| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 89 - 103 |
| Abstraksi Narasi | : | Recent accounting scandals and perceived audit failures have reuslted in excessive criticism of the accounting and auditing professions. The financial press has expressed disdain at the presumbly sustandard work that was completed on audit clients, ostensibly at the expense of the public good. Our research investigates one aspect of this situation by exploring the effects that nonaudit services performed by afirms` external auditors have on perceived auditor independence in the bond market. Specifically, we analyze have on the effects that the magnitude and relative degree of nonaudit service have on the bond rating process. regression results indicate that the amount of nonaudit services provided by a firm`s external auditors is negativeky associated with that client`s bond rating. However, reults of clssification accuracy analyses fail to demonstrate any improvement in performance as a consequence of adding non audit fees to benchmark prediction model, indicating no economic effect on the actual bond ratings. these results afford insights concerning bond rating analysis, perceptions of auditor independence and provide empirical evidence regarding the role that audit and nonaudit service fees play in establishing a firm`s bond rating. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 105 - 117 |
| Abstraksi Narasi | : | Due to the high incidence of fraud in Australia, regulatory reports suggest strengthening the monitoring role of the board of directors (BOD). These reports recomend greater independence and no duality (chairperson of the BOD should not be the CEO) on the BOD. While there is no Australian evidence, research evidence in the U.S. supports these suggested reforms. it is not clear whether the research evidence observed in the U.S. will generalize to the Australian stting because of contextual differences. This study extends the U.S. findings to the Australian context and investigates the relationship between two attributes of the BOD, independence and duality, and fraud. In addition, I examine whether institutional ownership in Australia suggests the presence of some relationship. using a matched sample of fraud and no-fraud firmsfrom 1988 - 2000, I find that as the percentage of independent directors and the percent age of independent institutional ownership increases, the likelihood of fraud decreases. As expected, the results show a positive relationship between duality and the likelihood of fraud. These results support the call for strengthening the composition and structure of the BOD in Australia. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 169 - 177 |
| Abstraksi Narasi | : | Auditor industry specialization has generated significant interest in the acasemic community. However, a review of prior research suggests a lack of consensus as to how auditor industry specialization should be mewasured. This paper analises data from the 1989 - 1997 time period and : (1) examines the underlying concepts of specialization that are embodied in the different measuremnent approaches to industry specialists and the reasons why these measures yield inconsistent results and conclusions, (2) present a framework to assist researchers in selecting the most appropriate auditor industry specialization metric to apply, and (3) proposes an alternative metric for research design in particular investigative settings. Our analyses, resuts, and discussion highlight the differences exist and provide some guidance for auditor industry metric selection. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 55 - 69 |
| Abstraksi Narasi | : | The sarbanes-Oakley Act (2002) required the U.S. Comproller General to study the potential effects of requiring mandatory audit firm rotation. The general Accounting office (GAO) concludes in its recently released study of mandatory audit firm rotation that mandatory audit firm rotation may not be the most efficeint way to strengthen auditor independence (GAO 2003, Highlights). However, the GAO also suggest that mandatory audit firm rotation could be necessary if the Sarbanes -Okley Act`s requirements do not lead to improved audit quality (GAO 2003 5) . We examine the relation between audit firm tenure and faudulent financial reporting. Comparing firms cited for fraudulent reporting from 1990 through 2001 with both a matched set of non-fraud firms and with the available population of non-fraud firms, we find that fraudulent financial reporting is more likely to occur in the first three years of the audito-client relationship. We fail to find any evidence that fraudulent financial reporting is more likely given long auditor tenure. Our results are consistent with the argument that mandatory audit firm rotation could have adverse effects on audit quality. |
| Nama Pengarang | : | Lowe, D. Jordan, sunita S. Ahlawat, Carcello, Joseph V., Nagy, Albert L., Terry L. Neal, Richard R. Riley, Sharma, Vineeta D., Duane M. Brandon, Aaron D. Crabtree, Maher, John J., David B. Citron, Richard J. Taffler, Ho Young Lee, Vivek Mande, Richard Ortman, Jean Bedard, Sonda Marrakchi Chtourou, Lucie Courteau, Paul Coram, Juliana Ng, David R. Woodliff, Earley, Christine E., Brian Ballou, Jay S. Rich, David Davis, Hay, David |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 147 - 158 |
| Abstraksi Narasi | : | The internal audit function is evolving from its traditional oversight function to one that includes a wider spectrum have forced many companies to consider outsourcing as an alternative. These on goiung changes have caused some concern regarding the potential lack of objectivity and independence for internal auditors. This exploratory study examines whether outsourcing of the internal audit function is susceptible to client advocacy vis a vis in house auditing. Which itself may be sensitive to an employer advocacy. Sixty-six practicing members of the institute of internal auditors (IIA) completed a case study involving a corporate acquisition scenario. Of the 66 participants, 35 were from corporations (in-house), while the ramaining 31 were from the big 4 accounting firms (outsource) Advocacy was manipulated by asking participants to assume the role of internal auditor for either the buyer or the seller of a target division. Results indicate that significant advocacy existed in the judgements of both in-house and outsource internal auditors. However, the extent of advocacy was less severe in the case of outsorce auditors. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 11 - 27 |
| Abstraksi Narasi | : | We conducted an experiment with 113 experienced auditors to examine the influence of two factors on the persuasiveness of a management-provided nonerror explanation for an unexpected fluctuation in revenue. We expected that auditor`s evaluations of a management explanation would depend jointly on whether it is quantified (i.e., put numbers) and the managers` incentives to manage earnings. Instead, we find that rhe persuasiveness of managers` explanations is determined solely by their incentives. Focus on managers` incentives is consistent with auditors attending to regulators` recent concerns about earnings management. However, such a focus implies that when the likelihood of earnings management appears low, auditors fail to take into account information about sufficiency that is contained in the quantifield explanation when they revise their planning judgements. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 89 - 105 |
| Abstraksi Narasi | : | This study examines whether auditors, when making a series of similar, independent judgements are non-normatively influenced by their earlier judgements. two judgement biases are considered: contrast effect and assimilation effect. We conducted an experiment where experienced auditors classified a number of commercial loans based on collection risk. The auditor`s judgements displayed a significant contrast effect, and range-frequency theory explains a significant potion of the variance in their judgements (Parducci, 1965). The results suggest that auditors tended to use the range principle more than the frequency principle to classify loans. This bias has potential implications for audit practice. By comparing auditors to graduate accounting students we find evidence that task experience moderates the magnitude of the judgement bias. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 29 - 52 |
| Abstraksi Narasi | : | This study investigates whether an auditor`s objectivity is impaired by nonaudit services or by the level of economic dependence on a client. Like several contemporaneous studies, we use recent mandated proxy statement audit and nonaudit fee disclosures to measure economic dependence and we use discretionary accruals as a surrogate for auditor objectivity. The results in the extant literature are mixed. We provide some explanations for those inconsistent results. First, we replicate the results of Frankel et.al. (2002), finding as they did a significant ly positive associatiuon between the relative level of nonaudit fees and discretionary accruals. Second, we document that this initial result is primarily due to small-to-medium-sized high-growth firms, especially firms having initial public offerings and in the e-commerce, biomedical, telecommunication, and pharmaceutical industries. After factoring these characteristics into the analysis, we find no evidence that the relative level of nonaudit service fees impairs an auditor`s objectivity. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 153 - 171 |
| Abstraksi Narasi | : | Although audit committees typically are considered a crucial corporate governance mechanism, knowledge is scant about the practices carried out in audit committee meetings. this paper provides insights into practices that audit committee members carry out in meetings, including the part of the meetings where members meet privately with auditors-whose respective audit committees complied to a large extent with regulatory guidelines of the Toronto stock-exchange and the voluntary recommendations of the blue ribbon committee on audit committee effectiveness. Further, the three audit committees that we investigated are generally perceived as effective by the individuals who attend meetings. Our results highlight key matters that audit committee members emphasize during meetings, such as, accuracy of financial statements, appropriateness of the wording used in financial reports, effectiveness of internal controls, and the quality of the work performed by auditors. We also elicit the evaluation criteria that members use to assess written and verbal information submitted by managers and auditors. In addition, we found that a key aspect of the work carried out by audit committee members consists of asking challenging questions and assessing responses provided by managers and auditors. |
| Nama Pengarang | : | - |
| Nama Majalah/Jurnal | : | Auditing: A Journal Of Practice and Theory |
| Volume / Nomor Edisi | : | - |
| Nomor Halaman | : | 141 - 152 |
| Abstraksi Narasi | : | In various stages of an audit, it is common for individual members of the audit team to possess audit-relevant information not known by other members of the team. In many situations, such information must be shared and integrated with other relevant information in order to make accurate decisions. Computer-mediated communication (CMC) technologies, which are deployed in most large public accounting firms, could potentially facilitate information exchange in audit teams. This study employs a theory of task-technology fitt (Zigurs and Bluckland 1998) as the basis for examining the relative effectiveness of alternative modes of audit team communication in a task requireing the exchange and processing of uniquely held information. Using student teams, the modes of communication investigated are face-to-face, a bulletin-board tool, and a chat tool. Results reveal that teams using the bulletin-board tool outperformed teams using the chat tool and teams communicating face-to-face. There were no significant performance differences between teams using the chat tool and teams interacting face-to-face. The study has implications for accounting firms contemplating or already using computer-mediated communication to facilitate the collaborative work of audit teams. |
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