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
Evaluating innovative assurance practices for sustainability reporting. While entities are today accountable for and report on a broader range of social and environmental issues, such enhanced reporting must be credible to be relied upon. Evaluating settings where innovative credibility-enhancing mechanisms are proposed or disclosed, this project aims to explore the efficacy of these evolving mechanisms and their impact on information quality and users. This project is expected to make significa ....Evaluating innovative assurance practices for sustainability reporting. While entities are today accountable for and report on a broader range of social and environmental issues, such enhanced reporting must be credible to be relied upon. Evaluating settings where innovative credibility-enhancing mechanisms are proposed or disclosed, this project aims to explore the efficacy of these evolving mechanisms and their impact on information quality and users. This project is expected to make significant contributions in identifying and evaluating best practice credibility-enhancing techniques and informing policy and standard-setting options in Australia and overseas. The benefits include higher quality and more reliable disclosures resulting in better resource allocation decisions and informed policy determinations.Read moreRead less
Elevating auditor professional scepticism by way of improved regulation. This project aims to examine and test alternate regulatory approaches that address ongoing and long standing concerns of audit firm quality inspectors that auditors are not exercising a sufficiently high level of professional scepticism. The project expects to provide strong, empirically-based knowledge on the most effective means of discharging regulatory responsibilities over the audit profession. Expected outcomes of th ....Elevating auditor professional scepticism by way of improved regulation. This project aims to examine and test alternate regulatory approaches that address ongoing and long standing concerns of audit firm quality inspectors that auditors are not exercising a sufficiently high level of professional scepticism. The project expects to provide strong, empirically-based knowledge on the most effective means of discharging regulatory responsibilities over the audit profession. Expected outcomes of this project include improvements in regulatory practice and an enhanced capacity for Australia's interests to be represented in the development of international auditing standards and regulations.Read moreRead less
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
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
Judgment and decision making using ESG performance information. Organisations face increasing pressure to deliver value aligned with both financial and environmental, social and governance (ESG) goals. Yet we know very little about the way in which managers within these organisations use financial and nonfinancial ESG performance information to make decisions that support their ESG goals. This project aims to examine how managers use ESG performance information to make internal business decision ....Judgment and decision making using ESG performance information. Organisations face increasing pressure to deliver value aligned with both financial and environmental, social and governance (ESG) goals. Yet we know very little about the way in which managers within these organisations use financial and nonfinancial ESG performance information to make decisions that support their ESG goals. This project aims to examine how managers use ESG performance information to make internal business decisions, and create new knowledge on how an organisation’s performance measurement system influences their decision making processes. Our project outcomes will benefit preparers and users of ESG information within organisations, who by making better ESG-related decisions can create long-term value for all stakeholders.Read moreRead less
Improving fraud detection, financial reporting quality, investor confidence and market returns by using specialist auditors. As investors, managers and auditors grapple with the global financial crisis effects, this project's findings will help them by showing how and when auditor specialisation contributes to greater financial statement quality and returns. Investors will benefit from lower audit costs, increased audit quality and more credible financial statements.
Extended reporting and assurance for not-for-profit organisations. This project aims to improve the relevance and reliability of extended reporting now being required of not-for-profit organisations (NFPOs). Society is increasingly demanding that NFPOs disclose additional information beyond financial information, as evidenced by the service performance reporting and integrated reporting initiatives. These reporting initiatives better align the reporting with the mission of NFPOs: to achieve outc ....Extended reporting and assurance for not-for-profit organisations. This project aims to improve the relevance and reliability of extended reporting now being required of not-for-profit organisations (NFPOs). Society is increasingly demanding that NFPOs disclose additional information beyond financial information, as evidenced by the service performance reporting and integrated reporting initiatives. These reporting initiatives better align the reporting with the mission of NFPOs: to achieve outcomes that are beyond financial returns. This project aims to evaluate and to aid the development and implementation of these extended reporting responsibilities and mechanisms that increase the quality and credibility of the information. This would improve the relevance of the information produced by NFPOs and increase confidence in extended reporting.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
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