Do industry specialists and business risk auditors enhance audit reporting accuracy?.

A number of prior studies have examined audit reporting quality using size (Big 8/6/5/4) as a proxy for quality (i.e. Lennox, 1999b; Francis and Krishnan, 1999; Weber and Willenborg, 2003). In this paper we move beyond the traditional definition of a high quality auditor, and investigate whether enhanced industry knowledge or an increased focus on business risk auditing methodologies improve audit reporting accuracy. In addition, we examine whether industry specialists and business risk auditors have a comparative advantage in judging the adequacy of mitigating management actions implemented by financially distressed companies. Using a sample of US companies from manufacturing industries (SIC 20-39) that went bankrupt between 1998-2001, we do not find evidence supporting that specialist auditors are more likely to issue a going concern opinion for companies that subsequently go bankrupt. However, our evidence does indicate that specialists are not fooled by operating initiatives (whereas non-specialists are). Interestingly and counter to our expectations, we find that audit firms using a business risk methodology are less likely to issue a going–concern opinion for a firm that subsequently goes bankrupt. Further, our evidence also suggests that business risk auditors may be 'fooled' by short term operating efforts to reduce financial distress. Finally, we also find very strong evidence that auditors, irrespective of their type, are 'fooled' into not issuing a going concern opinion for clients that subsequently go bankrupt when the client is planning on raising cash in the short term.Behavior; Control; Cost; Exchange; Information; Negotiations; Performance; Power; Research; Theory; Law; Effects; Trade; Flows; Country; Intensity; Imports; Import; United States; Trade liberalization; Industry; Industries; Business; Risk; Reporting; Studies; Quality; Size; Knowledge; Auditing; Comparative advantage; Management; Companies; Manufacturing; Firms; Planning;

Sustainable growth with the help of Quality Scheduling Index

The paper presents a new way for small and middle size companies to sustain their growth using the Quality Scheduling Index. The aim of the paper is to provide the managers from not only the private sector, i.e. manufacturing companies, a tool which can help them improve Just-In-Time delivery of the products to the market, reduce manufacturing costs related with time usage for manufacturing the products on parallel production lines and also increase the quality according to the ISO norms as well as according to each and every customer requirements. In this way the Pull principle is applied and the company will produce and deliver the right products, at the right time and according to the customer’s specifications. The Quality Scheduling Index is presented and partial results of its implementation are shown from a managerial as well as juridical point of view. The goal is to extend Total Quality Management in areas little explored, working in Just-In-Time mode, by eliminating the temporal variations from the contractual delivery terms regarding time. Among other things, the new management tool, Quality Scheduling Index, is able to capture the desired degree of temporal variations and the associated costs. Its implementation methodology goes to business practice, eliminating the company’s risk of failure from the enterprise supply chain

Methodology for Process Improvement Through Basic Components and Focusing on the Resistance to Change.

This paper describes a multi-model methodology that implements a smooth and continuous process improvement, depending on the organization's business goals and allowing users to establish their improvement implementation pace. The methodology focuses on basic process components known as ‘best practices’. Besides, it covers following the topics: knowledge management and change management. The methodology description and the results of a case study on project management process are included

Environmental Audit improvements in industrial systems through FRAM

Environmental risk management requires specific methodologies to focus audit activities on the most critical elements of production systems. Limited resources require a clear motivation to put attention on specific technological, human, organizational components, and often should address the monitor of interactions among these elements. Recent research in environmental risk looks at methods to deal with complexity as interesting tools to reduce real impacts on pollution and consumption. In this paper, we provide evidence of the advantage in using the Functional Resonance Analysis Method (FRAM), not only to identify the criticalities of a complex production system but to provide a methodology to continuously improve the audit activities in parallel with the introduction of technique to reduce environmental risk. The case study presents the evolution of environmental audit in a sinter plant, proving the need for a review of the criticality list and the successful application of FRAM to refocus the control activities

Advanced Techniques for Assets Maintenance Management

16th IFAC Symposium on Information Control Problems in Manufacturing INCOM 2018 Bergamo, Italy, 11–13 June 2018. Edited by Marco Macchi, László Monostori, Roberto PintoThe aim of this paper is to remark the importance of new and advanced techniques supporting decision making in different business processes for maintenance and assets management, as well as the basic need of adopting a certain management framework with a clear processes map and the corresponding IT supporting systems. Framework processes and systems will be the key fundamental enablers for success and for continuous improvement. The suggested framework will help to define and improve business policies and work procedures for the assets operation and maintenance along their life cycle. The following sections present some achievements on this focus, proposing finally possible future lines for a research agenda within this field of assets management

The Medicare Physician Group Practice Demonstration: Lessons Learned on Improving Quality and Efficiency in Health Care

Discusses the experiences of ten large practices earning performance payments for improving the quality and cost-efficiency of health care delivered to Medicare fee-for-service beneficiaries

Reducing the delivery lead time in a food distribution SME through the implementation of six sigma methodology

Purpose – Six sigma is a systematic data driven approach to reduce the defect and improve the quality in any type of business. The purpose of this paper is to present the findings from the application of six sigma in a food service “small to medium sized enterprise” (SME) in a lean environment to reduce the waste in this field. Design/methodology/approach – A simplified version of six sigma is adopted through the application of appropriate statistical tools in order to focus on customer's requirements to identify the defect, the cause of the defect and improve the delivery process by implementing the optimum solution. Findings – The result suggests that modification in layout utilization reduced the number of causes of defect by 40 percent resulting in jumping from 1.44 sigma level to 2.09 Sigma level which is substantial improvement in SME. Research limitations/implications – Simplicity of six sigma is important to enabling any SME to identify the problem and minimize its cause through a systematic approach. Practical implications – Integrating of supply chain objectives with any quality initiatives such as lean and six sigma has a substantial effect on achieving to the targets. Originality/value – This paper represents a potential area in which six sigma methodology along side the lean management can promote supply chain management objectives for a food distribution SME

Strategies for Reining In Medicare Spending Through Delivery System Reforms: Assessing the Evidence and Opportunities

Outlines promising measures to achieve savings in Medicare costs by reducing the need for hospitalization and readmission and by reducing disparities across physicians and geographic areas in care delivery, utilization, and expenditures

Indicators and methods for assessing the quality of logistic activity processes

Purpose: This article is aimed at identifying and evaluating the quality and safety indicators of processes in the logistics system and solving the problems of product control in the goods’ distribution process. Design/Methodology/Approach: In order to assess the risks and quality of control methods in the goods’ distribution processes, studies were carried out in the process of grain supply, on which the risk assessment was tested using the fault tree using a qualitative approach with a deductive logic, which allowed to identify events at the lower levels of the system. To evaluate the results when comparing various methods of monitoring the characteristics of products in the product distribution process certain statistical tools were used. The evaluation with comparative tests is required in order to determine the way of measuring products in the goods distribution logistics system. The study uses the methods of formalization, analysis, measurement, experimental and comparison. Findings: The considered risk assessment method and the given example allow us to recommend its use for the product distribution processes for various purposes. A technique is proposed for comparing various control methods based on statistical tools that can be recommended for various goods’ distribution operations. Practical implications: The results of the study can be applied in practice to improve the quality of goods’ distribution processes and reduce risks in the various supply chains. Originality/value: The main contribution of this study is to shift the emphasis on the assessment of processes in goods’ distribution to the positions of a risk-based approach and the use of various statistical tools in logistics’ activities.peer-reviewe