Improving the 21st century audit. Financial reports are a key part of an efficient capital market and a central role of auditing is to add creditability to the financial reports. The corporate failures in the recent years have shaken investor confidence. The regulators and the auditing profession have an important role to play in bringing back that trust. The auditing profession needs to continue to evolve to deliver at the high standards expected of them especially in regard to auditors' abilit ....Improving the 21st century audit. Financial reports are a key part of an efficient capital market and a central role of auditing is to add creditability to the financial reports. The corporate failures in the recent years have shaken investor confidence. The regulators and the auditing profession have an important role to play in bringing back that trust. The auditing profession needs to continue to evolve to deliver at the high standards expected of them especially in regard to auditors' ability to uncover material fraud at a reasonable cost. This research will study techniques that will help auditors in meeting the challenges faced by them in detecting fraudulent financial statements and thus improve the audit quality.Read moreRead less
The Management of Corporate Earnings and Audit Committee Effectiveness. The ?management? of corporate earnings as an issue of social and economic importance has been given substantial prominence recently (e.g. Enron, HIH). Mandated audit committees (AC) for large companies has been proposed by Federal Government initiated inquiries (Ramsay 2001, JCPAA 2002) and is a key part to the Government's response to those inquiries (CLERP 9). ACs are not without critics (eg Wolnizer 1995). This study ex ....The Management of Corporate Earnings and Audit Committee Effectiveness. The ?management? of corporate earnings as an issue of social and economic importance has been given substantial prominence recently (e.g. Enron, HIH). Mandated audit committees (AC) for large companies has been proposed by Federal Government initiated inquiries (Ramsay 2001, JCPAA 2002) and is a key part to the Government's response to those inquiries (CLERP 9). ACs are not without critics (eg Wolnizer 1995). This study examines longitudinally the effectiveness of ACs in influencing corporate earnings management behaviour. This study will aid the Federal Government sponsored Financial Reporting Council in its task of monitoring the effectiveness post-CLERP 9 implementation. Read moreRead less
Corporate Governance and the Market for Audit Services. Corporate governance is essential for the development of efficient and transparent capital markets, which in turn are critical to economic growth and development. The alleged role of auditors in recent corporate collapses brings into focus the question of how auditing contributes to effective corporate governance. More broadly, the way in which the market for audit services functions is critical, especially given the increasingly concentrat ....Corporate Governance and the Market for Audit Services. Corporate governance is essential for the development of efficient and transparent capital markets, which in turn are critical to economic growth and development. The alleged role of auditors in recent corporate collapses brings into focus the question of how auditing contributes to effective corporate governance. More broadly, the way in which the market for audit services functions is critical, especially given the increasingly concentrated nature of this market. This project will provide evidence on whether auditors have a broader contribution than merely 'checking' the financial statements, as well as the extent to which the market for audit services may have become less competitive as the number of large audit firms has declined.Read moreRead less
Australia's Regulatory Response to Recent Corporate Collapses and Perceived Auditing Deficiencies. The corporate collapses of recent years have cost shareholders and other stakeholders hundreds of millions of dollars. However, various reforms in accounting and governance are coming into force. As these reforms differ markedly from those in other jurisdictions (notably the USA), Australian based research is essential in understanding the effectiveness of the changes in moderating certain corpor ....Australia's Regulatory Response to Recent Corporate Collapses and Perceived Auditing Deficiencies. The corporate collapses of recent years have cost shareholders and other stakeholders hundreds of millions of dollars. However, various reforms in accounting and governance are coming into force. As these reforms differ markedly from those in other jurisdictions (notably the USA), Australian based research is essential in understanding the effectiveness of the changes in moderating certain corporate behaviour. This research provides a measure of efficacy of these reforms in terms of measures of "manipulation" of corporate earnings. The results of the research will provide evidence of the efficacy of the reforms and pointers to further enhancements. Read moreRead less
Consistency of going concern audit report modifications over time, audit firms and countries. This research has both national and international benefits. Evidence of the consistency of the going concern audit reporting decision over time and by audit firms in Australia is important to financial report users. Further, an examination of audit reporting behaviour across countries contributes to international convergence. Without consistent application, the benefits of convergence decrease and trans ....Consistency of going concern audit report modifications over time, audit firms and countries. This research has both national and international benefits. Evidence of the consistency of the going concern audit reporting decision over time and by audit firms in Australia is important to financial report users. Further, an examination of audit reporting behaviour across countries contributes to international convergence. Without consistent application, the benefits of convergence decrease and transactions costs and information risk increase. Australia has a policy of international convergence and it is important that Australian representatives have input into the standard-setting process and policy and research supporting these standards both nationally and internationally. The research team can have this input.Read moreRead less
A Longitudinal Study of Recurrent Audit Failure in Australian Corporate Collapses from 1885 to the Present. As starkly illustrated with Enron in the US and with HIH in Australia, corporate collapse and audit failure may be interrelated. In response to repeated instances of audit failure, legislative and other reforms are typically adopted in order to ensure that auditor indiscretions are curtailed. Unfortunately, audit failure persists. This longitudinal Australian study of audit failure in the ....A Longitudinal Study of Recurrent Audit Failure in Australian Corporate Collapses from 1885 to the Present. As starkly illustrated with Enron in the US and with HIH in Australia, corporate collapse and audit failure may be interrelated. In response to repeated instances of audit failure, legislative and other reforms are typically adopted in order to ensure that auditor indiscretions are curtailed. Unfortunately, audit failure persists. This longitudinal Australian study of audit failure in the context of corporate collapse from the mid 1880s aims to enhance an understanding of audit failure and why it recurs. The study's findings are expected to inform future enquires and court cases and assist in developing public policy and future legislative reforms.Read moreRead less
Improving Auditor Negotiations. Given the uncertainty in many accounting judgments it is widely recognised that auditor/client negotiations are pervasive in the auditing environment. This project empirically tests two interventions aimed at improving the outcomes of the negotiation process. The aim is to develop an understanding of when these interventions are effective and what causes the improvements. Given the increased globalisation of business, the study further examines how cultural factor ....Improving Auditor Negotiations. Given the uncertainty in many accounting judgments it is widely recognised that auditor/client negotiations are pervasive in the auditing environment. This project empirically tests two interventions aimed at improving the outcomes of the negotiation process. The aim is to develop an understanding of when these interventions are effective and what causes the improvements. Given the increased globalisation of business, the study further examines how cultural factors impact negotiation outcomes and processes in both intercultural negotiations and intracultural negotiations.Read moreRead less
Do Converged International Auditing Standards Result in Converged International Auditor Behaviour? This research has both national and international benefits. International convergence of standards is beneficial as it reduces costs incurred in understanding and evaluating variations in national auditing standards. However, if auditor behaviour does not converge under converged standards, such benefits are reduced, and costs and information risk are increased. Australia has a policy of internatio ....Do Converged International Auditing Standards Result in Converged International Auditor Behaviour? This research has both national and international benefits. International convergence of standards is beneficial as it reduces costs incurred in understanding and evaluating variations in national auditing standards. However, if auditor behaviour does not converge under converged standards, such benefits are reduced, and costs and information risk are increased. Australia has a policy of international convergence by 2005, and it is important that Australian representatives have input into the standard-setting process, and policy and research supporting these standards. Simnett, being the academic on the international standard-setting body, is in a unique position to directly provide this input, and improve the quality of these standards. Read moreRead less
Strategic Archetypes, Knowledge Management Practices and Knowledge Processes in the Provision of Assurance and Consulting Services. The Big 5 accounting firms have restructured fundamentally in the last two decades. They are now multi-product, knowledge-intensive firms that need to match their competitive strategy with their knowledge management practices in order to achieve high levels of firm performance. We know little about these contingent fits. By comparing a sample of the Big 5 account ....Strategic Archetypes, Knowledge Management Practices and Knowledge Processes in the Provision of Assurance and Consulting Services. The Big 5 accounting firms have restructured fundamentally in the last two decades. They are now multi-product, knowledge-intensive firms that need to match their competitive strategy with their knowledge management practices in order to achieve high levels of firm performance. We know little about these contingent fits. By comparing a sample of the Big 5 accounting firms with comparable consulting firms, this project seeks to understand what types of knowledge management practices provide the best fit for particular strategic archetypes. The study therefore shows how ?good? or ?poor? fits between strategy and knowledge management practices impact on project performance.Read moreRead less