Search results

1 – 7 of 7
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 14 November 2016

Naman Desai

Auditors tend to focus more on income-increasing items compared to income-decreasing items because they are trained to be conservative and also because the risk of litigation is…

757

Abstract

Purpose

Auditors tend to focus more on income-increasing items compared to income-decreasing items because they are trained to be conservative and also because the risk of litigation is significantly higher for failing to detect material income-increasing items compared to material income-decreasing items. Auditors’ consideration of transaction-level items is also affected by their evaluation of company-level information. Therefore, this study aims to examine how the interaction between company-level information and sign of the material items affects auditors’ evaluation of income-increasing and income-decreasing items.

Design/methodology/approach

A three-treatment between-subjects experiment was conducted to investigate the research questions.

Findings

The results indicate that in the absence of company-level information, auditors intuitively associate a higher risk and audit effort to income-increasing items. When the company-level information indicates that management is under pressure to inflate earnings, auditors’ conservatism associated with income-increasing items gets amplified. This leads to an increase in the difference in assessed risk and audit effort between income-increasing and income-decreasing items. However, when the company-level information indicates that management is not under pressure to inflate earnings, there are no significant differences in assessed risk and audit effort between income-increasing and income-decreasing items. These results indicate that auditor conservatism is affected by company-level information.

Originality/value

The findings indicate how an analysis of company-level information (as prescribed by auditing standards) and inherent auditor conservatism could potentially affect audit procedures and have important implications for the audit profession.

Details

Review of Accounting and Finance, vol. 15 no. 4
Type: Research Article
ISSN: 1475-7702

Keywords

Access Restricted. View access options
Case study
Publication date: 27 February 2019

Naman Desai, Joshy Jacob and Savan Godiawala

The case examines the financial and operational causes of business failure associated with Setco Automotive Ltd. an auto-clutch manufacturing company located in India and then…

Abstract

The case examines the financial and operational causes of business failure associated with Setco Automotive Ltd. an auto-clutch manufacturing company located in India and then proceeds to identify the key turn around factors which eventually led to Setco becoming the largest producer of clutches for medium and heavy vehicles in India. The case allows the participants to understand and evaluate the financial impact of turn around factors on the company's profitability and survivability and in also determining the optimal capital structure for a struggling company.

Details

Indian Institute of Management Ahmedabad, vol. no.
Type: Case Study
ISSN: 2633-3260
Published by: Indian Institute of Management Ahmedabad

Keywords

Access Restricted. View access options
Book part
Publication date: 8 July 2010

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-0-85724-137-5

Access Restricted. View access options
Book part
Publication date: 10 June 2009

Abstract

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-84855-739-0

Access Restricted. View access options
Book part
Publication date: 9 October 2020

Ali C. Akyol

Abstract

Details

Corporate Fraud Exposed
Type: Book
ISBN: 978-1-78973-418-8

Access Restricted. View access options
Book part
Publication date: 9 October 2020

Iva Charlopova, Paul Andon and Clinton Free

Abstract

Details

Corporate Fraud Exposed
Type: Book
ISBN: 978-1-78973-418-8

Access Restricted. View access options
Article
Publication date: 25 September 2020

M. Teresa Ortega Egea, María Isabel Roldán Bravo, Antonia Ruiz Moreno, Carmen Haro Domínguez and Dainelis Cabeza Pullés

Although most research considers organizational learning as an antecedent of innovation, the relationship is complex and could be reciprocal. Therefore, more research is needed on…

369

Abstract

Purpose

Although most research considers organizational learning as an antecedent of innovation, the relationship is complex and could be reciprocal. Therefore, more research is needed on the profit gained from the learning and organization acquires from its innovation activities. Using the concept of fit, this paper aims to investigate whether organizational learning increases when an organization’s technical innovation level exceeds that of its competitors (positive misfit), theorizing the curvilinear effect of positive technical innovation misfit on organizational learning.

Design/methodology/approach

This paper uses regression analysis with survey data gathered from 202 European firms.

Findings

The findings support the argument that positive technical innovation misfit has an inverted-U shaped effect on organizational learning.

Practical implications

The findings obtained should orient firm managers to developing a work environment that enables optimal levels of technical innovation and learning – levels at which the technical innovation developed drives learning among the organization’s members but avoids becoming trapped in the organizational complexity involved in very high levels of positive technical innovation misfit.

Originality/value

This study resolves conflicting views of the relationship between organizational learning and technical innovation and adds to the existing literature that indicates that proactive innovative firms can fail when becoming learners.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 3
Type: Research Article
ISSN: 0885-8624

Keywords

1 – 7 of 7
Per page
102050