Disclosure Of Nonaudit Services Fees: Perceptions Of Investors And Accounting Professionals

This study examines investors’ and accounting professionals’ perceptions related to the necessity and form of disclosure of nonaudit service (NAS) fees pursuant to the Security and Exchange Commission’s Final Rule on auditor independence. A between-subjects design was used to examine participants’ opinions as to the need for disclosure of the performance of NAS and the particular form of disclosure that was preferred. The design incorporated four types of NAS (actuarial services, internal audit outsourcing, legal services, and software training), two levels of materiality (40 percent and 3 percent), and three categories of participants (non-Big 5 CPA firm professionals, Big 5 CPA firm professionals, and investors). A larger percentage of investors favored disclosure of NAS fees than either non-Big 5 CPA firm professionals or Big 5 CPA firm professionals. In addition, of those who favored disclosure, investors favored disclosure of the amount of NAS along with the total audit fees, regardless of the amount, while non-Big 5 CPA firm professionals and Big 5 CPA firm professionals both favored disclosure of the amount of NAS alone and only if those services exceeded a specified threshold. The investor results lend support to the SEC’s revised auditor independence rules

The influence of firm performance and (level of) assurance on the believability of management’s environmental report.

Purpose – This study empirically examines perceptions of environmental report believability based on a firm’s relative performance and level of assurance obtained on environmental activities under the recently clarified and recodified attestation standards in the United States. Design/methodology/approach – The paper uses a 2 3 3 between-subjects experiment to identify differences in 153 non-expert environmental report users’ perceptions of report believability based on positive or negative firm performance and (level of) assurance provided by an accounting firm. Findings – Results show a main effect in that negative performance reports are perceived to be more believable than positive performance reports, as driven by negative performance reports being significantly more believable when no assurance is present. The firm performance effect is eliminated once limited or reasonable assurance is provided. Further, positive performance reports with limited, but not reasonable, assurance are perceived to be more believable than reports without assurance. No differences are identified within the negative performance condition. Practical implications – Limited assurance might be used as an impression management tool to enhance the believability of positive performance environmental reports. Users, practitioners, and standard-setters should also be aware that users might believe environmental reports are assured, even when no such assurance has been provided. Originality/value – This paper examines the impact of assured environmental reporting on users that review firms’ environmental reports outside of a shareholder/investor role. The study also demonstrates conditions in which firm performance and assurance impact perceptions of report believability

The influence of firm performance and (level of) assurance on the believability of management’s environmental report

Purpose – This study empirically examines perceptions of environmental report believability based on a firm’s relative performance and level of assurance obtained on environmental activities under the recently clarified and recodified attestation standards in the United States. Design/methodology/approach – The paper uses a 2 3 3 between-subjects experiment to identify differences in 153 non-expert environmental report users’ perceptions of report believability based on positive or negative firm performance and (level of) assurance provided by an accounting firm. Findings – Results show a main effect in that negative performance reports are perceived to be more believable than positive performance reports, as driven by negative performance reports being significantly more believable when no assurance is present. The firm performance effect is eliminated once limited or reasonable assurance is provided. Further, positive performance reports with limited, but not reasonable, assurance are perceived to be more believable than reports without assurance. No differences are identified within the negative performance condition. Practical implications – Limited assurance might be used as an impression management tool to enhance the believability of positive performance environmental reports. Users, practitioners, and standard-setters should also be aware that users might believe environmental reports are assured, even when no such assurance has been provided. Originality/value – This paper examines the impact of assured environmental reporting on users that review firms’ environmental reports outside of a shareholder/investor role. The study also demonstrates conditions in which firm performance and assurance impact perceptions of report believability

Monitoring the accounting profession under the AICPA Code of Professional Conduct: An analysis of state board of accountancy participation

We study state board of accountancy participation in monitoring the conduct of accounting professionals under the American Institute of Certified Public Accountants’ (AICPA) Code of Professional Conduct (CPC). In doing so, we examine all sanctions imposed by the AICPA under its CPC from 2008 to 2016 to determine the extent to which a state board’s reporting of violations to the AICPA is associated with its full, partial, or non-adoption of the AICPA’s CPC. Our findings suggest that widespread full adoption of the AICPA’s CPC might not result in enhanced state board participation in reporting violations to the AICPA, as might otherwise be expected. Indeed, we find that state boards that partially adopt the AICPA’s CPC report the most violations. We also highlight the variability of state board participation in monitoring the misconduct of accounting professionals and provide suggestions for enhanced monitoring

An exploratory study on the impact of COVID-19 on U.S. State boards of accountancy

In the United States (U.S.) individual state boards of accountancy govern the accounting profession within each state. When COVID-19 struck the U.S., state boards worked to maintain normal operations. This study examines how COVID-19 affected the regulatory and oversight activities of the state boards of accountancy and the ways in which boards adapted to the pandemic. We interview executive directors from 21 state boards to determine the pandemic’s impact on board operations and continuing professional education requirements. We also evaluate whether state boards implemented guidance from parties such as theNational Association of State Boards of Accountancy (NASBA), and the resources boards had available to navigate the pandemic. Finally, we examine our analyses and findings through the lens of institutional theory. In doing so, we describe how state boards’ individual reactions to the pandemic resulted in a largely homogenous response, as affected by coercive, mimetic, and normative isomorphic mechanisms

Effective field theory and the quark model

We analyze the connections between the quark model (QM) and the description of hadrons in the low-momentum limit of heavy-baryon effective field theory in QCD. By using a three-flavor-index representation for the effective baryon fields, we show that the ``nonrelativistic'' constituent QM for baryon masses and moments is completely equivalent through O(m_s) to a parametrization of the relativistic field theory in a general spin--flavor basis. The flavor and spin variables can be identified with those of effective valence quarks. Conversely, the spin-flavor description clarifies the structure and dynamical interpretation of the chiral expansion in effective field theory, and provides a direct connection between the field theory and the semirelativistic models for hadrons used in successful dynamical calculations. This allows dynamical information to be incorporated directly into the chiral expansion. We find, for example, that the striking success of the additive QM for baryon magnetic moments is a consequence of the relative smallness of the non-additive spin-dependent corrections.Comment: 25 pages, revtex, no figure

Counterfactual reasoning and knowledge of possibilities

Williamson has argued against scepticism concerning our metaphysically modal knowledge, by arguing that standard patterns of suppositional reasoning to counterfactual conclusions provide reliable sources of correct ascriptions of possibility and necessity. The paper argues that, while Williamson’s claims relating to necessity may well be right, he has not provided adequate reasons for thinking that the familiar modes of counterfactual reasoning to which he points generalise to provide a decent route to ascriptions of possibility. The paper also explores another path to ascriptions of possibility that may be extracted from Williamson’s ideas, before briefly considering the general status of counterfactual reasoning in relation to our knowledge of possibilities

Functional outcomes of patients undergoing anterolateral versus anteromedial approaches of the ankle for pilon fractures

Pilon fractures of the distal tibia remain a treatment challenge to orthopedists. Careful preoperative planning is crucial to achieving desirable clinical outcomes, but currently the literature does not reach a consensus on which surgical approach is optimal. This study examines functional outcomes of two of the most common surgical approaches for pilon fractures, the traditional anteromedial approach and the more recently described anterolateral approach. The anterolateral approach is thought to produce better outcomes because of the greater amount of visualization into the articular surface and greater soft tissue coverage for the implant

The power of Bayesian evidence in astronomy

We discuss the use of the Bayesian evidence ratio, or Bayes factor, for model selection in astronomy. We treat the evidence ratio as a statistic and investigate its distribution over an ensemble of experiments, considering both simple analytical examples and some more realistic cases, which require numerical simulation. We find that the evidence ratio is a noisy statistic, and thus it may not be sensible to decide to accept or reject a model based solely on whether the evidence ratio reaches some threshold value. The odds suggested by the evidence ratio bear no obvious relationship to the power or Type I error rate of a test based on the evidence ratio. The general performance of such tests is strongly affected by the signal to noise ratio in the data, the assumed priors, and the threshold in the evidence ratio that is taken as `decisive'. The comprehensiveness of the model suite under consideration is also very important. The usefulness of the evidence ratio approach in a given problem can be assessed in advance of the experiment, using simple models and numerical approximations. In many cases, this approach can be as informative as a much more costly full-scale Bayesian analysis of a complex problem.Comment: 11 pages; MNRAS in pres

Survey of self-assessed preparedness for clinical practice in one Croatian medical school

<p>Abstract</p> <p>Background</p> <p>The Croatian higher education system is in the process of reforming its medical curricula to comply with European Union standards. We conducted a survey of students enrolled at the University of Zagreb (Croatia) asking them to rate their perception of preparedness for clinical practice prior to initiation of the reform process. The purpose of the survey was to identify self-perceived deficiencies in education and to establish a reference point for the later assessment of ongoing educational reform.</p> <p>Findings</p> <p>One-hundred and forty seven (N = 147) graduates reported the levels of perceived preparedness on 30 items grouped into 8 educational domains. Main domains were: understanding science, practical skills/patient management, holistic care, prevention, interpersonal skills, confidence/coping skills, collaboration, and self-directed learning. For each item, graduates self assessed their preparedness on a scale ranging from 1 to 4, with 1 = "Very inadequate", 2 = "Somewhat inadequate", 3 = "Somewhat adequate", and 4 = "Very adequate". In 7 out of 8 domains the achieved median score was ≥ 3. Students expressed low confidence (defined when ≥ 25% of respondents supplied a rating for the survey question as: "very inadequate" or "somewhat inadequate") with interpersonal skills (discussing terminal disease, counseling distraught patients, balancing professional and personal life), and in performing certain basic semi-invasive or invasive procedures.</p> <p>Conclusion</p> <p>Zagreb medical graduates identified several deficiencies within educational domains required for standard clinical practice. Ongoing educational efforts need to be directed towards the correction of these deficiencies in order to achieve standards required by the European Union.</p