The Effect of Past Client Relationship and Strength of the Audit Committee on Auditor Negotiations

2011 ◽  
Vol 30 (4) ◽  
pp. 51-69 ◽  
Author(s):  
Helen L. Brown-Liburd ◽  
Arnold M. Wright
Keyword(s):  
Experimental Study ◽  
Bargaining Power ◽  
Audit Committee ◽  
Contextual Factors ◽  
Data Availability ◽  
Negotiation Strategy ◽  
The Past ◽  
Planning Phase ◽  
Client Relationship ◽  
The Impact

SUMMARY Auditors and clients are often required to resolve difficult, complex accounting issues in which they have different views. However, we know little about the effect of contextual factors on auditors' negotiation behaviors. This experimental study involving 63 experienced audit managers and partners examines the impact of the strength of the audit committee (strong or weak) and past relationship with the client (contending or compromising) on auditors' judgments in the pre-negotiation planning phase in resolving a difficult, subjective inventory writedown issue. These two important contextual factors are posited to affect auditors' perceived bargaining power and expectations of difficulties with respect to the impending negotiation. Specifically, we hypothesize an interaction where the most contending position (negotiation strategy) is adopted when the audit committee is strong (enhanced auditor bargaining power) and the past relationship is contending (a difficult negotiation). The findings support these expectations. In additional analyses, we obtain parallel results in the negotiation phase. In all, the findings confirm the importance of strength of the audit committee and past client relationship on auditors' negotiation planning judgments, and the concurrent consideration of these two pervasive contextual factors in the audit environment. Data Availability: Contact the authors.

scholarly journals Do Gender Diversity Recommendations in Corporate Governance Codes Matter? Evidence from Audit Committees

2020 ◽  
Vol 39 (1) ◽  
pp. 173-197 ◽  
Author(s):  
Nigar Sultana ◽  
Steven F. Cahan ◽  
Asheq Rahman
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Gender Diversity ◽  
Positive Association ◽  
Data Availability ◽  
Audit Committees ◽  
Women Directors ◽  
Corporate Governance Codes ◽  
Limited Supply ◽  
The Impact

SUMMARY Motivated by two opposing views, the limited supply view and the discrimination view, we examine the impact of gender diversity guidelines on the strength of the association between the presence of female audit committee members and audit quality. The limited supply view predicts that the effect of female audit committee members on audit quality would decrease after the guidelines were issued because they increased the demand for women directors without a commensurate increase in the supply of qualified women directors. The discrimination view predicts this relation would increase after the guidelines were issued since some firms would have abandoned their suboptimal hiring practices that favored men over better qualified women, resulting in higher quality firm-director matches as opportunities for women increase. Consistent with the limited supply view, we find that the positive association between audit committee gender diversity and audit quality weakened after gender diversity guidelines were introduced in Australia. JEL Classifications: G38; M42; M48. Data Availability: Data are available from the databases cited in the text.

The Impact on Auditor Judgments of CEO Influence on Audit Committee Independence

2011 ◽  
Vol 30 (4) ◽  
pp. 129-147 ◽  
Author(s):  
Jeffrey R. Cohen ◽  
Lisa Milici Gaynor ◽  
Ganesh Krishnamoorthy ◽  
Arnold M. Wright
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Data Availability ◽  
Audit Committees ◽  
Undue Influence ◽  
Management Incentives ◽  
Auditor Judgments ◽  
The Impact ◽  
Selection Of

SUMMARY Despite the importance of audit committee independence in ensuring the integrity of the financial reporting process, recent research suggests that even when audit committees meet regulatory independence requirements, certain factors, such as undue influence by the CEO over the selection of the audit committee, may diminish the ability of its members to be substantively independent. This study investigates whether auditors consider CEO influence over audit committee independence when making audit judgments where management's incentives to manage earnings differ. In an experiment, we find that audit partners and managers waive a larger amount of a proposed audit adjustment when management's incentives for earnings management are low than when incentives are high. However, when management incentives are high, auditors are less likely to waive as much of an adjustment when the CEO has less influence over the audit committee's independence than when the CEO's influence is greater. In all, the results support our expectations that auditors consider CEO influence on audit committee independence in the resolution of contentious accounting issues. Data Availability: Contact the authors.

The Impact of Audit Committee Information Technology Expertise on the Reliability and Timeliness of Financial Reporting

2019 ◽  
Vol 95 (5) ◽  
pp. 23-56 ◽  
Author(s):  
Musaib Ashraf ◽  
Paul N. Michas ◽  
Dan Russomanno
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Fixed Effects ◽  
Audit Committee ◽  
Data Availability ◽  
Audit Committees ◽  
Material Weaknesses ◽  
Other Information ◽  
High Quality Information ◽  
The Impact

ABSTRACT We examine whether information technology expertise on audit committees impacts the reliability and timeliness of financial reporting. We find a reduction in the likelihood of material restatement, a reduction in the likelihood of information technology-related material weaknesses (which account for 55 percent of all reported material weaknesses), and more timely earnings announcements at firms with audit committee information technology expertise. These findings are robust to controlling for a firm's other information technology attributes, as well as when using entropy balanced samples, and we mitigate endogeneity concerns with evidence that our findings hold in a subsample of firms that all possess overall high-quality information technology. Finally, a difference-in-differences analysis, inclusion of firm fixed effects, and a falsification test largely support our assertion that the quality of financial reporting is significantly improved by the presence of an audit committee information technology expert. JEL Classifications: M41; M15. Data Availability: All data used in the study are publicly available.

The Impact of Client Error-Management Climate and the Nature of the Auditor-Client Relationship on External Auditor Reporting Decisions

2017 ◽  
Vol 29 (2) ◽  
pp. 37-50 ◽  
Author(s):  
Stephen Perreault ◽  
James Wainberg ◽  
Benjamin L. Luippold
Keyword(s):  
Audit Quality ◽  
Interpersonal Relationship ◽  
Data Availability ◽  
Error Management ◽  
Corporate Policies ◽  
Tone At The Top ◽  
Client Relationship ◽  
Reporting Decisions ◽  
Auditor Reporting ◽  
The Impact

ABSTRACT An important aspect of an organization's tone at the top is its practices for correcting the behavior of employees who deviate from set corporate policies and procedures (COSO 2013). Collectively, these practices are often referred to as an organization's error-management climate (EMC). We investigate whether a client's EMC can lead to behaviors that could reduce audit quality. We conduct an experiment and find that when a client's EMC is error averse (i.e., where employees are sanctioned for committing errors), external auditors indicate that client employees' errors discovered by the auditor are less likely to be reported. In addition, we examine the joint impact of the nature of the auditor-client relationship and EMC on auditor reporting. We find perceptions of reporting likelihood to be lower when the auditor is described as having a positive interpersonal relationship with the client employee responsible for the error. In addition, we find that this factor interacts with client EMC so as to exacerbate the observed reluctance to report when the climate is error averse. Our results provide initial evidence to suggest that an organization's EMC may impact auditor behaviors that could lead to reduced audit quality. Data Availability: Upon request.

Fluorescent potentiometric dyes for membrane-potential imaging

1994 ◽  
Vol 52 ◽  
pp. 166-167
Author(s):  
Leslie M. Loew
Keyword(s):  
Membrane Potential ◽  
Single Cells ◽  
Quantitative Imaging ◽  
Optical Recording ◽  
Biological Processes ◽  
Major Focus ◽  
The Past ◽  
Excitable Systems ◽  
Major Application ◽  
The Impact

A major application of potentiometric dyes has been the multisite optical recording of electrical activity in excitable systems. After being championed by L.B. Cohen and his colleagues for the past 20 years, the impact of this technology is rapidly being felt and is spreading to an increasing number of neuroscience laboratories. A second class of experiments involves using dyes to image membrane potential distributions in single cells by digital imaging microscopy - a major focus of this lab. These studies usually do not require the temporal resolution of multisite optical recording, being primarily focussed on slow cell biological processes, and therefore can achieve much higher spatial resolution. We have developed 2 methods for quantitative imaging of membrane potential. One method uses dual wavelength imaging of membrane-staining dyes and the other uses quantitative 3D imaging of a fluorescent lipophilic cation; the dyes used in each case were synthesized for this purpose in this laboratory.

Perceived Burden of Informal Caregivers of a Chronically Ill Older Family Member

GeroPsych ◽  
2011 ◽  
Vol 24 (3) ◽  
pp. 143-154 ◽  
Author(s):  
Elmar Gräßel ◽  
Raffaela Adabbo
Keyword(s):  
Family Member ◽  
Informal Caregiver ◽  
Chronically Ill ◽  
Stress Model ◽  
The Past ◽  
Perceived Burden ◽  
Hypothetical Construct ◽  
Care Situation ◽  
The Impact ◽  
Further Development

The burden of caregivers has been intensively researched for the past 30 years and has resulted in a multitude of individual findings. This review illustrates the significance of the hypothetical construct of perceived burden for the further development and design of the homecare situation. Following explanations regarding the term informal caregiver, we derive the construct burden from its conceptual association with the transactional stress model of Lazarus and Folkman. Once the extent and characteristics of burden have been set forth, we then present the impact of perceived burden as the care situation. The question of predictors of burden will lead into the last section from which implications can be derived for homecare and relief of caregivers.

Experimental study of thermohydraulic characteristics and irreversibility analysis of novel axial corrugated tube with spring tape inserts

2020 ◽  
Vol 92 (3) ◽  
pp. 30901
Author(s):  
Suvanjan Bhattacharyya ◽  
Debraj Sarkar ◽  
Ulavathi Shettar Mahabaleshwar ◽  
Manoj K. Soni ◽  
M. Mohanraj
Keyword(s):  
Heat Transfer ◽  
Experimental Study ◽  
Thermal Performance ◽  
Working Fluid ◽  
The Novel ◽  
Heat Exchanger Tube ◽  
Heat Transfer Augmentation ◽  
Corrugated Tube ◽  
The Impact ◽  
Exchanger Tube

The current study experimentally investigates the heat transfer augmentation on the novel axial corrugated heat exchanger tube in which the spring tape is introduced. Air (Pr = 0.707) is used as a working fluid. In order to augment the thermohydraulic performance, a corrugated tube with inserts is offered. The experimental study is further extended by varying the important parameters like spring ratio (y = 1.5, 2.0, 2.5) and Reynolds number (Re = 10 000–52 000). The angular pitch between the two neighboring corrugations and the angle of the corrugation is kept constant through the experiments at β = 1200 and α = 600 respectively, while two different corrugations heights (h) are analyzed. While increasing the corrugation height and decreasing the spring ratio, the impact of the swirling effect improves the thermal performance of the system. The maximum thermal performance is obtained when the corrugation height is h = 0.2 and spring ratio y = 1.5. Eventually, correlations for predicting friction factor (f) and Nusselt number (Nu) are developed.

Soziale Disziplinierung im flexiblen Kapitalismus

2004 ◽  
Vol 34 (136) ◽  
pp. 339-356
Author(s):  
Tobias Wölfle ◽  
Oliver Schöller
Keyword(s):  
Social Welfare ◽  
Second Step ◽  
Social Rights ◽  
Federal Law ◽  
Capitalist Development ◽  
The Core ◽  
The Past ◽  
The Impact ◽  
Municipal Level

Under the term “Hilfe zur Arbeit” (aid for work) the federal law of social welfare subsumes all kinds of labour disciplining instruments. First, the paper shows the historical connection of welfare and labour disciplining mechanisms in the context of different periods within capitalist development. In a second step, against the background of historical experiences, we will analyse the trends of “Hilfe zur Arbeit” during the past two decades. It will be shown that by the rise of unemployment, the impact of labour disciplining aspects of “Hilfe zur Arbeit” has increased both on the federal and on the municipal level. For this reason the leverage of the liberal paradigm would take place even in the core of social rights.

Regulatory and sustainability initiatives lead to improved polyaminopolyamide epichlorohydrin (PAE) wet-strength resins and paper products

TAPPI Journal ◽  
2018 ◽  
Vol 17 (09) ◽  
pp. 519-532 ◽  
Author(s):  
Mark Crisp ◽  
Richard Riehle
Keyword(s):  
Health And Safety ◽  
Cost Effective ◽  
Worker Safety ◽  
Regulatory Requirements ◽  
Wet Strength ◽  
The Past ◽  
Consumer Safety ◽  
Federal Institute ◽  
Sustainability Initiatives ◽  
The Impact

Polyaminopolyamide-epichlorohydrin (PAE) resins are the predominant commercial products used to manufacture wet-strengthened paper products for grades requiring wet-strength permanence. Since their development in the late 1950s, the first generation (G1) resins have proven to be one of the most cost-effective technologies available to provide wet strength to paper. Throughout the past three decades, regulatory directives and sustainability initiatives from various organizations have driven the development of cleaner and safer PAE resins and paper products. Early efforts in this area focused on improving worker safety and reducing the impact of PAE resins on the environment. These efforts led to the development of resins containing significantly reduced levels of 1,3-dichloro-2-propanol (1,3-DCP) and 3-monochloropropane-1,2-diol (3-MCPD), potentially carcinogenic byproducts formed during the manufacturing process of PAE resins. As the levels of these byproducts decreased, the environmental, health, and safety (EH&S) profile of PAE resins and paper products improved. Recent initiatives from major retailers are focusing on product ingredient transparency and quality, thus encouraging the development of safer product formulations while maintaining performance. PAE resin research over the past 20 years has been directed toward regulatory requirements to improve consumer safety and minimize exposure to potentially carcinogenic materials found in various paper products. One of the best known regulatory requirements is the recommendations of the German Federal Institute for Risk Assessment (BfR), which defines the levels of 1,3-DCP and 3-MCPD that can be extracted by water from various food contact grades of paper. These criteria led to the development of third generation (G3) products that contain very low levels of 1,3-DCP (typically <10 parts per million in the as-received/delivered resin). This paper outlines the PAE resin chemical contributors to adsorbable organic halogens and 3-MCPD in paper and provides recommendations for the use of each PAE resin product generation (G1, G1.5, G2, G2.5, and G3).

Discourse Analysis: Contextualism and Reductionism

2014 ◽  
Vol 4 (3) ◽  
pp. 440-447
Author(s):  
Setareh Majidi
Keyword(s):  
Discourse Analysis ◽  
Contextual Factors ◽  
Relevance Theory ◽  
The Past ◽  
Language Interpretation

For the past twenty to thirty years, a good part of the domain of linguistics has been occupied by what has been called discourse analysis. Whereas syntax and semantics are concerned by the sentence and the units from which the sentence is built, discourse analysis claims that interpretation cannot accounted for at the level of the sentence and that a bigger unit, such as discourse should be used to account for language interpretation. We want to show here that discourse is not, in any sense, a well defined object and that, though it is certainly necessary to analyze how a given sequence of sentences is processed and understood, the notion of discourse,  A and related notions such as coherence does not have much to say about it. We rely on epistemological considerations about the necessity of a moderate reductionism and sketch on account of linguistic interpretation which accounts for contextual factors in linguistic interpretation through the notion of utterance (vs. sentence) and a development of Sperber & Wilsons Relevance Theory.

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