An experimental examination of the effect of client size and auditors’ industry specialization on time pressure in Australia

This paper examines how industry specialization and the size of the client affect time pressure to complete an audit. The study used a sample size of 70 auditors to examine their perceptions of time pressure in different scenarios. The results of the experiment demonstrate that industry specialization significantly reduces the level of time pressure, indicating that industry specialist auditors work more efficiently and face less time pressure compared with non-specialist auditors. No significant relationship exists between the size of the client and time pressure, indicating that audit firms are likely to possess stronger bargaining power and resist pressure from clients to reduce audit hours when auditing large companies

Tax Professionals' Responsibility for Fraud Detection: The Effects of Engagement Type and Audit Status

SYNOPSIS Despite a traditional advocacy role, tax professionals face growing pressure to help manage the tax fraud problem. However, the authoritative tax literature lacks explicit guidance in the area, motivating questions about the extent tax professionals perceive fraud detection responsibility. This study evaluates 236 tax professionals' perceived responsibility for tax fraud detection, and the extent that tax engagement type (planning versus compliance) and audit client status (audit client versus not an audit client) affect responsibility. We also use the triangle model of responsibility to test the extent that task clarity, professional obligation, and personal control mediate the effects of engagement type and audit client status on detection responsibility. The results indicate moderate and varied perceived detection responsibility among the participants. We also find that reported detection responsibility varies across tax engagement type and audit client status. As expected, tax professionals report higher detection responsibility in a tax compliance engagement and when the tax client is also an audit client. Subsequent path analysis results show that the triangle model components are positively related to detection responsibility, and that professional obligation and personal control mediate the effects of engagement type and audit client status on detection responsibility.

Rationality, Emotion, and Belief Revision

Sarah Waller proposes that cognitive therapists and philosophical counselors ought to consider the feelings of the client of paramount importance in belief system change rather than the rationality of the belief system. I offer an alternative strategy of counseling that reinstates the place of rational belief revision while still respecting the importance of emotions. Waller claims that, because of the problem of under-determination, the counseling goal of rational belief revision can be trumped by the goal of improved client affect. I suggest that, if we consider a different ontology for the domain of counseling—one whose objects are dialogues (the goal of counseling becomes greater information of dialogues), we can accommodate a place for emotions in rational belief revision. I then note some limitations of the new proposal and the possibility of incommensurability in the comparison of our different views.