Structural Analysis of Audit Evidence Using Belief Functions

This article performs two types of analysis using Dempster-Shafer theory of belief functions for evidential reasoning. The first analysis deals with the impact of the structure of audit evidence on the overall belief at each variable in the network, variables being the account balance to be audited, the related transaction streams, and the associated audit objectives. The second analysis deals with the impact of the relationship (logical "and" and "algebraic relationship") among various variables in the network on the overall belief. For our first analysis, we change the evidential structure from a network to a tree and determine its impact

The Qualified Legal Compliance Committee: Using the Attorney Conduct Rules to Restructure the Board of Directors

The Securities and Exchange Commission introduced a new corporate governance structure, the qualified legal compliance committee, as part of the professional standards of conduct for attorneys mandated by the Sarbanes-Oxley Act of 2002. QLCCs are consistent with the Commission\u27s general approach to improving corporate governance through specialized committees of independent directors. This Article suggests, however, that assessing the benefits and costs of creating QLCCs may be more complex than is initially apparent. Importantly, QLCCs are unlikely to be effective in the absence of incentives for active director monitoring. This Article concludes by considering three ways of increasing these incentives

Accounting for human rights : doxic health and safety practices - the accounting lessons from ICL

This paper is concerned with a specific human right - the right to work in a safe environment. It sets out a case for developing a new form of account of health and safety in any organisational setting. It draws upon the theoretical insights of Pierre Bourdieu taking inspiration from his assertion that in order to understand the 'logic' of the worlds we live in we need to immerse ourselves into the particularity of an empirical reality. In this case the paper, analyses a preventable industrial disaster which occurred in Glasgow, Scotland which killed nine people and injured 33 others. From this special case of what is possible, the paper unearths the underlying structures of symbolic violence of the UK State, the Health and Safety Executive and capital with respect to health and safety at work. While dealing with one specific country (Scotland), the analysis can be used to question health and safety regimes and other forms of symbolic violence across the globe

Comparing accounting designs for sustainability govenance

A draft proposal for a capital-based framework of sustainable development indicators applicable to all countries, and at all levels of public administration within them, is under consideration by an expert working group convened under the auspices of the UNECE Conference of European Statisticians. Harmonising underlying accounting and information systems should facilitate widespread adoption of a small, universal set of indicators. If implemented, the proposal's communication design could contribute to the vertical and horizontal policy integration essential for effective sustainability governance. Implementing a design that shifts some distance from existing conditions of institutional diversity and autonomy throughout at least a million provincial and local government units is, however, a significant risk. This research-in-progress report identifies one recent case study, and one current, with Australian local authorities. Integrated assessments of change over time in a local community's natural, produced, and human capital stocks have been demonstrated in one case, and of change in a local community's governance capital and social capital in another. Results demonstrate that a common understanding on how assets are distributed over time and space can be achieved without the radical, top-down innovations under consideration through UNECE auspices. The combination of tools and methods used in the case studies also yields significant insights into some of the complexities of wicked policy problems. Clarifying the meaning of 'community engagement' or 'public participation' is advanced in one case study through a relatively new development in social network analysisInternational Research Society for Public Management (IRSPM); Third Sector Study Group of European Group for Public Administration (EGPA

The Texture of Loyalty

This paper examines whether and how reforms in corporate governance structures and practices in the United States may reshape conventional notions of the fiduciary duties owed by independent directors of public companies. The paper identifies two focal points for the evolution of directors\u27 fiduciary duties. First, various reforms in corporate governance assign more specific responsibilities to directors, arguably reorienting directors\u27 loyalty to due discharge of a specified function along with ongoing or residual duties of loyalty owed in more general terms to the corporation and its shareholders. The relationships among these specific duties and more general ones may be complex, as may be the consequences of increased emphasis on work to be done by directors as members of committees in contrast to the board as a whole. Second, reforms in corporate governance imply that a director\u27s duty of loyalty to the corporation and its shareholders requires more than disinterest, narrowly defined. That is, a director\u27s duty is one of fidelity to the interests of the corporation that imposes more than an obligation to refrain from participating in board decisions in which the director has a material financial interest. The paper prefaces discussion of evolution of directors\u27 duties by addressing two more fundamental questions about contemporary corporate governance: what role precisely should be assigned to directors, distinct from a corporation\u27s officers and its other senior executives? And what implications follow for the powers of shareholders? To the extent that directors can reasonably be expected to serve only a relatively formal or vestigial function, an expansion in shareholders\u27 powers may be warranted. Overall, the paper is a study of interrelationships among legal and nonlegal mechanisms that shape expectations for directors\u27 conduct. Although distinct, none operates in a vacuum. Formal structures, definitions, and requirements may shape how directors discharge their responsibilities by focusing directors\u27 attention on their gravity and, by enabling independent directors to function more collegially, facilitating the development of institutions of corporate governance that function independently of senior management. Articulating the content of directors\u27 responsibilities with greater specificity heightens expectations that these responsibilities will be fulfilled. In turn, higher expectations for directors\u27 conduct may serve to legitimate directors\u27 capacity, once elected, to exercise discretion independent of intervention from shareholders

The Qualified Legal Compliance Committee: Using the Attorney Conduct Rules to Restructure the Board of Directors

The Securities and Exchange Commission introduced a new corporate governance structure, the qualified legal compliance committee, as part of the professional standards of conduct for attorneys mandated by the Sarbanes-Oxley Act of 2002. QLCCs are consistent with the Commission\u27s general approach to improving corporate governance through specialized committees of independent directors. This Article suggests, however, that assessing the benefits and costs of creating QLCCs may be more complex than is initially apparent. Importantly, QLCCs are unlikely to be effective in the absence of incentives for active director monitoring. This Article concludes by considering three ways of increasing these incentives

Negative Stereotypes and Willingness to Change Them: Testing Theories of Discrimination in South Africa

This paper proposes a new test to distinguish between the two leading theories of discrimination: preference versus information. Discrimination based on preferences occurs when people behave as if they refuse to change their stereotypes about the capabilities of discriminated individuals. Those who discriminate based on information are willing to alter their stereotypes. Using data from a quasi-experiment in South Africa, I test for discrimination against women and non-whites. The preliminary results show no discrimination against the former. In the case of racial discrimination, players' stereotypes benefit non-whites instead of white opponents, but they are reluctant to change their impression for the former. However, they are willing to change their initial impression about white opponents. This has severe implications about the permanency of affirmative action policies.

Negative Stereotypes and Willingness to Change Them: Testing Theories of Discrimination in South Africa

This paper proposes a new test to distinguish between the two leading theories of discrimination: preference versus information. Discrimination based on preferences occurs when people behave as if they refuse to change their stereotypes about the capabilities of discriminated individuals. Those who discriminate based on information are willing to alter their stereotypes. Using data from a quasi- experiment in South Africa, I test for discrimination against women and non-whites. The preliminary results show no discrimination against the former. In the case of racial discrimination, players’ stereotypes benefit non-whites instead of white opponents, but they are reluctant to change their impression for the former. However, they are willing to change their initial impression about white opponents. This has severe implications about the permanency of affirmative action policies.Theories of Discrimination, South Africa, Experiments, Bayesian Learning