Pub Date : 2023-09-01DOI: 10.2308/horizons-2022-099
Claire Garnier, Claudine Mangen, Edwige Nortier
SYNOPSIS Accounting researchers and practitioners have made strides in addressing persistent gender inequalities in the accounting profession. However, these efforts have largely sidestepped men and masculinities. Our study considers the role of men and masculinities in gender inequalities by exploring how men in accounting experience paternity leaves. We conduct interviews with 13 men in audit firms in France. We find that fathers are reluctant to take leaves, which they view as vacation periods incompatible with their professional work. They see audit firms as offering less support to fathers than mothers, with support for fathers growing but still marginal. Finally, they experience a variety of emotions, including positive emotions around fatherhood and negative emotions around difficulties in reconciling fatherhood with professional responsibilities and paternity leaves. Practically, our findings imply that to address gender inequalities further, accounting firms need to change the norms around care work, including paternity leaves.
{"title":"Men’s Experiences of Paternity Leaves in Accounting Firms","authors":"Claire Garnier, Claudine Mangen, Edwige Nortier","doi":"10.2308/horizons-2022-099","DOIUrl":"https://doi.org/10.2308/horizons-2022-099","url":null,"abstract":"SYNOPSIS Accounting researchers and practitioners have made strides in addressing persistent gender inequalities in the accounting profession. However, these efforts have largely sidestepped men and masculinities. Our study considers the role of men and masculinities in gender inequalities by exploring how men in accounting experience paternity leaves. We conduct interviews with 13 men in audit firms in France. We find that fathers are reluctant to take leaves, which they view as vacation periods incompatible with their professional work. They see audit firms as offering less support to fathers than mothers, with support for fathers growing but still marginal. Finally, they experience a variety of emotions, including positive emotions around fatherhood and negative emotions around difficulties in reconciling fatherhood with professional responsibilities and paternity leaves. Practically, our findings imply that to address gender inequalities further, accounting firms need to change the norms around care work, including paternity leaves.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"38 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135248884","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2023-014
Marshall A. Geiger, Anna Gold, P. Wallage
Auditing researchers rarely engage practicing auditors regarding the phenomena examined, or conclusions reached, in academic research. In an attempt to bridge this gap, we report on the outcomes, insights, and observations from focused interactions with Dutch audit practitioners regarding their perspectives on recent research regarding auditor going concern opinion (GCO) decisions. We provided practitioners with a summary of some of the most salient recent GCO research findings. The goals of our subsequent discussions were to (1) obtain practitioners’ responses to the research findings, and (2) identify relevant issues for future study from the perspective of practitioners. Accordingly, in this second of a two-part sequence of articles, we discuss the outcomes of our interactions with practitioners related to the GCO reporting environment and the GCO decision-making process, as well as directions for future research. JEL Classifications: M42.
{"title":"Practitioner Perspectives on Going Concern Opinion Research and Suggestions for Further Study: Part 2—Reporting Environment and the Decision-Making Process","authors":"Marshall A. Geiger, Anna Gold, P. Wallage","doi":"10.2308/horizons-2023-014","DOIUrl":"https://doi.org/10.2308/horizons-2023-014","url":null,"abstract":"\u0000 Auditing researchers rarely engage practicing auditors regarding the phenomena examined, or conclusions reached, in academic research. In an attempt to bridge this gap, we report on the outcomes, insights, and observations from focused interactions with Dutch audit practitioners regarding their perspectives on recent research regarding auditor going concern opinion (GCO) decisions. We provided practitioners with a summary of some of the most salient recent GCO research findings. The goals of our subsequent discussions were to (1) obtain practitioners’ responses to the research findings, and (2) identify relevant issues for future study from the perspective of practitioners. Accordingly, in this second of a two-part sequence of articles, we discuss the outcomes of our interactions with practitioners related to the GCO reporting environment and the GCO decision-making process, as well as directions for future research.\u0000 JEL Classifications: M42.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45467446","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2020-172
Jacquelyn Sue Moffitt, Jeanne-Claire Alyse Patin, Luke Watson
SYNOPSIS We consider how corporate environmental, social, and governance (ESG) performance relates to the strength of the internal control environment. The transparent reporting hypothesis predicts that high ESG performance signals ethical decision making and/or strong financial performance, both of which manifest in a stronger internal control environment and, therefore, fewer material weaknesses in internal controls. We find that ESG performance is negatively related to the likelihood of general internal control weaknesses, consistent with transparent reporting. We also find that ESG performance is negatively related to company-level internal control weaknesses, which are considered relatively severe. Further, we find that ESG performance is negatively associated with specific internal control weaknesses that indicate a lack of ethical tone at the top. We find support for both ethical and performance explanations behind the transparent reporting hypothesis. Overall, our results suggest that ESG performance is positively associated with the strength of the internal control environment. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M14; M40; M42.
{"title":"Corporate Environmental, Social, and Governance (ESG) Performance and the Internal Control Environment","authors":"Jacquelyn Sue Moffitt, Jeanne-Claire Alyse Patin, Luke Watson","doi":"10.2308/horizons-2020-172","DOIUrl":"https://doi.org/10.2308/horizons-2020-172","url":null,"abstract":"SYNOPSIS We consider how corporate environmental, social, and governance (ESG) performance relates to the strength of the internal control environment. The transparent reporting hypothesis predicts that high ESG performance signals ethical decision making and/or strong financial performance, both of which manifest in a stronger internal control environment and, therefore, fewer material weaknesses in internal controls. We find that ESG performance is negatively related to the likelihood of general internal control weaknesses, consistent with transparent reporting. We also find that ESG performance is negatively related to company-level internal control weaknesses, which are considered relatively severe. Further, we find that ESG performance is negatively associated with specific internal control weaknesses that indicate a lack of ethical tone at the top. We find support for both ethical and performance explanations behind the transparent reporting hypothesis. Overall, our results suggest that ESG performance is positively associated with the strength of the internal control environment. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M14; M40; M42.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"71 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136310103","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2022-131
Scott A. Emett, Marc Eulerich, Katherine Lovejoy, Scott L. Summers, David A. Wood
SYNOPSIS We designed, implemented, and evaluated a curriculum that trains accounting students and professionals in process mining, an important emerging technology that is not extensively taught in most degree programs. We partnered with a leading provider of process mining software to create the “Process Mining Audit Professional Badge.” The badge’s curriculum combines modules focused on generic process mining skills and modules focused on process mining applications in auditing settings. In 22 months, 1,532 individuals completed the curriculum. Learners were highly satisfied with the training, ranked it among the most effective training modalities they had experienced, and perceived that they learned a great deal about both process mining and the auditing process. We demonstrate an approach to developing materials on emerging technologies that is perceived as useful by learners. If adopted more broadly, the approach could facilitate curricular integration of skills demanded by the profession.
{"title":"Bridging the Digital Skills Gap in Accounting: The Process Mining Audit Professional Curriculum and Badge","authors":"Scott A. Emett, Marc Eulerich, Katherine Lovejoy, Scott L. Summers, David A. Wood","doi":"10.2308/horizons-2022-131","DOIUrl":"https://doi.org/10.2308/horizons-2022-131","url":null,"abstract":"SYNOPSIS We designed, implemented, and evaluated a curriculum that trains accounting students and professionals in process mining, an important emerging technology that is not extensively taught in most degree programs. We partnered with a leading provider of process mining software to create the “Process Mining Audit Professional Badge.” The badge’s curriculum combines modules focused on generic process mining skills and modules focused on process mining applications in auditing settings. In 22 months, 1,532 individuals completed the curriculum. Learners were highly satisfied with the training, ranked it among the most effective training modalities they had experienced, and perceived that they learned a great deal about both process mining and the auditing process. We demonstrate an approach to developing materials on emerging technologies that is perceived as useful by learners. If adopted more broadly, the approach could facilitate curricular integration of skills demanded by the profession.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"625 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135299036","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2023-004
Joseph F. Brazel, Tina Carpenter, Christine Gimbar, J. Gregory Jenkins, Keith L. Jones
SYNOPSIS The financial statement auditor’s identification of fraud risk factors, their assessment of fraud risk, and their fraud risk responses are key to the auditor’s consideration of fraud and fraud detection. Given that the last review of research related to the search for fraud during the audit occurred nearly a decade ago, we provide a summary of recent academic research to update and inform practitioners, researchers, standard setters, regulators, and other stakeholders in the financial reporting process. We categorize and summarize findings from recent academic studies that focus on the auditor’s identification, assessment, and responses to fraud risks. Implications for practice are presented for each of these areas, along with topics and questions for future research. JEL Classifications: M40; M41; M42; M48.
{"title":"Recent Research on the Identification, Assessment, and Response to Fraud Risks: Implications for Audit Practice and Topics for Future Research","authors":"Joseph F. Brazel, Tina Carpenter, Christine Gimbar, J. Gregory Jenkins, Keith L. Jones","doi":"10.2308/horizons-2023-004","DOIUrl":"https://doi.org/10.2308/horizons-2023-004","url":null,"abstract":"SYNOPSIS The financial statement auditor’s identification of fraud risk factors, their assessment of fraud risk, and their fraud risk responses are key to the auditor’s consideration of fraud and fraud detection. Given that the last review of research related to the search for fraud during the audit occurred nearly a decade ago, we provide a summary of recent academic research to update and inform practitioners, researchers, standard setters, regulators, and other stakeholders in the financial reporting process. We categorize and summarize findings from recent academic studies that focus on the auditor’s identification, assessment, and responses to fraud risks. Implications for practice are presented for each of these areas, along with topics and questions for future research. JEL Classifications: M40; M41; M42; M48.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135248637","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2021-115
Lin Wang
SYNOPSIS In large audit firms, interoffice knowledge sharing is embedded in two networks: the branch network, comprising all branch offices, and the client network, formed by similar engagements. Proximity between branch offices may enhance knowledge accessibility, whereas similarity between engagements could impact the relevance of that knowledge. I investigate how the two networks jointly influence the effectiveness of knowledge sharing. I construct client networks based on the similarity of clients’ product offerings and find that clients with greater centrality in the neighboring client network benefit more from knowledge sharing in terms of improved audit quality. I further show that this effect only exists when similar clients in neighboring offices are larger in size and is more salient when there is a gap in expertise between the current auditing office and neighboring offices. By enriching our understanding of interoffice knowledge sharing, these results offer practical insights to auditors, regulators, and audit-report users. Data Availability: Data are available from the data sources indicated in the paper. JEL Classifications: M42.
{"title":"Branch Networks, Client Networks, and Knowledge Sharing in Audit Firms","authors":"Lin Wang","doi":"10.2308/horizons-2021-115","DOIUrl":"https://doi.org/10.2308/horizons-2021-115","url":null,"abstract":"SYNOPSIS In large audit firms, interoffice knowledge sharing is embedded in two networks: the branch network, comprising all branch offices, and the client network, formed by similar engagements. Proximity between branch offices may enhance knowledge accessibility, whereas similarity between engagements could impact the relevance of that knowledge. I investigate how the two networks jointly influence the effectiveness of knowledge sharing. I construct client networks based on the similarity of clients’ product offerings and find that clients with greater centrality in the neighboring client network benefit more from knowledge sharing in terms of improved audit quality. I further show that this effect only exists when similar clients in neighboring offices are larger in size and is more salient when there is a gap in expertise between the current auditing office and neighboring offices. By enriching our understanding of interoffice knowledge sharing, these results offer practical insights to auditors, regulators, and audit-report users. Data Availability: Data are available from the data sources indicated in the paper. JEL Classifications: M42.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"58 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135348380","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2022-069
Beau Grant Barnes, Marc Cussatt, Derek W. Dalton, Nancy L. Harp
SYNOPSIS Partner aspirations (i.e., an employee’s desire to make partner) benefit accounting firms by promoting succession planning and reducing unwanted employee turnover. Further, female partner aspirations are critical for firms striving to achieve gender equity at the partner level. Prior research has begun to examine partner aspirations (e.g., Jones and Iyer 2020); however, little is known about how partner and nonpartner attitudes and values differ regarding the benefits and sacrifices required of the partner track. We survey 224 public accounting professionals (101 partners and 123 nonpartners) to systematically compare partner and nonpartner attitudes and values. By identifying mismatches in perceptions between these two groups, our results direct firm leadership to specific issues most detrimental to partner aspirations. Our comparisons by gender provide further insight into specific issues that firms need to address to increase female partner aspirations.
{"title":"Partner-Track Aspirations in Public Accounting: Comparisons between Partners and Nonpartners","authors":"Beau Grant Barnes, Marc Cussatt, Derek W. Dalton, Nancy L. Harp","doi":"10.2308/horizons-2022-069","DOIUrl":"https://doi.org/10.2308/horizons-2022-069","url":null,"abstract":"SYNOPSIS Partner aspirations (i.e., an employee’s desire to make partner) benefit accounting firms by promoting succession planning and reducing unwanted employee turnover. Further, female partner aspirations are critical for firms striving to achieve gender equity at the partner level. Prior research has begun to examine partner aspirations (e.g., Jones and Iyer 2020); however, little is known about how partner and nonpartner attitudes and values differ regarding the benefits and sacrifices required of the partner track. We survey 224 public accounting professionals (101 partners and 123 nonpartners) to systematically compare partner and nonpartner attitudes and values. By identifying mismatches in perceptions between these two groups, our results direct firm leadership to specific issues most detrimental to partner aspirations. Our comparisons by gender provide further insight into specific issues that firms need to address to increase female partner aspirations.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136173173","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2022-083
Sebastian Oelrich, Nicole Siebold, Klemens Ketelhut
SYNOPSIS Diversity has emerged as a topic of increasing organizational and legislative relevance. Despite forming a burgeoning research field in accounting, little is known about how organizations respond to diversity disclosure legislation. In this paper, we study the introduction of diversity disclosure legislation in the European Union that mandates corporate diversity disclosures, and we analyze how 30 large German companies disclose diversity in their annual reports. Drawing on institutional theory and Oliver’s (1991) seminal work on strategic responses to institutional processes, our analysis reveals four mandatory reporting responses: dismissal, concealment, imitation, and transcendence. Overall, our findings show that although diversity has been institutionalized into organizational environments by the European Union through legislative action, organizational responses vary, from resistance to passive conformity or proactive compliance. With these findings, our study adds to the emergent diversity accounting literature, and we conclude by highlighting implications of our work for policymakers, managers, and researchers. Data Availability: Data are available from the public sources cited in the text.
{"title":"Diversity at Work: Firms’ Strategic Responses to Mandatory Diversity Disclosure","authors":"Sebastian Oelrich, Nicole Siebold, Klemens Ketelhut","doi":"10.2308/horizons-2022-083","DOIUrl":"https://doi.org/10.2308/horizons-2022-083","url":null,"abstract":"SYNOPSIS Diversity has emerged as a topic of increasing organizational and legislative relevance. Despite forming a burgeoning research field in accounting, little is known about how organizations respond to diversity disclosure legislation. In this paper, we study the introduction of diversity disclosure legislation in the European Union that mandates corporate diversity disclosures, and we analyze how 30 large German companies disclose diversity in their annual reports. Drawing on institutional theory and Oliver’s (1991) seminal work on strategic responses to institutional processes, our analysis reveals four mandatory reporting responses: dismissal, concealment, imitation, and transcendence. Overall, our findings show that although diversity has been institutionalized into organizational environments by the European Union through legislative action, organizational responses vary, from resistance to passive conformity or proactive compliance. With these findings, our study adds to the emergent diversity accounting literature, and we conclude by highlighting implications of our work for policymakers, managers, and researchers. Data Availability: Data are available from the public sources cited in the text.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135248442","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-09-01DOI: 10.2308/horizons-2021-134
Jerry R. Strawser
SYNOPSIS This study examines whether the format of audit reports on financial statements and internal control over financial reporting (ICFR) changes in response to the disclosure of one or more material weaknesses in ICFR. The results indicate that (1) reporting format changes are more likely when adverse opinions are issued on ICFR and (2) formats are more likely to change from a combined report to separate reports than vice versa. Supplemental analysis reveals that format changes to separate reports do not result in more favorable market perceptions but do result in marginally lower levels of auditor dismissal/change. These findings indicate that auditors have incentives to acquiesce to client requests to change reporting formats, even though such changes do not result in more favorable market perceptions. Data Availability: Data are available from public resources noted in the text. JEL Classifications: M41; M42.
{"title":"Do Adverse Opinions on Internal Control over Financial Reporting Lead to Changes in Reporting Format?","authors":"Jerry R. Strawser","doi":"10.2308/horizons-2021-134","DOIUrl":"https://doi.org/10.2308/horizons-2021-134","url":null,"abstract":"SYNOPSIS This study examines whether the format of audit reports on financial statements and internal control over financial reporting (ICFR) changes in response to the disclosure of one or more material weaknesses in ICFR. The results indicate that (1) reporting format changes are more likely when adverse opinions are issued on ICFR and (2) formats are more likely to change from a combined report to separate reports than vice versa. Supplemental analysis reveals that format changes to separate reports do not result in more favorable market perceptions but do result in marginally lower levels of auditor dismissal/change. These findings indicate that auditors have incentives to acquiesce to client requests to change reporting formats, even though such changes do not result in more favorable market perceptions. Data Availability: Data are available from public resources noted in the text. JEL Classifications: M41; M42.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"86 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135255339","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-08-23DOI: 10.2308/horizons-2021-150
J. Pruijssers, I. Simac, Marleen Willekens
We examine whether differences in HR systems among audit firms can affect client-level audit outcomes. Based on the audit quality framework of Knechel, Krishnan, Pevzner, Shefchik, and Velury (2013b) and the strategic HRM literature, we posit that audit firms with stronger HR systems are likely to deliver more desired audit outcomes, ceteris paribus. Building on systems theory, we outline and capture a wholistic picture of the audit firm HR system as consisting of three dimensions: competency-, motivation-, and opportunity-enhancing practices. We draw on two distinct data sources for our analyses: a survey allowing us to tap into the HR systems of large audit firms servicing PIE clients in The Netherlands and corresponding client-level archival data to measure audit outcomes. Our results suggest that HR systems are an internal context factor affecting client-level audit outcomes. Supplemental analyses indicate that competency- and opportunity-enhancing HR practices are associated with more desirable audit outcomes. Data Availability: Part of the data are available from the sources cited in text. JEL Classifications: M42; O15.
{"title":"Strength of Audit Firms’ Human Resource Systems and Client-Level Audit Outcomes: Evidence from a Multiple Source Study","authors":"J. Pruijssers, I. Simac, Marleen Willekens","doi":"10.2308/horizons-2021-150","DOIUrl":"https://doi.org/10.2308/horizons-2021-150","url":null,"abstract":"\u0000 We examine whether differences in HR systems among audit firms can affect client-level audit outcomes. Based on the audit quality framework of Knechel, Krishnan, Pevzner, Shefchik, and Velury (2013b) and the strategic HRM literature, we posit that audit firms with stronger HR systems are likely to deliver more desired audit outcomes, ceteris paribus. Building on systems theory, we outline and capture a wholistic picture of the audit firm HR system as consisting of three dimensions: competency-, motivation-, and opportunity-enhancing practices. We draw on two distinct data sources for our analyses: a survey allowing us to tap into the HR systems of large audit firms servicing PIE clients in The Netherlands and corresponding client-level archival data to measure audit outcomes. Our results suggest that HR systems are an internal context factor affecting client-level audit outcomes. Supplemental analyses indicate that competency- and opportunity-enhancing HR practices are associated with more desirable audit outcomes.\u0000 Data Availability: Part of the data are available from the sources cited in text.\u0000 JEL Classifications: M42; O15.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-08-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46539269","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：