WEKA as the data mining tool for data analyzation.

The Association between Audit Manager and Auditor-In-Charge Experience, Effort, and Risk Responsiveness

2018 ◽  
Vol 38 (3) ◽  
pp. 121-147 ◽  
Author(s):  
Christine Contessotto ◽  
W. Robert Knechel ◽  
Robyn A. Moroney
Keyword(s):  
Audit Quality ◽  
Data Availability ◽  
The Core ◽  
Specific Experience ◽  
Primary Core ◽  
Using Data ◽  
Audit Team ◽  
Industry Experience ◽  
Jel Classifications ◽  
Core Role

SUMMARY Audit quality is dependent on the experience and effort of the audit team to identify and respond to client risks (risk responsiveness). Central to each team are the core role holders who plan and execute the audit. While many studies treat the partner as the primary core role holder, the manager and auditor-in-charge (AIC) are also important. Using data for engagements from two midtier firms, we analyze the association between the experience and relative effort of the manager and AIC and risk responsiveness. We find a manager's client-specific experience is associated with risk responsiveness for non-listed clients but find no evidence that the general or industry experience of a manager, or the experience of the AIC, is associated with risk responsiveness. The client-specific experience and relative effort of the partner is associated with risk responsiveness. These results suggests that managers can provide an important, albeit limited, contribution to the audit. JEL Classifications: M2. Data Availability: The data were made available to the researchers on the understanding that they will remain confidential.

Did the 2005 Deferred Prosecution Agreement Adversely Impact KPMG's Audit Practice?

2018 ◽  
Vol 38 (1) ◽  
pp. 77-102 ◽  
Author(s):  
Matthew Baugh ◽  
Jeff P. Boone ◽  
Inder K. Khurana ◽  
K. K. Raman
Keyword(s):  
Service Provider ◽  
Audit Quality ◽  
Spillover Effect ◽  
Audit Fees ◽  
Data Availability ◽  
Department Of Justice ◽  
Big 4 ◽  
Tax Shelters

SUMMARY We examine the consequences of misconduct in a Big 4 firm's nonaudit practice for its audit practice. Specifically, we examine whether KPMG's audit practice suffered a loss of audit fees and clients and/or a decline in factual audit quality following the 2005 deferred prosecution agreement (DPA) with the Department of Justice for marketing questionable tax shelters. We find little evidence that the DPA adversely impacted KPMG's audit practice by way of either audit fees or the likelihood of client gains/losses, suggesting little or no harm to KPMG's audit reputation. We also find that the DPA had no effect on the firm's factual audit quality, even for those audit clients that dropped KPMG as their tax service provider. Collectively, our findings suggest that there was no spillover effect from the DPA to KPMG's audit practice. Data Availability: All data are publicly available.

Market Reactions to a High-Quality Auditor and Managerial Preference for Audit Quality

2019 ◽  
Vol 38 (4) ◽  
pp. 131-149 ◽  
Author(s):  
Patrick J. Hurley ◽  
Brian W. Mayhew
Keyword(s):  
Loss Aversion ◽  
Audit Quality ◽  
Data Availability ◽  
Quality Competition ◽  
High Quality ◽  
Market Reactions ◽  
Comprehensive Theory ◽  
Audit Reports ◽  
The Impact ◽  
Quality Theory

SUMMARY We insert an automated high-quality (HQ) auditor into established experimental audit markets to test the impact of high-quality competition on other auditors' supply of and managers' demand for audit quality. Theory predicts that managers will demand high levels of audit quality to avoid investors' price-protecting behavior. This demand should result in the HQ auditor dominating the market and increase other auditors' audit quality provision to compete with the HQ auditor. However, we find that the HQ auditor does not dominate the market—despite holding audit costs constant and investors placing a premium on HQ auditor reports. We also find that adding an HQ auditor results in other auditors lowering audit quality. Additional analyses indicate some managers demand lower audit quality to avoid negative audit reports, consistent with loss aversion as a potential explanation. Our findings indicate a need to develop a more comprehensive theory of the demand for auditing. Data Availability: The laboratory market data used in this study are available from the authors upon request.

Strategic Audit Inquiry: The Impact of Timing and the Promotion of Statutory Protections on Client Fraud Disclosures

2020 ◽  
Vol 34 (3) ◽  
pp. 153-167
Author(s):  
John R. Lauck ◽  
Stephen J. Perreault ◽  
Joseph R. Rakestraw ◽  
James S. Wainberg
Keyword(s):  
Best Practices ◽  
Audit Quality ◽  
Self Regulation ◽  
Data Availability ◽  
Audit Committees ◽  
External Auditors ◽  
Extant Literature ◽  
Psychological Theories ◽  
Inquiry Process ◽  
The Impact

SYNOPSIS Auditing standards require external auditors to inquire of client-employees regarding their knowledge of actual or suspected fraud (PCAOB 2010b; AICPA 2016). However, the extant literature provides little guidance on practical methods that auditors can employ to increase the likelihood of fraud disclosure and improve audit quality. Drawing upon best practices in the whistleblowing literature and psychological theories on self-regulation, we experimentally test the efficacy of two practical strategies that auditors can employ during the fraud inquiry process: actively promoting statutory whistleblower protections and strategically timing their fraud inquiries. Our results indicate that auditors are more likely to elicit client-employee fraud disclosures by actively promoting statutory whistleblower protections and strategically timing the fraud inquiry to take place in the afternoon, when client-employee self-regulation is more likely to be depleted. These two audit inquiry strategies should be of considerable interest to audit practitioners, audit committees, and those concerned with improving audit quality. Data Availability: From the authors by request.

Social ethology of the wolverine

2018 ◽  
Author(s):  
Jeffrey P. Copeland ◽  
Arild Landa ◽  
Kimberly Heinemeyer ◽  
Keith B. Aubry ◽  
Jiska van Dijk ◽  
...  
Keyword(s):  
Social Organization ◽  
Social Interactions ◽  
Resource Availability ◽  
Social Behaviour ◽  
Social System ◽  
Group Living ◽  
Field Studies ◽  
Ecological Framework ◽  
The Social ◽  
Living Species

Social behaviour in solitary carnivores has long been an active area of investigation but for many species remains largely founded in conjecture compared to our understanding of sociality in group-living species. The social organization of the wolverine has, until now, received little attention beyond its portrayal as a typical mustelid social system. In this chapter the authors compile observations of social interactions from multiple wolverine field studies, which are integrated into an ecological framework. An ethological model for the wolverine is proposed that reveals an intricate social organization, which is driven by variable resource availability within extremely large territories and supports social behaviour that underpins offspring development.

A Phenomenology of Rhythm

2018 ◽  
Author(s):  
Lexi Eikelboom
Keyword(s):  
Social Sciences ◽  
Social Interactions ◽  
Henri Lefebvre ◽  
Theoretical Perspectives ◽  
The Social ◽  
Analytical Importance ◽  
Jazz Performance

This chapter proposes a framework for approaching the theological significance of rhythm through phenomenology, prosody, and the social sciences. In accordance with the general categories of phenomenology established by Merleau-Ponty and the “rhythmanalysis” of Henri Lefebvre, the chapter investigates two experiences of rhythm: approaches to analysing the human encounter with rhythm in the reading of poetry and the role of rhythm in social interactions introduced through commonalities between rhythm in conversation and in jazz performance. These explorations establish two features of rhythm that are of analytical importance for the chapters that follow: (1) the synchronic and the diachronic as two necessary but distinct theoretical perspectives on rhythm, each of which emphasizes different features of rhythm and (2) the importance of interruption for understanding rhythm’s significance.

Baroque Dance

2018 ◽  
pp. 263-285
Author(s):  
Jennifer Nevile
Keyword(s):  
Social Interactions ◽  
Design Principles ◽  
Self Control ◽  
Scientific Thought ◽  
The Social ◽  
French Court ◽  
Concept Of Beauty

Baroque dance was inseparable from music and theater, with its role in multimedia spectacles giving it a dramatic power and an expressive passion. It was part of politics and diplomacy; it was influenced by contemporary artistic attitudes as they pertained to the concept of beauty and artistic design principles, as well as trends in philosophic and scientific thought; and it reflected the organization of society and the social interactions of the upper levels of society. Dance taught self-control, which was itself a sign of noble virtue and a graceful bearing. While each country had its own national dance traditions, the fundamental characteristics of baroque dance was French; the practice as performed at the French court and the Opéra. The years 1630–1750 saw changes in styles and dance genres, major innovations in the methods of notating choreographies, as well as visible and substantial changes in the bodily deportment of dancers.

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