W.S Hopwood, D. Sinason and R.R Tucker
Emphasizes that although electronic commerce continues to grow, with it come many problems including the worry of security over the Internet. Presents a systematic approach to…
Abstract
Emphasizes that although electronic commerce continues to grow, with it come many problems including the worry of security over the Internet. Presents a systematic approach to developing and continuously improving Web security systems — allowing for enterprise‐wide controls regarding security risks. Goes into much detail regarding systems, security and design.
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Public administration theory suggests that increased accountability in the public sector influences the auditor to lower materiality levels; thereby increasing the audit sample…
Abstract
Public administration theory suggests that increased accountability in the public sector influences the auditor to lower materiality levels; thereby increasing the audit sample size; which decreases the likelihood of an inappropriate opinion. Accounting theory posits that engagement risk leads the auditor to lower materiality levels to decrease the likelihood of rendering an inappropriate opinion, in an effort to avoid litigation. The results of this study indicate, that in public sector entities, accountability guides the auditors’ materiality decisions.
David H. Sinason, Jefferson P. Jones and Sandra Waller Shelton
The purpose of this study is to examine the duration of the auditor’s relationship with a client and factors that affect audit firm tenure. The duration of the auditor and client…
Abstract
The purpose of this study is to examine the duration of the auditor’s relationship with a client and factors that affect audit firm tenure. The duration of the auditor and client relationship has been cited as possibly affecting the risk of a loss of auditor independence. Also, audit firm tenure has been used as an independent variable in several studies with variations on the characterization of a “long auditor‐client association.” However, little is known about the duration of the auditor’s relationship with a client. Generally, no empirical justification is provided for the treatment of the variable and no consideration is included for auditor or client factors that may affect the relationship. This study evaluates the duration of the auditor relationship with a client and determines which factors contribute to changes in that relationship. In an examination of 16,976 COMPUSTAT companies over a twentyyear period, the mean duration of audit tenure is found to be more than six years. However, audit tenure is affected by client size, client growth rate, and type of audit firm involved in the change of auditor. Audit tenure is not affected by audit firm size, client risk, or audit opinion.
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Carl Pacini, William Hillison and David Sinason
Examines the legal environment of the UK, Canada, Australia, New Zealand and the USA with respect to auditor liability. Provides an understanding of the legal risks to accountants…
Abstract
Examines the legal environment of the UK, Canada, Australia, New Zealand and the USA with respect to auditor liability. Provides an understanding of the legal risks to accountants associated with third‐party uses of audited financial statements by contrasting accounting liability for negligent misrepresentation in various US settings with those of the four other nations. Liability pressure has been very acute and litigation in the five countries has increased. Evidence supports a trend towards limiting third‐party liability to accountants.
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David H. Sinason, Sally A. Webber and Alex Nikitkov
The need for reliable information for decision makers is a fundamental principle underlying the demand for audit and assurance services. Yet, individuals and companies often do…
Abstract
Purpose
The need for reliable information for decision makers is a fundamental principle underlying the demand for audit and assurance services. Yet, individuals and companies often do not understand the value that users place on independent third‐party assurance. This paper aims to address this issue.
Design/methodology/approach
This paper uses the market for baseball cards to provide an empirical analysis of the value users associate with third‐party assurance services. Paired observations for baseball cards are identified on eBay; one with a third‐party assurance regarding its quality and one with only the seller's statement.
Findings
Comparative analysis indicates that bidders are willing to pay significantly more for the items when third‐party assurance was provided.
Originality/value
These findings indicate that third‐party assurance is valued by consumers, and where information asymmetry exists between buyer and seller, sellers should consider the use of third‐party assurance to increase sale price.
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Carl Pacini, Li Hui Qiu and David Sinason
This paper seeks to provide auditors, forensic accountants, investigators, regulators, financial managers, lawyers, law enforcement personnel, academics, and others with a basic…
Abstract
Purpose
This paper seeks to provide auditors, forensic accountants, investigators, regulators, financial managers, lawyers, law enforcement personnel, academics, and others with a basic overview of the steps in and elements of a qui tam legal claim, limitations on a qui tam claim, protection for a whistleblower employee, and the role of qui tam litigation in the fight against fraud.
Design/methodology/approach
A sample of types of recent qui tam fraud cases is highlighted for the reader. The steps in filing a qui tam claim are described along with the limitations of pursuing such a lawsuit. The paper includes a statutory and legal case study analysis of each required element of proof in a qui tam claim. Analysis of actual qui tam court cases illustrates the importance of private civil lawsuits in combating fraud committed against the US Government.
Findings
This paper provides readers with information about the substantial recoveries earned by successful qui tam plaintiffs. Also, the necessary steps in and elements of a qui tam suit are revealed. Technical legal details of various federal court rulings are distilled for readers. The important role of this unique type of lawsuit in the arsenal of those who fight against government fraud is emphasized.
Originality/value
This paper fills an identified need to inform those involved in the fight against economic crime about an important tool that uncovers and deters fraud against the federal government.
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William Hillison, Carl Pacini and David Sinason
External auditors are often not positioned to detect and report the occurrence of employee fraud. Internal auditors, however, can be an entity’s main line of defence against…
Abstract
External auditors are often not positioned to detect and report the occurrence of employee fraud. Internal auditors, however, can be an entity’s main line of defence against fraud. In this article, the authors identify: the fraud risks and signals that internal auditors should recognize, the assistance that internal auditors can provide external auditors in implementing SAS No. 82 and complying with Title III of the Private Securities Litigation Reform Act, and the affirmative steps internal auditors can take to prevent, deter, detect, and report fraud. The future is not promising, however. All three aspects of the fraud model – pressure, opportunity, and rationalization – appear to be moving in the direction of increasing the risk of fraud. The potential for increased fraud demands a sharpened focus by the internal auditor.
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Alan Reinstein, Mohamed E. Bayou, Paul F. Williams and Michael M. Grayson
Compare and contrast how the accounting, organizational behavior and other literatures analyze sunk costs. Sunk costs form a key part of the decision-making component of the…
Abstract
Purpose
Compare and contrast how the accounting, organizational behavior and other literatures analyze sunk costs. Sunk costs form a key part of the decision-making component of the management accounting literature, which generally include previously incurred and unrecoverable costs. Management accountants believe, since current or future actions cannot change sunk costs, decision makers should ignore them. Thus, ongoing fixed costs or previously incurred sunk costs, while relevant for matters of accountability such as costing, income determination, and performance evaluation are irrelevant for most short- and long-term decisions. However, the organizational behavior literature indicates that sunk costs affect decision makers’ actions – especially their emotional attachments to the related project and the asymmetry of attitudes regarding the recognizing of losses and gains. Called the “sunk cost effect” or “sunk cost fallacy,” this conflict in sunk costs’ underlying nature reflects one element of incoherence in contemporary accounting discourse. We discuss this sunk cost conflict from an accounting and a philosophical perspective to denote some ambiguities that decision usefulness and accountability introduces into accounting discourse.
Methodology/approach
Review, summarize and analyze the above literatures
Findings
Managerial accountants can apply many lessons from the various literature sources.
Originality/value
We also show how differing opinions on how to treat sunk costs impact a firm’s decision-making process both economically and socially.
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This paper aims to discuss the work of Dr Valerie Sinason and her contribution to working with people with an intellectual disability with psychotherapy.
Abstract
Purpose
This paper aims to discuss the work of Dr Valerie Sinason and her contribution to working with people with an intellectual disability with psychotherapy.
Design/methodology/approach
Dr Valerie Sinason is a psychoanalyst, and the author is trained in psychoanalytic psychotherapy.
Findings
The author believes there is important value in reading Valerie Sinason's contribution to the literature of psychotherapy with people with intellectual disabilities.
Originality/value
It is a review of Sinason’s contribution, and the author believes she's very original and important thinker.
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Individual psychodynamic psychotherapy for people with learning disabilities has been more available since the 1980s, with numerous case studies and reports of effectiveness, yet…
Abstract
Individual psychodynamic psychotherapy for people with learning disabilities has been more available since the 1980s, with numerous case studies and reports of effectiveness, yet little is know about the history of psychodynamic psychotherapy. This paper is a historical account of the international development of psychodynamic psychotherapy for people with learning disabilities. It discusses some of the clinicians' case reports, views and conclusions. It is important that, as therapists, we continue to learn and develop. This is a story of ‘opportunities lost’. Although a number of therapists were well‐placed to develop psychotherapy as a valuable treatment option, it did not happen. The paper discusses the reasons, ranging from widespread therapeutic pessimism to inability in the therapist to process the ‘disability transference’. It outlines the various British contributions before and since the ground‐breaking and well‐known work of Valerie Sinason, whose 1992 book is still the most influential contribution. Psychodynamic psychotherapy has developed more of a tradition than other therapy approaches in this field, but there is still only sparse literature on and recognition of this work.