Gathering Evidence through Enquiry: A Process Improvement Focus

2012 ◽  
Vol 24 (2) ◽  
pp. 153-175 ◽  
Author(s):  
Guoping Liu
Keyword(s):  
Process Improvement ◽  
Decision Aid ◽  
Decision Aids ◽  
Field Research ◽  
Financial Statements ◽  
Data Availability ◽  
Planning Theory ◽  
Based Instruction ◽  
The Cost

ABSTRACT As financial statements continue to contain more estimates and audit programs rely more on enquiry-based evidence, there is an increasing need to understand whether the process of enquiry can provide more reliable evidence. Prior research in other disciplines indicates enquiry process improvement is a first step in the direction of improving the quality of evidence obtained from management enquiry. This study explores which type of decision aid—a simple cognitive planning theory-adapted instruction or a detailed checklist developed from auditing field research—is more likely to improve junior auditors' planning for collecting enquiry-based evidence about a specific accounting issue. An experiment was conducted using 154 participants with an average of 12 months of auditing experience. The results show participants receiving the theory-based instruction, in contrast to those receiving no decision aids, planned to pose a greater number of questions and inquire of a larger and more diverse set of client personnel in areas relevant to the accounting issue. Further, these participants planned to corroborate evidence obtained from management enquiry with an increased number of audit procedures other than enquiry. The practice-based checklist resulted in similar overall effects, albeit at the “cost” of having to deal with a more complex aid and with less focus on corroboration by means other than enquiry. This study suggests that both decision aids can lead junior auditors to improve their planned approach to enquiry, and if these plans are executed appropriately, they could lead to more reliable audit evidence generated from enquiry of management. Data Availability: Contact the author.

scholarly journals Corporate Governance, Disclosure Quality, and Cost of Equity: Evidence from Pakistan

2018 ◽  
Vol 6 (2) ◽  
pp. 63-91 ◽  
Author(s):  
Safia Nosheen ◽  
Naveed-Ul-Haq Naveed-Ul-Haq ◽  
Muhammad Faisal Sajjad
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Financial Statements ◽  
Ordinary Least Squares ◽  
Cost Of Equity ◽  
Disclosure Quality ◽  
Listed Firms ◽  
The Cost ◽  
Governance Disclosure

The link between disclosure of corporate information and the cost of equity in firms is one of the most important issues in finance. This paper aims to examine the connection between corporate governance, disclosure quality of information, and the cost of equity in Pakistani-listed (PSX-listed) firms. Using the Generalized Methods of Movements (Sys-GMM) model, a sample of 167 non-financial firms listed on Pakistan Stock Exchange (PSX) for the period of 2011-2015was analyzed. Sys-GMM estimation was applied to overcome the problem of endogeneity among corporate governance variables. To test the robustness of GMM estimations, we compared the results of pooled ordinary least squares (OLS) and fixed-effect estimations and found they did not overcome the problem of endogeneity, providing spurious results. We found a negative association between cost of equity and disclosure quality of financial statements. The findings suggested that the board size, concentrated ownership and CEO duality, are found as significant factors in reducing the cost of equity of PSX-listed firms. Audit committee independence and audit quality of the firm showed a positive relationship with the firm’s cost of equity. Our findings suggest that employing a high-quality auditor and independent director’s results in increased cost of equity for PSX-listed firms. Furthermore, no significant relationship between independence of the boards and duration of the authorizations of financial statements by the board of directors is found. The results also revealed the investors demand more return on their investments if inadequate and incomplete information is disclosed in the annual reports of the firms. This study provides useful insights for Pakistani corporate governance regulators, the executive management of Pakistani firms, and their investors.

Transaction-based lending and accrual quality

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stephen Gray ◽  
Arjan Premti
Keyword(s):  
Earnings Quality ◽  
Financial Statements ◽  
Financial Statement ◽  
Cost Of Debt ◽  
Accrual Quality ◽  
Content Type ◽  
Income Statement ◽  
Prior Literature ◽  
The Cost

PurposeThis study examines how lenders modify their behavior and their use of traditional, transaction-based lending models in credit decisions when faced with low earnings quality.Design/methodology/approachTo measure the earnings quality, following Bharath, Sunder and Sunder (2008), the authors use three measures of accrual quality and combine them into a simple parsimonious measure of accrual quality. Subsequently, the authors apply the incremental R-square approach used by Kim and Kross (2005) to determine the degree to which lenders modify their reliance on financial statement ratios when faced with low accrual quality.FindingsConsistent with prior literature, this study shows that the cost of debt is higher when accrual quality is low. In addition, this study extends prior literature by showing that lenders decrease their reliance on income statement data to make credit decisions as accrual quality decreases.Originality/valueThis paper broadens existing literature on the pricing of information risk in capital markets by being the first to show that lenders modify their reliance on financial statement data when faced with low-quality accruals. In addition, this paper extends the findings of Billings and Morton (2002) and demonstrates to managers the futility of using accrual manipulations to obtain more favorable credit terms. Lastly, this paper aids regulators and standard setters who seek to improve the usefulness of financial statements by showing that creditors do not appear to be misled by reporting choices that lower the quality of accruals.

scholarly journals Improving the Performance and Quality of Processes by Applying and Implementing Six Sigma Methodology in Furniture Manufacturing Process

2019 ◽  
Vol 70 (2) ◽  
pp. 193-202
Author(s):  
Ľubica Simanová ◽  
Andrea Sujová ◽  
Pavol Gejdoš
Keyword(s):  
Process Improvement ◽  
Six Sigma ◽  
Cost Savings ◽  
Furniture Manufacturing ◽  
Mapping Process ◽  
Six Sigma Methodology ◽  
And Performance ◽  
The Cost ◽  
And Control

The main aim of this paper is to illustrate the application of selected methods and procedures in the implementation of the Six Sigma Methodology in the furniture manufacturing processes, specifically in the wood veneer pressing, to verify the application and to evaluate the benefits of using selected methods and procedures through a series of step DMAIC process improvement. The application of selected methods and tools within the Six Sigma Methodology, such as DPMO, efficiency and sigma levels, project charter, histogram of mistakes caused by the application of the adhesive, the SIPOC plot mapping process, reaction plans, Ishikawa diagram and control diagrams bring the system and clarity of measurable results into project management for process improvement and process change. The benefits of their use are the cost savings and performance improvement processes.

Supervisors' Performance Attributions: A Possible Barrier to Managerial Acceptance of Decision Aids

1991 ◽  
Vol 73 (3) ◽  
pp. 971-978 ◽  
Author(s):  
William E. McClane ◽  
William L. Harris
Keyword(s):  
Linear Programming ◽  
Decision Aid ◽  
Decision Aids ◽  
Full Time ◽  
Forecasting Models ◽  
Performance Attributions ◽  
Successful Outcomes

Researchers exploring the adoption of decision aids by managers have noted an apparent reluctance on the part of managers to use decision aids such as linear programming and mathematical forecasting models. In this study, the leader's attributions were explored as a possible explanation for this reluctance. Specifically, the effects of the subordinate's use of a decision aid on the supervisor's attributions of the causes of that performance were examined in a vignette to which 154 students who were employed full time as managers responded. Four conditions were explored: success while using decision aids, failure while using decision aids, success without using decision aids, and failure without using decision aids. Analysis suggests that for successful outcomes the use of a decision aid did not significantly affect the supervisor's attributions, but with failure, supervisors were more likely to attribute the cause of the failure to some quality of the subordinate (lack of ability or effort) when decision aids were used than when they were not. Such results imply that managers who use decision aids incur greater risk in the event of failure, as the cause of that failure is attributed more often to them rather than the situation when decision aids were not used.

Online Decision Aids for Knee Osteoarthritis and Low Back Pain: An Environmental Scan and Evaluation

2019 ◽  
Vol 39 (4) ◽  
pp. 328-335 ◽  
Author(s):  
Michael Anthony Fajardo ◽  
Bandar Durayb ◽  
Haoxi Zhong ◽  
Lyndal Trevena ◽  
Adrian Traeger ◽  
...  
Keyword(s):  
Low Back Pain ◽  
Back Pain ◽  
Knee Osteoarthritis ◽  
Decision Aid ◽  
Decision Aids ◽  
Current Evidence ◽  
Low Back ◽  
Musculoskeletal Conditions ◽  
Wait And See

Background. Musculoskeletal conditions are leading causes of disability. Management options are plentiful, but the current evidence base suggests many are ineffective or unproven. Online decision aids can help support patients make informed health care choices. However, there are little data on the quality of online decision aids for common musculoskeletal conditions such as knee or low back pain. Purpose. To identify all publicly available online decision aids for knee osteoarthritis and low back pain and evaluate them against the International Patient Decision Aids Standards Inventory (IPDASi). Data Sources. Google Australia. Study selection. Two reviewers independently screened websites for inclusion and assessed the quality of included online decision aids between April and May 2018. Included online decision aids were free, provided information about knee osteoarthritis or low back pain, and written in English. Online decision aids that required payment, targeted health professionals, addressed rheumatoid arthritis, or addressed a screening decision were excluded. Data Extraction. IPDASi Version 4. Data Synthesis. Twenty-five online decision aids were identified: 15 knee osteoarthritis and 10 low back pain. Only 3 online decision aids (12%) provided a “wait-and-see” option. Nineteen (75%) met IPDASi criteria to be considered a decision aid and 3 (12%) met IPDASi criteria to state that the online decision aid was unbiased. Limitations. Dynamic nature of Google searches may not be replicable easily. Conclusions. Few good-quality online decision aids are available for people with knee osteoarthritis or low back pain. Most online decision aids failed to explicitly provide a wait-and-see option, suggesting a bias toward intervention. These online decision aids would benefit from explicitly highlighting a wait-and-see option to support informed choice.

scholarly journals ANALISIS KINERJA PEGAWAI PADA PT. ASURANSI UMUM BUMIPUTERA MUDA 1967 CABANG BENGKULU

2020 ◽  
Vol 3 (1) ◽  
Author(s):  
Tito Irwanto ◽  
Karona Cahya Susena ◽  
Nurhalimah Tusadiyah
Keyword(s):  
Sampling Method ◽  
Employee Performance ◽  
Descriptive Analysis ◽  
Field Research ◽  
Average Value ◽  
Research Activities ◽  
General Insurance ◽  
Qualitative Descriptive ◽  
The Cost

The purpose of this study was to analyze the performance of employees at PT. General Insurance for Young Bumiputera 1967 Bengkulu Branch. This research is a type of survey research that takes a sample from a participant and uses questionnaires as a data collection and participation tool for analysis, explaining and explaining certain phenomena through field research activities. The sample in this study were all employees of PT. 1967 Bengkulu branch of General Insurance Bumiputera Muda who took 18 people with the sampling method used is total sampling or census. The analytical method used in this study is a qualitative descriptive analysis method that uses the average distribution.The results of this study indicate that, the performance of PT. General Insurance for Young Bumiputera 1967 Bengkulu Branch has been very good with an average value of employee performance is 4.24. The average value of work quality is 4.49. The average value of the amount of work is 4.10. The average value of timeliness is 4.14. The average value of cooperation is 4.39. The average value of the cost resolution is 4.20. The average value of supervision is 4.17. Keywords: Quality of work, Quantity of work, Timeliness, Cooperation, Emphasis on costs,  Supervision

scholarly journals ANALISIS PERHITUNGAN BIAYA KUALITAS DALAM MENINGKATKAN KUALITAS PRODUK PADA PABRIK GULA MADUKISMO

2020 ◽  
Vol 2 (2) ◽  
pp. 145-157
Author(s):  
Nurul Listiawati
Keyword(s):  
Program Planning ◽  
Employee Training ◽  
Financial Statements ◽  
Cost Of Quality ◽  
Machine Maintenance ◽  
Quality Costs ◽  
Hidden Cost ◽  
Failure Cost ◽  
The Cost

ABSTRAK Tujuan penelitian ini adalah untuk menganalisis perhitungan biaya kualitas untuk meningkatkan kualitas hasil produksi pada Pabrik Gula (PG) Madukismo. Penelitian ini juga mengenai perencanaan program kualitas dan perhitungan biaya kualitas dengan metode prevention, apprisial,  failure cost (P-A-F) pada PG Madukismo. Pendekatan penelitian yang digunakan adalah penelitian kualitatif dengan pendekatan analisis deskriptif. PG Madukismo merupakan objek dari penelitian ini karena satu-satunya pabrik gula yang terletak di Provinsi Daerah Istimewa Yogyakarta yang mengembang tugas untuk mensukseskan program pangan nasional dan siap dalam menhadapi persaingan di era globalisasi.             Hasil penelitian ini menunjukkan bahwa PG Madukismo telah mengeluarkan biaya yang terkait dalam peningkatkan kualitas untuk produk yang mereka hasilkan. Biaya kualitas yang dikeluarkan oleh perusahaan untuk meningkatkan produk mereka ialah biaya pelatihan karyawan, biaya pemeliharaan mesin, biaya penyuluhan tebu, biaya proteksi hama, biaya pemeriksaan tebu, biaya pemeriksaan proses produksi, biaya akurasi alat, dan biaya pengerjaan kembali. Kelemahan model P-A-F hanya memaparkan biaya kualitas yang tertera langsung pada laporan keuangan tidak dapat memaparkan dari aktivitas yang sulit untuk diidentifikasi biayanya (hidden cost).   Kata kunci: biaya kualitas, perusahaan gula, pencegahan, penilaian, biaya kegagalan.   ABSTRACT   The purpose of this study was to analyze the accounting of the cost quality to improve the quality of production in Madukismo sugar company. This study is also about quality of program planning and accounting of quality costs with prevention, appraisal, failure cost method (P-A-F) on the Madukismo sugar company. The approach used in this study is a qualitative research with descriptif analysis approach. Madukismo sugar company is the object of this study because the only sugarr mill located in the province of Yogyakarta which expands the task to make the program successful national food and ready in overcoming global competition. The results of this study indicate that Madukismo sugar company has incurred related to enhancing the quality of the products they produce. Quality costs incurred by companies to improve their products is the cost of employee training, machine maintenance costs, costs of extension cane, pest protection fees, inspection fees cane, its cost of production proces, the accuracy of the charges, and the cost of rework. The weakness of the model P-A-F only describe the cost of quality printed directly on the financial statements can not be explained from a difficult activity to be identified costs (hidden costs) Keywords: cost of quality,  sugar company, prevention, apprisal, the cost of failure.  

Total Quality Management dalam Meningkatkan Kualitas Lembaga Amil Zakat

2019 ◽  
Vol 4 (3) ◽  
pp. 267-286
Author(s):  
Dina Qurotun Nisa ◽  
Aep Kusnawan ◽  
Herman Herman
Keyword(s):  
Quality Control ◽  
Total Quality Management ◽  
Process Improvement ◽  
Policy Making ◽  
Field Research ◽  
Research Data ◽  
Total Quality ◽  
Non Profit ◽  
Descriptive Method

The purpose of this study is to find out (1) customer focus, (2) process improvement, (3)Total involvement in improving the quality of the Exact Zakat Center (PZU). The method used is descriptive method with the type of field research. Data collection is done by interview, observation and documentation. With the results of the research found, namely: (1). PZU Persis understands the position, rights and obligations of the customer as a focus on customers in improving the quality of the institution (2). PZU Exactly in terms of process improvement, has carried out a number of activities and breakthroughs oriented to the improvement of an institution (3). Total involvement, PZU Persis always involves all elements in the institution in all activities and policy making related to the institution and believes that integrated quality control will not succeed only with the strong will of the leadership, but must also be supported by the participation of employees, and vice versa . This study also indicates that in its theoretical implications, TQM can be applied to non-profit institutions.

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