Search results

The purpose of this study is to develop, assess, and provide uses for a measure of perceived enterprise resource planning (ERP) systems expertise for financial statement auditors. ERP systems are the dominant system used by the public company clients of audit firms. In such settings, the Theory of Planned Behavior suggests that auditor perceptions of their own ERP systems expertise should influence their perceived behavioral control and, in turn, explain auditor behavior.

A five‐item measure of perceived ERP systems expertise is developed from a review of audit expertise studies and the Theory of Planned Behavior.

An assessment of the measure shows that it possesses a high level of reliability and construct validity (i.e. convergent and discriminant validity). Factor analysis results indicate that all five items satisfactorily load on one factor. The results also suggest that auditors' perceptions of ERP systems expertise are not simply a by‐product of general audit experience (AUDEXP).

Discusses possible future uses of the measure, including whether the measure explains auditor control testing performance and the customization of the measure for IT audit specialists and internal auditors.

This study's measure should provide researchers with a tool to examine how auditor self‐perceptions of ERP systems expertise can affect auditor behavior and the quality of contemporary audit services.

Casino gambling in the United States has increased significantly in the last 30 years, going from just 2 states (Nevada and New Jersey) in 1988 to 41 states with over 980 casinos. This rapid growth of casino gambling has resulted in additional social costs, including workplace embezzlements committed by problem gamblers. Embezzlements contribute to greater fraud risk for organizations in casino regions and are expected to rise as casinos multiply and increasingly cater to convenience gamblers. The purpose of this chapter is to highlight the proximity of casinos as a fraud risk factor for embezzlement. The authors recommend that internal and external auditors for companies located in casino areas assess this fraud risk and where appropriate, perform audit procedures to address this risk. There is also an opportunity for external auditors to assist those companies located in casino regions (that may lack internal auditors) in establishing fraud prevention programs.

The urban heat island is an unintended consequence of humans building upon rural and native landscapes. We hypothesized that variations in vegetation and land use patterns across an urbanizing regional landscape would produce a temperature distribution that was spatially heterogeneous and correlated with the social characteristics of urban neighborhoods. Using biophysical and social data scaled to conform to US census geography, we found that affluent whites were more likely to live in vegetated and less climatically stressed neighborhoods than low-income Latinos in Phoenix, Arizona. Affluent neighborhoods had cooler summer temperatures that reduced exposure to outdoor heat-related health risks, especially during a heat wave period. In addition to being warmer, poorer neighborhoods lacked critical resources in their physical and social environments to help them cope with extreme heat. Increased average temperatures due to climate change are expected to exacerbate the impacts of urban heat islands.

Despite the vulnerability of rapidly developing and emerging market economies, researchers have paid less attention to the determination of the size of money laundering (ML) in these economies, including the United Arab Emirates (the UAE). Therefore, this paper aims to estimate the magnitude of ML in the UAE between 1975 and 2020 based on the currency demand approach (CDA).

The study uses the Gregory–Hansen cointegration technique alongside the autoregressive distributed lag bounds testing procedure to estimate the CDA model.

The results illustrate that an amount equivalent to about 19.034% of the GDP is laundered in the UAE between 1975 and 2020, on average, with the value lying between 15.129% and 23.121%. In addition, the results demonstrate the importance of the real estate market, gold trade, remittance channels and the size of the underground economy in facilitating the laundering of illicit funds in the country.

To the best of the authors’ knowledge, the study is the pioneering attempt at estimating the amount of illicit funds laundered in the UAE. Besides, the adoption of a novel, yet robust, approach based on the modification of the CDA technique also sets the study apart as it ensures a correct, clear, unambiguous and indisputable estimate of the magnitude of ML is obtained. In addition, it is expected that the outcome of the study will expand the frontiers of knowledge among policy makers and relevant agencies and ensure the adoption of the most efficient and effective measures to curb the ML menace in the country.

This study aims to investigate the influence of professional skepticism (PS) on the quality of judgment and decision-making (QJDM) among Iranian Certified Public Accountants (CPAs) while considering the moderating effects of ego depletion (ED) and overconfidence (OC).

Nonprobabilistic sampling was used to collect data through questionnaires and direct engagement with 950 Iranian CPA members, resulting in 300 completed responses for analysis.

The study confirms that PS significantly positively impacts QJDM among independent auditors. Therefore, a high level of trait PS could improve QJDM. In addition, a majority of auditors experience ED and suffer from OC bias due to their extensive knowledge, experience and self-efficacy. ED and OC play negative moderating roles in attenuating the effect of PS on QJDM.

The study emphasizes that integrating PS into auditors’ codes of ethics and improving audit work systems can significantly enhance the quality of auditing practices. Furthermore, addressing existence of OC and ED among auditors will further benefit the audit process. Implementing these measures will lead to more accurate assignment and distribution of audit work among independent auditors, ultimately resulting in more reliable and objective auditing judgment and making decisions.

This study not only approves the vital role of PS, ED and OC in the QJDM of independent auditors but also contributes to the existing QJDM literature in auditing.

This study aims to explore the relationship between fraud triangle theory (FTT) and the accounting fraud phenomenon in all listed companies in China.

The CSMAR database is used as the sample, including 16,063 data of all listed companies in Shanghai and Shenzhen markets for the 2010–2020 period. The authors also use quantitative methods, such as regression analysis, to investigate the relationship between five variables (cover three elements of FTT) and fraud occurrence.

Results show that leverage and liquidity ratios positively affect fraud detection, whereas return on net equity, audit size and independent director percentage negatively affect fraud detection.

This study enriches theoretical research on the causes of accounting fraud in China and is of great significance to the sound development of China’s capital market.

This paper aims to provide an overview of the recent findings of the mechanical properties of parts manufactured by fused deposition modeling (FDM). FDM has become a widely used technique for the manufacturing of thermoplastic parts. The mechanical performance of these parts under service conditions is difficult to predict due to the large number of process parameters involved. The review summarizes the current knowledge about the process-property relationships for FDM-based three-dimensional printing.

The review first discusses the effect of material selection, including pure thermoplastics and polymer-matrix composites. Second, process parameters such as nozzle temperature, raster orientation and infill ratio are discussed. Mechanisms that these parameters affect the specimen morphology are explained, and the effect of each parameter on the strength of printed parts are systematically presented.

Mechanical properties of FDM-produced parts strongly depend on process parameters and are usually lower than injection-molded counterparts. There is a need to understand the effect of each parameter and any synergistic effects involved better.

Through the optimization of process parameters, FDM has the potential to produce parts with strength values matching those produced by conventional methods. Further work in the field will make the FDM process more suitable for the manufacturing of load-bearing components.

This paper presents a critical assessment of the current knowledge about the mechanical properties of FDM-produced parts and suggests future research directions.

The purpose of this study is to examine the audit efficiency and timeliness of Big 4 auditors relative to non-Big 4 auditors, where audit efficiency is defined as the auditor’s ability to conduct an audit more quickly or with fewer resources while still achieving effective outcomes.

The authors use audit report lags (also referred to as audit delay) as a proxy for audit timeliness and efficiency, controlling for audit quality and audit fees (audit input). The authors use a propensity-score matching (PSM) approach to construct a pseudorandom sample in which each non-Big 4 client is matched with a similar Big 4 client based on their characteristics and audit quality, to control for potential endogeneity related to self-selection bias in this setting.

The authors find that non-Big 4 auditors are associated with shorter audit delays than Big 4 auditors. Additional analysis of the matched sample reveals that non-Big 4 auditors charge lower fees than Big 4 auditors do after controlling for the Big 4 premium. These findings do not support the notion that Big 4 auditors conduct audits more efficiently than non-Big 4 auditors do.

These results could be of interest to the management of public firms, audit committees, investors and regulators; provide valuable insights into the performance of audit firms in varying client environments; and contribute to a better understanding of audit timeliness and efficiency.

The purpose of this present study is to assess the impact of intellectual capital (IC) on fraud in listed firms' financial statements on the Tehran Stock Exchange (TSE). In other words, this paper seeks to figure out whether IC and its components, namely, the efficiency of human capital (HC), structural capital (SC), relational capital (RC) and customer capital (CC).

The logistic regression model is used for analyzing the material of this study. Research hypotheses are also examined using a sample of 187 listed firms on the TSE during 2011–2018 by employing the logistic regression pattern based on synthetic data technique. Moreover, some robustness checks are also used to ensure the correctness of the obtained results.

The findings show a negative and significant relationship between IC and its components, including the efficiency of HC, SC, RC and CC, and fraud in financial statements. This means that by investing in the IC and its components, the amount of fraud in business firms' financial statements decreases.

Since few studies are carried out by existing literature, this paper is among the pioneer efforts assessing IC's potential impact on fraud commitment. The findings apply to policymakers to improve the clarity of the business atmosphere of Iran.