Joseph Canada, Steve G. Sutton and J. Randel Kuhn
The complexity of computerized information systems increases the complexity of the external auditor's assessment of the reliability of a client's internal control systems. The…
Abstract
Purpose
The complexity of computerized information systems increases the complexity of the external auditor's assessment of the reliability of a client's internal control systems. The purpose of this paper is to investigate the impact of weaknesses in IT related internal controls on the cost of a SOX 404 audit of internal controls over financial reporting.
Design/methodology/approach
The paper considers the impact on audit fees through three dimensions: percentage increase in audit fees; amount of change in audit fees per outstanding common share; and actual dollar amount of audit fees. Examination of first year reports by accelerated filers yields 131 companies with material IT‐control weaknesses. These 131 companies are matched with a similar set of companies with no reported material weaknesses, and for a subset of 54 from the 131 companies in which a good match could be identified, a set of companies having only material non‐IT‐based control weaknesses are compared.
Findings
As expected, substantial fee differentials were identified for companies reporting material IT‐based control weaknesses as compared to both companies without any material weaknesses and those companies with only non‐IT related material weaknesses.
Originality/value
Preliminary evidence in regard to the costs of SOX 404 compliance for stockholders is provided. The cost of SOX 404 compliance has often been cited in criticisms of SOX, yet the focus of SOX is not on corporate wealth, but rather on enhancing corporate governance to protect the interest of stockholders. The cost of SOX compliance across the number of reported outstanding common shares for the companies studied is factored. It is found that the increased cost of audit fees on a per share basis is higher for companies reporting IT material weaknesses.
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Sakhr Bani-Khaled and Carlos Pinho
This study aims to examine the impact of client information technology (IT) capabilities on audit report lag and audit fees in Jordanian companies listed on the Amman Stock…
Abstract
Purpose
This study aims to examine the impact of client information technology (IT) capabilities on audit report lag and audit fees in Jordanian companies listed on the Amman Stock Exchange (ASE) during the COVID-19 pandemic.
Design/methodology/approach
This study analysed financial and non-financial data from 72 Jordanian public shareholding companies listed on the ASE between 2014 and 2021. Using fixed- and random-effects models, the authors examined the impact of client IT capabilities on audit report lag and audit fees. The authors also examined how the COVID-19 pandemic might affect audit report lag and audit fees. The analysis incorporated various control variables specific to the Jordanian context to ensure accuracy.
Findings
Empirical evidence indicates that client IT capabilities do not significantly impact audit report lag and audit fees. In contrast, the COVID-19 pandemic has positively impacted audit report lag and audit fees, leading to an increase in audit report lag of 60 to 67 days and an increase in audit fees of approximately 15%. It is worth noting that these effects are more pronounced when influenced by factors including return on assets, company losses and audits conducted by the Big 4 firms.
Research limitations/implications
The scope of this study, which focuses on Jordanian firms, may limit the generalisability of the findings to other contexts. Reliance on aggregate IT infrastructure and software assets as proxies for IT capabilities might not fully capture their multifaceted nature, overlooking the qualitative aspects crucial for audit outcomes. Furthermore, excluding external factors such as governmental regulations underscores the need for future research to explore the nuanced interplay between IT capabilities, internal control systems and regulatory environments, enriching our understanding of audit practices.
Originality/value
This study contributes to auditing literature by examining the interplay between IT capabilities and audit processes during the COVID-19 pandemic in Jordan. This study highlights the unexpected finding that IT capabilities have minimal impact on audit report lags and fees, opening new avenues for research on how pandemics and similar crises can reshape auditing practices and influence regulatory policies in an evolving economic environment.
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This paper discusses the communicative process of messy talk that enables collaborative problem-solving and tacit knowledge sharing among interdisciplinary team members. The paper…
Abstract
Purpose
This paper discusses the communicative process of messy talk that enables collaborative problem-solving and tacit knowledge sharing among interdisciplinary team members. The paper aims to (1) trace relevant literature and lay out the conceptual and operational definitions of messy talk, (2) highlight messy talk as an enacted communication competence and (3) discuss the antecedents of messy talk and offer empirical propositions to guide future research.
Design/methodology/approach
This conceptual paper traces and integrates relevant literature from the construction, management and organizational and group communication disciplines to promote and foster research on messy talk.
Findings
Based on extant research on messy talk, the paper first provides clear conceptual and operational definitions of the messy talk construct. Second, using practice perspective, messy talk is presented as an enacted communication competence that focuses on the ongoing demands of the context and the situated practices of organizational members. Third, several factors including team members' technical expertise, task routineness, team history, time pressure and information sharing systems that influence the amount of messy talk conversations in teams are discussed. Lastly, the paper underscores the key implications of considering messy talk as an enacted communication competence on the performance and training of knowledge workers.
Originality/value
The presentation of messy talk as an enacted communication competence is a deliberate consideration of knowledge as an emergent, intersubjectively negotiated phenomenon that is deeply rooted in practice.
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Sinéad Harmey and Emily Rodgers
To identify features of teacher support associated with children who made accelerated progress in writing in an early literacy intervention.
Abstract
Purpose
To identify features of teacher support associated with children who made accelerated progress in writing in an early literacy intervention.
Design/methodology/approach
Mixed methods were used to describe the paths, rates, variability, and potential sources of change in the writing development of 24 first grade students who participated in an early literacy intervention for 20 weeks. To describe the breadth and variability of change in children’s writing within a co-constructed setting, two groups who made high and low progress were identified.
Findings
We focus on one child, Paul, who made high progress (became more independent in the writing of linguistically complex messages) and the features of teacher support that this child received compared to those who made lower progress. We compare him to another child, Emma, who made low progress. Teacher support associated with high progress included a conversational style and flexibility to adapt to the child’s message intent as the student composed, supporting students to write linguistically more complex and legible messages, and supporting students to orchestrate a broad range of problem-solving behaviors while writing.
Practical implications
We describe how teachers can support children to gradually take control of the composition process, how they can recognize complexity in early written messages and we provide suggestions as to how teachers can systematically assess, observe, and support children’s self-regulation of the writing process.
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Daniel Wolfgruber and Sabine Einwiller
This chapter presents a study on the role of internal communication for diversity and inclusion (D&I) management in organisations. It sheds light on how the units D&I management…
Abstract
This chapter presents a study on the role of internal communication for diversity and inclusion (D&I) management in organisations. It sheds light on how the units D&I management and internal communication are linked to each other in terms of exchanging and sharing ideas and know-how and the (common) pursuit and achievement of strategically set objectives. In total, 20 D&I experts (17 D&I managers and three D&I management consultants) from Austria and Germany were interviewed. The focus of the interviews was on the development of D&I management strategies and concomitant measures as well as the internal D&I communication activities. The findings indicate the importance of internal communication to communicate D&I goals and measures. In this context, the internal communication department plays the role of a service provider and advisor. Numerous communication channels are used to communicate D&I initiatives, with ‘rich’ media such as interpersonal communication and social intranet being particularly common. Furthermore, the results show that storytelling is a particularly popular form of communication. The study contributes to the scholarly examination of the role of internal communication in D&I management, to what extent and how the two units collaborate, and what communication measures are taken to pursue D&I management goals.
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Daniel Wolfgruber, Lina Stürmer and Sabine Einwiller
The purpose of this article is to examine the communicative factors that facilitate or hamper the development of an inclusive work environment with an emphasis on the…
Abstract
Purpose
The purpose of this article is to examine the communicative factors that facilitate or hamper the development of an inclusive work environment with an emphasis on the communication about equality, diversity, and inclusion (EDI), while taking diversity characteristics of employees into account.
Design/methodology/approach
In total, 84 persons employed in Austria and Germany, who feature various observable and non-observable diversity characteristics, were interviewed following a problem-centered approach.
Findings
The results indicate that employees with (observable) diversity characteristics, who tend to feel less included, observe more excluding and marginalizing communication and practices in their organizations. Moreover, formal interpersonal communication appears to be more important to develop a highly inclusive workplace than informal interpersonal communication and other forms of communication about EDI.
Research limitations/implications
The sample was rather imbalanced and comprised only employees in Austria and Germany, which limits the study's explanatory power. However, the findings stress the significance of formal interpersonal communication as the cornerstone of an inclusive workplace, which should be followed up in future research.
Practical implications
In terms of the development of an inclusive work environment the findings suggest that strategic (i.e. formal) organizational communication about EDI issues is key to increase the perception of inclusion.
Originality/value
This paper contributes to the literature by demonstrating the importance of interpersonal communication as a key factor that facilitates, but also hampers an inclusive work environment.
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Mahdi Salehi, Raha Rajaeei, Ehsan Khansalar and Samane Edalati Shakib
This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between…
Abstract
Purpose
This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between the variables of intellectual capital and social capital and internal control weaknesses.
Design/methodology/approach
The statistical population consists of 1,309 firm-year observations from 2014 to 2020. The research hypothesis is tested using statistical methods, including multivariate, least-squares and fixed-effects regression.
Findings
The results demonstrate a negative and significant relationship between intellectual capital, social capital and internal control weaknesses. The study also finds that increased intellectual and social capital quality improves human resource utilization, control mechanism, creativity and firm performance. The results also show that intellectual capital and social capital enhancement will reduce internal control weaknesses in the upcoming years.
Originality/value
This paper is the pioneer study on the relationship between intellectual capital and social capital and internal control weaknesses in Iran, carried out separately and in exploratory factor analysis. This paper considers intellectual capital components for theoretical factor analysis, including human capital, structural capital and customer capital. Internal control weakness is assessed based on financial, non-financial and information technology (IT) weaknesses.
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This paper promotes an overview of facilities management (FM) and the impact of information technology (IT). It opens with a definition of FM automation and a brief history of the…
Abstract
This paper promotes an overview of facilities management (FM) and the impact of information technology (IT). It opens with a definition of FM automation and a brief history of the generations of development. This is followed by key demand impacts which have both enabled and stimulated the growth of FM automation during the past and into the future. Specific attention is then given to the tactical and strategic impacts of the technology affecting the organisation within the emerging and complex business environment. Some examples are cited together with the effects of discontinuous change and the resistance to such change. Finally, a brief look at the impact of system selection is also included to assist FM organisations in their determination of automation needs within the paradigms of change, complexity and dependence.
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Alfonso J. Gil, Jorge L. Garcia-Alcaraz and Mara Mataveli
– The purpose of this paper is to describe the role of training demand in the organisational changes.
Abstract
Purpose
The purpose of this paper is to describe the role of training demand in the organisational changes.
Design/methodology/approach
The paper describes the demand of training courses in the Rioja wine sector in Spain and its relation with the changes in the sector carried out in recent years. Through a questionnaire, wineries’ managers asked about the training demand in the sector and change processes. It is proposed, first, the relationship between the demand for training and changes made by companies of Rioja wine in entering new markets and innovation in products and, second, that these changes explain the demand of training in marketing and oenology topics. To confirm the hypotheses, a binary logistic regression analysis was performed.
Findings
It was found that the relationship between the demand for training and the processes of change, and that the change processes in companies of Rioja wine sector originate a specific demand for training.
Practical implications
The paper provides a review of the importance of training in changes processes of companies. A critical factor in the change process is the development of workers competencies to cope with the changes in the organisation, but it is also important to develop a culture of change in the organisation.
Originality/value
This paper provides empirical evidence of the relationship between organisational changes and training demands in a key sector from the Rioja Community in Spain.