AE Briefings — Statement of Intent

This paper seeks to address the perceived failure of university teaching to foster critical understanding of audit practice and to identify a potential remedy. It contributes to the debate (Maltby, 2001, “Second thoughts about ‘Cases in Auditing’,” Accounting Education: an international journal, 10(4), 421–428) by investigating the double-faceted nature of auditing: as a sub-set of the academic discipline of accounting and as professional practice. Although case studies are helpful for students of auditing, they tend to be artificial, or at best, retrospective. This paper introduces a different type of case study for audit education using corporate failure stories from the media as an example, proposing and explaining the notion of the ‘living case’ in order to foster critical appraisal of audit practice. It contributes to the literature on audit education by describing how this different type of case can address both the technical activities and the social practice of audit through Kolb's (1984, Experiential Learning: Experience as the Source of Learning and Development, Englewood Cliffs, NJ: Prentice Hall) experiential learning theory and thus concludes that there is a place for the practical nature of auditing in academic study, in order to fully appreciate the social aspects.     

Community-Based Destination Governance in a Developing Economy: The Jamaican Experience

Utilizing a destination governance and social capital conceptual framework, the research examines opinions concerning goals and outcomes in regards to the Jamaican Ministry of Tourism's Ten-Year Master Plan to enhance tourism and increase shared governance. In addition to secondary sources of information, researchers use primary data obtained through an email survey sent to 540 Jamaican managers and executives, 18.3% of whom (n?=?99) completed the survey. Study findings may be deemed contrary to destination governance theory and best practices. However, upon closer examination, they are wholly consistent with theory and models that examine governance issues in developing nations. Arguably, Jamaica tourism may not be ready to fully embrace a network-based model of destination governance, but instead is in the process of evolving toward that model. The findings should be useful for the Jamaican and other developing nation's tourism industries. Further, it should spark discussion regarding governance differences between developing versus developed destinations.     

Causal and Corrective Organisational Culture: A Systematic Review of Case Studies of Institutional Failure

Journal of Business Ethics - Organisational culture is assumed to be a key factor in large-scale and avoidable institutional failures (e.g. accidents, corruption). Whilst models such as...     

Forecast encompassing tests for the expected shortfall

We introduce new forecast encompassing tests for the risk measure Expected Shortfall (ES). The ES has received much attention since its introduction into the Basel III Accords, which stipulate its use as the primary market risk measure for international banking regulation. We utilize joint loss functions for the pair ES and Value at Risk to set up three ES encompassing test variants. The tests are built on an asymptotic theory that is robust to misspecifications. We investigate the finite sample properties of the tests in an extensive simulation study. Finally, we use the encompassing tests to illustrate the potential of forecast combination methods for different financial assets.     

The power of stereotyping and confirmation bias to overwhelm accurate assessment: the case of economics,gender, and risk aversion

Behavioral research has revealed how normal human cognitive processes can tend to lead us astray. But do these affect economic researchers, ourselves? This article explores the consequences of stereotyping and confirmation bias using a sample of published articles from the economics literature on gender and risk aversion. The results demonstrate that the supposedly ‘robust’ claim that ‘women are more risk averse than men’ is far less empirically supported than has been claimed. The questions of how these cognitive biases arise and why they have such power are discussed, and methodological practices that may help to attenuate these biases are outlined.