Method of auditing in conditions of martial law Lubenchenko, Olha; Shulga, Svitlana; Pavlova, Halyna
Statistics in transition : journal of the Polish Statistical Association,
2/2023, Volume:
24, Issue:
1
Journal Article
Peer reviewed
In the article there are considered methodical recommendations on the actions of auditors during martial law. They relate to such stages of the audit as the preparatory phase, the planning phase, the ...task implementation and the final phase. The preparatory stage requires the identification of the client and the conclusion of an audit agreement. Under martial law, new risks are emerging, systematized by the authors and related to the identification of persons involved in terrorist activities and the proliferation of weapons of mass destruction. The systematization of risks and the use of IT technologies to identify and verify the client allows auditors, as specially designated entities of primary financial monitoring, to identify and freeze the assets of such persons in a timely manner and stop providing any services. At the client acceptance and assignment stage, auditors assess ethical threats. As a result, a working paper has been developed to assess ethical threats in the light of martial law. At the planning stage, special attention should be paid to reviewing risks, namely how military aggression affects the continuity of any business. Clarification of risk factors for termination allows you to plan audit procedures to gather audit evidence and further determine the auditor's opinion on continuity (opinion with an explanatory paragraph, opinion with a reservation, negative opinion, disclaimer of opinion). One of the effective procedures for collecting audit evidence at the stage of the task is inventory.
In the context of corporate activities on an unprecedented scale, the economies of the nations of the modern world have to cope with a number of challenges, some of which frequently develop into ...issues. Any crisis that needs to be resolved requires careful planning, detailed implementation, and a substantial investment of human and financial resources. On the one hand, a crisis hampers business processes, and on the other hand, it may well turn into an opportunity for quicker business development. The present paper aims at analyzing the process of introduction of an online service – as one of the areas of business development – on the example of business entities carrying out their activities in the Republic of Ajara A.R. The research has been targeted at small and medium businesses of HoReCa sector only. The study has been carried out using an interdisciplinary methodology, namely in-depth interviews with business entities, as well as a survey of business entities in respect to particular components of the research. It was revealed that the business sectors that have developed rapidly in recent years in terms of crises and restrictions caused by the pandemic are the following: online trade; delivery services; online educational platforms; Computer and communication business; The analysis showed that: The rapid development of online services of the majority of business entities was significantly caused by the Covid-19 pandemic; Most business entities would not have considered implementing of these services if not the pandemic restrictions; Most businesses think the crisis caused by the pandemic and force majeure to be the reason for the rapid development of their business;
Financial constraints are fundamental to empirical research in finance and economics. We propose two tests to evaluate how well measures of financial constraints actually capture constraints. We find ...that firms typically classified as constrained do not actually behave as if they were constrained: they have no trouble raising debt when their demand for debt increases exogenously and use the proceeds of equity issues to increase payouts to shareholders. Our evidence suggests that extant findings that have been attributed to constraints may instead reflect differences in the growth and financing policies of firms at different stages of their life cycles.
We investigate whether superior performance on corporate social responsibility (CSR) strategies leads to better access to finance. We hypothesize that better access to finance can be attributed to ...(1) reduced agency costs due to enhanced stakeholder engagement and (2) reduced informational asymmetry due to increased transparency. Using a large cross-section of firms, we find that firms with better CSR performance face significantly lower capital constraints. We provide evidence that both better stakeholder engagement and transparency around CSR performance are important in reducing capital constraints. The results are further confirmed using several alternative measures of capital constraints, a paired analysis based on a ratings shock to CSR performance, an instrumental variables approach, and a simulataneous equations approach. Finally, we show that the relation is driven by both the social and environmental dimension of CSR.
Using a multidimensional framework of CEO temporal focus (the degree to which CEOs characteristically devote attention to perceptions of the past, present, and future), we propose that a company's ...rate of new product introduction (NPI) is predicted by a CEO's focus on each of the three distinct time frames in interaction with environmental dynamism. Based on a longitudinal (from 1996 to 2003) analysis of 221 firms in 19 industries, we show that, in stable environments, new products are introduced faster in firms headed by CEOs with high past focus, high present focus, and low future focus. In dynamic environments, new products are introduced faster in firms headed by CEOs with low past focus, high present focus, and high future focus. These findings demonstrate how CEO temporal attentional bias shapes the rate of NPI.
This study focuses on how and why firms strategically respond to government signals on appropriate corporate activity. We integrate institutional theory with research on corporate political strategy ...to develop a political dependence model that explains (a) how different types of dependency on the government lead firms to issue corporate social responsibility (CSR) reports and (b) how the risk of governmental monitoring affects the extent to which CSR reports are symbolic or substantive. First, we examine how firm characteristics reflecting dependence on the government—including private versus state ownership, executives serving on political councils, political legacy, and financial resources—affect the likelihood of firms issuing CSR reports. Second, we focus on the symbolic nature of CSR reporting and how variance in the risk of government monitoring through channels such as bureaucratic embeddedness and regional government institutional development influences the extent to which CSR communications are symbolically decoupled from substantive CSR activities. Our database includes all CSR reports issued by the approximately 1,600 publicly listed Chinese firms between 2006 and 2009. Our hypotheses are generally supported. The political perspective we develop contributes to organizational theory by showing that (a) government signaling is an important mechanism of political influence, (b) different types of dependency on the government expose firms to different types of legitimacy pressure, and (c) firms face a decoupling risk that makes them more likely to enact substantive CSR actions in situations in which they are likely to be monitored.
The dynamic capabilities framework has had a significant impact on strategic management theory and practice, but the sizable literature on the topic has not always been unified. This paper begins ...with a restatement of the framework encompassing clarifications and extensions that have occurred since it was introduced. The paper highlights key elements that have been omitted or poorly integrated into the dynamic capabilities literature: the role of individual action by entrepreneurial managers, the role of resources, strategy, and the distinction between ordinary and dynamic capabilities. Dynamic capabilities is advanced as a multidisciplinary framework to explain long-run enterprise performance. Ambidexterity and other related frameworks are tailored versions of dynamic capabilities. Linkages between (strategic) management theory and (Austrian) economic theory are explored. The concepts of x-inefficiency and d-ineffectiveness are compared.
The authors highlight the need for and develop a framework for engagement by reviewing the relevant literature and analyzing popularpress articles. They discuss the definitions of the focal ...constructs—customer engagement (CE) and employee engagement (EE)—in the engagement framework, capture these constructs' multidimensionality, and develop and refine items for measuring CE and EE. They validate the proposed framework with data from 120 companies over two time periods, and they develop strategies to help firms raise their levels of CE and EE to improve performance. They also observe that the influence of EE on CE is moderated by employee empowerment, type of firm (business-to-business B2B vs. business-to-consumer B2C), and nature of industry (manufacturing vs. service); in particular, this effect is stronger for B2B (vs. B2C) firms and service (vs. manufacturing) firms. The authors find that although both CE and EE positively influence firm performance, the effect of CE on firm performance is stronger. Furthermore, the effect of CE and EE on performance is enhanced for B2B (vs. B2C) and for service (vs. manufacturing) firms.
WHAT'S "NEW" ABOUT NEW FORMS OF ORGANIZING? PURANAM, PHANISH; ALEXY, OLIVER; REITZIG, MARKUS
The Academy of Management review,
04/2014, Volume:
39, Issue:
2
Journal Article
Peer reviewed
In order to assess whether new theories are necessary to explain new forms of organizing or existing theories suffice, we must first specify exactly what makes a form of organizing "new." We propose ...clear criteria for making such an assessment and show how they are useful in assessing if and when new theories of organizing may truly be needed. We illustrate our arguments by contrasting forms of organizing often considered novel, such as Linux, Wikipedia, and Oticon, against their traditional counterparts. We conclude that even when there may be little that existing theory cannot explain about individual elements in these new forms of organizing, opportunities for new theorizing lie in understanding the bundles of co-occurring elements that seem to underlie them and why the same bundles occur in widely disparate organizations.
This article suggests that dynamic capabilities can give the firm competitive advantage, but this effect is contingent on the level of dynamism of the firm's external environment. A nonlinear, ...inverse U-shaped moderation is proposed, implying that the relationship between dynamic capabilities and competitive advantage is strongest under intermediate levels of dynamism but comparatively weaker when dynamism is low or high. This proposition is tested using data on alliance management capability and new product development capability, two specific dynamic capabilities widely recognized in prior research. Results based on longitudinal key informant data from 279 firms support the account that these dynamic capabilities are more strongly associated with competitive advantage in moderately dynamic than in stable or highly dynamic environments.
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