Can A Single Exposure To The Resource-Event-Agent Framework Enhance Data Modeling Performance?

Due to the widespread use of technology, it is becoming increasingly critical that accounting students have the ability to document accounting information systems (AIS).  This skill is important for understanding the information system, mapping business processes, and understanding systems’ controls.  The present study reports on an experiment designed to investigate the effects of a single exposure to the Resource-Event-Agent (REA) framework on students’ data modeling performance.  The results of the experiment indicate that accounting students who receive a single, scripted exposure to the REA framework perform better on data modeling tasks than students with no exposure to the REA framework.  This has important implications for accounting educators as they develop classroom instruction and administrators as they contemplate an appropriate emphasis on data modeling in the accounting curriculum

Why Financial Executives Do Bad Things:The Effects of the Slippery Slope and Tone at the Top on Misreporting Behavior

This paper employs theory of normal organizational wrongdoing and investigates the joint effects of management tone and the slippery slope on financial reporting misbehavior. In Study 1, we investigate assumptions about the effects of sliding down the slippery slope and tone at the top on financial executives' decisions to misreport earnings. Results of Study 1 indicate that executives are willing to engage in misreporting behavior when there is a positive tone set by the Chief Financial Officer (CFO) (kind attitude toward employees and non-aggressive attitude about earnings), regardless of the presence or absence of a slippery slope. A negative tone set by the CFO does not facilitate the transition from minor indiscretions to financial misreporting. In Study 2, we find that auditors evaluating executives' decisions under the same conditions as those in Study 1 do not react to the slippery slope condition, but auditors assess higher risks of fraud when the CFO sets a negative tone. Overall, our results indicate that many assumptions about the slippery slope and tone at the top should be questioned. We provide evidence that pro-organizational behaviors and incrementalism yield new insights into the causes of ethical failures, financial misreporting behavior, and failures of corporate governance mechanisms

Basic science232. Certolizumab pegol prevents pro-inflammatory alterations in endothelial cell function

Background: Cardiovascular disease is a major comorbidity of rheumatoid arthritis (RA) and a leading cause of death. Chronic systemic inflammation involving tumour necrosis factor alpha (TNF) could contribute to endothelial activation and atherogenesis. A number of anti-TNF therapies are in current use for the treatment of RA, including certolizumab pegol (CZP), (Cimzia ®; UCB, Belgium). Anti-TNF therapy has been associated with reduced clinical cardiovascular disease risk and ameliorated vascular function in RA patients. However, the specific effects of TNF inhibitors on endothelial cell function are largely unknown. Our aim was to investigate the mechanisms underpinning CZP effects on TNF-activated human endothelial cells. Methods: Human aortic endothelial cells (HAoECs) were cultured in vitro and exposed to a) TNF alone, b) TNF plus CZP, or c) neither agent. Microarray analysis was used to examine the transcriptional profile of cells treated for 6 hrs and quantitative polymerase chain reaction (qPCR) analysed gene expression at 1, 3, 6 and 24 hrs. NF-κB localization and IκB degradation were investigated using immunocytochemistry, high content analysis and western blotting. Flow cytometry was conducted to detect microparticle release from HAoECs. Results: Transcriptional profiling revealed that while TNF alone had strong effects on endothelial gene expression, TNF and CZP in combination produced a global gene expression pattern similar to untreated control. The two most highly up-regulated genes in response to TNF treatment were adhesion molecules E-selectin and VCAM-1 (q 0.2 compared to control; p > 0.05 compared to TNF alone). The NF-κB pathway was confirmed as a downstream target of TNF-induced HAoEC activation, via nuclear translocation of NF-κB and degradation of IκB, effects which were abolished by treatment with CZP. In addition, flow cytometry detected an increased production of endothelial microparticles in TNF-activated HAoECs, which was prevented by treatment with CZP. Conclusions: We have found at a cellular level that a clinically available TNF inhibitor, CZP reduces the expression of adhesion molecule expression, and prevents TNF-induced activation of the NF-κB pathway. Furthermore, CZP prevents the production of microparticles by activated endothelial cells. This could be central to the prevention of inflammatory environments underlying these conditions and measurement of microparticles has potential as a novel prognostic marker for future cardiovascular events in this patient group. Disclosure statement: Y.A. received a research grant from UCB. I.B. received a research grant from UCB. S.H. received a research grant from UCB. All other authors have declared no conflicts of interes

An experimental assessment of business students\u27 performance: Recognizing risk factors associated with misappropriation of assets

This paper reports the results of a study that was conducted to investigate the performance of senior-level business students as it pertains to recognizing certain clues or risk factors that are frequently associated with the misappropriation of entity assets. Based on three of the risk factors identified in SAS No. 82, an experiment was used to examine differences in performance based on academic major, fraud-specific knowledge, and certain experiences of the students. The primary contributions of this study are the discovery that: (1) an increasing number of risk factors; (2) knowledge accumulated in an accounting curriculum; (3) reading additional articles on the topic of employee theft; and (4) direct encounters with employee theft in the workplace were positively and significantly associated with recognizing an increased possibility that employee theft may be occurring. The results also indicate that neither employer-provided fraud training, nor part-time work experience, helped the subjects recognize an increased level of vulnerability of an organization to employee theft

An Evaluation of the Usefulness of Web-based Financial and Environmental Performance Information Provided by Oil and Gas Companies

Environmentally conscious investors require financial information in addition to environmental information to evaluate a company\u27s performance. Sources of such information include organizations that specialize in providing environmental performance data, such as the Council on Economic Priorities (CEP) or the Investor Responsibility Research Center (IRRC). Both of these organizations research, evaluate, and rank companies based on a variety of metrics, and both charge for their service. Through company websites, the Internet offers another potential source of information, since most companies have a web presence. However, information supplied on a company website has the risk of bias (i.e. the website may be a marketing tool for the company). This potential bias leads to the question of whether information provided by firms is sufficient for an environmentally conscious investor to make an informed decision

Corporate Training Assessment Technique: Risk Factors Associated with Misappropriation of Assets

Due to rapid advances in technology, companies are spending record amounts of money on training as they seek to increase employee skills (Armour 1999). Because managers believe that corporate fraud is a growing problem, an important skill for all employees should be the ability to recognize the risk factors that are frequently associated with fraud. A number of instructional cases have been developed that focus on the problems of employee fraud and unethical management practices. Training materials and professional standards now include more detailed information on the subject of fraud and the auditor\u27s responsibility, as well as management\u27s responsibility, with respect to the detection of fraud. The next logical step is to assess employee training on this topic. In particular, can employees recognize risk factors when they are embedded in an actual instance of misappropriation of assets? We offer a case, based on an actual instance of misappropriation of assets, that may be used as a corporate training assessment technique (CTAT). Since training dollars are an important resource allocation decision, assessment of the training that is provided to employees is essential. Further, since effective teaching produces learning, then evaluation of learning is critical to assessing teaching effectiveness. We also include instructions for using the CTAT, teaching notes, and suggestions for developing additional instructional cases

Training: A Powerful Way to Prevent Fraud

Preventing fraud is a big responsibility for all levels of financial management— manager, controller, and CFO. Since managers are responsible for preventing and detecting fraud, they must constantly ask themselves,“What more can we do?” Most fraud is discovered through internal controls, auditors, and employees who notice suspicious activities. Therefore, you may want to consider training fiscal employees and managers to detect fraud