Marian Yew Jen Wu Tong, Gladie Lui and Albert Lew
This paper seeks to provide empirical evidence showing how bank users of audited financial statements perceive and interpret various dimensions associated with financial reporting…
Abstract
This paper seeks to provide empirical evidence showing how bank users of audited financial statements perceive and interpret various dimensions associated with financial reporting in Hong Kong. Employing a survey instrument, we asked bank loan officers to rank the importance of thirty‐five reporting dimensions for lending decisions and to ascertain their expected level of information on each exploratory dimension, as well as their perceptions of the level of information actually provided by audited financial statements. Reliance on principal‐component analysis to extract a set of important dimensions shows that nine reporting dimensions are significantly associated with lending decisions. When bank loan officers' levels of expectations on important reporting dimensions were compared with the corresponding levels of perceived reporting performance, the statistical results reflect the existence of an expectations‐performance gap. Finally, when bank loan officers' perceived levels of reporting performance were hierarchically positioned, audited financial statements were found to provide the most information on a firm's liquidity and profitability, moderate information on reliability‐related dimensions, and the least information on relevance‐related dimensions pertaining to the future prospects of a firm. This empirical evidence signifies the need for future corrective actions in closing the expectations‐performance gap.
Considerations for time, cost, and audit comfort in completing audit engagements have gradually led to extensive use of analytical review (AR) in external audits by large…
Abstract
Considerations for time, cost, and audit comfort in completing audit engagements have gradually led to extensive use of analytical review (AR) in external audits by large accounting firms in Hong Kong. AR is now being used by auditors as “attention‐directing” at the planning stage, “test‐reducing” at the fieldwork stage, and an overall reasonableness check in arriving at the true‐and‐fair decision at the final review stage. Greater reliance on AR has long been predicted in the auditing literature as an inevitable future trend. Empirical findings on auditors attesting to the extensive use of AR in Hong Kong are simply visible manifestations of the profession’s adjustment to the global movement.
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Herbert L. Jensen, Albert Y. Lew and Mike M.K. Chan
Tests whether professional experience and training can mitigate recency effects in an auditor’s belief revision while evaluating internal control. In the experiment, each of the…
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Tests whether professional experience and training can mitigate recency effects in an auditor’s belief revision while evaluating internal control. In the experiment, each of the 57 auditor‐subjects was asked to complete a questionnaire on an internal control case. Four pieces of audit evidence (two positive and two negatives) were presented to the subjects in two different orders (++‐ ‐,‐ ‐++). After reading each piece of evidence, the subjects were asked to revise their degree of belief that the internal control system can prevent material errors. ANOVA tests of significance indicated that when auditors were asked to evaluate a short series of complex, mixed evidence, recency effect existed in the auditors’ judgement; however, the recency effect in the case of experienced auditors did not seem to be smaller than their less‐experienced counterparts. This tends to refute the generally accepted notion that the level of substantive testing is influenced by the number of years of audit experience in belief‐revision.
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The reflections in this chapter explore the genesis of tourism geography in the Netherlands and Belgium marked by political and linguistic constraints, plus historical, political…
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The reflections in this chapter explore the genesis of tourism geography in the Netherlands and Belgium marked by political and linguistic constraints, plus historical, political, and cultural factors, as well as the footprints of some pioneers. The dual language use of French and Dutch/Flemish has often been offered as an excuse for the low profile of the region’s universities in international knowledge networks. However, thanks to the involvement in thematic networks and a growing pressure for researchers to publish internationally in peer-reviewed journals, the research landscape in tourism has definitely changed. Geographical and spatial approaches to tourism have led to a colorful research landscape today.
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Winston Conrad B. Padojinog, Viory Yvonne T. Janeo and Diana Rueda
The tourism industry's deep interindustry linkages makes it a significant engine of growth for an economy. When aligned with specific sustainability goals, it becomes an effective…
Abstract
The tourism industry's deep interindustry linkages makes it a significant engine of growth for an economy. When aligned with specific sustainability goals, it becomes an effective means of inclusive prosperity and environmental protection. Coming fresh from the lockdown, investors and stakeholders are more conscious of their investing and spending decisions preferring more and more businesses and industries with sustainable business practices (Leal Filho et al., 2022). Specifically, tourism's generation of business and customer values must also extend to generation of value to the environment, society, and even on governance (GIZ, 2020). This chapter, using a system's view approach, demonstrates how activities in the tourism value chain – besides being an engine of growth – can also be the vehicle to attaining environmental, social, and governance (ESG) aspirations.