bluuebunny/crossref_metadata_2025 huggingface dataset:
A three‐dimensional perspective of total quality management
Authors: Lau R.S.M. , Anderson C.A.
Published: July 2002

Total quality management (TQM) is not a unique single program, but rather a combination of many linked concepts. While TQM requires a company‐wide approach and support, the application of TQM can vary depending on the level of management and company function involved. This paper offers a three‐dimensional perspective of TQM, including the philosophical, strategic, and measurement dimensions, that together will comprise all essential concepts for TQM. Most management and literature today emphasise only the philosophical dimension of TQM. This paper suggests that all levels of management need to do more than embrace the philosophy of TQM and all three dimensions of TQM must be harmoniously blended and thoroughly considered for TQM to succeed.
Quality management systems certification: a survey
Authors: Bryde David J. , Slocock Brian
Published: July 2002

Describes research into attitudinal differences between small‐sized and medium/large‐sized organisations towards the benefits/limitations of obtaining certification for a quality management system (QMS) and differences between small‐sized and medium/large‐sized organisations in terms of the pressures driving organisations to seek certification. Presents details of prototype model building of characteristics of organisations either positive or negative towards a certified QMS approach. Fifty organisations were surveyed using a postal questionnaire. Finds some evidence of smaller‐sized organisations having more negative attitudes to QMS certification than medium/large‐sized organisations. Finds both small‐sized and medium/large‐sized organisations attach importance to internal reasons (i.e. a desire to improve internal efficiency) and external reasons (i.e. pressure from customers) in influencing the decision to seek certification. Suggests small‐sized manufacturing companies currently in the process of seeking certification are more likely to fit the model profile of organisations hostile to the QMS certification approach.
An application of quality function deployment to industrial training courses
Authors: Franceschini Fiorenzo , Terzago Marco
Published: July 2002

The aim of this paper is to describe all activities needed to develop an industrial training course using quality function deployment (QFD). The application of QFD referred to industrial training courses is strictly connected to the efforts for a total quality management (TQM) approach of training centers. Practical effects of this new methodology are finally shown on a real case concerning the design of an industrial training service.
Between a rock and a hard place: some dilemmas for smaller component suppliers
Authors: Oakes Ian , Lee Gloria
Published: July 2002

This paper highlights some of the issues faced by smaller manufacturing firms attempting to remain competitive in the face of supply chain rationalisation. It is argued that rather than following the holistic templates of change adopted by many larger firms, the approach of smaller component suppliers tends to involve more partial, short term solutions. Three dilemmas for smaller firms are identified and the experiences of a Best Practice Network of component suppliers illustrate some of the ways in which companies down the supply chain attempt to remain competitive, in the face of rationalisation driven by original equipment manufacturers.
The diffusion of quality in Australian manufacturing
Authors: Mandal P. , Shah K. , Love P.E.D. , Li H.
Published: July 2002

Previous surveys on quality management have shown that increasingly firms in Australia are adopting and implementing quality control tools and a total quality management philosophy. This paper attempts to determine the effectiveness of quality initiatives that have been implemented and integrated within Australian manufacturing firms. The authors used a combination of questionnaire surveys and interviews to gather information from quality professionals about the different types of quality tools being implemented by firms. The findings of this study are compared with other national and international surveys. A major finding of this study is that the trend of quality initiatives being implemented has been increasing since the early 1980s and the increase is observed in all functional areas of manufacturing. In addition, it reported that manufacturing firms are more conscious about quality and customer satisfaction than ever before. This paper attempts to establish relationships between the adoption of quality initiatives and its benefits with respect to reducing rejects and labour disputes, and increasing revenue.
Field failure database of CNC lathes
Authors: Wang Yiqiang , Jia Yazhou , Yu Junyi , Yi Shangfeng
Published: July 2002

To assess and improve the reliability of computerized numerical control (CNC) lathes, it is essential to collect field failure information throughout the products’ life and perform analysis on these data. This paper describes the collection of field failure data, codification of data and establishment of the field failure database for CNC lathes and gives some examples of the kind of analysis possible when sufficient data have been collected and the database has been accrued.
Quality and complexity – lessons from English higher education
Authors: Hewitt Fred , Clayton Marlene
Published: July 2002

Debate over the extent to which commercially derived concept and practices of quality can be applied to English higher education has continued unresolved for more than a decade. An obstacle to progress is the lack of consensus on the purpose of the higher education system – with views ranging from the utilitarian response to economic needs to the liberal idealist focus on learning for learning’s sake. Likewise, there are divergent opinions on the roles of individual stakeholders within the system. These differences and uncertainties persist and are evident in a detailed empirical “Voice of the Stakeholder” investigation of a specific degree programme. However, there is also some evidence, at both local and national level, that the differences may be reconcilable and that a model of educational quality, different from but capable of being related to commercial models is beginning to emerge. Such a model focuses on education as an interactive process, allows multiplicity of purpose and accepts the possibility of individual actors in the process simultaneously playing multiple roles. As quality theory continues to evolve, there is the interesting prospect that the higher education experience may have advanced that theory rather than proved its limitations.
Eupsychian management and the millennium
Authors: Payne Roy L.
Published: July 2002

The article introduces the Utopian vision of managing people at work described in Abraham Maslow’s book Eupsychian Management. This essentially foresees a time when organizations are managed by self‐actualising people along lines which would encourage the self‐actualisation of people from all levels of the organization. Maslow’s vision was that this would lead to really effective organizations and a much improved society. The article considers how far such movements as quality of working life, TQM, empowerment and autonomous working groups have moved us towards this sort of management practice. There are definite moves in this direction but considerable constraints on making the practice universal, even though there is growing empirical evidence that positive human resource practices lead to improved efficiency and effectiveness.
The Islamic work ethic as a mediator of the relationship between locus of control, role conflict and role ambiguity – A study in an Islamic country setting
Authors: Yousef Darwish A.
Published: July 2002

The article examines the potential mediating role of the Islamic work ethic between locus of control, role conflict and role ambiguity. The study uses a sample of 397 employees in a variety of manufacturing and service organizations in an Islamic country, the United Arab Emirates. The results of correlational analysis and regression models suggest that the Islamic work ethic is related to locus of control. Furthermore, the results of a series of regression models indicate that the Islamic work ethic mediates the relationship between locus of control and role ambiguity. On the other hand, the results point out that the Islamic work ethic does not mediate the relationship between locus of control and role conflict. Results further point out that there is a significant correlation between the Islamic work ethic and role ambiguity. Limitations, lines of future research, implications and contributions are discussed.
Perceptions of Japanese organizational culture‐Employees in non‐unionized Japanese‐owned and unionized US‐owned automobile plants
Authors: Li‐Ping Tang Thomas , Kim Jwa K. , O’Donald Debra Ann
Published: July 2002

Examines the Japanese management philosophy in organizations, and develops a 15‐item, four‐factor (family orientation and loyalty, open communication, team approach, and manager knowledge) Japanese organizational culture scale (JOCS). Investigates the differences in JOCS and other work‐related variables between 156 non‐unionized employees of one Japanese‐owned automobile plant and 144 unionized employees of one US‐owned automobile plant in the USA. There were no differences in income and education. Employees in the Japanese‐owned plant had higher scores for family orientation and loyalty, open communication, team approach, manager knowledge, organizational commitment, organization‐based self‐esteem, organizational instrumentality, intrinsic satisfaction, and extrinsic satisfaction than those in the US‐owned plant. Results are discussed in light of organizational culture and enhancing quality and productivity in the global competitive market.
Board assessments of managerial performance
Authors: Schaffer Bryan S.
Published: July 2002

One of the primary responsibilities of a board of directors is to assess management practices and to make sure that the organization is being run in a fashion that is consistent with the interests of shareholders. This responsibility becomes especially important when the firm is performing suboptimally. The current paper integrates corporate governance theory with attribution theory to examine the processes by which board members attribute poor firm performance to either external or internal causes. A framework is presented that suggests that inside directors and outside directors differ significantly in the constraints they face and in the ultimate attributions they make. Facing primarily social constraints, such as loyalty to the CEO and fear of retaliation, inside directors are more likely to consistently attribute poor performance to industry or environmental factors, as opposed to top management. Facing primarily cognitive constraints, outside directors will use specific informational cues to attribute poor performance either to industry/environmental factors or to top management. Implications and suggestions for future research are provided.
Research note
Authors: Ragazzoni Paola , Baiardi Paola , Zotti Anna Maria , Anderson Neil , West M.
Published: July 2002

Innovation has long been an area of interest to social scientists, and particularly to psychologists working in organisational settings. The team climate inventory (TCI) is a facet‐specific measure of team climate for innovation that provides a picture of the level and quality of teamwork in a unit using a series of Likert scales. This paper describes its Italian validation in 585 working group members employed in health‐related and other contexts. The data were evaluated by means of factorial analysis (including an analysis of the internal consistency of the scales) and Pearson’s product moment correlations. The results show the internal consistency of the scales and the satisfactory factorial structure of the inventory, despite some variations in the factorial structure mainly due to cultural differences and the specific nature of Italian organisational systems.
The Russian entrepreneur: characteristics and prescriptions for
success
Authors: Hisrich Robert D. , Grachev Mikhail V.
Published: July 2002

Even though entrepreneurship and new venture creation is extremely
important to the future market orientation of the new Russia, there is
little information on the state of entrepreneurship in the country.
Based on a review of previous literature on Russian entrepreneurs, a
survey of Russian entrepreneurs and the new ventures created was
undertaken. Results indicate that entrepreneurs are indeed operant in
the new Russia and with better infrastructure support, could have an
even greater impact on the market‐oriented movement of the country.
Women′s view of pubs: a study of methods
Authors: Schmidt Ruth , Sapsford Roger
Published: July 2002

Customers′ experience of service encounters remains an area blessed
with a rich folklore but little fundamental understanding. Reports on a
pilot study for an exploration of women′s experiences of public houses,
which used idiographic methods on a small sample of middle‐class women:
role repertory grids, “critical‐incident” questionnaires,
individual comparatively unstructured interviews and group
“focus” interviews. Group interviews were most useful for
coming quickly to a consensus picture, and the critical incident
questionnaires allowed extreme examples of good and bad practice to be
explored. The other two methods produced rich data on the variations
within and between women′s experiences. Concludes that there is
considerable variation in what women are looking to find in pubs, but
that they agree on their dislike of male‐dominated atmospheres in which
they are harassed or made to feel unwelcome.
Stress and the new contract for general practitioners
Authors: Sutherland Valerie J.
Published: July 2002

The impact of a major organizational change on general
practitioners in the UK was assessed using a postal questionnaire during
July‐August 1990. The results were compared with those obtained in a
previous survey in November 1987. A total of 917 (61 per cent response
rate) general practitioners completed the questionnaire measuring
aspects of the job causing stress, job satisfaction and mental
wellbeing. Compared with 1987, doctors in 1990 experienced significantly
decreased levels of job satisfaction and reported levels of somatic
anxiety and depression were higher. The stress associated with the
demands of the job and patients′ expectations, practice administration
and routine medical work, role stress and the use of social support as a
coping strategy were the strongest predictors of job dissatisfaction and
poor psychological wellbeing.
New developments in developing creativity
Authors: Jalan Amitabh , Kleiner Brian H.
Published: July 2002

Argues that with increasing global competition it has become of
utmost importance for organizations to address business issues
creatively. Creativity is best defined as the degree to which an
employee demonstrates new ideas or applications for activities and
solutions at work. Risk taking is an integral part of the creative
process. There are obstacles to the full development of the creative
potential of both organizations and individuals. These obstacles can be
overcome with various exercises suggested by psychologists. New
developments in developing creativity that have become popular in recent
years include: the brain skill management programme; use of Fisher
association lists; game‐playing in small groups; and establishing a
reward‐for‐creativity programme in organizations. It is equally
important to implement the proposed solution to determine its
effectiveness for solving organizational problems.
Management in the 1990s
Authors: Chow Wing S. , Luk Vivienne W.M.
Published: July 2002

Examines the managerial attitude of women managers in China and Hong Kong. Measures particularly their preference of managerial practices and identifies the key job motivators, vital management skills, and reasons for job promotion. Data were collected by a questionnaire survey method and the results reveal that the general practices of managers in China are not as mature as those in Hong Kong. In job motivation, findings show that Hong Kong women managers view their jobs in terms of career development, whereas the Chinese respondents seek immediate monetary reward. The mutually exclusive findings regarding management skills between these two groups are that Hong Kong managers concentrate on planning and Chinese managers concentrate on directing. However, results disclose that the reasons for job promotion for both groups are similar. In management practices, Hong Kong managers are more assertive than their Chinese counterparts.
A content analysis of codes of ethics in Australian enterprises
Authors: Farrell Brian J. , Cobbin Deirdre M.
Published: July 2002

Points out that the trend in the USA and the UK to adopt business codes of ethics has been followed in recent years by Australian business organizations. Presents findings from two studies which involved the top 500 Australian enterprises. The first examined the likelihood of code adoption in relation to such variables as organization type, size, income and major activities. The second was concerned with the actual nature of the content to determine whether codes were designed to deal with ethical issues, corporate values and ethical decision skills rather than with management policies and legal issues; and whether a code was in fact a code of ethics as opposed to rules on business etiquette and behaviour.
The changing relationships between work commitment, personal flexibility and employability
Authors: Iles Paul , Forster Annette , Tinline Gordon
Published: July 2002

Suggests that commitment and flexibility have often been identified as important outcomes of HRM practice. However, the relationships between different facets of employee commitment and flexibility have not been extensively studied, while most attention has been given to organizational and labour market flexibility rather than personal flexibility. Argues that flexible organizations require senior managers who display both personal and strategic flexibility. Points out that these qualities are likely to be positively associated with some forms of commitment rather than others, at a time when there is much discussion about employability and the changing nature of psychological contracts. Presents an evaluation of a major senior manager development programme in a UK National Health Service region which was designed to enhance organizational and personal flexibility. Puts forward evidence on its impact on various facets of employee commitment, using a longitudinal/control group research design.
The information audit
Authors: Swash G.D.
Published: July 2002

Identifies the role of information in a business environment and highlights the problems which may arise from failures in the management of corporate information resources. Introduces the concept of the information audit as a fundamental management tool to identify what information resources exist and the problems arising from gaps, bottlenecks and the duplication in its provision. Discusses the problems such a survey may encounter and the potential benefits arising from a successful implementation. Emphasizes the critical issues of senior management support for the project and the need to align the investigation and the results to strategic objectives. Concludes that the primary purpose of the information audit is to act as a catalyst for organizational change and improvements in the use of information as a corporate asset.
Expatriate culture shock in China: a study in the Beijing hotel industry
Authors: Kaye Marianna , Taylor William G.K.
Published: July 2002

Explores the occurrence of culture shock in the population of expatriate managers working in the joint venture hotels in Beijing, China. In particular, seeks to gauge the importance of a variety of factors that might influence the level of culture shock. Proposes a model which envisages culture shock as determined by situational factors and by the level of inter‐cultural sensitivity of an expatriate. In turn, the level of inter‐cultural sensitivity is seen as a function of biographical factors and cross cultural training. The findings demonstrate a strong inverse relationship between inter‐cultural sensitivity and culture shock. Training before and/or after arrival in China is received by only a small minority of expatriates but is associated with a higher level of inter‐cultural sensitivity. Among situational factors, a managerial emphasis on motivating employees is associated with lower culture shock. A surprising finding is the tendency for Asian expatriates to experience greater culture shock for a given level of inter‐cultural sensitivity. Outlines implications for personnel policy in selecting expatriate managers.
Towards a model of international research teams
Authors: Nason Stephen W. , Pillutla Madan M.
Published: July 2002

Many, if not most, academic researchers interested in international business have worked on teams made up of individuals from many different countries. Ironically, there has been little research attempting to explain the unique dynamic of such teams and their advantages and disadvantages. The goal of this paper is to develop a model of international academic research teams with an aim towards understanding how they can be managed more effectively. We highlight some of the important variables that affect team functioning and discuss their relationships with both antecedents and outcomes. Specific propositions are developed and their implications are discussed.
Top team processes: does 6 + 2 = 10?
Authors: Higgs Malcolm , Dulewicz Victor
Published: July 2002

This paper reports on the development of a questionnaire designed to measure the process aspects of the board as a working group. This initial study has been conducted among senior management teams due to the difficulty in gaining access to a sufficiently large sample of board teams at this development stage. The questionnaire was designed as one part of an investigation into standards of competence of boards of directors (Dulewiczet al. 1995; Institute of Directors, 1995). The questionnaire was distributed to the members of 54 “top teams”. A factor analysis of the response identified 12 main dimensions of group process. Reliability measures of these dimensions, which proved to be acceptable, are also reported. Finally, results of correlations between these 12 measures and three measures of group performance, derived from the team performance questionnaire, showed that the 12 process measures are significantly related to performance, and so have some validity.
The demographics of occupational stress among police superintendents
Authors: Kirkcaldy Bruce , Brown Jennifer , Cooper Cary L.
Published: July 2002

The relationship between diverse demographic variables and the occupational stress indicator subscales (Cooper et al., 1988) were examined among several hundred UK senior police officers. Officers who prior to their promotion to superintendent had spent most of their time within the criminal detective branch displayed the highest Type A behaviour (aggressive, dominant and assertive), and traffic officers the worst subjective reports of psychological and physical health. Superintendents whose present role is in the CID displayed the highest level of job satisfaction. There was some indication that women senior police officers used stress‐coping techniques ‐ particularly task strategies and home‐work ‐ more frequently than did men; otherwise no gender differences were found in terms of the other scales of job stress and satisfaction. Marital status was related to Type A behaviour and coping techniques, and parenthood with job‐related pressure and job satisfaction. More specifically, parents reported less stress in the home‐work interface than non‐parents, and were more likely to report more satisfaction in the organisational structure of the police service. The impact of tenure on “controllability” and Type A was moderated by police rank, that is, ambitiousness was significantly negatively correlated with tenure for superintendents but not so for chief‐superintendents. Finally, educational qualifications/ level was related to job satisfaction. Overall job satisfaction (especially satisfaction with personal relationships at work as well as satisfaction with the organisational structure) was lowest for the most highly educated personnel (recipients of a higher degree).
Building balanced scorecard with SWOT analysis, and implementing “Sun Tzu’s The Art of Business Management Strategies” on QFD methodology
Authors: Lee S.F. , Sai On Ko Andrew
Published: July 2002

Conjoining the SWOT matrix with the balanced scorecard (BSC) makes a systematic and holistic strategic management system. The SWOT matrix clearly identifies the critical success factors that can be implemented into the identification of the different aspects toward the balanced scorecard. It is, therefore, a more structural approach in setting up the foundation of the balanced scorecard; instead of simply identifying the “key performance indicators” (KPI) via gut feeling or by brainstorming. The next step of the whole process is to make use of the quality function deployment (QFD) methodology with the balanced scorecard (BSC) attributes identified as the “Whats” on the vertical axis, and the major strategies of “The Art of Business Management” Sun Tzu’s as the horizontal “Hows” axis. The relationships are then studied in the body of the QFD matrix. Consideration is then given as to how the model presented can be customised to allow companies using this approach to develop and implement their corporate business strategic plan.
Auditor liability to third parties: an international focus
Authors: Pacini Carl , Hillison William , Sinason David
Published: July 2002

Examines the legal environment of the UK, Canada, Australia, New Zealand and the USA with respect to auditor liability. Provides an understanding of the legal risks to accountants associated with third‐party uses of audited financial statements by contrasting accounting liability for negligent misrepresentation in various US settings with those of the four other nations. Liability pressure has been very acute and litigation in the five countries has increased. Evidence supports a trend towards limiting third‐party liability to accountants.
Turnbull – generating undue expectations of the corporate governance role of audit committees
Authors: Zaman Mahbub
Published: July 2002

Reviews the Turnbull Report, outlining the key recommendations and discussing some of its implications, particularly the increasing emphasis on a broader corporate governance role for audit committees.
Structure versus judgement in the audit process: a test of Kinney’s classification
Authors: Smith Malcolm , Fiedler Brenton , Brown Bruce , Kestel Joanne
Published: July 2002

Sullivan suggests that the alternative audit approaches adopted by accounting firms be expressed in terms of “structure” and “judgement”, with a division provided by the degree to which auditor judgement is replaced by structured quantitative algorithms. Cushing and Loebbecke attempt to operationalise this division by examining the guidance provided to practising auditors by their firms. Kinne extends this study by classifying accounting firms as “structured”, “intermediate” or “unstructured” in terms of their audit methodologies. Provides a test of Kinney’s classification by examining the tolerance of accounting firms to accounting policy choices which have an income effect in their clients’ financial statements. Argues that those firms with a structured audit approach will manage audit risk through a greater reliance on mechanistic procedures, resulting in a greater tolerance of income manipulation. The results are confirmatory for the period under study, but evidence is provided to suggest that audit firms have subsequently become less diversified in their approach.
A critical evaluation of the effect of participation in budget target setting on motivation
Authors: Reid Pamela
Published: July 2002

This paper critically evaluates the effect of participation in budget target setting in an effort to increase the probability of an organisation’s goals being achieved and, in so doing, considers some of the numerous theories of motivation. Such theories include Maslow through to equity and expectancy theories. However, given that there are a multiplicity of variables at work here, the author concludes that the effect of participation is situation specific and dependent upon such variables: there is no “perfect” budgeting system.
The OECD Convention and bribery in international business transactions: implications for auditors
Authors: Pacini Carl , Swingen Judyth , Rogers Hudson
Published: July 2002

The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions went into force in February 1999. This article defines the extent and consequences of bribery, describes the adoption and analyzes the major provisions of the OECD Convention, with a special emphasis on Article 8, which contains accounting and auditing provisions, and its implications for auditing. It also analyzes the role of the Convention in promoting transparency and accountability in financial reporting.
Professional Values and the Ethical Perceptions of Internal Auditors
Authors: Ziegenfuss Douglas E. , Singhapakdi Anusorn
Published: July 2002

Examines the influence which the Institute of Internal Auditors′ Code of
Ethics has on its members′ ethical perceptions. Also determines whether
this influence is greater than members′ personal moral philosophies
(i.e. idealism and relativism), and corporate ethical values. Data for
the study were obtained by questionnaires sent to 1,000 members of the
Institute of Internal Auditors, located in the Southeastern United
States. The results generally indicate that professional values, as
operationalized by the members′ use of the code of ethics, influence
their perceptions of ethical problems in a positive way. However, no
significant linkages were found to exist between the internal auditors′
personal moral philosophies or corporate ethical values and their
perceptions of ethical problems.
Internal Audit: An Australian Profile
Authors: Cooper Barry J. , Leung Philomena , Mathews Clive
Published: July 2002

Describes a recent study of internal audit in Australia which was drawn
from surveys of the chief executives and internal audit managers of a
wide range of organizations in the private and public sectors. The
response from chief executives was a very positive one and there was
strong support for a number of concepts including a positive perception
of the profile of internal audit, the usefulness of internal audit as a
training ground for managers, and the need for internal audit as a means
of improving the operational efficiency of organizations. However,
despite the high status of internal audit acknowledged by chief
executives, there is an apparent misunderstanding of the internal audit
process. This has led to confusion between perceived status and reality.
There appears to be inconsistency among chief executives and internal
audit managers about the areas covered by internal audit. The question
of the role and scope of internal audit within individual organizations
requires clarification by consultation between management and internal
audit departments. The wide range of skills necessary to fulfil
management′s expectations of the internal audit function and the
disparity between individual internal audit managers on a number of
issues, leads us to the question of whether an internal audit profession
does in fact exist. While it is apparent from the survey that there are
a number of fundamental issues confronting internal audit in Australia,
the underlying support for internal audit is nevertheless encouraging.
Auditors′ reporting decisions for accounting estimates
Authors: Kaplan Steven , Reckers Philip M.J.
Published: July 2002

The dangers of management bias and the resulting increased need for
auditors to be cognizant of environmental characteristics may be
particularly acute in the area of accounting estimates. Accounting
estimates pose relatively unique auditing problems because it is an area
where management has significant discretion (to set estimates) and there
is limited ability to apply traditional accounting controls. Thus
auditors have difficulty obtaining conclusive evidence to challenge
management′s estimates. Research examining auditors′ accounting estimate
judgments, however, has been scant, especially with regard to the
relationship of auditors′ assessment of materiality and risks of
fraudulent financial reporting. Reports the results of an empirical
study examining the reporting decisions of audit seniors and audit
managers related to a client′s decision to change four accounting
estimates relative to the prior year. The auditor′s task was to review
the changes and to indicate whether audit adjustments proposed by the
audit staff were necessary to preserve an unqualified opinion. Three
environmental red flags related to management lifestyle, bonus
compensation programme and internal audit department strength were
manipulated between subjects. The results indicated that the direct
effect of the red flags on reporting decisions was limited. The findings
provided greater support for an indirect model. In the indirect model,
red flags affected auditors′ assessments of management intent, which, in
turn, influenced auditors′ reporting decisions in combination with
assessed materiality and level of auditor experience.
Reporting on the entity′s control structure:
Authors: Vanasco Rocco R. , Skousen Clifford R. , Verschoor Curtis C.
Published: July 2002

Professional accounting associations in various countries and
governmental and other quasi‐official bodies have played an important
role not only in the evolution of internal control reporting on a global
scale, but also in educating management, investors, financial
institutions, accountants, auditors, and other interested parties
highlighting the pervasiveness of the effects of a sound internal
control structure in corporate reporting as well as other aspects of an
organization′s success. These associations include the Institute of
Internal Auditors (IIA), the American Institute of Certified Public
Accountants (AICPA), the General Accounting Office (GAO), the Securities
and Exchange Commission (SEC), the Cadbury Committee, the Institute of
Chartered Accountants of England and Wales (ICAEW), the Scottish
Institute of Chartered Accountants (SICA), the Canadian Institute of
Chartered Accountants (CICA), and others. Business failures, management
fraud, corporate misconduct, international bribery, and notorious
business scandals in all sectors of business have prompted the US
government to take drastic action on internal control reporting to
safeguard public interest. Several professional and government
committees were formed to study this precarious situation: the Treadway
Commission, the Committee of Sponsoring Organizations (COSO) of the
Treadway Commission, the Packard Commission, the Cohen Commission, the
Adams Commission in Canada, the Cadbury Committee in the UK, and others.
The principal motivation for the changing dynamics has been growing
public pressure for greater corporate accountability. The government′s
pressure on the accounting profession and management of public
corporations has been pivotal in spearheading internal control
reporting. Examines the role of professional associations, governmental
agencies, and others in promulgating standards for internal control
reporting, and the impact of legislation on this aspect of internal
auditing in the USA and worldwide.
America′s economic future and the environment
Authors: Kuzmiak Douglas Trevor
Published: July 2002

America has a long history of environmental awareness which evolved as the country grew and changed during the past 300 years. Today, an environmental concern by the people of the country is mainstream and therefore has become an integral part of corporate America. Explores the development, influence and direction of the US environmental movement. Provides background information to help understand why the marketplace is currently responding to the environmental stimulus. Looks at the marketing methods by which the country is expressing this environmental concern and traces the paths taken by those who first advocated the need for an environmental consciousness. Combines historical aspects of the American environmental movement with addressing the growing challenges facing the integration of business and environmental sensitivity.
Testing for bias in the audit committee
Authors: Reinstein Alan , Weirich Thomas R.
Published: July 2002

Establishing an audit committee presumably strengthens the external auditor’s independence. Several studies have examined how audit committees affect the selection of the company’s external auditor, negotiate audit fees and enhance the auditor’s independence. But what of the independence of the audit committee members themselves? Do audit committee members exhibit biases when they select their company’s auditors? The relationship between the entity’s external auditor and the audit committee member’s affiliated company’s auditors has not been examined. For example, are audit committee members prone to select or remain with audit firms with which they have developed a formal relationship within their own company? This study of 247 New York Stock Exchange firms finds significant relationships (at the 0.05 level of significance) between CPA firms selected by audit committees and by the CPA firm which audits the audit committee member’s own organization. Results indicate that audit committee members exhibit conscious or unconscious biases in their selection or retention of their companies’ auditors.
Qualitative characteristics in accounting disclosures: a desirability trade‐off
Authors: Smith Malcolm
Published: July 2002

A number of studies in the USA, UK, Australia and Canada have addressed the evaluation of the usefulness of accounting information and sought to identify criteria for assessing the quality and utility of financial reports (e.g. Institute of Chartered Accountants in England and Wales (1975), Financial Accounting Standards Board (1980), Institute of Chartered Accountants in Scotland (1988), Accounting Standards Board (1991)). The qualitative characteristics viewed as desirable for the fulfilment of the fundamental objective of communicating decision‐useful measurement recognize that all of these characteristics are not simultaneously achievable and that some trade‐off is necessary. Examines the nature of this conflict of objectives and attempts to quantify the extent of the conflict for different user groups.
Game theory and strategic auditing: part I ‐ introduction
Authors: Chau Chak‐Tong
Published: July 2002

Introduces auditors to the power of game theory modelling, a mathematical strategic decision‐making technique that has been popularized by the recent Nobel Prize winner John Nash. The model is demonstrated using both entertaining examples for conceptual understanding and auditing scenarios for practical applications. A collusion model has been developed to illustrate the capability of the game theory model of handling human interactions.
Viewpoint: using the benefits of hindsight ‐ the role of post‐project analysis
Authors: Kransdorff Arnold
Published: July 2002

Argues that while many professional companies use post‐project reviews, internal audits or oralpost mortemsto learn from their own experiences, the problem with all these techniques is that the data and circumstances in which decisions are made are always collected and referred to retrospectively, which makes them susceptible to the characteristic partial and selective memory recall by managers who, after the event, are rarely neutral or objective. Explains how companies can overcome the uncertain nature of accurate memory recall and the defensive reasoning process ‐ and help their managers to use the benefits of hindsight more effectively.
An empirical examination of the influence of the “new” US audit report and fraud red‐flags on perceptions of auditor culpability
Authors: Kneer Dan C. , Reckers Philip M.J. , Jennings Marianne M.
Published: July 2002

In 1988, the US standard form audit report experienced its first major modification in 39 years. Among the objectives of the “new” report were better auditor/user communications leading to, among other things, an abridgement of auditor liability. Nearly a decade later, this issue has yet to be addressed empirically and with rigour. The empirical research reported examines the ability of the “new” audit report to reduce perceptions of auditor responsibility/liability across two instances of alleged audit failure. It is argued that a jurist’s advantage of “perfect hindsight” may mitigate the effectiveness of revised communications contained in the audit report, in instances where audit risk at the time of the audit appears high. Accordingly, consideration of environments of both high and low perceived risk were provided in a behavioural experiment conducted with 81 investors serving as subjects. Findings reveal that the revised audit report language may provide relief for auditor liability, but the presence of red‐flags, or red‐flag related environmental conditions, may exacerbate negative perceptions.
The perceived benefits of certified internal auditor designation
Authors: Myers Patricia M. , Gramling Audrey A.
Published: July 2002

Describes a study conducted to obtain empirical evidence with respect to the nature of the perceived benefits of the Certified Internal Auditor (CIA) designation as they relate to career advantages and perceived competences. A survey comprising 24 questions was mailed to the director of internal audit, the chief financial officer, and a member of the board of directors at each of 200 sample firms. Reveals that CIA designation is perceived to be indicative of a significant level of competence and to provide career advantages in internal audit positions, but generally not important in line management’s acceptance of internal auditors’ recommendations; nor in providing career advantages in non‐internal audit positions.
On the functions and objectives of internal audit and their underlying conditions
Authors: Chun Cai
Published: July 2002

Focuses on the functions and objectives of internal audit and the conditions necessary for them. Believes the basic function of internal audit is a special kind of economic control. In other words, internal audit itself is a special kind of control function over other controls within an organization. In addition, internal audit still has three sub‐functions, i.e. supervision, attestation and evaluation, which are essential to achieving the control function. Internal audit is an integrated part of the process of accountability; its general objective is to ensure and promote the effective performance of accountability assumed by the management of an organization. Identifies three important conditions necessary for achieving the functions and objectives of internal audit: independence, organizational status and objectivity.
Progressive roles of the internal audit function: a case study of BTNI
Authors: Meegan Sarah T. , Simpson Russell
Published: July 2002

Plots the quality journey of BT Northern Ireland (BTNI), which spans the past decade and embraces Total Quality Management, company‐wide registration to ISO 9000 and the all‐encompassing European Quality Model. Emphasizes the opportunities afforded by the internal audit function in achieving such an advanced state of quality development. Seeks to mirror maturing attitudes in the company’s approach to quality management with progressive roles of the internal audit function. Discusses three specific phases of audit and attitudinal development.
Experience and the organization of auditors’ knowledge
Authors: Davis Charles E.
Published: July 2002

Recent audit research has explored the impact of auditors’ knowledge on various audit judgments. However, for this knowledge to influence the search for and interpretation of audit evidence, it must first be retrieved from the auditor’s knowledge base. At least two organization schemes have been identified in audit research ‐ transaction cycle and audit objective. Directly compares the two schemes in a preliminary analytical procedures context. Using multiple tests, indicates that the inexperienced auditors and experienced managers/partners exhibit an audit objective organization scheme, while experienced audit staff and seniors exhibit characteristics of both an audit objective and transaction cycle organization scheme, with neither scheme dominating. Task‐specific experience appears to have little effect on knowledge organization until a significant amount of experience is gained.
Understanding changes in systems, accounting and auditing: the impact of EDI
Authors: Williams Bernard C. , Hood Keith L. , Chen Jui‐Chih , Russell Peter O
Published: July 2002

Considers the impact of EDI on accounting systems, accounting, and on auditing. Indicates that the beneficiaries of EDI are mainly the powerful companies that initiate it, a point sometimes overloooked in the claims made for EDI. Finds that IT and business strategy did not appear to be integrated for these companies although they were able to extend their span of control through inter‐organizational systems beyond their organizational boundaries into areas where they do not need to be providers of capital. In turn this presents them with an additional control risk which needs to be addressed through a stronger managerial or internal audit function.
Fraud auditing
Authors: Vanasco Rocco R.
Published: July 2002

This paper examines the role of professional associations, governmental agencies, and international accounting and auditing bodies in promulgating standards to deter and detect fraud, domestically and abroad. Specifically, it focuses on the role played by the US Securities and Exchange Commission (SEC), the American Institute of Certified Public Accountants (AICPA), the Institute of Internal Auditors (IIA), the Institute of Management Accountants (IMA), the Association of Certified Fraud Examiners (ACFE), the US Government Accounting Office (GAO), and other national and foreign professional associations, in promulgating auditing standards and procedures to prevent fraud in financial statements and other white‐collar crimes. It also examines several fraud cases and the impact of management and employee fraud on the various business sectors such as insurance, banking, health care, and manufacturing, as well as the role of management, the boards of directors, the audit committees, auditors, and fraud examiners and their liability in the fraud prevention and investigation.
Using Benford’s law and neural networks as a review procedure
Authors: Busta Bruce , Weinberg Randy
Published: July 2002

Introduces a new analytical review procedure that measures the degree to which a data set’s digit distribution deviates from a Benford digit distribution. This deviation can indicate potential manipulation and can be used to signal the need for further audit testing. An artificial neural network is used to distinguish between “normal” and “manipulated” financial data. The results show that if data have been contaminated (at a 10 per cent level or more) a Benford analytical review procedure will detect this 68 per cent of the time. If the data are not contaminated, the test will indicate that the data are “clean” 67 per cent of the time. Because analytical review procedures are not used in isolation, these results probably understate the effectiveness and potential of a digits‐based analytical review procedure. This procedure’s fraud detection results compare favorably to traditional analytical review procedures. Importantly, its unique analysis procedure allows it to complement traditional analytical review procedures. A key limitation of this study is that it uses simulated data, rather than actual data. Such an enhancement will be a critical step in future research. This method appears to have potential merit and provides many opportunities for new research.