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Carries out a study which empirically examines both internal and external auditors in New Zealand to determine the extent to which 21 audit supervisory tools were used in audit practice. In addition to determining how frequently each of the supervisory techniques was used, the study tested two hypotheses. The first hypothesis was that the statistical variance for the number of audit supervisory techniques used on internal audits is greater than that for external audits. The second hypothesis was that the average number of audit supervisory techniques used on external audits is greater than that for internal audits, suggesting that external audits are more closely supervised than are internal audits. Both hypotheses were supported by the study data. In addition, supervisory profiles were constructed for both internal and external audits. The profiles indicated that while external audits appear to use more supervisory techniques during the course of the audit due to greater liability and competitive pressure, internal audits are more likely to require closer supervision of the release of audit reports and audit follow‐up.

Advocates training in business etiquette for auditors: an important “people skill” especially where the relationship of auditor and auditee is a delicate one. Discusses the basic principles underlying good manners and business protocol, trust, respect and mutual concern, and their expression in conversational aptitudes, order, propriety and convention. Also considers how to recover from lapses. Reports on a survey of the ranked concerns, with respect to etiquette, of 14 auditing executives.

It is argued that internal auditing functions are more valuable when placed higher, rather than lower, in organisational structures. An informal survey suggests that many internal auditing departments in the US, New Zealand and elsewhere in the world continue to be narrowly focused on almost exclusively financial matters at relatively low levels within organisational hierarchies. Two internal auditing departments in similar private sector retail organisations are studied, one in which the department manager reports to the chief executive officer and the other in which he reports to a financial executive. Results show that, if supported by additional research evidence, internal auditing at a relatively low organisational level is likely to be far less productive than making a more substantial investment in these activities at a higher organisational level.

The science and discipline of management have undergone some remarkable changes in recent years. These changes affect virtually every part of organizations, including internal auditing. One impact has been an increase in what are known as special projects conducted by internal auditors. Notes three observations suggesting several unique challenges for internal auditors performing special projects. Observation 1 – Special projects are more likely to involve higher level strategy. Observation 2 – Special projects may lead internal auditors into unfamiliar organizational territory. Observation 3 – Special projects are more likely to occur in the context of larger projects. Outlines defining characteristics of special projects and analyses five issues related to the above observations: (1) how to ensure auditor competence; (2) how to gain senior management′s commitment to special projects by internal auditors; (3) how to determine objectives, expectations and deadlines; (4) how to schedule special projects; and (5) how to report findings.

Many of the traditional controls that accountants and auditors are most familiar with can be traced to bureaucratic management. This article introduces a business process control model that fully captures the broader array of process controls now being implemented by world‐class organizations, including value‐adding controls focused on quality, cost and time. The article describes the categories of controls included in the model, presents a new way of mapping process controls that reflects the model, and illustrates the use of the model within the context of an actual business process. The article also discusses the primary benefits of adopting the model. First, the model provides a common business process control language and structure which will facilitate communications and foster a uniform understanding of process controls among senior executives, process owners, accountants and auditors. Second, the model provides a framework for comprehensively assessing business process risks and evaluating and improving business process controls.

Describes control triggers as signals which initiate the right activity to occur at the right time in a process, and discusses them as a previously unrecognized category of internal control methods. Argues that, unlike traditional control mechanisms, control triggers are not dependent on the beaurocracies which world‐class companies are now dismantling. Asserts that while control triggers are important to the control and application of all organizational processes, they are particularly critical to the application of world‐class management practices, affecting the reliability, efficiency and effectiveness of an organization’s operations.

Communications regarding this column should be addressed to Mrs. Cheney, Peabody Library School, Nashville, Tenn. 37203. Mrs. Cheney does not sell the books listed here. They are available through normal trade sources. Mrs. Cheney, being a member of the editorial board of Pierian Press, will not review Pierian Press reference books in this column. Descriptions of Pierian Press reference books will be included elsewhere in this publication.

While the terms theatre and drama are often used synonymously, they are marked by distinct differences. Drama is concerned with the literature of the theatre, the written basis for theatrical presentations. Theatre refers to the art of presentation, and includes the creations of the playwright, the designer, the architect, and the actor.

To review the evolution of SFAS No. 123R, “Accounting for Share Based Compensation,” and examine the economic consequences of the standard for the first group of filers impacted by its provisions.

The sample was the population of firms in the Russell 3000 having June 30, fiscal year‐ends.

The study's findings suggest that the provisions of SFAS No. 123R remain controversial and that compliance with the standard had significant economic consequences for the sample of companies.

This study provides evidence that SFAS No. 123R had significant economic consequences but that some of the standard's effects differed from earlier predictions.

An article in the Volume 13, Number 2 issue of the Managerial Auditing Journal introduced a comprehensive business process control model that captures the full spectrum of process controls being implemented by world‐class organizations, including value‐adding controls focused on quality, cost and time. The purpose of this article is to demonstrate a new approach to flowcharting business processes which highlights the five broad categories of controls included in the model. This approach clearly shows how the various types of controls interact with process activities and provides a basis for evaluating how effectively these controls contribute to the achievement of business process objectives.