The Relative Importance of Audit Quality Attributes

Corporate collapses and audit failures have threatened the credibility of the audit function, with audit quality once again being a major issue. Motivated by the significance of auditing and perceptions of audit quality in enhancing the reliability and credibility of financial statements, this article investigates the relative importance of audit team and audit firm attributes in perceptions of audit quality by users of audit services. Data are gathered from 81 users of audit services and analysed using adaptive conjoint analysis in order to measure the relative importance of audit team and audit firm attributes in perceptions of audit quality. The results show that, in general, users of audit services perceive audit team attributes as being relatively more important than audit firm attributes in perceptions of audit quality. The findings of the study have implications for regulators and the accounting profession concerned with improving confidence in corporate governance and the effectiveness and integrity of the audit process, and for audit firms in monitoring and promoting the quality of their audit services.     

Determinants of auditor changes for non-accelerated filers

Significant accounting scandals and the imminent collapse of Arthur Andersen in 2001 precipitated a period of heightened regulatory response, most notably the enactment of the Sarbanes–Oxley Act of 2002. In the years that followed, the Securities and Exchange Commission created a separate class of non-accelerated filers (companies with public float of up to $75 million) and provided these companies with significant regulatory relief from certain financial reporting disclosure and auditing requirements, including the extension of scaled disclosure to these companies in 2007. Over the period of 2001 through 2007, as non-accelerated clients anticipated and responded to their different and evolving regulatory regime, audit firms were adjusting to the increased concentration in their market, a new monitoring structure, and significant changes to the scope of their work. We examine whether auditor–client misalignment is a significant determinant of auditor change during this period, particularly for non-accelerated filers, as large auditors sought to rebalance their client portfolios. We find evidence that auditor–client misalignment increases the likelihood of auditor change (resignation and dismissal) for non-accelerated, but not accelerated, filers. We also find that auditor–client misalignment increases the likelihood of downward changes to third-tier auditors for non-accelerated, but not accelerated, filers.     

Tourism and environmental change in Barbados: gathering citizen perspectives with volunteered geographic information (VGI)

New map-based online tools have the potential to facilitate citizen participation in discussing the impacts of tourism. This research investigates the use of Geospatial Web 2.0 (Geoweb) tools to gather volunteered geographic information (VGI) on tourism-related environmental change from citizens of Barbados. We hosted participatory mapping workshops where groups of Barbadians directly contributed content to a series of online maps. These maps were made with the free Google My Map tool, allowing users to interact with detailed satellite imagery of Barbados. Qualitative observations were added and geo-referenced to these maps identifying several types of environmental change concerns, both those generated by tourism, and those with implications for tourism development. We analysed how participants used Google My Maps, identifying concerns of accuracy, data completeness and digital/computer literacy amongst users that could affect further use of this tool. Overall, the Geoweb approach provided participants with a unique perspective on environmental change that facilitated deeper discussion of issues and produced a publicly available, spatially referenced record of citizen concerns. Further research needs are demonstrated, including user interface design, accuracy and uncertainty, and how to manage varying levels of digital literacy.     

COMMODITY MARKET REGULATION AFTER FINANCIAL CRISIS: A COMPARATIVE APPROACH

The United States Federal Government has imposed remarkably similar regulations on commodity markets after financial crises, particularly after the Great Depression and the recent financial crisis beginning in 2007. A comparison of these two great economic recessions will help identify the changes in commodity regulation policy over the past century.     

Japanese consumers' use of extrinsic and intrinsic cues to mitigate risky food choices

The stated preference data were used to simulate and examine consumers' valuation of important extrinsic and intrinsic cues that are associated with risky foods. This analysis generates information on how consumers assess trade‐offs between price and selected intrinsic and extrinsic cues to determine their choice among alternative products. From this, optimum level of product quality attributes (i.e. intrinsic cues) and optimum price level for import products can be derived. Also, most effective sources of communicating food safety and risk management can be identified. The results show that the country origin cue is a key factor in understanding consumers' choice behaviour for food product that entails potential risk, which may suggest that consumers are using this information as a risk‐reduction strategy.     

Cost-effective care a phone call away: a nurse-managed telephonic program for patients with chronic heart failure

Health care providers and health care systems are challenged to find cost-effective ways to address the costs associated with heart failure. A multidisciplinary team of nurses, physicians, pharmacists, and dieticians was assembled at New Hanover Regional Medical Center (Wilmington, NC) to develop strategies to decrease the readmission rate without compromising patient care. The team developed a disease management program that included comprehensive inpatient education, as well as an outpatient telephonic program to reinforce education after discharge. Goals were to reduce readmissions of patients with heart failure, to decrease the cost per case of each patient with chronic heart failure, and to reduce the length of stay for patients who were readmitted. The CHF Telephonic Program was extremely successful in meeting patient-focused and organizational goals related to readmissions, length of stay, and cost of care.