Psychiatric sequelae of low birth weight at 6 years of age

The study examined the association between low birth weight (LBW) (≤2,500 g) and attention deficit hyperactivity disorder (ADHD) in two socioeconomically disparate populations. LBW and normal birth weight (NBW) children from the 1983 to 1985 newborn lists of an urban and a suburban hospital in Southeast Michigan were randomly selected. A total of 823 children, 473 LBW and 350 NBW, participated. Data were gathered in 1990 to 1992, when the children were 6 to 7 years of age. The National Institute of Mental Health Diagnostic Interview Schedule for children—Parent version (DISC-P) was used to elicit information on DSM-III-R diagnoses of simple phobia, overanxious, separation anxiety, oppositional defiant, and ADHD. Teachers' ratings of behavior problems were obtained. LBW was associated with ADHD but not with childhood anxiety disorders or oppositional defiant disorder. The association was stronger in the urban than in the suburban population. Data from teachers' ratings revealed an association between LBW and attention problems. The prognostic significance of the observed psychopathology at 6 years of age requires follow-up assessment as the children mature.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/44584/1/10802_2005_Article_BF01441637.pd

Multinational Group Audits: Problems Faced In Practice And Opportunities For Research

SUMMARY: This paper discusses problems faced in conducting global group audits. We present background discussion on group audits, including the relationships between the global group entity, the group engagement team, components, and the component auditors. Discussion is framed around group audit problems that were highlighted in an IAASB-sponsored review of ISA 600 regarding group audits and the use of component auditors. We also consider additional problems related to internal controls in the global group audit setting. Throughout the paper, we highlight specific issues, review related research, and offer opportunities for future research. Our intent is to (1) highlight issues that practitioners face on a regular basis in the conduct of global group audits, and (2) identify relevant research that could lead to a more substantive and meaningful dialogue between practice and the academic auditing community

Mentoring Ph.D. Students Into Effective Teaching And Service: Challenges And Opportunities

This article presents an overview and analysis of a set of papers that respond to a call for papers addressing the skills, other than those required for conducting research, that are critical for the professional success of doctoral students in accounting. While research proficiency is a key success factor for doctoral students at all types of institutions, long-term career success also requires proficiency in teaching and in related service areas such as performing peer-reviews of other scholars’ work for journals and conferences. Three of the articles in this volume discuss programs that can be used to improve the teaching skills and effectiveness of doctoral students and fledgling faculty. Two of the articles in this volume address the skills required for improving the general body of research, and personal visibility within the profession, through discussing and reviewing papers. The final paper in the volume deals with how to manage the publication process, and contains valuable advice intended to prevent new faculty from abandoning publication efforts prematurely. We believe that the body of work represented in this volume will add value to doctoral education by supplementing the existing focus on performing research with the additional skills commonly required of members of the accounting academy

A Live Simulation-Based Investigation: Interactions With Clients And Their Effect On Audit Judgment And Professional Skepticism

Threats to professional skepticism are embedded in the social relationships and interactions between auditors and management. These can affect auditor skepticism and the extent of audit procedures performed. In this study, we conduct an experiment using live simulation to create a realistic audit setting to investigate the effect of these interactions on professional skepticism. Each participant (n ¼ 49) completed a measure of trait skepticism and conducted an audit interview with a professional actor trained to play the role of a client controller. Findings indicate that, in general, participants who interview a friendly controller (rather than an intimidating controller) are less likely to determine questionable cash disbursements to be control exceptions and less likely to recommend more intensive follow-up. However, consistent with social psychology research on construct accessibility, planned contrasts indicate that participants who score low on trait skepticism are least likely to identify control exceptions and recommend more intensive follow-up when interviewing a friendly controller. This study advances research on professional skepticism by examining the impact that type of social interaction (friendly, intimidating) has on professional skepticism using a methodology (live simulation) that allows us to simulate a realistic audit environment. Use of this methodology increases external validity and generalizability of our findings. As a result, this study corroborates concerns that the social relationships/interactions between management and the auditor can be a threat to professional skepticism, and allows us to understand better how, when, and where these threats occur

Accounting Fraud At Cit Computer Leasing Group, Inc

The case chronicles a newly promoted manager\u27s search to uncover an inventory fraud that had been perpetrated by her supervisor at CIT, a publicly held company. During the ensuing investigation, CIT and the Florida Department of Law Enforcement identified 36 different transactions involving the diversion of nearly 2,500 computers, with a conservative estimated total loss to the company of $637,000. Students are also exposed to the importance of internal controls, red flags, the fraud triangle, and forensic accounting techniques. The case also lets the reader see what occurs when, due to management override of internal control, a subordinate no longer trusts a supervisor\u27s communicated information. This can be used at the undergraduate or graduate level in an Accounting Information Systems, Internal Auditing, or Auditing or Fraud/Forensic Accounting class. The Teaching Notes also have an accompanying video, in which the investigators and prosecutor discuss issues related to the case, including the specifics of the case, whistleblowers, and the fraud triangle, and the roles of law enforcement and the judiciary. Included in the video are interviews with the Florida Department of Law Enforcement investigators and the prosecuting attorney that were involved in the CIT case

Auditor Resignation And Firm Ownership Structure

This paper investigates whether the likelihood of auditor resignations and the associated stock market reaction in family firms is significantly different from that in non-family firms. It also examines whether the aforementioned associations vary with the identity of the CEO managing family firms founder, descendant, or non-family CEO). Relying on a sample of auditor resignations in the U.S. over five calendar years, 2004- 2008, and using two control samples matched and random) as benchmarks, we document the following. First, the likelihood of auditor resignations in family firms is significantly lower than that in non-family firms. Second, auditor resignations in family firms managed by a founder or non-family CEO descendant) are also less more) frequent compared to non-family firms. Finally, abnormal returns following auditor resignations in family firms and in family firms managed by a non-family CEO are higher less negative) than those in non-family firms. These results are robust to the selection bias resulting from family ownership and contribute to the literature investigating auditor portfolio management decisions

Auditor tenure and the ability to meet or beat earnings forecasts

We examine the relation between auditor tenure and a firm\u27s ability to use discretionary accruals to meet or beat analysts\u27 earnings forecasts. We find evidence over the period 1988-2006 that firms with both short and long tenure are more likely to report levels of discretionary accruals that allow them to meet or beat earnings forecasts. These results suggest that while regulatory mandates for periodic auditor turnover have negative effects, sustained long-term auditor-client relationships may also be detrimental to audit quality. Further, although we observe a positive relation between tenure and the use of discretionary accruals to meet or beat earnings in the pre-Sarbanes-Oxley (SOX) period, we do not observe such a relation in the post-SOX period. This latter finding is consistent with regulatory reforms and heightened scrutiny of financial reporting in the post-SOX period resulting in less aggressive efforts at managing earnings by client firms and/or increased diligence on the part of auditors. These findings may not generalize to firms that are not covered by analysts, because these firms do not face the same public pressure to manage earnings in order to meet or beat expectations. © CAAA

Insights For Research And Practice: What We Learn About Fraud From Other Disciplines

We survey academic literature from non-accounting publications related to fraud and financial crimes: (1) to better understand the nature and extent of fraud acts from the perspective of non-accounting research; (2) to share with accounting researchers and practitioners ideas, theories, variables, constructs, and research designs used in other fields that might inform anti-fraud research and actions in accounting; and (3) to highlight opportunities for future research. This project extends the work of Hogan, Rezaee, Riley, and Velury (2008) and Trompeter, Carpenter, Desai, Jones, and Riley (2013) who completed fraud research synthesis projects in conjunction with the Auditing Section of the American Accounting Association for the Public Company Accounting Oversight Board (PCAOB). Our literature survey goes beyond immediate practice concerns and summarizes fraud-related literature that might inform research as well as practice in the future from approximately 30 journals in criminology, ethics, psychology, and sociology

The Insurance Hypothesis: An Examination Of Kpmg\u27S Audit Clients Around The Investigation And Settlement Of The Tax Shelter Case

Although prior literature has suggested that independent audits provide an implicit form of insurance against investor losses (the insurance hypothesis ), it has been challenging to isolate the insurance effect. In this paper, we use a unique setting to examine this effect. In 2002, KPMG was investigated by the U.S. Department of Justice in relation to tax shelters sold by the firm. From then until early 2005, several news reports suggested that KPMG would be indicted and suffer potentially the same fate as Arthur Andersen. However, in August of 2005 KPMG entered into a deferred prosecution agreement with the U.S. Department of Justice, which ended widespread speculation of an impending federal indictment against the accounting firm. Because the investigation centered around tax services offered by the firm, we argue that the circumstances surrounding the investigation and settlement provide a natural setting to test the insurance value provided by auditors. We show that KPMG audit client firms experienced significant negative abnormal market returns when it appeared more likely that KPMG would face criminal charges, but earned significantly positive abnormal returns following news reports of an impending settlement. Further, these abnormal returns appear to be driven by KPMG client firms in greater financial distress or subject to greater litigation risk. These findings are consistent with the insurance hypothesis. Although we cannot completely eliminate other explanations such as an assurance effect or switching costs, we argue that such explanations are unlikely to drive our main findings

A Synthesis Of Fraud-Related Research

We synthesize academic literature related to fraudulent financial reporting with dual purposes: (1) to better understand the nature and extent of the existing literature on financial reporting fraud, and (2) to highlight areas where there is need for future research. This project extends the work of Hogan et al. (2008), who completed a similar synthesis project, also sponsored by the Auditing Section of the American Accounting Association, in 2005. We synthesize the literature related to fraud by examining accounting and auditing literature post-Hogan et al. (2008) and by summarizing relevant fraud literature from outside of accounting. We review publications in accounting and related disciplines including criminology, ethics, finance, organizational behavior, psychology, and sociology. We synthesize the research around a model that illustrates the auditor\u27s approach to fraud. The model incorporates auditors\u27 use of the fraud triangle (i.e., management\u27s incentive, attitude, and opportunity to commit fraud), their assessment of the existence and effectiveness of the client\u27s anti-fraud measures (e.g., corporate governance mechanisms and internal controls), and their consideration of possible fraud schemes and concealment techniques when making an overall fraud risk assessment of the client. The model further illustrates how auditors can incorporate this assessment into an overall strategy to detect fraud by implementing appropriate fraud-detection procedures. We summarize the recent literature of each component of the model and suggest avenues for future research