The purpose of this study is to investigate how the level of controls testing coordination with the external auditor affects internal auditors' effort. The internal auditor's planned substantive ...testing audit hours are the measure of effort in this study. Regulators and stakeholder organizations have encouraged more collaboration between external and internal auditors to improve audit efficiency. The effect of external auditor coordination on internal auditors' planned audit hours has important implications for audit efficiency and effectiveness. An experiment is conducted with 112 internal auditors to examine the hypothesized effect. The study uses a 2 × 2 between-subjects design and manipulates fraud risk and external auditor coordination. Consistent with my prediction, I find that coordination moderates the relationship between fraud risk and planned audit hours. The results illustrate that although high external auditor controls testing coordination decreases internal auditors' planned substantive testing audit hours, internal auditors are more sensitive to responding to fraud risk when external auditor controls testing coordination is high.
Full text
Available for:
GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The underrepresentation of minority professionals in audit persists despite ongoing counterefforts by accounting firms and faculty. We conduct 19 semi-structured interviews with minority (Black and ...Hispanic) and nonminority (White) accounting majors and document their perceptions of the audit profession. We evaluate responses in the context of social cognitive career theory, which links one's self-efficacy beliefs and outcome expectations to the intention to pursue a particular career path. Our findings indicate both minority and nonminority participants had an overall positive perception of the audit profession and believed they could have successful careers in auditing. However, minority students discussed more audit-related negative self-efficacy experiences than their nonminority counterparts. We conclude by recommending that accounting firm and other stakeholder initiatives include audit mentorship programs targeted specifically at minority accounting majors early in their accounting programs to generate positive (and combat negative) audit-related self-efficacy experiences.
Full text
Available for:
BFBNIB, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
SUMMARY Researchers have anecdotally noticed the decline in response rates from accounting professionals (particularly auditors) across time. We document the extent of this decline and analyze the ...trends and the correlated situational and demographic variables. We conduct our analysis of articles published in Auditing: A Journal of Practice & Theory and Current Issues in Auditing from 1981 to 2016 and gather data on 75 articles that report response rates. The analysis shows a noticeable and statistically significant decrease in the response rates for auditors. Overall, the analysis illustrates a decline in the response rates from auditors that should be of concern to both the academic and auditing practitioner communities. We examine key drivers of the response rate and offer recommendations for improving the survey response of auditors.
Full text
Available for:
IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
My dissertation focuses on examining the professional skepticism of internal auditors related to fraud risk assessment and environmental characteristics. The dissertation is comprised of three ...separate studies but the overall research question that is addressed is: How do certain environmental pressures affect the professional judgment (in this case, fraud risk assessment) and skeptical actions of internal auditors? The specific environmental factors examined in this dissertation are: (1) the level of coordination with external auditors, (2) a perceived conflict with legal counsel, and (3) the Chief Audit Executive’s emphasis on professional skepticism. Each study consists of case materials (adapted from previous studies) with three parts: a fraud risk assessment, an indication of skeptical action, and personality trait questionnaires (including a professional skepticism scale). The results of this dissertation will be useful to audit committees, boards of directors, chief audit executives, corporate managers, external auditors, and regulators. The purpose of the first study is to investigate how the level of coordination with the external auditor affects internal auditors’ fraud-related actions. Planned audit hours are the measure of skeptical action in this study. Prior research suggests that accountability strength influences auditor effort. The effect of external auditor coordination on internal auditors’ planned audit hours has important implications for efficiency and perceived accountability to external stakeholders. Regulators and stakeholder organizations have encouraged more collaboration between external and internal auditors to improve audit efficiency and fraud detection. An experiment is conducted with 112 internal auditors to examine the theorized effects. The study uses a 2 × 2 between-subjects design and manipulates fraud risk (low or high) and external auditor coordination (low or high). Consistent with predictions, I find that internal auditors increase planned audit hours when fraud risk is high and that coordination moderates the relationship between fraud risk and hours. The results illustrate that although high external auditor coordination decreases internal auditors’ hours (reflecting efficiency), internal auditors are more sensitive to responding to fraud risk when coordination is high (reflecting accountability).
USING REALITY TV TO ENLIVEN LEARNING Lanier, Danny; Pope, Kelly Richmond; Nkansa, Porschia
Strategic finance (Montvale, N.J.),
08/2020, Volume:
102, Issue:
2
Magazine Article
The structure of The Profit provides students with an opportunity to reflect on factors contributing to the successes (or failures) of the turnaround plan while aligning its key attributes within the ...framework of the balanced scorecard. ...our approach builds from the show's ability to cover a wide swath of management accounting topics that focus on a single company in a way that allows students to take a real-world view of the material they're learning. ...the business issues that arise during the show are explained in an effective storytelling manner, which prior research suggests is associated with improved learning and retention. ...episodes of The Profit commonly feature on-screen graphics that serve as visual aids to summarize and facilitate viewers' understanding of key business and accounting measures (components of product cost, profitability impact of a decision, etc.). (The series also includes "Progress Report" episodes, in which Lemonis revisits businesses from past episodes to provide updates.) To the extent that the episode offers sufficient information about the company's improved sales and profits, students could be asked to calculate performance measures, such as the post-turnaround profit margin or return on Lemonis's initial investment, and to discuss whether these outcomes were acceptable. ...as an instructor, you may want to ask students to reflect on the various elements of the turnaround plan and discuss how they would be classified within the framework of the balanced scorecard. Because many of our undergraduate students express an interest in starting their own businesses, they find the assignment interesting and relevant.
PDF
