Internal audit outsourcing in small organizations: An exploratory study

Few papers have studied internal audit outsourcing in general, and significantly fewer have limited their analysis to small organizations. This study examines the association between small organizations’ propensity to outsource internal audit activities and (1) audit committee involvement, (2) organizational financial health, and (3) need for expertise. Prior studies find mixed evidence when analyzing both large and small organizations concurrently. This study utilizes the Institute of Internal Auditors Research Foundation 2015 Common Body of Knowledge (CBOK) survey results data from chief audit executives (CAEs) of small organizations (<500 employees) based in seven Anglo-culture countries. We find significant associations between both audit committee involvement and organization financial health and internal audit outsourcing in small organizations

The Effects of Knowledge Transfer On Complex Problem Representation and Judgment in Auditing

An inherent aspect of an audit is the level of task complexity that junior auditors (staff and senior level associates) endure on a daily basis. This complexity directly impacts an auditor’s ability to form an appropriate problem representation, which in turn impacts judgment performance. One of the key components of this process is having sufficient knowledge for purposes of problem representation; without it, the auditor’s problem representation and ultimately judgment performance are negatively impacted. Conversely, audit teams can positively influence the conciseness of problem representation and performance by way of effective task-specific knowledge transfer. Knowledge transfer in the audit field occurs during three distinct phases: when an auditor reviews prior and/or current year workpapers; when an auditor requests help; and/or during the workpaper review process. For purposes of efficiency and increasing (i.e. improving) problem representation, prior to any deleterious effects, it’s critical that the audit profession understand how to maximize the knowledge transfer as soon as possible after the auditor’s initial assignment of the task. Because auditors commonly will immediately refer to audit programs in the current year documentation in the electronic audit file to gain an understanding of the task, maximizing the knowledge transfer within the electronic audit file is critical to increasing auditor judgment performance. I propose utilizing media richness theory to establish an increased media rich transfer of knowledge via the electronic audit file from the audit managers (expert) to junior auditors (novice). Procedure screens within the electronic audit file would likely be categorized as “written, formal” mediums within the media richness theory, because the source of information is impersonal. However, if audit firms can successfully transform the transfer of information within the audit files from being solely formal document screens to also incorporate personal source characteristics, they will successfully increase the information richness, which will allow for a more successful transfer of knowledge and subsequently the ability for the auditor to more effectively form a problem representation

The relationship between justice perceptions and organizational commitment among alternative work arrangement participants and non-participants

Purpose: The purpose of this paper is to examine the effect of auditor alternative work arrangement (AWA) participants’ and non-participants’ perceptions of procedural and distributive justice on organizational commitment. Design/methodology/approach: Using survey data from 110 auditors in the USA, this study uses a regression model to explore how AWA participants’ and non-participants’ perceptions of procedural and distributive justice affect organizational commitment. Findings: As predicted, results show both participants’ and non-participants’ perceptions of procedural justice significantly affect organizational commitment. However, neither groups’ perceptions of distributive justice significantly affect their organizational commitment. Originality/value: Organizational justice literature has shown that procedural and distributive justice influence organizational commitment. However, no study has controlled for AWA participation. The authors extend research by investigating the effects of procedural and distributive justice perceptions on organizational commitment for both participants and non-participants. The authors also extend accounting research that has narrowly examined AWA benefits and drawbacks, support, viability and perceptions of subordinate career success. Furthermore, there is limited AWA auditing research and this study offers a view prior to the COVID-19 pandemic

Upward feedback falling on deaf ears: the effect on provider organizational citizenship and counterproductive work behaviors in the audit profession

Purpose: The purpose of this paper is to explore how firms can enhance feedback systems by studying the effects of offering junior auditors an opportunity to provide upward feedback and acknowledging their voice has been heard and will be considered for evaluation purposes. Design/methodology/approach: This study uses a 2 × 1 + 1 (voice confirmation × opportunity + no opportunity) between-subjects experimental design that manipulated upward feedback opportunity (i.e., opportunity or no opportunity) and voice confirmation for those that do receive upward feedback opportunity (i.e., receive indication upward feedback was heard and will be considered or receive no indication upward feedback was heard). Within the no upward feedback opportunity condition participants did not have a chance to receive voice confirmation. Findings: Through analysis of 117 upper-division undergraduate accounting students, the authors find the receipt of upward feedback opportunity and voice confirmation positively influence justice perceptions. Furthermore, the authors find interactional justice is positively associated with organizational citizenship behaviors (OCB), negatively associated with counterproductive work behaviors (CWB) and mediates the association between upward feedback voice confirmation and both OCB and CWB through indirect-only mediation. The authors also find distributive justice facilitates competitive and indirect-only mediation between upward feedback opportunity and OCB and CWB. Originality/value: This is the first study to examine the influence of giving staff auditors the opportunity to provide upward feedback and informing upward feedback providers (e.g., staff) their voice has been heard and will be considered for evaluation purposes

Subcellular sites for bacterial protein export

Most bacterial proteins destined to leave the cytoplasm are exported to extracellular compartments or imported into the cytoplasmic membrane via the highly conserved SecA-YEG pathway. In the present studies, the subcellular distributions of core components of this pathway, SecA and SecY, and of the secretory protein pre-AmyQ, were analysed using green fluorescent protein fusions, immunostaining and/or immunogold labelling techniques. It is shown that SecA, SecY and (pre-)AmyQ are located at specific sites near and/or in the cytoplasmic membrane of Bacillus subtilis. The localization patterns of these proteins suggest that the Sec machinery is organized in spiral-like structures along the cell, with most of the translocases organized in specific clusters along these structures. However, this localization appears to be independent of the helicoidal structures formed by the actin-like cytoskeletal proteins, MreB or Mbl. Interestingly, the specific localization of SecA is dynamic, and depends on active translation. Moreover, reducing the phosphatidylglycerol phospholipids content in the bacterial membrane results in delocalization of SecA, suggesting the involvement of membrane phospholipids in the localization process. These data show for the first time that, in contrast to the recently reported uni-ExPortal site in the coccoïd Streptococcus pyogenes, multiple sites dedicated to protein export are present in the cytoplasmic membrane of rod-shaped B. subtilis.