TY - BOOK TI - 2018 GAAS guide : a comprehensive restatement of standards for auditing, attestation, compilation, and review AU - Beasley, M.S. AU - Carcello, J.V. DA - 2017/// PY - 2017/// PB - CCH. Inc SN - 9780808046967 ER - TY - JOUR TI - Confronting Risk with Strong Leadership AU - Beasley, Mark S. T2 - CGMA Magazine DA - 2017/5// PY - 2017/5// IS - 1 SP - 14–17 ER - TY - RPRT TI - The State of Risk Oversight: An Overview of Enterprise Risk Management Practices AU - Beasley, Mark S. AU - Branson, B.C. AU - Hancock, B.V. A3 - NC State and AICPA DA - 2017/3/16/ PY - 2017/3/16/ ET - 8th M1 - 8th (2017) PB - NC State and AICPA SN - 8th (2017) UR - https://erm.ncsu.edu/library/research-report/2017-the-state-of-risk-oversight-an-overview-of-erm-practices ER - TY - RPRT TI - 2017 Global Risk Report: Similarities and Differences in Opportunities for Improvement AU - Beasley, Mark S. AU - Branson, B.C. AU - Hancock, B.V. A3 - NC State and CGMA (AICPA in U.S. and CIMA in London) DA - 2017/6/28/ PY - 2017/6/28/ PB - NC State and CGMA (AICPA in U.S. and CIMA in London) ER - TY - RPRT TI - Executive Perspectives on Top Risks for 2018 AU - Beasley, Mark S. AU - Branson, B.C. AU - Pagach, D. AU - Scott, P. AU - DeLoach, J. AU - Donahue, K. A3 - Protiviti DA - 2017/12// PY - 2017/12// PB - Protiviti UR - https://www.protiviti.com/sites/default/files/united_states/insights/nc-state-protiviti-survey-top-risks-2018.pdf ER - TY - JOUR TI - Jumping on the wrong bus: Reflections on a long, strange journey AU - Williams, Paul F. T2 - Critical Perspectives on Accounting AB - This essay is a reflection on my academic career. The strangeness of my career journey is due to the coincidence of my birth: I was born into and grew up in a United States when the New Deal consensus was the prevailing framer of social, political and economic debates, but entered my Ph.D. studies in accounting at the moment that New Deal consensus was being quite forcibly replaced by one shaped by anti – New Deal intellectuals. The resulting Neoliberal revolution has profoundly reshaped American society and is proceeding to reshape others globally. The effect of neoliberalism in Western democracies has been the reshaping of political decision making via colonizing every aspect of economic, social and political life with the framing of market logic. Neoliberalism also profoundly changed the academic discipline of accounting from the one I believed I was entering (the wrong bus I got onto) into one that made me an outsider for my entire academic career. My work has been focused on various aspects of the bad consequences for accounting of that radical change. One of those consequences has been to remove imagination and intellectual playfulness (what little there was) to replace it with a stultifying, dogmatic, methodologically driven system designed mainly to produce politically correct academic reputations. Another consequence has been the stripping of what is essentially a moral discourse (it’s accountability, stupid) of any ethical content in order to create an economically technical discourse (e.g., predicting cash flows) without any proven technical capabilities. DA - 2017/12// PY - 2017/12// DO - 10.1016/J.CPA.2017.10.004 VL - 49 SP - 76-85 J2 - Critical Perspectives on Accounting LA - en OP - SN - 1045-2354 UR - http://dx.doi.org/10.1016/J.CPA.2017.10.004 DB - Crossref KW - Accountability KW - Critical KW - US academy KW - Sociology of science ER - TY - CONF TI - Speculations about the implications of the Pathways Commission Vision for how we understand accounting AU - Taylor, E.Z. AU - Williams, P.F. C2 - 2017/4/1/ C3 - Proceedings of the AAA Public Interest Midyear Meeting DA - 2017/4/1/ ER - TY - CONF TI - Speculations about the implications of the Pathways Commission Vision for how we understand accounting AU - Taylor, E.Z. AU - Williams, P.F. C2 - 2017/7// C3 - Proceedings of the Critical Perspectives on Accounting Conference in Quebec City DA - 2017/7// ER - TY - CONF TI - Speculations about the implications of the Pathways Commission for how we understand accounting AU - Taylor, E.Z. AU - Williams, P.F. C2 - 2017/8// C3 - Proceedings of the AAA 22nd Annual Ethics Symposium DA - 2017/8// ER - TY - CONF TI - Judaic Rules and their connection to two fundamental auditing concepts: Materiality and independence AU - Reinstein, A. AU - Sawilowsky, S. AU - Taylor, E.Z. T2 - American Accounting Association Midwest Region Meeting C2 - 2017/10/27/ C3 - Proceedings of the AAA Midwest Region Meeting CY - Chicago, IL DA - 2017/10/27/ PY - 2017/10/26/ ER - TY - JOUR TI - Propensity Score Matching in Accounting Research AU - Shipman, Jonathan E. AU - Swanquist, Quinn T. AU - Whited, Robert L. T2 - The Accounting Review AB - ABSTRACT Propensity score matching (PSM) has become a popular technique for estimating average treatment effects (ATEs) in accounting research. In this study, we discuss the usefulness and limitations of PSM relative to more traditional multiple regression (MR) analysis. We discuss several PSM design choices and review the use of PSM in 86 articles in leading accounting journals from 2008–2014. We document a significant increase in the use of PSM from zero studies in 2008 to 26 studies in 2014. However, studies often oversell the capabilities of PSM, fail to disclose important design choices, and/or implement PSM in a theoretically inconsistent manner. We then empirically illustrate complications associated with PSM in three accounting research settings. We first demonstrate that when the treatment is not binary, PSM tends to confine analyses to a subsample of observations where the effect size is likely to be smallest. We also show that seemingly innocuous design choices greatly influence sample composition and estimates of the ATE. We conclude with suggestions for future research considering the use of matching methods. Data Availability: All data used are available from sources cited in the text. DA - 2017/1// PY - 2017/1// DO - 10.2308/accr-51449 VL - 92 IS - 1 SP - 213-244 J2 - The Accounting Review LA - en OP - SN - 0001-4826 1558-7967 UR - http://dx.doi.org/10.2308/accr-51449 DB - Crossref KW - propensity score matching KW - endogeneity KW - sample composition KW - research methods ER - TY - JOUR TI - Whistleblowing on Fraud for Pay: Can I Trust You? T2 - Journal of Forensic Accounting Research AB - ABSTRACT The SEC whistleblower bounty program's effectiveness in increasing external reports of illegal acts suggests that employers might increase internal whistleblowing by offering monetary awards. We propose and test a model that explores how monetary incentives affect trust, and ultimately whistleblowing intent, in both high and low retaliation threat environments. Results of a 2 (high/low retaliation threat) × 2 (money/no money) experimental study of 295 U.S. adults confirm that low (high) retaliation threat positively (negatively) relates to whistleblowing intent, mediated by trust. Monetary incentives moderate the relationship between retaliation threat and trust such that when retaliation threat is low, money increases organizational trust, leading to higher whistleblowing intent, but when retaliation threat is high, monetary incentives do not significantly influence trust. We also find that in a high retaliation threat environment with monetary incentives present, intrinsically motivated individuals report significantly lower levels of trust compared to trust levels reported by extrinsically motivated individuals. Our findings help managers understand how and when monetary incentives may be effective in increasing internal whistleblowing. Data Availability: Data are available from the first author. DA - 2017/12// PY - 2017/12// DO - 10.2308/jfar-51723 UR - http://dx.doi.org/10.2308/jfar-51723 ER - TY - JOUR TI - Leveling the playing field for less-sophisticated non-professional investors T2 - Journal of Capital Markets Studies AB - Purpose The purpose of this paper is to explore how non-professional investors (NPIs) with varying levels of financial sophistication interpret and perceive corporate disclosures and management credibility, specifically risk factors, when those disclosures are presented in readable and less-readable formats. Design/methodology/approach The paper uses an online experiment to test hypotheses related to the effects of financial sophistication (measured) and readability (manipulated) on NPIs’ equity valuations and perceptions of management credibility (competence and trustworthiness). Findings Increased readability appears to counteract less-sophisticated NPIs’ conservatism in equity valuations, such that they are not statistically significantly different from more-sophisticated NPIs’ equity valuations. Further, less-sophisticated NPIs judge management as less competent when disclosures are less readable, while more-sophisticated NPIs judge management as more competent when disclosures are less readable. Research limitations/implications The paper has important implications for the SEC’s regulations related to plain English requirements for risk factor and other corporate disclosures. Financial sophistication varies among NPIs, and readability appears to influence these individuals in different ways. Practical implications The SEC’s Concept Release (April 13, 2016) acknowledges the need to update and improve risk factor disclosure regulations. This study provides evidence that contributes to those decisions. Originality/value The paper extends the research on processing fluency, by examining readability of disclosures with a consistent tone (negative). The NPIs surveyed are directly representative of the population of interest for risk factor disclosure regulations. DA - 2017/10/13/ PY - 2017/10/13/ DO - 10.1108/jcms-10-2017-004 UR - http://dx.doi.org/10.1108/jcms-10-2017-004 ER - TY - JOUR TI - When Data Become Ubiquitous, What Becomes of Accounting and Assurance? AU - Borthick, A. Faye AU - Pennington, Robin R. T2 - JOURNAL OF INFORMATION SYSTEMS AB - ABSTRACT Big Data and the data analytical software for analyzing it have developed far enough that some trends have emerged. People are clever. Leave them alone with resources and they will do interesting things with them, giving both intended and unintended consequences. This commentary stems from the 2016 Journal of Information Systems Research Conference (JISC2016) on Big Data. It highlights the landscape of Big Data, including how organizations are starting to use data in different ways. While it is true that some of what this commentary offers does not, strictly speaking, require Big Data with respect to volume, diversity, and structure, the connotations that Big Data bestowed have prompted new ways to stage and use data. For example, “70% of firms now say that big data is of critical importance to their firms” (Malone 2016). The articles in this issue were presented as papers at JISC2016. They treat different aspects of the growing availability and use of data in organizations. DA - 2017/// PY - 2017/// DO - 10.2308/isys-10554 VL - 31 IS - 3 SP - 1-4 SN - 1558-7959 KW - accounting KW - assurance KW - analytic mindset KW - analytics in education KW - Big Data KW - data analytics ER - TY - JOUR TI - Special Section of JIS on AIS and Ethics AU - Taylor, Eileen AU - Daigle, R. J. T2 - Journal of Information Systems AB - Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Share Icon Share Facebook Twitter LinkedIn MailTo Tools Icon Tools Get Permissions Search Site Cite View This Citation Add to Citation Manager Citation Eileen Z. Taylor, Ronald J. Daigle; Special Section of JIS on AIS and Ethics. Journal of Information Systems 1 June 2017; 31 (2): 1–3. https://doi.org/10.2308/isys-10541 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentJournal of Information Systems Search Advanced Search DA - 2017/6// PY - 2017/6// DO - 10.2308/isys-10541 VL - 31 IS - 2 SP - 1–3 UR - http://dx.doi.org/10.2308/isys-10541 ER - TY - JOUR TI - Accounting Information Systems and Ethics Research: Review, Synthesis, and the Future AU - Guragai, Binod AU - Hunt, Nicholas C. AU - Neri, Marc P. AU - Taylor, Eileen Z. T2 - JOURNAL OF INFORMATION SYSTEMS AB - ABSTRACT The rapid evolution of technology and the increasingly integrated nature of Accounting Information Systems (AIS) in business provide opportunities for those who interact with these systems to act unethically. Accountants, as the managers of accounting information systems and gatekeepers of assets, records, and reporting, have a responsibility to understand and address ethical dilemmas related to these responsibilities in their organizations. A summary of AIS and ethics research calls attention to gaps in the literature and provides directions for future research. The ETHOs framework, which categorizes factors as environmental, technological, human, and organizational, provides a model for researchers to examine ethical issues related to the AIS functions of recordkeeping, reporting, and control. DA - 2017/// PY - 2017/// DO - 10.2308/isys-51265 VL - 31 IS - 2 SP - 65-81 SN - 1558-7959 UR - http://dx.doi.org/10.2308/isys-51265 KW - accounting information systems KW - ethics KW - data management KW - judgment and decision making KW - outsourcing KW - privacy KW - security KW - information technology ER - TY - JOUR TI - Audit time pressure and earnings quality: An examination of accelerated filings AU - Lambert, Tamara A. AU - Jones, Keith L. AU - Brazel, Joseph F. AU - Showalter, D. Scott T2 - Accounting, Organizations and Society AB - Using publicly available data from annual reports, we find that SEC rule changes (33-8128 and 33-8644) that impose time pressure on the audits of registered firms have a negative impact on earnings quality, which we interpret as evidence of lower audit quality. Consistent with our predictions, we find that the 10-K accelerations reduced audit quality only when it actually reduced the number of days from year-end to audit report date, and that this effect was more acute for smaller, accelerated filers and during the initial deadline change (relative to the second). We also provide insights into the quality of these audits by conducting a survey of thirty-two retired audit partners. Survey results underscore the challenges time pressure imposes on receiving and evaluating complex valuations (such as for derivatives, pensions, and goodwill) and resolving audit adjustments. DA - 2017/4// PY - 2017/4// DO - 10.1016/j.aos.2017.03.003 VL - 58 SP - 50-66 J2 - Accounting, Organizations and Society LA - en OP - SN - 0361-3682 UR - http://dx.doi.org/10.1016/J.AOS.2017.03.003 DB - Crossref KW - Accelerated SEC filings KW - Audit delay KW - Earnings quality KW - Time pressure ER - TY - JOUR TI - The integration of ERM and Strategy: Implications for corporate governance AU - Viscelli, T. R. AU - Hermanson, D. R. AU - Beasley, Mark T2 - Accounting Horizons AB - SYNOPSIS Since the early 2000s, expectations have increased for organizations to strengthen corporate governance with enterprise risk management (ERM) processes, with the accounting profession playing a major role in these efforts. The ultimate goal of an effective ERM process is to help boards and senior executives to manage risks in the context of strategy so that the organization is more likely to achieve its key objectives. We conduct semi-structured interviews of 15 ERM champions to provide insights about whether the ERM process is integrated with the strategic-planning and execution processes of the firm. We find that while the decision to launch ERM often is based on a desire for ERM to provide strategic value, the integration of ERM with strategy typically is limited. We then examine the ERM implementation process to identify possible ERM implementation practices limiting ERM's integration with strategy. We find that organizations' (1) culture and approach to preparing for ERM's launch, (2) ERM leadership structure, and (3) management of key risks appear to limit the intersection of ERM and strategy. Our summary of key findings highlights important considerations for boards of directors, executive management, and auditors as they assess the effectiveness of their risk oversight efforts in overseeing the strategic direction of the enterprise. DA - 2017/// PY - 2017/// DO - 10.2308/acch-51692 VL - 31 IS - 2 SP - 69–82 ER - TY - JOUR TI - Lies, damn lies, and statistics: Why a widely used sustainability metric fails and how to improve it AU - Bartley, J. AU - Chen, A. AU - Harvey, S. AU - Showalter, S. AU - Zuckerman, G. AU - Stewart, L. T2 - Journal of Applied Corporate Finance AB - Most of the world's major corporations now publicly report their sustainability performance for a number of key parameters, such as water use, greenhouse gas (GHG) emissions, and waste generated. The metrics most often used to track progress are “total inventory” (for example, the total liters of water used, or the total tons of GHGs emitted) and average intensity (total liters of water used per ton of product or per $1 million revenue). Because average intensity is normalized for the company's level of business activity, it is commonly presented and viewed as a measure of the company's actual year‐to‐year efficiency. But average intensity is often not a reliable measure of a company's true performance in sustainability. An improvement in efficiency requires a company to consume fewer resources or generate less waste in delivering a specified unit measure of goods or services. This article demonstrates that, although efficiency directly contributes to average intensity, the measure is influenced by a number of confounding factors that make the change in average intensity a potentially misleading indicator of improvements in efficiency. The authors present a more reliable measure of changes in efficiency—one that is likely to benefit corporate managements as well as users of sustainability data—that makes use of flexible budgeting techniques. Examples are provided that illustrate Bacardi Limited's application of the sustainability efficiency metric for external sustainability reporting. DA - 2017/// PY - 2017/// DO - 10.1111/jacf.12238 VL - 29 IS - 2 SP - 109- ER - TY - JOUR TI - Fences as Controls to Reduce Accountants' Rationalization AU - Reinstein, Alan AU - Taylor, Eileen Z. T2 - JOURNAL OF BUSINESS ETHICS DA - 2017/3// PY - 2017/3// DO - 10.1007/s10551-015-2701-6 VL - 141 IS - 3 SP - 477-488 SN - 1573-0697 UR - http://dx.doi.org/10.1007/s10551-015-2701-6 KW - Ethics KW - Fraud KW - Business and accounting education KW - Internal control KW - Fences ER - TY - JOUR TI - Corporate Sustainability Reporting and Stakeholder Concerns: Is There a Disconnect? AU - Bradford, Marianne AU - Earp, Julia B. AU - Showalter, D. Scott AU - Williams, Paul F. T2 - ACCOUNTING HORIZONS AB - SYNOPSIS The number of companies reporting their corporate sustainability (CS) activities has significantly increased over the last decade. The result being a wide variability in the types of activities being reported and the ways the information is presented. An unanswered question is whether the information being reported by companies following the Global Reporting Initiative (GRI) CS framework is of interest to arguably one of the primary stakeholder groups, customers. Our study seeks to fill this knowledge gap by comparing the content of CS reports to results from a large-scale consumer stakeholder survey. By performing factor analysis on stakeholder evaluation of the importance of CS activities, we find that consumers see different dimensions than those put forth by the GRI framework, thereby suggesting a disconnect between corporate sustainability reporting and stakeholder views and interests. Our results indicate that risk and compliance are dimensions of interest to customers, while the GRI economic dimension is not viewed as important. Additionally, a new dimension of social justice is the most important to consumer stakeholders. Furthermore, the study highlights particular activities within each factor that are most important to the consumer stakeholder group. This research has implications for preparers of sustainability reports and organizations, such as the GRI, that establish guidance for sustainability reporting. DA - 2017/3// PY - 2017/3// DO - 10.2308/acch-51639 VL - 31 IS - 1 SP - 83-102 SN - 1558-7975 KW - corporate sustainability KW - Global Reporting Initiative KW - sustainability reporting KW - stakeholder theory KW - content analysis KW - survey KW - factor analysis ER - TY - JOUR TI - How to Effectively Integrate Professionally Oriented Faculty to Achieve the Department's Mission AU - Showalter, D. Scott AU - Bodtke, James T2 - ISSUES IN ACCOUNTING EDUCATION AB - ABSTRACT The purpose of this commentary is to describe the successful assimilation of Professionally Oriented Faculty into the department of accounting through the use of the Pathways Commission Professionally Oriented Faculty Integration Principles. Further, building upon the Integration Principles, we provide recommendations for attracting and retaining Professionally Oriented Faculty. We accomplish this by describing the varied journeys of six different Professionally Oriented Faculty as compared with the POF Integration Principles. We also summarize the Professionally Oriented Faculty Integration Principles and encourage adoption by member institutions of these principles with an affirmative statement. DA - 2017/5// PY - 2017/5// DO - 10.2308/iace-51590 VL - 32 IS - 2 SP - 39-46 SN - 1558-7983 KW - professionally oriented KW - paths leading to academia KW - instruction by professionally oriented faculty KW - professionally oriented faculty integration principles KW - institutional conditions and trends affecting accounting education KW - attracting professionally oriented faculty ER - TY - JOUR TI - Do Auditor Advocacy Attitudes Impede Audit Objectivity? AU - Pennington, Robin AU - Schafer, Jennifer K. AU - Pinsker, Robert T2 - JOURNAL OF ACCOUNTING AUDITING AND FINANCE AB - Biased evaluation of evidence exists when an auditor either over-emphasizes evidence that supports management assertions or over-emphasizes evidence against management assertions. This study examines if an auditor’s advocacy attitudes lead to bias in information search for audit evidence. We measure the range of advocacy attitudes of individual auditors and hypothesize that auditors at either end of the advocacy spectrum may impede the objectivity of evidence gathered. Results from 60 Big 4 auditors indicate that advocacy attitudes affect both initial judgments and consequent search strategies of auditors. When initial judgments are client-favorable, all auditors exhibit search strategies focused on finding evidence to take a more conservative position; however, when initial judgments represent an unfavorable client position, auditors with lower advocacy attitudes exhibit a stronger tendency to search for additional evidence against a client-favorable position, consistent with a confirmation bias. Conversely, auditors with more neutral attitudes plan a more objective search effectively mitigating the bias. Aggregate findings establish an important link between bias and information search that may manifest itself in auditor training procedures and be of interest to auditing regulators. DA - 2017/1// PY - 2017/1// DO - 10.1177/0148558x16641862 VL - 32 IS - 1 SP - 136-151 SN - 2160-4061 KW - attitudes KW - planned search KW - advocacy ER -