Joint Provision of Non-audit Services to Audit Clients: Empirical Evidences from India

Executive Summary The provision of non-audit services (NAS) by an incumbent auditor has remained a highly contentious issue. One school argues that the joint provision does not impair an auditor’s independence. Instead, it reduces total costs, enhances the ability to detect material misstatements, increases technical competence due to knowledge spillovers and leads to intense competition. However, a substantial tranche of an audit firms’ income is derived from NAS, and the joint provision increases economic ties with the client. Therefore, another school of thought perceives that the joint provision impairs auditor independence. It is also alleged that auditors expect non-audit work after finishing the auditing job. Their independence is also affected by the risks of self-review. Extant literature reveals that the majority of the studies on the issue are archival and experimental. The studies are concentrated in the US, UK, Australia, Malaysia, Nigeria, South Africa, China, and some of the European Union Nations. The article examines the perspective of chartered accountants (CAs) on the joint provision of NAS in India. The study samples 119 CAs. The reliability of the survey result was measured using Cronbach’s α, and a score of 0.77 indicated acceptable internal consistency reliability. The data were analysed using Wilcoxon signed-rank test and the Mann Whitney U test statistic. The summary of their suggestions for ensuring auditor independence is presented separately. The findings reflect that existing prohibitions imposed by the Companies Act, 2013, are not enough to ensure auditor independence, and the Management Services u/s 144 of the Act needs to be clearly defined. Practitioners do not support the proposition that joint provision should end and a separate category of professionals be mandated to render NAS. However, the recommendations include strengthening provisions to reduce the conflict of interest.

OPERATIONAL (ONLINE) ANALYTICS: REALITIES AND PROSPECTS

The goal of the work. The scientific problem is covered in order to systematize, generalize new knowledge about modern analytical technologies in terms of the present and prospects for their development. The research scientific novelty of the work lies in the generalization and systematization of new knowledge about operational analytics in terms of the present and prospects for its development within one study. Conclusions. The article highlights the current views of researchers on operational analytics and its information technology - Big Data technology. The works of famous experts - Bill Franks, Tom Davenport and Joanna Harris, Victor Mayer-Schoenberger and Kenneth Cookier, Karl Anderson, Brian Clifton, Sergei Kovalev, Oleg Veres - are analyzed.Their modern views on operational analytics formed the basis of the presentation of the main material. It is emphasized that we have an objective process of society development. And it depends on our choice whether we will have a competitive advantage at the start. The essence of operational analytics, its advantages and possibilities of application in the Ukrainian realities are described. In addition, the American electronic corporation IBM («Blue Giant»), which in the «Analytics» section offers seven categories of analytical products that will satisfy the most demanding consumers because they meet the world’s standards. The paper focuses on the fact that in modern management, operational analytics is carrying out an «electronic revolution». Ittakes analytics beyond the traditional limits of application. It takes analytics beyond the traditional limits of application. It turned out that we have a qualitatively new tool, a new level of evolution of analytical technologies. At the same time, it is emphasized that traditional analytical methods and technologies should not be thoughtlessly rejected, as they are basic, ie the foundation on which operational analytics is built and maintained. Emphasis is placed on the fact that operational analytics opens wide possibilities for integration with various sources of information (for example, the Internet of Things) through appropriate applications, communications and electronics, while providing a single, joint provision and presentation of informationbased on Big Data.Keywords: operational analytics, technology, management decision.

Inter‑Municipal Cooperation in Education as a Possible Remedy for Current Difficulties of Local Government in Poland

The purpose of this article is to fill the existing gap and contribute to the literature in two ways: firstly, by investigating problems that caused the emergence of cooperation between two municipalities despite the administrative border at the county level, and secondly, by analysing the effects of joint provision of public education based on a case study from Poland. The case study is preceded by the use of the literature review method. The problem of possible enhancement of inter‑municipal cooperation (IMC) in Poland is proposed as a potential remedy for current difficulties that Polish local governments face after the reform of the education system and the COVID–19 pandemic, as well as due to demographic decline and budgetary challenges. Studies suggest that net benefits of cooperating are higher if IMC partners are smaller and more homogenous with respect to the quality and level of public services. The theory of exploiting economies of scale and scope was studied based on the case study of a Polish inter‑municipal union created only to provide education in two municipalities. The cooperation resulted in little positive financial effects reflected in the lower spending per pupil only in the case of primary school. However, the union caused nonfinancial benefits not only for pupils but also for parents and teachers, who are voters as well. The article concludes that inter‑municipal unions could be used especially by small and rural municipalities that struggle with the previously mentioned problems.

Inputs, Incentives, and Complementarities in Education: Experimental Evidence from Tanzania*

We present results from a large-scale randomized experiment across 350 schools in Tanzania that studied the impact of providing schools with (i) unconditional grants, (ii) teacher incentives based on student performance, and (iii) both of the above. After two years, we find (i) no impact on student test scores from providing school grants, (ii) some evidence of positive effects from teacher incentives, and (iii) significant positive effects from providing both programs. Most important, we find strong evidence of complementarities between the programs, with the effect of joint provision being significantly greater than the sum of the individual effects. Our results suggest that combining spending on school inputs (the default policy) with improved teacher incentives could substantially increase the cost-effectiveness of public spending on education.