The Effect Of Leadership Style Perception On Auditors Communication Behavior: A LISREL Analysisx

The purpose of the study was to determine whether the leadership style perception is associated with auditors’ communication behavior for information gathering activities. Questionnaire data were collected from 195 Taiwanese auditors with at least one year of audit experience. As proposed, the study indicates that CPA firms’ leadership style would have a significant effect on auditors’ communication behavior for exchanging and gathering information. According to the LISREL analysis, leaders in the participating Taiwan CPA firms tend to adopt initiating leadership style that concurs with the perception that CPA firms are formalized and structured. This initiating leadership style helps auditors’ communication behavior in information accuracy and satisfaction with supervisors.  However, initiating leadership style has a negative effect on boundary spanning.  It is the suggestion of the study that leaders in the CPA firms might want to encourage their auditors to engage more in boundary spanning activities for a better decision quality

Effects Of A Decision Aid For The Assessment Of Fraudulent Financial Reporting: An Application Of SAS No. 82

The Statement on Auditing Standards (SAS) No.82, Consideration of Fraud in a Financial Statement Audit, requires the auditor to assess the risk of material misstatement due to a fraud and to consider the assessment in designing appropriate audit procedures to be performed. The SAS No. 82 has thus explicitly made the detection of material fraud the auditor’s responsibility. The purpose of the study is to use the risk factors identified in SAS No. 82 as the foundation to develop a decision aid to help auditors assess the likelihood of fraudulent financial reporting and to empirically test the effects of the decision aid on assessing the likelihood of fraudulent financial reporting. Using a sample of 45 fraud engagements and 206 nonfraud engagements, we developed and tested a logistic regression model that estimates the likelihood of fraudulent financial reporting. We found that the logistic model (proxied as a decision aid in the study) outperforms the practicing auditors in assessing risk for fraud and nonfraud cases

Discretionary Loan Loss Provisions And Earnings Management For The Banking Industry

The purpose of the study is to investigate the relation between discretionary loan loss provisions and 6 indicators of bank operating performance for the period 1999-2004 under controlling the type of bank, ownership status and asset size. Besides, we investigate whether bank managers intend to use discretionary loan loss provisions as a means for earnings management. Based on the empirical results from the Taiwan Economic Journal (TEJ) database, the study finds: (1) the two earnings-related variables, namely earnings before loan loss provisions and one-year-ahead earnings, are significantly related to discretionary loan loss provision; (2) non-performing loans is significantly related to discretionary loan loss provisions, but non-performing loans ratio and bad debts coverage ratio are not found to be significantly linked to discretionary loan loss provisions; (3) capital adequacy ratio is not significantly related to discretionary loan loss provisions. Finally, our findings indicate that bank managers may use discretionary loan loss provisions to engage in earnings management when the earnings before loan loss provisions or non-performing loans are at a high level

A Study Of The Relationships Between Career Orientation, Achievement Motivation, Job Satisfaction, And Intention To Stay For Auditors: Using Big CPA Firms As An Example

As the high turnover rate has long plagued the accounting firms, the study investigated the relationships between career orientation, achievement motivation, job satisfaction, and intention to stay for auditors in Taiwan accounting firms.  Variables were chosen due to their potential concerns to auditors’ intention to stay in the accounting firms.  A carefully validated instrument was used to obtain the data. The responses of 122 auditors, with at least one year of audit experience, were drawn from the five biggest accounting firms in Taiwan. LISREL was used to evaluate the empirical data with the hypothesized model and test the results. The results of the empirical test led us to two results: (1) auditors with higher degrees of achievement motivation have higher degrees of job satisfaction, and (2) auditors with higher degrees of job satisfaction have higher degrees of intention to stay

The Impact of Bankers on the Board on Corporate Dividend Policy: Evidence from an Emerging Market

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