Download or read book The Impact of Guanxi on Auditor Independence written by Philip Law and published by . This book was released on 2014 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditor independence has long been referred to as the cornerstone of the auditing profession. Guanxi refers to the networks of informal relationships and exchanges of favors that dominate all business and social activities that occur throughout China. This research will analyse the impact of guanxi and client size on the perceived independence of auditors in the setting of Hong Kong.Survey data is obtained from 524 questionnaire responses from Chief Financial Officers (CFOs), Big 4 and Non-Big 4 auditors. Two within-subjects independent variables: “guanxi” and the “client size”, and one between-subject independent variable: auditors versus CFOs, are employed.Results indicate guanxi is a significant factor influencing perceived auditor independence in Chinese society, which has largely been neglected in the accounting literature. Independence is severely impaired when the duration of guanxi with clients reaches five years or more. Large client size has a negative influence on the perceived independence of auditors and this result contradicts an earlier U.S. study. The results indicate that the longer the guanxi when the auditor is associated a with large audit client, the greater the decrease in their perceived independence and this has implications for audit legislation.CFOs generate the lowest mean scores (greatest threat to auditor independence) for the perceived effects of all levels (durations) of guanxi among the three groups. This result supports the stewardship theory that asserts stewards (CFOs) motives are aligned with the objectives of their principals. CFOs consider the increasing levels of guanxi associated with the auditors are not in the best interests of their principals, and hence affect the reliability of the audited accounts.Though this study is conducted in the Asia Pacific region, western counterparts will find the results useful. Multinational corporations which have subsidiaries or headquarters established globally, should be aware that guanxi has implications for their Asian operations and their consolidated audited accounts. In view of the critical importance of the guanxi factor on the perceived auditor independence, standard setters in this region should consider devising ethical guidelines requiring mandatory rotation of public accounting firms.

Download or read book The Impact of Improved Auditor Independence on Audit Market Concentration in China written by Mark L. DeFond and published by . This book was released on 2001 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an effort to increase the credibility of financial information in its emerging capital markets, China recently adopted rigorous new auditing standards designed to increase auditor independence. Consistent with increased auditor independence, we find that the frequency of modified opinions increases nine-fold subsequent to the adoption of the new standards. However, the increase in modified reports is immediately followed by a large decline in audit market share among the largest auditors -- those with the greatest propensity to issue modified reports. We conjecture that this quot;flight from audit qualityquot; results from the absence of market-based incentives for Chinese managers to demand independent auditors. Our findings suggest that government regulation alone is not sufficient to create financial markets that foster auditor independence.

Download or read book Adoption of Anglo American models of corporate governance and financial reporting in China written by Huiying Wu and published by Emerald Group Publishing. This book was released on 2015-01-16 with total page 270 pages. Available in PDF, EPUB and Kindle. Book excerpt: This monograph examines the adoption of Anglo-American models of corporate governance and financial reporting in China. It shows how the loose coupling between regulations and actual operations is shaped by the interplay between institutional pressures and organizations conflicts of interest and power dependence within the local context.

Download or read book Financial regulation written by Gerald Vinten and published by Emerald Group Publishing. This book was released on 2005 with total page 119 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Research on Professional Responsibility and Ethics in Accounting written by Charles Richard Baker and published by Emerald Group Publishing. This book was released on 2020-10-16 with total page 208 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a continuing of a long series focusing on professional responsibility and ethics in accounting.

Download or read book Research Handbook on Accounting and Ethics written by Marion Brivot and published by Edward Elgar Publishing. This book was released on 2023-03-02 with total page 399 pages. Available in PDF, EPUB and Kindle. Book excerpt: This invigorating Research Handbook focuses on collective ethical issues facing the accounting profession as a whole, as well as the users of the services provided by accountants. Providing an overview of contemporary accounting and ethics issues around the world, it discusses the ethical considerations involved in accounting, including external and internal auditing, tax, forensic accounting, and governance, as well as new areas of research relating to accounting and ethics, through cross-fertilization with other disciplines and presenting multiple innovative perspectives.

Download or read book A Theoretical Model of Guanxi Regional Marketisation Differences Perceived Ethical Climate and Organisational Deviant Behaviour Among Internal Auditors in China written by Qirong Song and published by . This book was released on 2016 with total page 87 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper extends internal auditors' judgement and decision making (JDM) research by developing and empirically testing a theoretical model that links guanxi and regional marketisation differences to perceived ethical climate and organisational deviant behaviour (ODB) in China. Guanxi is selected because it permeates interpersonal relationships among Chinese people in every aspect of organisational and social life in contemporary China. Therefore, guanxi is an important cultural variable in understanding ethical climate and ODB in China. Guanxi is defined as intricate and pervasive networks whereby individuals are bound by implicit social and psychological contracts to follow norms such as maintaining long-term harmonious relationships, mutual commitment, loyalty, obligation, assurance, and understanding. Specifically, this theoretical model investigates three types of guanxi, namely rent-seeking, favour-seeking, and supervisor-subordinate guanxi as antecedents to perceived ethical climate. This model also incorporates regional marketisation differences as another important antecedent to perceived ethical climate. This study uses a Marketisation Index to measure various degrees of marketisation across three major economic regions, namely the Eastern, Central, and Western Regions of China. The Marketisation Index encompasses indicators measuring effectiveness and efficiency of regional compliance, enforcement, and accountability mechanisms. Moreover, this model includes ODB as an important consequence of perceived ethical climate. Most theoretical models pertaining to ethical climate are developed and empirically tested in Anglo-American countries driven by cultural values of individualism and independence. This study suggests that such models may not be applicable to collectivist and interdependent societies such as China, where dominant cultural values include implicit mutual obligation, reciprocity, and harmony within hierarchy. These dominant cultural values are embedded in guanxi. Internal auditors have been selected because they play a dominant role in enhancing ethical climate, as Chinese regulators place significant importance on internal auditors in designing internal control systems centred around preventing wrongdoing and enhancing ethical practices. Moreover, guanxi poses special challenges to Chinese internal auditors because they hold allegiance to both management and the internal audit profession. Findings from Structural Equation Modelling (SEM) support the theoretical model, which shows the importance of guanxi and regional marketisation differences in understanding ethical climate and mitigating ODB in China. Evidence shows a negative association between rent-seeking guanxi and perceived ethical climate and a positive association between favour-seeking guanxi and perceived ethical climate. In addition, internal auditors working in regions with a higher Marketisation Index perceive ethical climate to be stronger. The results further validate the theoretical model by showing that ethical climate is negatively associated with internal auditors' ODB. These findings provide holistic insights into linkages among guanxi, regional marketisation differences, perceived ethical climate, and ODB. The findings in this study have a number of implications for global standard-setters, such as Institute of Internal Auditors (IIA), Chinese regulators, such as China Institute of Internal Audit (CIIA), Chinese firms, multinational enterprises operating in China, and international organisations with Chinese employees. The model shows that a country's unique contextual factors cannot be ignored in enhancing ethical climate and mitigating ODB.

Download or read book Public Perception of Auditor Independence and the Impact that this Has on Corporate Governance written by Paul Anthony Fradgley and published by . This book was released on 1993 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Chinese Auditors U 2019 Values on Their Ethical Decision making in China written by Ying Han Fan and published by . This book was released on 2008 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: It contributes by providing a scale to measure the extent to which business relationships involves back door deals and power dependence. One of the significant contributions of this study is that it contributes to the construction of a meaningful measure for the guanxi scale which includes favour-seeking guanxi and specifically for the first time, rent-seeking guanxi. Thus a confirmatory analysis with an independent sample could be used in the future to re-test the guanxi scale with the two dimensions developed in this study. contributions of this study is that it contributes to the construction of a meaningful measure for the guanxi scale which includes favour-seeking guanxi and specifically for the first time, rent-seeking guanxi. Thus a confirmatory analysis with an independent sample could be used in the future to re-test the guanxi scale with the two dimensions developed in this study.

Download or read book On Informal Institutions and Accounting Behavior written by Xingqiang Du and published by Springer Nature. This book was released on 2021-01-04 with total page 506 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the Chinese context to investigate how informal institutions (Confucian culture and its dimensions, religion, political connections) in China affect accounting behaviors. This book tries to show that cultural influence and religious impacts in China are not trivial and increasingly important, and specifically, informal institutions have its bright and dark sides with regard to its effects on accounting behaviors. This book aims to investigate whether and how informal institutions (Confucian culture and its dimensions, religion, political connections) affect micro-level accounting behaviors, including but not limited to audit quality, financial misstatement, R&D, corporate misconducts, corporate philanthropy and corporate environmental responsibility. This book provides graduate students, scholars and practitioners in the fields of accounting, business administration and religion with an in-depth understanding about how informal institutions as a set of social norms affect micro-level accounting behaviors. First, this book is the first to focus on the Chinese context and investigate the effects of informal institutions on accounting behavior. Second, this book documents systematic evidence to show the bright and dark sides with regard to the relation between informal institutions and accounting behavior in China. Lastly, this book reveals informal institutions can serve as an important mechanism to affect accounting behaviors.

Download or read book Auditor s Responsibility and Independence written by Z. Jun Lin and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The auditor's responsibility and independence are crucial issues underlying the independent auditing function and has significant implications on the development of auditing standards and practices. Through a questionnaire survey, this study investigated auditor's responsibility and independence from the perspectives of audit beneficiaries and public practitioners in the People's Republic of China. The results reveal that the role and benefits of public accounting (independent auditing) have been positively recognized by Chinese audit beneficiaries and auditors, and there are increasing demands for expanding the applicability of public accounting in China. However this study obtained substantial evidence on the emergence of the 'expectation gap' in China, with respect to audit objectives, auditor's obligation to detect and report fraud, and third party liability of auditors. In addition, the study found that the majority of audit beneficiaries and auditors are supportive of improving auditor independence by reducing governmental control or intervention and moving towards 'self-regulation' of the profession. The causes and practical implications of the study findings are therefore analyzed contextual to the existing practices of public accounting in the changing Chinese social and economic conditions. This study should cast light on understanding of the institutional settings and updated development of independent audits in China and may also serve as an annotation to the recent accounting reform debates in the Western world.

Download or read book Advances in Accounting Behavioral Research written by Donna Bobek Schmitt and published by Emerald Group Publishing. This book was released on 2015-10-01 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in Accounting Behavioral Research addresses a wide range of issues that affect the users, preparers and assurers of accounting information. Volume 18 exemplifies this focus by including research from auditing, taxation and managerial and information systems.

Download or read book Guanxi Social Capital and School Choice in China written by Ji Ruan and published by Springer. This book was released on 2016-11-01 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book focuses on the use of guanxi (Chinese personal connections) in everyday urban life: in particular, how and why people develop different types of social capital in their guanxi networks and the role of guanxi in school choice. Guanxi takes on a special significance in Chinese societies, and is widely-discussed and intensely-studied phenomenon today. In recent years in China, the phenomenon of parents using guanxi to acquire school places for their children has been frequently reported by the media, against the background of the Chinese Communist Party’s crackdown on corruption. From a sociological perspective, this book reveals how and why parents manage to do so. Ritual capital refers to an individual's ability to use ritual to benefit and gain resources from guanxi.

Download or read book Advances in International Accounting written by J. Timothy Sale and published by Elsevier. This book was released on 2005-07-21 with total page 277 pages. Available in PDF, EPUB and Kindle. Book excerpt: Advances in International Accounting is a refereed, academic research annual, that is devoted to publishing articles about advancements in the development of accounting and its related disciplines from an international perspective. This serial examines how these developments affect the financial reporting and disclosure practices, taxation, management accounting practices, and auditing of multinational corporations, as well as their effect on the education of professional accountants worldwide. Advances in International Accounting welcomes traditional and alternative approaches, including theoretical research, empirical research, applied research, and cross-cultural studies.

Download or read book Internal Audit Handbook written by Henning Kagermann and published by Springer Science & Business Media. This book was released on 2007-12-04 with total page 631 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book offers a comprehensive, up-to-date presentation of the tasks and challenges facing internal audit. It presents the Audit Roadmap, the process model of internal auditing developed at SAP® which describes all stages of an audit. Coverage provides information on issues such as the identification of audit fields, the annual audit planning, the organization and execution of audits as well as reporting and follow-up. The handbook also discusses management-related subjects. Separate chapters are dedicated to special topics like IT or SOX audits.

Download or read book Proceedings of the 2nd International Conference on Management and Business ICOMB 2023 written by Budi Setiawan and published by Springer Nature. This book was released on 2024 with total page 227 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Ethical Business Cultures in Emerging Markets written by Alexandre Ardichvili and published by Cambridge University Press. This book was released on 2017-10-26 with total page 343 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the intersection of human resource development and human resource management with ethical business cultures in developing economies, and addresses issues faced daily by practitioners in these countries. It is ideal for scholars, researchers and students in business ethics, management, human resource management and development, and organization studies.