bluuebunny/crossref_metadata_2025_split huggingface dataset:
Fraud detection, redress and reporting by auditors
Authors: Hassink Harold , Meuwissen Roger , Bollen Laury 
Published: October 2010

PurposeThe primary research question of this study is to what extent auditors comply with auditing standards once they encounter fraud and whether compliance is associated with particular fraud characteristics (i.e. material versus immaterial fraud, management versus employee fraud, statutory versus voluntary audit and external versus internal fraud) as well as with auditor (experience) and audit firm characteristics (Big Four versus non‐Big Four). The study also aims to provide evidence on the role of auditors in redressing fraud. Redress refers to the auditee taking measures to nullify the consequences of the fraud, insofar as possible, and to prevent any recurrence of such fraud.Design/methodology/approachTo gather data on the role of auditors in fraud cases, a survey was conducted among all audit partners of the top 30 Dutch audit firms. In total, 1,218 audit partners were selected and received a postal questionnaire. In total, 326 questionnaires were returned (27 per cent), of which 296 (24 per cent) were usable.FindingsThe results reveal that auditors fail to comply with some important elements of fraud standards. There are substantial differences among audit firms regarding compliance with the relevant auditing standards. Furthermore, auditors appear to encounter corporate fraud only incidentally. About half of the auditors believe they have a “significant” impact on redressing fraud.Research limitations/implicationsOne of the main research findings is that it is difficult for individual auditors to build up expertise in fraud detection. There appears to be a need for specific training programs for auditors to help them to detect fraud, emphasizing the need for mandatory consultation with the technical department of the audit firm once “red flags” indicating fraud are found. Indeed, this need for change has been addressed by the Dutch professional accountancy body NIVRA as a direct result of the findings of this study.Originality/valueThis study extends existing research by investigating the compliance of auditors with fraud standards and it sheds light on the actual redress experiences of auditors. It focuses on the actions taken by auditors – or the lack thereof – in situations where auditors encounter fraud signals. The study indicates that in the absence of good oversight, auditors have mixed incentives when they are confronted with signals for fraud, resulting in actions that are not always in line with existing regulatory requirements.
An empirical investigation of the use of ISA 520 “analytical procedures” among Big 4 versus non‐Big 4 audit firms in Egypt
Authors: Samaha Khaled , Hegazy Mohamed 
Published: October 2010

PurposeThis study aims to examine the International Standards on Auditing (ISA) number 520 relating to analytical procedures (APs) and adapt relevant aspects of prior studies on APs to the Egyptian audit context. The study investigates the extent of use of APs in Egypt during the three main stages of an audit by size of firms and level of staff. It examines auditors' perceptions of the frequency and effectiveness of different types of APs in achieving a selected set of audit objectives. The study also identifies the types of assurance provided by APs and their influence on detailed testing as well as analyzing the role of auditing standards in the context of the use of APs.Design/methodology/approachThe design and research method are empirical using a questionnaire survey to collect information on actual uses of APs from 14 audit firms in Egypt which audit the 100 actively traded companies on the Egyptian Stock Exchange (EGX) as measured by the EGX 100 index. The survey was carried out between 2008 and 2009.FindingsThe results of the study showed relatively low use of APs by Egyptian auditors with wide variations in its use by Big 4 and other auditing firms. Auditors from Big 4 firms are found to use APs to a greater extent than auditors from non‐Big 4 firms. Also, the reliance on APs tends to differ by auditors rank and position. The majority of auditors consider APs useful in achieving audit objectives. Audit firms of all size continue to emphasize judgment‐based compared to quantitatively based procedures. The results also indicated a lack of confidence in the use of APs as substantive procedures. Finally, the study confirmed prior research findings in that auditing standards are regarded as most effective in codifying existing large firms practice. It was found that ISA 520 has been least effective in stimulating change in the Egyptian audit practice.Research limitations/implicationsThe different economic, political, educational, and culture environment in Egypt may restrict the generalisability of this study results.Practical implicationsIn order to increase the use of APs by Egyptian auditors in the various stages of the audit engagement, auditors need to understand the requirements of the Egyptian Auditing Standards regarding their use. Auditors also need to be aware of the application of various APs techniques, especially those associated with statistics and mathematical models. Educational institutions and the Egyptian Association of Accountants and Auditors must play significant role in educating auditors about APs techniques and their use in planning, testing and final review of the financial statements.Originality/valueThis paper contributes to an understanding of the nature and uses of APs within the Egyptian culture and economic context. The study will stimulate further research in understanding the importance of the use of APs in audit engagements in different perspectives.
Insights into current practices in auditing environmental matters
Authors: Chiang Christina 
Published: October 2010

PurposeThe purpose of this paper is to investigate insights into current practices in auditing “environmental matters” in accordance with Audit Guidance Statement 1010: The Consideration of Environmental Matters in the Audit of Financial Reports, which was introduced by the New Zealand Institute of Chartered Accountants in 2001.Design/methodology/approachThe approach to gathering evidence for this study is qualitative semi‐structured in‐depth personal interviews with 27 auditors: 18 financial auditors (FAs) in chartered accounting practice and nine public sector auditors (PSAs) from the office of the Auditor‐General.FindingsThe interview findings confirmed that the auditors respond to isomorphic pressures that affect them, either by employing acquiesce or compromise strategies and that institutional theory fits best as an appropriate theory to frame the research. Environmental matters are only considered in the planning of a company audit when it is significant and relevant to financial reporting. However, evidence showed that FAs are influenced by mimetic isomorphism by adopting the perspective of company management. On the other hand, PSAs are driven by the legislative mandate imposed by the Local Government Act 2002 to search out and verify the validity, accuracy and completeness of information on environmental matters. FAs auditing both companies in the private sector and public sector organisations are able to maintain two dissimilar approaches and attitudes, depending on the type of entities they are auditing.Research limitations/implicationsAs with all qualitative interviews, there are some limitations associated with individuals' responses to the semi‐structured open‐ended interview questions.Practical implicationsTo prioritise the consideration of environmental matters in the audit practices of FAs for company audits will require both coercive and normative pressures in their organizational sphere.Originality/valueThis study assists in understanding an audit phenomenon not widely known. It would also add a geographical variation to existing literature.
Challenges and opportunities from greenhouse gas emissions reporting and independent auditing
Authors: Olson Eric G. 
Published: October 2010

PurposeIt is clear that the trend toward measuring and managing greenhouse gas (GHG) emissions on a global scale is not slowing, even though different countries and geographic regions are approaching the issue with different points of view and different levels of vigor. Along with an increase in measuring and managing GHG emissions, enterprises around the world should expect to see a higher level of independent assurance and audit reporting needed. The purpose of this paper is to identify and discuss the challenges and opportunities that accompany GHG emissions accounting and auditing, as well as the supply chain and operational dependencies that are different from traditional financial auditing.Design/methodology/approachThis paper explores the challenges and opportunities from measuring and auditing GHG emissions, and contrasts audits of sustainability information with more traditional financial auditing. It also explores some of the issues in supply chain and operational dependencies that are important in measuring and auditing GHG emissions and are different from more traditional accounting practices.FindingsWith the importance of processes to independently audit GHG emissions and natural resource consumption expected to grow in the future, it is important to understand how past experience with financial accounting and auditing can play a role in shaping the future for environmental stewardship. This paper shows that there are a number of key differences between financial and carbon auditing, which must be considered as enterprises begin to consider how to best support increasingly important sustainability reporting. As more publicly traded firms voluntarily issue sustainability reports and new legislation drives a greater need for standardized carbon accounting, so too will the need for auditing GHG emissions grow. This paper explains that GHG auditing will require cross‐functional skills with operational and process knowledge, accounting capabilities and an understanding of how operational data correlates with estimates for GHG emissions.Originality/valueMuch existing work addresses why, where, how, and who should be measuring and managing GHG emissions, but little attention is being given to the unique challenges that must be overcome in order to achieve reporting transparency. Independent auditing of GHG emissions has maintained a low profile while reporting is voluntary and standards are not fully agreed upon. However, with the possibility of legally binding legislation on the horizon, enterprises that are prepared to audit their GHG emissions and resolve issues early will be well positioned from both a compliance and market‐competition perspective.
A new model for service businesses in product‐centric firms
Authors: Gopalani Anees 
Published: October 2010

PurposeConfronted by lower product sales prospects, increased margin pressures and customer demands for free service support, many firms are entering the service business. Yet most of these firms will be unable to scale their service operations to develop a viable stand‐alone services capability. In the rare cases where they are successful in establishing a services business it will often fail to deliver the expected profit margins. However, when properly planned and executed, a products to services business transformation generates impressive results. this paper aims to investigate this issue.Design/methodology/approachThe paper defines how to scale services business. Key challenges and mitigation approaches as well as case studies are provided to effectively execute on services transformation. Various challenges and their effects are examined separately. Several tactics to overcome some of the key challenges identified.FindingsWhen managed properly, new services businesses can deliver solid economic value to the top and bottom line. In order to capture this value, managers must look at services through a very different lens, understanding that this is a fundamentally different business model than their existing product business. It is recommended managing the entire services value chain to realize the full benefits of creating independent services revenue stream, increased product pull‐through, and deeper customer relationships.Originality/valueBy considering various obstacles a company faces in scaling services business, the paper provides insight into what strategies may be effective as established companies deal with balancing existing product‐centric business while scaling services business.
Operating models for a multipolar world: balancing global integration and local responsiveness
Authors: Girod Stephane , Bellin Joshua B. , Ranjan Kumar S. 
Published: October 2010

PurposeMultinationals have always needed an operating model that works – an effective plan for executing their most important activities at the right levels of their organization, whether globally, regionally or locally. The choices involved in these decisions have never been obvious, since international firms have consistently faced trade‐offs between tailoring approaches for diverse local markets and leveraging their global scale. This paper seeks a more in‐depth understanding of how successful firms manage the global‐local trade‐off in a multipolar world.Design methodology/approachThis paper utilizes a case study approach based on in‐depth senior executive interviews at several telecommunications companies including Tata Communications. The interviews probed the operating models of the companies we studied, focusing on their approaches to organization structure, management processes, management technologies (including information technology (IT)) and people/talent.FindingsSuccessful companies balance global‐local trade‐offs by taking a flexible and tailored approach toward their operating‐model decisions. The paper finds that successful companies, including Tata Communications, which is profiled in‐depth, are breaking up the global‐local conundrum into a set of more manageable strategic problems – what the authors call “pressure points” – which they identify by assessing their most important activities and capabilities and determining the global and local challenges associated with them. They then design a different operating model solution for each pressure point, and repeat this process as new strategic developments emerge. By doing so they not only enhance their agility, but they also continually calibrate that crucial balance between global efficiency and local responsiveness.Originality/valueThis paper takes a unique approach to operating model design, finding that an operating model is better viewed as several distinct solutions to specific “pressure points” rather than a single and inflexible model that addresses all challenges equally. Now more than ever, developing the right operating model is at the top of multinational executives' priorities, and an area of increasing concern; the international business arena has changed drastically, requiring thoughtfulness and flexibility instead of standard formulas for operating internationally. Old adages like “think global and act local” no longer provide the universal guidance they once seemed to.
How strategies of deception facilitate business growth
Authors: Pech Richard , Stamboulidis Greg 
Published: October 2010

PurposeThis paper intends to describe examples of entrepreneurial growth and defensive strategies used by smaller firms against larger and aggressive competitors. It aims to focus specifically on the use of strategies of deception, which, for the purposes of this discussion, are defined as legal, but unexpected methods of pre‐empting or countering potentially harmful competitor actions.Design/methodology/approachThese case examples of strategies of deception are drawn from two successful Australian firms, one from the horticultural industry, and the other from the petroleum retail industry. These cases are taken from a wider study of Australian entrepreneurs completed in 2009.FindingsThe two cases describe unique growth strategies that not only take market needs into consideration, but which are also designed to pre‐empt retaliatory strategies by competitors. One entrepreneur deploys a strategy designed to hide his success, giving the impression that his (very large firm) is only a very small family entity; the second entrepreneur takes this strategy further by completely hiding himself and his web of business interests from sight. This allows him to avoid aggressive competitive retaliatory behaviors. The strategies these entrepreneurs deploy are not unethical or illegal; rather, they offer a means of leveraging limited resourced firms against large, aggressive competitors.Originality/valueThese examples of strategies of deception are an extension from research originally reported in Pech. The case examples are valuable in their contribution to the study of entrepreneurial growth and defensive strategies, and provide insights into the means by which smaller firms can counter the presence of large and aggressive competitors.
Profitably shared delusions
Authors: Marren Patrick 
Published: October 2010

PurposeThe purpose of this paper is to review the importance of mass shared beliefs in shaping economies, markets, nations, and business strategies.Design/methodology/approachThe paper takes the form of an opinion column.FindingsThe paper reveals that it is important to factor in the malleability of mass psychology, and its changeability, when making strategy for your organization. Multiple, seemingly inconsistent scenarios may actually all “come true” in series.Originality/valueThe paper connects a number of ideas in psychology, economics, strategy, medicine, and philosophy.
Determinants of choice of depositary receipt programs: an exploratory study
Authors: Šević Aleksandar , Krishnamurti Chandrasekhar , Šević Željko 
Published: October 2010

PurposeThe purpose of this paper is to perform an exploratory study of depositary receipts (DRs). In addition to the geographical analysis it test several hypothesis linked to various DRs’ issues.Design/methodology/approachUsing the publicly available The Bank of New York's (now The Bank of New York Mellon) database, descriptive statistics and logit analysis were applied.FindingsIt is evident that smaller firms issue DRs in lower level programs apparently due to the considerable cost barriers; firms with larger capital expenditure plans prefer to issue under level III or Rule 144A DR programs and higher quality firms, proxied by lower leverage, are likely to make higher‐level DR issues.Research limitations/implicationsThe database is updated quite frequently and departures from enclosed findings are likely to occur in the years to come.Practical implicationsManagement interested in issuing DRs may become acquainted with the pattern exercised by both small and large companies, or by companies with specific capital structures. In this manner the listing demonstrates less uncertainty as long as it is possible for managers to ascertain and compare own companies’ features.Originality/valueThe paper adds to the current literature regarding in‐depth analysis of the DRs market.
Banking productivity: an overview of the Greek banking system
Authors: Chatzoglou Prodromos D. , Diamantidis Anastasios D. , Vraimaki Eftichia , Polychrou Elena , Chatzitheodorou Kyriakos 
Published: October 2010

PurposeThe aim of this paper is to examine the productivity of the Greek banking sector for the time period 2004‐2006.Design/methodology/approachStandard ratio measures of bank financial performance have been used as output measures in a data envelopment analysis model in combination with efficiency ratios’ analysis.FindingsThe Greek banking efficiency remains relatively constant throughout the period under observation, while, on average, big banks perform better than medium and small ones.Research limitations/implicationsProfit and loss accounts as well as balance sheet accounts of each bank are used for examining bank efficiency.Practical implicationsA positive relationship between bank size and performance is observed. More specifically, it is suggested that large total assets gives a bank the ability to achieve higher efficiency levels; thus, a merger of two small banks will probably increase their efficiency and competitiveness in the long term.Originality/valueGreek banks are at a crossroad and faced with the dilemma of expanding their operations internationally or staying at home. The current financial crisis has made this dilemma stronger. The paper's findings suggest that probably the best solution for the Greek banks to overcome their current problem is to merge.
On the determinants of interest margin in transition banking: the case of Serbia
Authors: Marinkovic Srdjan , Radovic Ognjen 
Published: October 2010

PurposeThe purpose of this paper is to study the link between, on one hand the interest margin of the bank, and the determinants of the interest margin on the other. The basic importance of bank interest margin or spread (BIS), arises from the fact that it presents an indicator of a bank's profitability as well as the cost of financial intermediation imposed on both its depositors and debtors.Design/methodology/approachTo test the relationship using multiple linear regressions with lagged variables (OLS – ordinary least squares). In addition using correlation analysis as well as bootstrapping model was necessary to overcome the issue of unknown statistical distribution of small data samples.FindingsThe quantitative study reveals proposed positive and significant correlation between bank interest margins and proxies of interest‐rate risk, negative correlation with risk averseness, positive but slightly lower correlation with credit risk variable, and finally, not so strong influence of foreign bank entry. Research limitations/implications –To be more reliable, models should include individual bank‐specific data for cross‐banks examination, an area worthy of further research.Social implicationsHaving implemented the methodology, the paper draws some policy recommendations. To make interest margin optimal, authorities should redesign existing system of deposit protection together with building institutional credit guarantees and thus enable relevant information to flow freely amongst participants, i.e. to establish official information sharing arrangements for bank industry.Originality/valueThis is the first econometric study of the bank interest spread determinants for the Serbian banking industry.
Testing the relation between beta and returns in the Athens stock exchange
Authors: Theriou Nikolaos G. , Aggelidis Vassilios P. , Maditinos Dimitrios I. , Šević Željko 
Published: October 2010

PurposeThe purpose of this paper is to examine the relationship between beta and returns in the Athens stock exchange (ASE), taking into account the difference between positive and negative market excess returns' yields.Design/methodology/approachThe data were taken from DataStream database and the sample period consists of 12 years divided into four six‐year periods such that the test periods do not overlap. Regression analysis is applied, using both the traditional (unconditional) test procedure and the conditional approach.FindingsThe estimation of return and beta without differentiating positive and negative market excess returns produces a flat unconditional relationship between return and beta. However, when using the conditional capital asset pricing model (CAPM) and cross‐sectional regression analysis, the evidence tends to support the significant positive relationship in up market and a significant negative relationship in down market.Research limitations/implicationsThe small number of listed companies in the ASE led to the inclusion of the financial and insurance companies in the sample, and to the formation of a small number of portfolios. The same research methodology could be applied to individual stocks of the ASE and with the exclusion of all financial companies.Originality/valueThe results tend to support the existence of a conditional CAPM relation between risk and realized return trade‐off.