Accountinghttp://hdl.handle.net/10211.3/2072142024-03-28T11:23:00Z2024-03-28T11:23:00ZAuditor Turnover and the Likelihood of Future Accounting LitigationHee, Kevin W.http://hdl.handle.net/10211.3/2150782020-02-12T18:57:47Z2018-01-01T00:00:00ZAuditor Turnover and the Likelihood of Future Accounting Litigation
Hee, Kevin W.
This paper investigates whether the type of auditor turnover (resignation vs. dismissal) is associated with the likelihood of the client firm being involved in future accounting-related litigation after the auditor turnover.
The evidence shows a statistically significant association between auditor resignations and future accounting-related litigation. This research has market implication for potential investors due to negative impact on a shareholder’s financial position. The research also has practical implications for the accounting industry in terms of legal consequences and assessing audit risk for potential successor auditors because of the negative consequences (financial and nonfinancial) of being involved in future accounting-related litigation.
2018-01-01T00:00:00ZThe moderating effect of culture on e-filing taxes: evidence from IndiaZaidi, Syed Kashif RazaHenderson, Cassy DanielsGupta, Gauravhttp://hdl.handle.net/10211.3/2140372019-10-30T23:11:52Z2017-02-06T00:00:00ZThe moderating effect of culture on e-filing taxes: evidence from India
Zaidi, Syed Kashif Raza; Henderson, Cassy Daniels; Gupta, Gaurav
Purpose – The purpose of this paper is to examine factors that affect the adoption of an electronic tax filing system in an emerging economy. Using the theory of planned behavior, the technology acceptance model (TAM), the information systems success model (ISSM), and Hofstede’s cultural values as the theoretical basis, this paper examines the influence that computer skills (CS), perceived ease of use (PEoU), perceived usefulness (PU), information systems quality, and espoused national culture have on the adoption of an electronic tax filing system in an emerging economy.
Design/methodology/approach – A survey was used to collect the data from individuals who e-filed theirs or someone else’s (individual and/or business) income taxes using government or private vendor websites. Snowball sampling technique is used to collect the data. A total of 201 usable questionnaires were analyzed. Findings – Results indicate that PEoU and PU have a positive impact on user satisfaction (US), and higher US is linked to higher intentions of adopting online tax filing. Results show that high-power distance positively influences US.
Practical implications – The study provides insight for policymakers in emerging economies involved in diffusion of technology decisions. Considerations for requisite CS, perceptions of usefulness and ease, and culture should be included in the diffusion process.
Originality/value – This paper provides evidence supporting the predictability of TAM and ISSM in technology adoption. In addition, the study examines the moderating effect of culture on technology adoption. To the best of the authors’ knowledge, this is the first study to develop and test a holistic technology adoption model in context of a multicultural and emerging economy.
2017-02-06T00:00:00ZHear Me Write: Does CEO Narcissism Affect Disclosure?Marquez-Illescas, GilbertoZebedee, Allan A.Zhou, Linyinghttp://hdl.handle.net/10211.3/2140352019-10-30T18:59:16Z2018-01-20T00:00:00ZHear Me Write: Does CEO Narcissism Affect Disclosure?
Marquez-Illescas, Gilberto; Zebedee, Allan A.; Zhou, Linying
Through earnings announcements, conference calls, and other press releases, corporate executives have an opportunity to frame the narrative of financial disclosures. Numerous studies have shown that textual tone significantly influences stock returns, suggesting that through word choice, upper management may impact market reaction. In this study, we examine the influence of CEO personality traits on corporate disclosures by analyzing the tone of earnings announcements for a sample of Fortune 500 CEOs over nearly two decades. Our hypotheses are two-fold: 1) that qualitative disclosures in firms with narcissistic leaders will be biased upward and 2) the bias will moderate as CEOs becomes older. Our empirical results support these hypotheses and suggest that more narcissistic CEOs tend to reinforce their grandiose self-image by issuing more positive earnings announcements but this desire wanes with CEO age. We also find that the stock market response to the tone of the earnings announcement is less pronounced for more narcissistic CEOs, suggesting the market takes into account the bias in narcissistic CEO announcements.
This is a post-peer-review, pre-copy edit version of an article published in Journal of Business Ethics. The final authenticated version is available online at: https://doi.org/10.1007/s10551-018-3796-3
2018-01-20T00:00:00ZPCAOB Auditing Standard No. 5, Audit Risk and Auditor Dismissal and Audit RiskHee, Kevin W.http://hdl.handle.net/10211.3/2138602019-10-15T19:04:53Z2018-01-01T00:00:00ZPCAOB Auditing Standard No. 5, Audit Risk and Auditor Dismissal and Audit Risk
Hee, Kevin W.
In 2007, the Public Company Accounting Oversight Board (PCAOB) issued Auditing Standard No. 5 (ASS) as a response to criticism that AS2 (auditing standard effective after 2004) was too prescriptive and costly for smaller firms whose risk profile did not support the unnecessary audit procedures. ASS was effective for all fiscal years ending after November 14, 2007. In addition, ASS mandated audits be more risk-focused and tailored to the specifics of the client firm's business operations. This study incorporates audit risk to investigate ASS's impact on the likelihood of auditor dismissals relative to AS2. The study attempts to test whether riskier audits are more strongly associated with auditor dismissals in the ASS regime compared to the AS2 regime. Results show auditor dismissals are more likely for higher risk firms in the ASS regime compared to AS2. Additional tests show the main effect is more pronounced for dismissals where the dismissed auditor is Big 4 (Ernst & Young, PwC, Deloitte, KPMG) and the successor auditor is non-Big 4. This paper provides evidence that risk may play a larger role in auditor dismissals in the ASS era compared to AS2. This evidence is important to the free enterprise system because of the accountability that external auditors provide. This accountability is relied upon by financial information users in their decision-making. This paper examines client risk's impact on auditor dismissals which impacts the auditor's role in a free enterprise market.
2018-01-01T00:00:00Z