bluuebunny/crossref_metadata_2025 huggingface dataset:
A Note on the Roles of Aggregation and Delay in Management Control
Authors: Nikias Anthony D. , Schwartz Steven T. , Young Richard A.
Published: April 2008

Accounting information is often produced in an aggregate format and is delayed in its arrival. This teaching note examines the effects of aggregation and delayed arrival in the context of management control. One might expect that a reduction of information about managerial performance would reduce the efficiency of incentive schemes designed to increase goal congruence within the firm. Contrary to this intuition, aggregation, which reduces information, in some circumstances increases the efficiency of incentive schemes. This potential improvement in efficiency results because under aggregation the superior can exploit the subordinate's uncertainty about his future compensation. However, the resultant information loss from aggregation is generally costly, and these costs may outweigh the benefits of aggregation. We further illustrate that delayed arrival of information may allow an owner to enjoy the benefits of aggregation without incurring its costs. The approach taken in this note is similar to Antle and Demski (1988) and Arya et al. (1998), in that the discussion is centered on numerical examples and placed within the context of a simple model of management control that is accessible to upper-level undergraduate and master's students. The advantage of this approach over having students go directly to the academic literature is that the simple linear structure of the illustrations facilitates construction and solution of numerical examples using spreadsheet analysis and also exposes the intuition more easily.
Teaching Financial Accounting with Analogies: Improving Initial Comprehension and Enhancing Subsequent Learning
Authors: Hanson Eric , Phillips Fred
Published: April 2008

We conducted two laboratory experiments to determine whether using an analogy to introduce an accounting topic affects students' ability to initially comprehend that topic and subsequently learn the topic in greater depth. Results of the first study indicate that an analogy can improve initial comprehension, but only if students are encouraged to think thoroughly about both the “source” topic on which the analogy is based and the “target” topic that they are to learn. Results of the second study indicate that using an analogy to introduce a topic can enhance learning two weeks later when students study the topic in greater depth.
Corporate Governance and External and Internal Controls: The Case of the Baltimore and Ohio Railroad, Circa 1831
Authors: Samson William D. , Flesher Dale L. , Previts Gary John
Published: April 2008

The massive amount of external investor capital that U.S. railroads raised in the 1800s, capital levels far beyond those of other business enterprises of the era and concentrated in the hands of the corporate officers, gave rise to “agency” and corporate governance problems that are surprisingly modern. These issues were solved in modern ways. This case focuses on the early problems of corporate governance, external controls, internal controls, and the separation of capital ownership from corporate management in a high-tech, developmental stage, start-up company. Given the struggles of the Baltimore and Ohio (B&O) corporate venture during its early years, the governance control issues became paramount and allowed the corporation not only to survive, but also ultimately to achieve its objective as well as long-term success. From this look at an earlier time, the essence of modern corporate issues is distilled. Hence, the case is relevant to today's accounting students.
Assessing the Shortage of Accounting Faculty
Authors: Plumlee (Chairman) R. David , Kachelmeier Steven J. , Madeo Silvia A. , Pratt Jamie H. , Krull George
Published: April 2008

In April 2004, Bill Felix, then president of the AAA, appointed the Ad Hoc Committee to Assess the Supply and Demand for Accounting Ph.D.s (The Committee), charged with documenting the existence of any shortage of new Ph.D.-qualified accounting faculty. The Committee conducted surveys with three separate groups: accounting department heads or chairs, accounting Ph.D. program directors, and current accounting doctoral students. Collectively, these groups reported an overall shortage in new accounting faculty with particularly acute shortages in audit and tax specialties. The Ph.D. student survey revealed differences in perceptions between North American and non-North American doctoral students and also provided information on doctoral students' perception of significant program-related stress. Among the Committee's recommendations are that the AAA create an attractive, stimulating, and informative website for potential doctoral students, and that efforts be made to reduce the costs imposed on doctoral students—including personal costs such as stress—in order to make doctoral studies more feasible.
Survey of Time Devoted to Ethics in Accountancy Programs in North American Colleges and Universities
Authors: Madison Roland L. , Schmidt Jacqueline J.
Published: April 2008

A survey of 122 accounting administrators (chairs) of the largest North American accountancy programs was analyzed from two institutional perspectives—private versus public and AACSB-accredited versus non-AACSB-accredited—to determine attitudes on ethics education. The results reveal that chairs in all institutional categories agreed that ethics education is “of great importance,” both in the business and the accountancy curriculum, and that most chairs felt it was even more important in the accountancy curriculum. Findings indicate that most institutions currently incorporate ethics education into the accountancy curriculum instead of having stand-alone, ethics-specific classes. Furthermore, most chairs preferred the integration approach to teaching ethics rather than offering stand-alone classes. The findings also indicate that although ethics education has increased substantially in the accountancy curriculum, departmental chairs ideally want to allot more time to ethics.
Effective Team Building: Guidance for Accounting Educators
Authors: Bryant Stephanie M. , Albring Susan M.
Published: April 2008

Accounting educators are charged by a multitude of professional bodies with instilling the skill of team building in their accounting students. However, accounting educators often do not have the background in the myriad disciplines required to effectively impart team-building techniques. This paper reviews the sociology, industrial psychology, and organizational behavior literature and applies that literature to accounting to help accounting educators identify effective team-building techniques. We review the major models and theories of team building and draw on these theories and selected prior research outside accounting to provide guidelines for educators who wish to promote team-building competencies within group projects.
Inconsistencies in U.S. GAAP: Accounting for Executory Contracts
Authors: Forsyth Timothy B. , Dugan Michael T.
Published: April 2008

This instructional case provides four different scenarios that illustrate the inconsistent treatment of various executory contracts under current generally accepted accounting principles (GAAP). The purpose of the case is threefold. First, it provides students an opportunity to use the Financial Accounting Research System (FARS) to resolve several accounting issues related to long-term executory contracts. Familiarity with FARS is essential, both for “real-world” use when students enter the accounting profession and for success on the computerized CPA exam, which includes case research. Second, as the Financial Accounting Standards Board (FASB) attempts to move toward principles-based standards (as opposed to rules-based standards), the case provides students an opportunity to observe that GAAP seems to be rules-based and theoretically inconsistent in the case of executory contracts. Third, the case can be used as a premise for discussing the standard-setting process and exploring differences between the economic substance of a transaction and its legal form.
The Hole in the Doughnut: Accounting for Acquired Intangibles at Krispy Kreme
Authors: Holder-Webb Lori , Kohlbeck Mark
Published: April 2008

Krispy Kreme Doughnuts, Inc. used a 2000 initial public offering (IPO) to embark on an active expansion and franchise reacquisition program. This case focuses on this high-visibility franchise reacquisition program and several associated and highly controversial accounting issues, and provides an opportunity to examine numerous technical and conceptual issues in a real-world setting. In the case, you will encounter a variety of financial reporting issues—from identification and valuation of uncommon intangible assets in Part 1, to acquisition accounting, purchase-price allocations, contingent consideration, exit costs, executive compensation, and loan impairments in Part 2. The case is appropriate for use in intermediate and advanced accounting courses.
Financial Scandals: Another Clarion Call for Educational Reform—A Historical Perspective
Authors: Merino Barbara D.
Published: April 2008

In this paper I provide a brief review and analysis of the primary external criticisms over the last century of accounting education and selected responses by accounting professionals and academics. My objective is to demonstrate the constancy of criticism and the failure of any criticism to effect meaningful change in the delivery of accounting courses. The scandals of the late 19th century opened university doors for accountancy. I begin by examining the profession's earliest vision for accounting education and position that vision within the Progressive reform movement. For more than a century, there has been a consensus that technical knowledge is totally inadequate as the basis of accounting education, but the accounting curriculum continues to have a decidedly technical orientation. One of the themes that emerges from this historical overview is the consistency with which those calling for reform—practitioners and academicians—have repeated this message and how little effect it has had. From a historical perspective, two interesting questions arise: Why did accounting curricula become increasingly technical throughout the 20th century, despite repeated calls for change? What has rendered accountants' social obligation oblique, if not obliterated, in most of our accounting courses?
Increasing Accessibility to Academic Publications in Accounting Education: A Database for Research and Teaching
Authors: Brasel Kelsey , Hentz Brian
Published: April 2008

Considered an emerging field of research more than 20 years ago, accounting education has firmly established itself as a field replete with a critical mass of publications. Despite this volume in publications, however, accounting education researchers have not had access to a database that would expedite a comprehensive review of previous research. While Weinstein (2005) provides a useful tool for accessing accounting education cases, we describe and provide a more comprehensive database that includes a broader range of publications—articles, cases, and instructional resources—and wider spectrum of accounting education journals than Weinstein (2005).
Decision Making in a Public Accounting Firm: An Instructional Case in Risk Evaluation, Client Continuance, and Auditor Independence within the Context of the Sarbanes-Oxley Act of 2002
Authors: Jones Ambrose , Norman Carolyn Strand
Published: April 2008

The purpose of this case, loosely based on an actual auditor-client situation, is to study decision making by auditors in public accounting firms regarding risk management (business, engagement, and audit risk), client continuance, and auditor independence. Audit partners often face difficult decisions for which they must balance the business objectives of the firm with their professional objective of satisfying the public interest. While most studies and cases focus on client-acceptance decisions (e.g., Johnstone 2000; Gendron 2002; Knapp and Knapp 2004), an equally important decision for public accounting firms in the Sarbanes-Oxley era is whether to keep a current client. This case encourages students to consider the decision with respect to client continuance, auditor independence, and risk evaluation.
Restricted Stock versus Stock Options: The Case of Jones Apparel Group, Inc.
Authors: Carlson R. Loring , Vogel Thomas J.
Published: April 2008

In recent years, the structure of executive/employee compensation packages has focused less on stock options and more on restricted stock. The Financial Accounting Standards Board (FASB) characterizes both of these alternatives as stockbased compensation. The reasons for the shift are numerous and include increased scrutiny of executive pay after recent corporate scandals and a renewed emphasis on the expensing of stock options using the fair value method. In this case, we focus on the issues that led Jones Apparel Group, Inc. to change its focus from stock options to restricted stock in the compensation package of its Chief Executive Officer. Jones was not subject to any scandal or corporate malfeasance, but the case demonstrates how recent events have impacted companies that use stock-based compensation. The case allows students to compare and contrast the corporate governance and accounting impacts of stock options and restricted stock.
Enterprise Resource Planning (ERP) Systems: An Empirical Analysis of Benefits
Authors: O'Leary Daniel E.
Published: April 2008

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.
Analytical Procedures: A Data Envelopment Analysis Approach
Authors: Feroz Ehsan H. , Kim Sungsoo , Raab Raymond L.
Published: April 2008

In this paper, we demonstrate the usefulness of Data Envelopment Analysis (DEA) as an analytical procedure for auditors, especially in the planning stage of the audit, to determine the extent of audit and to assess the preliminary risk level of the client. We believe that DEA can also be used in the overall review stage to detect any anomalies and to assess the reasonableness of financial statements. DEA-based analytical procedures can provide consistent and reliable red ags and benchmarks for auditors to compare a client to other firms in the same industry. We provide an illustrative use of DEA as an analytical procedure for auditing a client in the oil and gas industry. We also provide validation for DEA as an analytical procedure.
ABB Industries: Implementing SAP's ABC
Authors: O'Leary Daniel E.
Published: April 2008

ABB Industries was told to implement activity-based costing (ABC) for costing in their consolidated reports sent to ABB Group, their parent firm. To meet this need, they chose to implement ABC using SAP's R/3. For two of nine product lines, parallel ABC was developed. Unfortunately, the version of ABC needed to generate financial statements, operational ABC, would not be available until a later release of the software. While ABB Industries waits for the next release, key personnel associated with the implementation are being offered alternative internal and external opportunities. Further, in order for ABB Industries to implement the operational ABC, the entire firm must implement a new version of SAP's R/3.
Audits as a Corporate Governance Mechanism: Evidence from the German Market
Authors: Ashbaugh Hollis , Warfield Terry D.
Published: April 2008

The purpose of this study is to investigate the corporate governance role of external audits in a setting where companies traditionally rely more on debt than equity capital. We partition the German audit market into two groups: the first group comprises the top two auditors on the basis of market share, which we classify as the dominant auditors, and the other group consists of all other auditors. We predict that a German company's demand for audit services from one of the two groups of auditors is determined by its set of stakeholders. We find a positive relation between German companies' demand for dominant audit suppliers and the variables that we use as proxies for the stakeholder interests of creditors, dispersed shareholders, and foreign suppliers. We also find a negative association between German companies' dominant audit supplier choices and the stakeholder interests of closely held companies. Our results suggest that audits play a corporate governance role conditional on companies' relations with alternative stakeholders.
Some Cross-Cultural Evidence on Whistle-Blowing as an Internal Control Mechanism
Authors: Patel Chris
Published: April 2008

In this paper, I report on the results of an empirical examination of cultural influences on professional judgments of Australian, Indian, and Chinese-Malaysian accountants in relation to whistle-blowing as an internal control mechanism. Australia serves as a proxy for the Anglo-American cluster of countries comprising the U.S., U.K., and Canada, while India and Malaysia represent the Asian-Indian and Chinese clusters, respectively. I draw on cultural characteristics and differences among these societies to formulate hypotheses that Australian professional accountants are both more likely and more accepting of engaging in whistle-blowing as an internal control mechanism than Chinese-Malaysian and Indian professional accountants. Data were gathered through a survey questionnaire administered to samples of senior professional accountants from Big 6 (at the time of data collection) firms in Australia, India, and Malaysia. The questionnaire comprised two whistle-blowing scenarios, and used both single-attribute and multidimensional attribute measures of professional judgment. The results support my hypotheses about differences in Australian compared to Indian and Chinese-Malaysian professional judgments. Additionally, the results support my expectation that multidimensional attribute measures would have greater explanatory power than single-attribute measures, and would provide insight into complex elements involved in ethical and professional judgments in cross-cultural settings. My findings from this study have implications for the management of local and multinational enterprises. Enterprises that aim to improve effectiveness in their control systems or achieve similar levels of reliability across divisions in various countries need to implement control systems that are compatible with cultural values. Specifically, the results suggest that compared to Indian and Chinese cultures, whistle-blowing as an internal control mechanism is likely to be more effective in Australian culture.
The Extent of Earnings Management in the U.S. and Germany
Authors: Glaum Martin , Lichtblau Karl , Lindemann Jens
Published: April 2008

This paper compares the extent to which U.S. and German companies manage their earnings in order to exceed earnings thresholds. Following Burgstahler and Dichev (1997), we analyze the distribution of earnings to discover whether U.S. and German firms have managed reported earnings in order to avoid losses, decreases in earnings, or earnings below the forecasts of analysts. The data for our tests have been taken from the Worldscope and the Osiris databases. The sample comprises 38,714 firm-year observations for U.S. companies and 3,524 firm-year observations for German companies for the years 1991 to 2000. Given the pronounced differences between the institutional environments of U.S. and German firms, we expect the extent of thresholdoriented earnings management to differ between the two countries. However, differences between the extent of earnings management to avoid losses and earnings decreases in the U.S. and in Germany are not statistically significant. By contrast, earnings management in order to avoid negative earnings surprises appears to be more prevalent in the U.S. than in Germany. This study also contributes to the literature by making methodological advances. We introduce a measure of the asymmetry of distributions around thresholds, which allows us to make statistically meaningful comparisons across different distributions. Furthermore, we demonstrate that the measurement of earnings management is sensitive to the choice of the interval width. Additionally, we show that firms' propensity to manage earnings depends on firm characteristics such as size, leverage, and growth.
The Perceived Effect of Accounting Controls on U.S.-Chinese Joint Venture Transaction Costs and Performance
Authors: Chalos Peter , O'Connor Neale
Published: April 2008

Research in international joint ventures speculates that partner transaction risks attributable to information asymmetries, asset specific investments, and strategic objectives adversely affect alliance performance. This study empirically examines these claims. The impact of accounting controls on the reduction of transaction costs and on alliance performance is also investigated. Contractual controls that are examined include equity control, majority board governance, and legal safeguards. Managerial controls examined include decision rights, incentives, communications, and financial planning. Results of the study confirm that transaction costs decrease performance. Contractual and managerial accounting controls significantly reduce the negative impact of partner transaction costs and are positively associated with joint venture performance.
The Impact of the Euro on Information Systems
Authors: O'Leary Daniel E.
Published: April 2008

The European Economic Union (EEU) adopted a single currency, the “euro” on January 1, 1999. Such a development has far-reaching implications for development of information systems, the engines that will have to run and control the new monetary order. For example, euro-compliant systems will need to accommodate: (1) six decimal places, a major change for those companies in countries that did not require decimal places (e.g., Belgium and Italy), or even those that require only two, (2) “triangulation” between currencies rather than classic inversion, (3) multiple currencies for each transaction, and (4) differences between invoice amounts and amounts actually paid, since there can be rounding differences on conversions with triangulation. These changes are just the surface requirements for the euro currency change. Because the euro problem is very new, few companies have begun, let alone completed making, their euro systems changes. As a result, limited research is available regarding the euro. The purpose of this article is to help fill this void by examining the principal issues of the euro's impact on information systems and to identify research opportunities related to the euro problem.
The Belgian Chocolate Company: A Dynamic Data Modeling and Database Design Case for the Accounting Information Systems Class
Authors: Geerts Guido L. , Waddington Barbara A.
Published: April 2008

The Belgian Chocolate Company (BCC) case was designed to be used in an accounting information systems (AIS) class with strong emphasis on the Resource-Event-Agent (REA) model, data modeling, and database design. Students are asked to design, implement, and use an accounting database. A unique feature of the case is its delivery through the Internet by means of a dynamic web site. Instructors are able to adapt the content of the case to their specific needs and to create individualized assignments for students.
Augmented Intensional Reasoning in Knowledge-Based Accounting Systems
Authors: Geerts Guido L. , McCarthy William E.
Published: April 2008

A limitation of existing accounting systems is their lack of knowledge sharing and knowledge reuse, which makes the design and implementation of new accounting systems time-consuming and expensive. An important requirement for knowledge sharing and reuse is the existence of a common semantic infrastructure. In this article we use McCarthy's (1982) Resource-Event-Agent (REA) model as a common semantic infrastructure in an accounting context. The objective is to make knowledge-intensive use of REA to share accounting concepts across functional boundaries and to reuse these concepts in different applications and different systems, an approach we call augmented intensional reasoning. Intensional reasoning is the active use of conceptual structures in information systems operations such as design and information retrieval. For augmented intensional reasoning, the conceptual structures are extended with domain-specific REA knowledge. Sections II and III describe different dimensions of augmented intensional reasoning: the REA primitives, the technological features needed to support augmented intensional reasoning, the need for epistemologically adequate representations to make augmented intensional reasoning feasible, and the practical necessity of implementation compromises. Sections IV and V explore two uses of augmented intensional reasoning: design and operation of knowledge-based accounting systems. The example in Section V explains how augmented intensional reasoning works: (1) define the conceptual schema, (2) structure the conceptual schema in terms of REA (knowledge augmentation), (3) define a shareable and reusable accounting concept (claim), and (4) use the concept (claim) to derive information in different accounting cycles (revenue and acquisition).
Reporting Financial Results with the Video Medium: An Experimental Analysis
Authors: Clements Curtis E. , Wolfe Christopher J.
Published: April 2008

This research uses an experimental approach to study the user effects of a video financial report compared to a paper financial report. We hired professional actors and created newscast-type videos of a fictitious company's management discussion and analysis section of the annual report. The experimental task involved either viewing a video financial report or reading a paper financial report. After viewing/reading the financial report, subjects judged their personal opportunity with the firm (i.e., career and investment) and firm quality. Additionally, they rated perceptions gathered from the report, and they were tested on recall from the report.

Overall, our results indicate that video report users rate personal opportunity with the firm in the report higher than do paper report users, but paper report users recall more about the firm and rate the quality of the firm higher than do video report users. We also find that personal opportunity judgments are more influenced by emotive perceptions of the financial report than by its ability to inform, regardless of report media. For the firm-quality judgment, we find that video report users are most influenced by emotive perceptions of the report, whereas paper report users are equally influenced by emotive and information oriented perceptions.

Our findings indicate that video financial reports can influence unsophisticated report users differently than traditional paper reports. We also find evidence that some of this difference in influence between report media relates to video's capacity to heighten emotional processing.
AICPA/CICA SYSTRUST™ Principles and Criteria
Authors: McPhie Doug
Published: April 2008

The AICPA and the CICA have both identified the development of new assurance services as key to the future of the accounting profession. Several years ago these bodies set up a number of task forces to develop several new products. One of the task forces was charged with developing an assurance service addressing systems reliability. This paper summarizes the issues that the task force addressed and the conclusions to which it came, including the development of an assurance service addressing systems reliability, labeled SYSTRUST™.
Analysis of Design from a Community of Practice Dialogue: Negotiating the Meaning of Auditing Information System Development
Authors: Borthick A. Faye
Published: April 2008

A persistent question associated with theories of situated learning is how to put them into action. The concept of situated learning, in which the learner and the task are placed in the context of the overall social practice, stems from Lave (1988) and Lave et al.'s (1988) recognition that a traditional view of learning as the end result of a process of transmitting knowledge is inadequate. Instead, they propose looking at learning from the learner's perspective and viewing learning as a continuous process in which what is learned depends on what has been learned before and the context in which the learner is immersed—a process known as “legitimate peripheral participation” (Lave and Wenger 1991). This paper explains how a situated-learning experience was operationalized in a context in which the learners' task was to develop a plan for auditing the development of a dysfunctional information system. It identifies and analyzes the situated learning from the viewpoint of dimensions of educational design associated with communities of practice (Wenger 1998). Here, the community of practice consisted of master's-level students assuming the auditor's role. In a community of practice, members of the group learn from each other by working together as they develop a common sense of purpose, including a common way of thinking about how work gets done and what is necessary to accomplish a task. The analysis is based on the text of synchronous class discussion from a web class session. Also discussed are implications of communities of practice implemented through synchronous discussion for educational design and professional practice.
Market Reaction to ERP Implementation Announcements
Authors: Hayes David C. , Hunton James E. , Reck Jacqueline L.
Published: April 2008

The objective of this research is to examine how the capital market responds when a firm announces that it plans to implement an enterprise resource planning (ERP) system. This is the first study to investigate the extent to which ERP systems are deemed to add market value to business organizations. Study findings indicate an overall positive reaction to initial ERP announcements. Further analyses suggest that the reaction is most positive for small/healthy firms. Finally, the market response to larger ERP vendors, as reflected by PeopleSoft and SAP, is significantly more positive than to smaller ERP vendors.
Why Manuscripts Are Rejected: An Analysis of JIS Rejections
Authors: Murthy Uday S. , Wiggins Casper E.
Published: April 2008

This article presents an analysis of manuscripts submitted to the Journal of Information Systems (JIS) that were rejected during our three years of co-editorship (Spring 1999 to Fall 2001 issues). The final rejection letters to the author(s) were examined and for each paper up to three reasons for rejection were identified and rated in terms of severity. Lack of theory, weaknesses in design, and poor motivation were the leading causes of rejection. The two most frequently employed research methods were laboratory experiments and surveys, and these were rejected most often due to theory and design problems. The findings presented in this article suggest that AIS researchers should obtain feedback from colleagues at a very early stage in the research about the appropriateness of the theory and the research design, especially for laboratory experiments and survey research.
An Experimental Examination of Information Technology and Compensation Structure Complementarities in an Expert System Context
Authors: Mauldin Elaine G.
Published: April 2008

This paper investigates the interaction between compensation structures and expert system technology. One hundred twenty-two participants selected a contract (fixed pay or performance-contingent incentives) and performed one of two risk-rating tasks either in the presence or absence of an externally valid expert system. For both tasks, the expert system increased decision accuracy only for participants selecting performance-contingent incentives, and these incentives increased decision accuracy only in the presence of the expert system, consistent with a complementary interaction. The results support the view that expert system technology changes task requirements and, hence, may also change self-selection and effort compensation contracting effects. The results provide evidence about the interdependence of organization, system, and individual factors in determining task performance, and suggest that organizational performance may be improved through the joint implementation of expert systems and performance-contingent incentives.
Extending the Accounting Brand to Privacy Services (Retracted)
Authors: Greenstein Marilyn M. , Hunton James E.
Published: April 2008

The primary purposes of this study are to identify and validate a list of necessary skills required to ensure good data privacy protection for organizations, recognize potential privacy service providers, compare the perceived skill levels of potential providers, and test the impact of an educational brochure developed by the AICPA designed to communicate how and why members of the accounting profession are qualified to conduct privacy engagements. A total of 82 corporate managers representing 27 companies participated in a randomized between-subjects experiment where they responded to skill-related items either before or after reading the privacy brochure. Factor analysis of 17 skill items revealed four factors: technical, legal, control/assurance, and strategic. The following potential service providers were identified: law firms, CPA firms (both Big 5 and non-Big 5), security consultants, and e-business consultants. Study findings suggest that all four of the skill constructs are necessary in providing good data privacy protection. Before reading the brochure, the highest construct index means (potential providers) were as follows: technical (e-business consultants), legal (law firms), control/assurance (CPA firms and security consultants), and strategic (security consultants). After reading the brochure, CPA firms moved significantly higher on technical, legal, and strategic skills; additionally, CPA firms were ranked among the highest service providers in all areas except legal skills, where law firms continued to predominate.
Development of the Journal of Information Systems from the Editors' Perspectives
Authors: Hutchison Paul D. , Lee Tanya M. , White Craig G.
Published: April 2008

This paper provides insights on the creation and development of the Journal of Information Systems (JIS) using the perspectives of its editors and analyses of the evolving content of the journal itself. Both suggest development of the journal over time from its uncertain beginnings to a publication accepted by its academic audience as a high-quality outlet for accounting information systems research. The journal's developmental stage affected both what the editors could do and their vision of challenges and opportunities. Early editors sought resources and high-quality submissions, while later editors had more opportunity to consider direction and reach. The editorship has both positive and negative aspects, with benefits derived from being of service and having an opportunity to influence the quality and direction of an academic journal, and difficulties arising from the need to attract sufficient resources and academic attention, and the time commitment required by the tasks.
The Evaluation of Risky Information Technology Investment Decisions
Authors: Rose Jacob M. , Rose Anna M. , Norman Carolyn Strand
Published: April 2008

This research proposes that the risk preferences of decision evaluators and the decision “domain” systematically influence evaluations of decision makers' information technology (IT) investment decisions. Results of an experiment with 160 M.B.A. student participants indicate that risk-seeking evaluators rate IT investment decisions higher than do risk-averse evaluators. Further, decision evaluators are influenced by the gain and loss decision domains when evaluating a decision maker's risky information technology investment decisions. The findings indicate that providing decision domain information to decision evaluators leads to systematic differences in IT investment evaluations. A key contribution of this study is the discovery of the relevance of prospect theory to IT evaluation processes.
Selecting an Audit Software Package for Classroom Use
Authors: Weidenmier Marcia L. , Herron Terri L.
Published: April 2008

External, internal, and government auditors increasingly use audit software to improve the efficiency and effectiveness of audits. Incorporating technology such as generalized audit software into the classroom not only exposes students to “tools of the trade,” but, more importantly, also facilitates student learning of audit concepts and procedures. The purpose of this paper is to provide information on two audit software packages, ACL and IDEA, so that instructors can evaluate the appropriateness of including one or both of these packages in their courses. We compare the packages from both a functional and pedagogical perspective, describing several uses in the classroom. We also provide student and instructor feedback from package use. An accompanying web page provides numerous resources for instructors considering adopting ACL or IDEA, including exercises, exam questions, slides, review questions, and syllabi.
Strategically Informed, Environmentally Conscious Information Requirements for Accounting Information Systems
Authors: Brown Darrell L. , Dillard Jesse F. , Marshall R. Scott
Published: April 2008

Accounting information systems (AIS) should provide the information firms need to manage organizational activities. Environmental considerations are increasingly important in the business world, so firms are attending more to environmental risks and activities. AIS must respond to these emerging environmental requirements. We develop an information matrix for identifying alternative management strategies for framing and responding to environmental issues. The proposed matrix provides a tool for identifying the information collected, stored, analyzed, and reported in environmentally attuned accounting information systems.
Information Assurance Seals: How They Impact Consumer Purchasing Behavior
Authors: Nikitkov Alexei
Published: April 2008

Public accounting firms and other independent assurance providers have developed and marketed web assurance services resulting in a seal as an indicator of compliance. Academic research finds that seals potentially meet some of the most acute consumer concerns, but that consumers have inadequate understandings about the seals, and low regard for them. This study extends the research on the role of information assurance seals as an antecedent of trust by examining the use of seals on the eBay auction site.

The study analyzes a sample of transactions in which buyers acted with their own money, and had time to learn about various signals and consider their strengths. The transactions are examined to see whether presence of a seal on the seller's web page made a significant difference on actual consumer purchasing behavior. Empirical tests found significant associations between the presence of seals and consumer purchasing behavior in both auction and posted-price contexts.
An Introduction to XBRL through the Use of Research and Technical Assignments
Authors: Farewell Stephanie M.
Published: April 2008

This project is designed to facilitate an understanding of eXtensible Business Reporting Language (XBRL). The materials are structured so that each can be used independently of the other components. The materials consist of a reading, research assignments, and two technical assignments. The reading is written to provide a background on XBRL. After obtaining a basic understanding of XBRL, research and technical assignments are used to increase the student's skill-set. The research assignments look at the evolution of XBRL. The first technical assignment modifies and styles eXtensible Markup Language (XML) tagged data. In the second technical assignment an industry extension is developed to the promulgated Commercial and Industrial (C-I) taxonomy. The second technical assignment concludes with the creation of an instance document and viewing of the instance document with a style sheet. Through an understanding of XBRL, students will possess an important basic skill-set for a technology that will likely play a significant role in the future of accounting. In addition, they should have an appreciation for the purpose of XBRL, including the nature of the technology and the inherent challenges.
Perceived Security Threats of Computerized Accounting Information Systems in the Egyptian Banking Industry
Authors: Abu-Musa Ahmad A.
Published: April 2008

This paper investigates the perceived security threats to computerized accounting information systems (CAIS) in the Egyptian banking industry (EBI) by surveying the entire population of the EBI. Differences between the respondents' opinions regarding the perceived security threats have been identified and investigated in the context of the EBI. The results of the study reveal that accidental entry of bad data by employees, accidental destruction of data by employees, introduction of computer viruses to the system, natural and human-made disasters, employees' sharing of passwords, and misdirecting prints and distributing information to unauthorized people are the most significant perceived security threats to CAIS in the EBI. In all cases, the heads of internal audit departments reported higher occurrence frequencies of CAIS security threats compared to the heads of computer departments.
Research Opportunities in Information Technology and Internal Auditing
Authors: Weidenmier Marcia L. , Ramamoorti Sridhar
Published: April 2008

This paper presents research opportunities in the area of information technology (IT) within the context of the internal audit function. Given the pervasive use of IT in organizations and the new requirements of the Sarbanes-Oxley Act of 2002, internal audit functions must use appropriate technology to increase their efficiency and effectiveness. We develop IT and internal audit research questions for three governance-related activities performed by the internal audit function-risk assessment, control assurance, and compliance assessment of security and privacy.
A Within Firm Analysis of Current and Expected Future Audit Lag Determinants
Authors: Behn Bruce K. , Searcy DeWayne L. , Woodroof Jonathan B.
Published: April 2008

This paper reports the impediments identified by practicing auditors that keep them from significantly reducing the time lag between closing and issuing their report. We obtain these impediments by surveying the U.S. assurance partners of an international audit firm. Our results suggest that lack of sufficient personnel resources, both with the client and the audit firm hindered a significant reduction in prior audit report lags. In addition, the partners believe that before audit report lags are signifi-cantly reduced, the clients' and the auditor's mindset must change to accommodate a new audit approach. Even if the mindset of both parties is changed, the partners believe the skill-set of auditors must improve and the flexibility of the scheduling process must increase. Implications of the results for continuous auditing are also discussed.
EDGAR Extraction System: An Automated Approach to Analyze Employee Stock Option Disclosures
Authors: Grant Gerry H. , Conlon Sumali J.
Published: April 2008

Past alternative accounting choices and new accounting standards for stock options have hindered analysts' ability to compare corporate financial statements. Financial analysts need specific information about stock options in order to accurately assess the financial position of companies. Finding this information is often a tedious task. The SEC's EDGAR database is the richest source of financial statement information on the Web. However, the information is stored in text or HTML files making it difficult to search and extract data. Information Extraction (IE), the process of finding and extracting useful information in unstructured text, can effectively help users find vital financial information. This paper examines the development and use of the EDGAR Extraction System (EES), a customized, automated system that extracts relevant information about employee stock options from financial statement disclosure notes on the EDGAR database.
Accountants and Emerging Technologies: A Case Study at the United States Department of the Treasury Bureau of Engraving and Printing
Authors: Gelinas Ulric J. (Joe) , Gogan Janis L.
Published: April 2008

Based on an in-depth field study of a pilot test of an eProcurement system, this paper introduces the topic of accountants' roles in emerging technology assessments, and presents a teaching case for use in an accounting information systems class. The United States Department of the Treasury Bureau of Engraving and Printing (BEP) was one of three federal agencies participating in the test, which was sponsored by the Treasury's Financial Management Service (FMS). In May 2004 the liaison at BEP reviewed the key accomplishments and challenges in the pilot test, including the reactions of participating suppliers, and considered whether to sign on to participate in another pilot test. The teaching case examines accountants' participation in several aspects of the pilot test. We then discuss the implications for practitioners, and offer suggestions for further research on accountants and emerging information technologies.
A parsimonious combination of functional traits predicting plant response to disturbance and soil fertility
Authors: Kühner Anke , Kleyer Michael
Published: April 2008

Questions:

1. How many traits associated with persistence and regeneration are necessary to predict the response of plants to soil fertility and disturbance? 2. Are correlated changes in trait expressions linked to the response of functional groups to fertility and disturbance?

Location:

Lower Frankonia, Germany.

Methods:

On 120 plots located in managed and abandoned grasslands, fields, and vineyards, we recorded species composition, disturbance intensity, soil water and nutrients, and ten candidate traits for 75 species. We used a novel method which is based on three steps: (1) logistic regression to separate responsive from non‐responsive species; (2) iterative clustering of all possible combinations of the candidate traits including regression of each cluster in response to the environmental variables; (3) selection of the trait combination that performed best with respect to goodness of fit of all clusters from this combination. Bivariate trait relationships across functional groups were analysed with reduced major axis regression (RMA).

Results:

The parsimonious trait combination consisted of life span, specific leaf area (SLA), canopy height, and seed number. The ‘acquisitive’functional groups in terms of SLA and height were linked to higher fertility and earlier disturbance, while the ‘retentive’groups related to lower fertility and later disturbance. Investment in reproduction, however, displayed a reverse relation. SLA and canopy height showed correlated shifts in two pairs of co‐occurring functional groups.

Conclusions:

A small number of traits is sufficient to predict the response of species. Plants need a higher increment in SLA to reach the same height, if start of disturbance is earlier. Linkages between traits shift from generative to vegetative with increasing fertility and earlier start of disturbance. Functional groups enable shifts in scaling relationships between traits to be analysed, in contrast to the analysis of single traits.