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
Discovery Early Career Researcher Award - Grant ID: DE230101159
Funder
Australian Research Council
Funding Amount
$434,287.00
Summary
Climate Change: The Role of Reporting, Auditing and Executive Remuneration . This project addresses the need for corporate disclosures on climate-related risks. It aims to generate new knowledge about reporting and auditing of climate-related information and how these metrics are incorporated into executives’ remuneration. Utilizing the latest global developments, the project will highlight best practices under both voluntary and mandatory reporting regimes and provide cross-jurisdictional evide ....Climate Change: The Role of Reporting, Auditing and Executive Remuneration . This project addresses the need for corporate disclosures on climate-related risks. It aims to generate new knowledge about reporting and auditing of climate-related information and how these metrics are incorporated into executives’ remuneration. Utilizing the latest global developments, the project will highlight best practices under both voluntary and mandatory reporting regimes and provide cross-jurisdictional evidence on the impact of mandatory reporting schemes. It will also test the effectiveness of reporting, auditing and remuneration in achieving carbon emissions reductions and meeting capital market demands. The project will lead to improved capital market efficiency and informed policy making in Australia and internationally. 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
Discovery Early Career Researcher Award - Grant ID: DE160101369
Funder
Australian Research Council
Funding Amount
$360,000.00
Summary
Improving the Effectiveness of Corporate Disclosure in Australia. This project aims to investigate the issue of voluntary corporate governance disclosure. Voluntary disclosure by way of earnings guidance is critical to protecting investors’ interests and building confidence in the Australian corporate governance regime. This project seeks to provide evidence about the effect of performance review frequency on managers’ disclosure choice, whether investors can effectively use guidance, and the po ....Improving the Effectiveness of Corporate Disclosure in Australia. This project aims to investigate the issue of voluntary corporate governance disclosure. Voluntary disclosure by way of earnings guidance is critical to protecting investors’ interests and building confidence in the Australian corporate governance regime. This project seeks to provide evidence about the effect of performance review frequency on managers’ disclosure choice, whether investors can effectively use guidance, and the possible negative impact of guidance and the change in auditors’ reports on audit quality and managers' strategic decisions. By addressing these issues, this project aims to inform the development of effective corporate disclosure policies that provide benefits for investors without negatively affecting corporate effectiveness.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
The ties that bind: fraudulent groups, collective action and fraud risk. This project investigates fraud in contemporary Australia. Drawing on multiple data sources including interviews with convicted fraud perpetrators, the study examines the opportunities, motivations and rationalisations of groups engaged in fraud and offers insights to improve the detection and prevention of fraud in practice.
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.