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From the beginning of the new millennium, a number of accounting scandals involving audit firms have occurred. The accounting scandals involving well known Big Four audit firms have particularly been echoing in the media, which puts pressure on them and can make them more conservative in their judgements. One of the significant assumptions that auditors must assess is that of going concern of the audited entity. Existing studies from different countries and conducted for different time periods on whether the size of the auditor affects going concern uncertainty statement, do not show unique results, which implies that there are time and location specifics. Since, to the best of our knowledge, there is no such research for Croatia, the purpose of this article is to analyse on a sample of Croatian companies whether there is a significant difference between the propensity of Big Four and non-Big Four auditors to express going concern uncertainty. A sample of large financially troubled, but not bankrupt manufacturing companies, is used. The findings of our study show that there is no significant difference in stating going concern uncertainty between large international audit firms (Big Four) and smaller auditors., Od početka novog tisućljeća dogodili su se brojni računovodstveni skandali koji uključuju revizorska društva. Računovodstveni skandali koji uključuju poznata revizorska društva Velike četvorke posebno odjekuju u medijima, što na njih vrši pritisak i može ih učiniti konzervativnijima u njihovim prosudbama. Jedna od značajnih pretpostavki koju revizori moraju ocijeniti jest ona o vremenskoj neograničenosti poslovanja poduzeća koje je predmet revizije. Studije o tome da li veličina revizora utječe na ocjenu vremenske neograničenosti poslovanja, iz različitih zemalja i provedene za različita vremenska razdoblja ne pokazuju jedinstvene rezultate, što implicira da postoje vremenske i lokacijske specifičnosti. Budući da, prema našim saznanjima, za Hrvatsku ne postoji takvo istraživanje, svrha ovog članka je analizirati na uzorku hrvatskih poduzeća postoji li značajna razlika između sklonosti revizora Velike četvorke i ostalih da izraze sumnju u vremenski neograničeno poslovanje. U istraživanju se koristi uzorak velikih proizvodnih poduzeća koja su u financijskim problemima, ali nisu u stečaju. Rezultati ovog istraživanja pokazuju da ne postoji značajna razlika u isticanju sumnje u vremenski neograničeno poslovanje između velikih međunarodnih revizorskih društava (Velika četvorka) i manjih revizora.

The objective of this research is to analyse the effect of audit fees, audit working period, audit alternation and audit committee on audit quality in Indonesia Stock Exchange (IDX) listed manufacturing corporation during 2018-2020. Every influence factors is examined by measuring and calculating according to the reference: The audit quality is estimated by dummy variables by Big Four and Non Big Four KAP categories; The audit fee is calculated using the In (fee) formula with audit fee data taken from the professional fee account; The audit tenure is calculated by duration in years of KAP bond with clients; The audit rotation is measured using a dummy variable; The audit committee is measured based on the number of audit committees. This study uses secondary data and documentation methods for data collection as reference. With the purposive sampling method and research population of 193 manufacturing companies, 61 companies are eligible becoming samples according to following requirements: the corporation is recorded on the Indonesian stock exchange, the corporation presents audited reports, the corporation uses the rupiah currency in its reports and the corporation provides the required datasheet during 2018-2020. Procedure of this study is logistic regression to analyse the influence of these factors. This study outcome is about how the audit working period and the audit personel could bring positive impact on the audit quality, while the auditor alternation and the audit fee have no influence on the audit quality.

This study examines a sample of global hedge funds and focuses on analyzing characteristics consistently predictive of being GIPS compliant. Hedge fund data are merged with the CFA Institute’s list of GIPS-compliant firms. The authors find that smaller funds, with less experienced managers and those not denominated in US currency, are more likely to be compliant. They also find that firms with a strong internal control mechanism, defined as having one of the big four accounting firms as an auditor, are more likely to claim compliance. Turning to some core elements of the investor–fund relationship, they find performance fees are lower in firms claiming compliance, but past performance is insignificantly different. Collectively, the results suggest that GIPS compliance is useful to smaller and riskier firms that want to display confidence and transparency in their performance, thus supporting the notion that compliance is an additional certification agent. There is also some evidence to suggest a benefit to the investor in lower fees. Key Findings ▪ The minority number of hedge funds that chose to be compliant prior to the revised GIPS standards of 2020 are typically relatively smaller, have less-experienced managers, and are based in non-US currency. ▪ Compliant firms have smaller performance fees, resulting in a lower overall fee structure, compared to their noncompliant counterparts. ▪ Results are consistent with the notion that funds that chose compliance are those that could benefit from the additional certification it could provide.

O presente estudo tem como objetivo verificar a associação entre as empresas de auditoria independente e as escolhas contábeis. A amostra foi composta por 135 companhias de capital aberto brasileiras, listadas na B3, no período de 2010 a 2017. Foram avaliadas as escolhas contábeis relativas à mensuração de propriedades para investimentos, mensuração dos estoques, taxa de depreciação, método de depreciação, reconhecimento das parcelas do arrendamento mercantil operacional, reconhecimento das compras ou vendas regulares de ativos financeiros, classificação de juros pagos, classificação de dividendos e juros sobre o capital próprio pagos e dividendos e juros sobre o capital próprio recebidos. Essas escolhas foram selecionadas por estarem contidas explicitamente nas normas contábeis e, portanto, serem de fácil identificação nas demonstrações contábeis. Para testar a associação entre as empresas de auditoria e as escolhas contábeis foi utilizado o teste Qui-quadrado. Os resultados apontam a associação da mudança da empresa de auditoria com todas as escolhas contábeis investigadas, exceto a mensuração dos estoques e a classificação dos dividendos e juros sobre o capital próprio pagos. Adicionalmente, verificou-se que o fato de a empresa de auditoria ser uma Big Four está associado à mudança de práticas relativas à mensuração de propriedades para investimentos, mensuração de estoques e classificação de dividendos e juros sobre o capital próprio pagos. As evidências do estudo indicam que a auditoria pode ser um fator relevante para o entendimento das práticas contábeis adotadas pelas empresas.

We contribute to the recent debates on demand and growth regimes in modern finance-dominated capitalism linking them to the post-Keynesian research on macroeconomic policy regimes. We examine the demand and growth regimes, as well as the macroeconomic policy regimes for the big four Eurozone countries, France, Germany, Italy and Spain, for the periods 2001–2009 and 2010–2019. First, our approach supports the usefulness of the identification of demand and growth regimes according to growth contributions of the main demand components and financial balances of the macroeconomic sectors. This allows for an understanding of the demand sources of growth, or stagnation, if there is a lack of demand, of how these sources are financed and of potential financial instabilities and fragilities. Second, when it comes to the macroeconomic policy drivers of demand and growth regimes, as well as their respective changes, we show that the exclusive focus on fiscal policies, as in the previous literature, is too limited and that it is the macroeconomic policy regime which matters here, i.e. the combination of monetary, fiscal and wage policies, as well as the open economy conditions.

This study examines the relationship between female managers' presence in audit firms and audit firms' characteristics. In line with the employment rates obtained from POA, it is observed that gender inequality in the audit sector started from employment. In the research part, 90 audit companies' data that published transparency reports in 2018 were used. It has been determined that there are very few female managers in the sector; in fact, 47 of 90 companies do not have a female partner, board member, or responsible auditor. It is also analyzed that in the older audit firms, the audit firms that earn more revenue and big four firms, the number of female managers is significantly higher than in other firms. The study is essential in revealing that women's employment in the audit sector is a crucial problem and detects the positive relationship between corporate governance and female managers.

This study examines the impact of audit committee (AC) characteristics on audit quality in the Saudi listed firms. In addition, this study is also evaluating the Saudi CG Code amended in 2017. The data for the study is obtained from secondary (annual reports) data. The sample firms are 210 firms listed on the Saudi Stock Exchange (Tadawul) over the period of 2017-2019. The audit firm type is used as a proxy for quality in this study. Multiple regression analysis is used to assess the relationship between AC characteristics and audit quality. The regression models show that firms with AC educational background in accounting and finance, and larger firms with higher state and institutional ownership are more likely to engage a big four audit firm, in so doing signalling greater audit quality. The results support agency and institutional theories concerning audit quality. In contrast, firms with more experts on the AC and higher leverage are more likely to select non-big four auditing firms which require lower audit fees. However, the size, number of meetings, and degree of independence of the AC do not significantly affect the level of audit quality. In addition, a combined AC effectiveness score is found to have a negative though insignificant impact on audit quality, contradicting governance regulation and theory expectations that effective ACs should improve audit quality. The results of this study present some key implications for CG regulators and other stakeholders. CG regulators should understand that the simple presence of an AC that meets baseline CG regulatory requirements does not automatically ensure its efficacy or improve auditing process quality. Therefore, boards and shareholders must continue to monitor and review AC decisions, particularly where they relate to auditor engagement, even where committees are, prima facie, deemed effective. The study contributes to the existing body of literature on the role of the audit committee in improving audit quality by addressing the paucity of evidence for emerging economies, and the case of Saudi Arabia in particular. The findings should prove useful for regulators and policy makers, academic researchers, accountants, financial experts, and audit practitioners in the Middle East and wider Arab region, particularly for those countries currently reviewing and setting guidelines for effective audit committees. Moreover, the findings should emphasise the importance of the concept of audit quality and its drivers in a Saudi Arabian corporate setting.Keywords: Audit Quality, Audit Committee Characteristics, Audit Committee Effectiveness, Corporate Governance, Corporate Governance Code, Saudi Arabia.JEL Classifications: G3, M4DOI: https://doi.org/10.32479/irmm.11437

Recent scholarship on mobility has increasingly incorporated wealth. We ask if wealth brings anything new to mobility research or is just a standard socioeconomic status (SES) dimension in disguise. We exploit Swedish administrative registers, which contain rich SES measures over individuals’ lives for both parents’ and children’s generations. Using sibling correlations to estimate a baseline of shared family background influence, we then perform a total decomposition for each SES dimension and their overlaps. We find that wealth is a distinct dimension of SES that is very different from education, occupation, and income. Parental wealth cannot be substituted for other SES dimensions in understanding child’s wealth attainment. Moreover, parental wealth substantially moderates intergenerational reproduction in other dimensions: The wealthiest have higher reproduction rates in all child outcomes, but in particular for children’s income and wealth. Excluding wealth leads to underestimating intergenerational inequality, aggravated by its qualitatively unique status as an SES resource. We conclude that—alongside the SES resources education, occupation, and income—wealth emerges as an integral and unique dimension of what we choose to call the “big four” of social stratification.

Objetivo: O artigo tem por objetivo analisar se a adoção das International Financial Reporting Standards (IFRS) fortaleceu a relação negativa entre gerenciamento de resultados e boas práticas de governança corporativa, sendo elas: os níveis diferenciados de governança corporativa da B3, a presença de um conselho de administração independente e se a companhia é auditada por uma Big Four. Metodologia: Utilizou-se uma amostra de 92 empresas listadas na B3 no período de 2002-2007 para anteriormente as IFRS e 2010-2015 para o posteriormente as IFRS, sendo os dados coletados nas notas explicativas, formulário de referência e na base de dados Economática®. Para a mensuração da variável dependente gerenciamento de resultados, foi utilizado o modelo proposto por Dechow, Hutton, Kim e Sloan (2012). Resultados: Os resultados da pesquisa sugerem que quando há a presença de um comitê administrativo independente, os níveis de gerenciamento de resultados são menores, sendo essa relação impulsionada pela adoção das IFRS. Não podemos afirmar que as empresas nos níveis mais altos de governança corporativa e auditadas por uma Big Four possuem menor incidência de gerenciamento de resultados após a aplicação das IFRS. Contribuições do Estudo: O trabalho contribui para um melhor entendimento de como variáveis relacionadas com governança podem sim influenciar na qualidade da informação contábil-financeira. Também contribui para a literatura que investiga se as Normas Internacionais de Contabilidade influenciam ou não a qualidade da informação contábil.

Purpose The purpose of this paper is to examine how experience and gender relate to the auditors’ moral awareness. Design/methodology/approach Hypotheses are informed by a neurocognitive approach to ethical decision-making and tested using survey data from 191 auditors of a Big Four audit firm in The Netherlands. Findings The main findings indicate that more experienced auditors (i.e. those with more years of work experience, a higher rank and a higher age) show higher levels of moral awareness. This positive relationship is stronger for morally questionable situations related to accounting and auditing, compared to general business moral dilemmas. In addition, the results support the expectation that on average, female auditors have higher moral awareness than their male counterparts. Originality/value To the knowledge of the authors, this is the first study that considers a neurocognitive approach to inform hypotheses about the antecedents of auditors’ moral awareness. The findings suggest that the involvement of experienced auditors in ethical decision-making processes may be beneficial given their enhanced ability to identify ethically disputable situations as such. Furthermore, increasing the number of women in senior positions may positively affect ethical decision-making in audit firms. Finally, this paper presents directions for future research.

Objectives : This study aims to determine the effect of the size of the board of commissioners, the proportion of independent commissioners, family ownership, and audit quality on the level of voluntary disclosure of the company. Design/methodology/approach : An empirical study of 50 companies listed in the Indonesia Sharia Stock Index (ISSI) is conducted using the 2015-2016 annual report. The type of data used is secondary data. The analytical method used in this study is multiple linear regression analysis with SPSS 21. Findings : The results of statistical tests indicate that the size of the board of commissioners and audit quality have a positive and significant effect on the level of voluntary disclosure, while the proportion of independent commissioners and family ownership has no significant effect on the level of voluntary disclosure. Implications : The main implications of the results of this study are the size of the board of commissioners and the audit quality. The size of the board of commissioners has a strong relationship to the level of voluntary disclosure. There is a relationship between the number of the board of commissioners and the national laws that have an impact on monitoring the transparency process and the effectiveness of communication within the company. For audit quality, companies that use Big Four audit firms have an effect on the level of voluntary disclosure since their financial reporting will result in better audit quality with a high level of independence. The results of this study also support that agency theory is able to partially explain the phenomenon of the relationship between corporate governance practices and the level of voluntary disclosure in companies listed in ISSI. Originality/Value : This research is one of the studies that draw a relationship between the size of the board of commissioners and audit quality on the level of voluntary disclosure of companies in Indonesia. This finding provides confidence that the size of the board of commissioners and audit quality complement each other to improve the quality of voluntary disclosure.

PurposeThe purpose of this study is to understand how the new reforms related to key audit matters (KAM) disclosures in Australia may have impacted audit quality by eliciting the perceptions of key stakeholders in the audit and assurance services market.Design/methodology/approachThe study uses a qualitative approach and New Institutional Sociology (NIS) to explain how auditors have responded to the KAM reforms. Interviews were conducted with 20 individuals representing identified groups of stakeholders in the market for audit and assurance services in Australia.FindingsThe study finds there is little consensus between some stakeholder groups on whether the KAM reforms may have improved audit quality, based on the perceptions shared. The findings conveyed that the auditors and regulators, standard setters acknowledge that KAM disclosures are either costly and/or time-consuming to implement. The Big Four auditors indicate these reforms led to changes mainly around internal consultations and independent reviews, whereas the non-Big Four auditors highlighted increased interactions with audit clients.Originality/valueThis is one of the first studies to examine the perceived post-implementation impacts on audit quality of the KAM reforms (ISA 701) after the initial two years of implementation and how auditors have responded, explored through the lens of institutional logic.

Objective: The paper presents the issue of non-financial information assurance and identifies the practices of companies operating in Europe in this regard. Methodology/research approach: The research is based on a literature review and analysis of a sample of 935 companies whose non-financial reports, prepared according to the GRI guidelines, are available from the GRI Sustainability Disclosure Database. In particular, we analyze how many companies had their non-financial information verified in 2017 and their previous practice in this regard (since 2005), as well as their structure according to the assuror type, the assurance standard used, the engagement type, and the assurance scope. Findings: Nearly half of the companies had their non-financial information independently and externally verified, including 34 Eastern European companies (30%) and 426 from Western Europe (52%). Most of the entities which provide assurance are so-called Big Four audit companies, mainly Deloitte and E&Y, which use the ISAE 3000 standard for this purpose. The most common engagement type is limited engagement. Limitations: The study is descriptive, which results from the nature of the data collected and the large disparity between companies using assurance in Western and Eastern Europe. Originality/value: The Article broadens accounting knowledge, in particular, on non-financial reporting. It indicates the need to take steps towards the wider use of non-financial information assurance in Eastern Europe.

John Benjamins Publishing Company; This paper sets out the results of an analysis of a corpus of interviews with certified accountants who work or have worked for a major international audit group (one of the Big 4). It uses a dialogical and enunciative approach to show how highly controlled discourses are employed to criticize the "affective temporality" in these large firms. The interviewees all mention the difficulty of living with certain emotions within these Big 4 firms (in particular with the following "temporal emotions": boredom with repetitive tasks, cold relationships, stress and pressure). We use the pedagogical context of data collection and the professional context of the interviewees to interpret these controlled discourses, while strongly mobilizing the responsive dimension of dialogism.; Cet article présente les résultats de l'analyse d'un corpus d'entretiens menés auprès d'expert comptables travaillant ou ayant travaillé pour un grand groupe d'audit international (l'un des Big 4). Il utilise une approche dialogique et énonciative pour montrer comment des discours très contrôlés sont employés pour critiquer la " temporalité affective " dans ces grands cabinets. Les personnes interrogées mentionnent toutes une difficulté de vivre certaines émotions au sein de ces Big 4 (notamment les " émotions temporelles " suivantes : ennui des tâches répétitives, relations froides, stress et pression). Nous utilisons le contexte pédagogique de la collecte des données et le contexte professionnel des interviewés pour interpréter ces discours contrôlés, tout en mobilisant fortement la dimension responsive du dialogisme.

This study aims to prove the effect of audit committee characteristics on the quality of financial statements and prove that audit quality affects and strengthens the relationship between audit committee characteristics and the quality of financial statements.The population of this study was non-financial companies listed on the Indonesia Stock Exchange. The selection sample was done by purposive sampling method based on inclusion criteria. Hypothesis testing in this research used linear regression analysis.The results showed that there was no association between the audit committee characteristics with persistence, predictability, the number of the audit committee expertise, and the number of the audit committee meeting. Furthermore, the commissioner independent had an effect on conservatism. The number of the audit committee expertise and the number of the audit committee meeting with the financial report timeline were correlated. In addition, big four as moderation had an association with the audit committee meeting number and conservatism, which had a big impact on strengthening the correlation between the number of the audit committee meeting and conservatism.

This paper proposes a behavioural framework to complement professional accounting firms’ measures for managing conflicts of interest. Following an empirical examination of the process through which conflicts of interest affect accounting professionals’ decision-making, we develop guidance for practitioners that will enable them to incorporate behavioural interventions while establishing the context, assessing, treating, controlling and monitoring conflicts of interest. The interventions are aimed at strengthening accounting professionals’ independence in fact by increasing the professionals’ expectation that compliant decision-making will result in positive outcomes, increasing their perception that making compliant decisions is less difficult than making the alternative decisions, facilitating the formation of highly ethical judgements and lowering their propensity to disengage. The data were collected through a quasi-experiment with 105 professionals from the Big Four accounting firms in the UK. Our work offers practical implications for professional accountants, executive directors, regulatory bodies, executive training and academic research. Other professions facing the ramifications of conflicts of interest (e.g. law, engineering, medicine and architecture) may also use the proposed framework to improve their ethics policies and corporate governance codes for managing conflicts of interest.

While trying to return the identity to human remains, the forensic anthropologist has to estimate four basic parameters: sex, age at death, ancestry, and stature. These are the so-called big four parameters of identification which altogether with the identity factors can allow a positive identification, which enables the return of the remains to the families. This presentation focusses the problematic of age estimation of older individuals which is a very relevant question since a lot of "John Doe's" are old individuals who lived alone and/or who got lost. Besides, with the increase in life expectancy, this is, more and more, a significant concern. The issue is then a different forensic perspective of aging. Until very recently, all we could do was to tell that the individual was older than 60 years when he/she died, which was not very helpful to narrow down the possibilities, since after that age, with the increasing longevity, we can have individuals dying at seventies, eighties, nineties or even centenarians. Recent research has been permitting to do some discrimination among these older age groups. However, more research about how the skeletal system ages, a paramount question, is needed. While growth and development are programmed strictly by evolution and genetics, the same does not apply to adult degeneration process. Hence, not all old individuals have old skeletons.All the approaches to adult age estimation only produce estimates of age (age groups) with a relatively wide age range, and, the older the individuals, the wider is that age range. The perspectives and limitations of aging the older are discussed. It is clear that no single technique is able to provide an accurate estimation, the key is to use multiple methods and, above all, on how to combine them. This last issue has been profiting from the application of updated and appropriate mathematical techniques. Regarding skeletal age indicators, it is now possible to tell which should not be used. The ones to be analysed are also dictated by the state of preservation and completeness of the skeletal remains. Some of these skeletal age indicators will be commented and the contribution of genetics to this issue will also be approached.The relevance of this subject will be illustrated through the presentation of some practical forensic cases.

SYNOPSIS In this study, we investigate whether individual auditors are associated with the comparability of their clients' financial statements, based on a sample of Chinese companies audited by ten large audit firms. We demonstrate that individual auditors have an incremental effect on comparability, beyond the office-level effect. We also find that the style of individual auditors is stronger when they are affiliated with Big 4 audit firms (compared to non-Big 4 large audit firms) and when they are industry experts. In addition, two possible channels of enhanced comparability are identified: (1) clients' accounting flexibility, which provides opportunities for auditors to exert influences; and (2) individual auditors' characteristics, such as age, position, and academic degree, which affect auditors' abilities to exert influence. Our results are robust to alternative comparability and industry expertise measures, to various sampling methods, and to corrections for potential endogeneity problems. JEL Classifications: M41; M42.

This study aims to examine the effect of financial distress on audit report lag and how the size of CPA Firm moderate the effect between financial distress and audit report lag. This study was held at manufacturing companies listed on the Indonesia Stock Exchange in 2017-2019. The final sample there were 318 observations, with a purposive sampling method. The variable financial distress is measured by the Altman Z Score proxy, which is the best model for measuring the state of financial distress being experienced by the company. The size of CPA Firm is measured by dummy variables, given a value of 1 if it is a Big Four CPA Firm and 0 if it is not a Big Four CPA Firm. This study use multiple linear regression to analyze the data. Based on the results of the analysis found that financial distress has negative and significant effect on audit report lag. It means that the smaller the Z Score of a company (which means the company is experiencing financial distress), the longer the financial statement audit process will be. This negative relationship between financial distress is strengthened by the size of CPA Firm.

PurposeDrawing on theories pertaining to knowledge sharing, ageing at work and human resource practices for ageing workers, this article explores knowledge sharing challenges arising from the interaction between an increasingly ageing workforce and younger employees.Design/methodology/approachContextually, the authors focus on China, where the pace of demographic transformations offers a unique opportunity to investigate knowledge sharing practices in their socio-economic context. Empirically, the authors analyse knowledge sharing behaviours and practices of retail banking professionals in a Chinese big four bank.FindingsThe encouragement of knowledge sharing between younger and older workers should be incorporated into organisations' human resource strategies. The availability of development, maintenance, utilisation and accommodative human resource practices signals to older workers that they are valuable and are worth investing in.Originality/valueThe authors’ contribution to theory and practice is twofold: starting with the identification of perceived knowledge sharing challenges, the authors’ analysis offers important contextually grounded insights into what types of managerial practices are relevant in eliciting successful knowledge sharing within organisations faced with an ageing workforce.

This research was aimed to examine the effect determinant factors of stock return, from the corporate value, corporate performance and growth opportunities. In addition, this research purpose also to find the role of KAP size in moderated relations between the other determinant factors and stock return. This research covers several a family company listed on the Indonesia Stock Exchange (IDX). Role of corporate value proxied by Price Earning Ratio (PER), corporate performance proxied by Return On Asset (ROA), and growth opportunities proxied by Investment Opportunity Set (IOS). KAP size proxied by dummy variabel, score 1 for company that using the big four accountant public and 0 for company that using non the big four accountant public. Stock return proxied by actual return. Variables on this research are be measured by regression analysis and Moderated Regresion Analysis (MRA). Based on the results of the research showed PER, ROA, and IOS had significant effect of the simultaneous on Stock Return. ROA and IOS had significant effect of the parsial on Stock Return. But PER had no significant effect of the parsial on Stock Return. On the results of KAP size able to moderating variable in the relations corporate performance on stock return. But no able to moderating variable in the relations corporate value and growth opportunities on Stock Return

We examine the heterogeneity of experts in a credence goods setting. In our analytical model, clients are uncertain about how much effort experts need to provide to solve their problem, which is either simple or difficult. Experts have varying degrees of expertise. Less qualified experts are equally effective at solving simple problems but less effective at solving difficult ones. We show that clients pay a fee premium to more qualified experts, even for simple problems. This premium increases with the probability that the client has a difficult problem. We empirically test the model predictions in the context of partner industry expertise for the U.S. operations of the Big Four audit firms. We find, consistent with the model, a positive association between partner industry specialization and audit fees, even for simple audits, and a negative association between partner specialization and the client’s probability of restatements only for difficult audits. The industry specialization premium is higher in industries with higher proportions of difficult audits. Consistent with credence good agency issues, the specialization premium for simple audits is mitigated when information asymmetry between client and auditor is lower.

Fashion as a process in which individuals, institution or society interpret underlying social values using available technology to create specific physical or non-physical forms. Globally, the fashion industry is estimated at about $1.2 trillion. A fashion capital is such society with lots of impact on the fashion industry. There are four main global fashion capitals: New York, Paris, Milan and London. New York has the largest retail sales in the United States with more than $15 billion annual sales. Paris arguably remains the fashion capital of the world since it houses the two global largest luxury and fashion groups, kering and Hennessy Louis Vuitton SE. The fashion industry in Milan has about 6000 active enterprises catering for about 37,500 employees. The value chain generated by it accounts for one fifth of the entire Milanese wealth and fashion-related manufacturing accounted for 15% of the whole manufacturing in Milan in 2013. The fashion industry in the UK was worth approximately ￡21 billion in 2012. In Nigeria however, the fashion industry is still in infancy and without proper market structures. Currently, the aggregate of productions and retails is worth about N 2 Trillion. Entrants into the industry are overcoming the lack of structure by creating their own business formation within the corporate context of the Nigerian trade scene. Consequently, there was a 29% increase in the contribution of textile, apparel and footwear production to the GDP in Q1 2014 over Q1 2013. This report concluded the big four fashion capitals which have had longer historical presence and enjoy stable structures for their fashion industries to thrive. The Nigerian fashion industry however is emerging with huge prospects for growth especially in its luxury subsection. Nigeria needs to pay attention to provision of retail structures and includes its fashion industry in government policy legislation for sustained growth and development in her fashion industry.

O relatório de auditoria é o resultado do trabalho do auditor independente, no qual expressa uma opinião sobre as demonstrações contábeis da companhia. Dito isso, o presente estudo teve como objetivo geral: analisar os relatórios de auditoria sobre as demonstrações contábeis das companhias listadas na B3 referentes ao exercício de 2019. Classificou-se o estudo como um levantamento de dados para fins exploratórios e descritivos (survey) na área de conhecimento da Auditoria. O objeto de estudo são os relatórios de auditoria independente sobre as demonstrações contábeis das empresas de capital aberto com ações negociadas na B3 referentes ao exercício de 2019 emitido até março de 2020, cuja totalidade desses relatórios refere-se a 403. Verificou-se que a maioria dos relatórios com opinião não modificada e com opinião com ressalva foram emitidos por firmas Big Four. Por outro lado, as abstenções de opinião foram emitidas, em sua maior parte, por firmas não Big Four. Destaca-se também que 230 das 403 companhias auditadas são dos setores Financeiro, de Consumo Cíclico e de Bens Industriais. Entretanto, apenas os setores de Comunicações, Saúde, Tecnologia da Informação e Outros foram os únicos nos quais não houve a emissão de opinião modificada. As investigações de autoridades públicas, a exclusão do ICMS da base de cálculo do PIS e COFINS e as incertezas relativas à continuidade operacional motivaram uma parcela considerável das ressalvas. Além disso, a recuperação judicial e as incertezas relativas à continuidade operacional foram as bases para abstenção de opinião mais frequentes.Palavras-chave: Relatório de auditoria; Demonstrações contábeis; Companhias abertas; Opinião.

Interaction between various internal and external corporate governance mechanism in reducing earning management must be analyzed deeply. Based on this case, this study aims to analyze the effect of the effective audit committee and the interaction between the audit committee with the qualified external auditor in reducing earning management. Audit committee is measured by forming a score from the number of members formed an audit committee and the number of audit committee’s meetings in one year, while audit quality from external auditor is measured based on the auditor’s industry specialization, auditor’s reputation and audit tenure. The sample of this study was obtained through purposive sampling method so that 93 samples of non-financial company in Indonesia was obtained. A linear-multiple regression analysis was used to test the hypothesis of this study. The result of this study indicate that the audit committee has a negative effect on earning management, the interaction between the audit committee and industry specialist auditor has no effect on earning management, the interaction between the audit committee and Big Four auditor has a negative effect on earning management and the interaction between the audit committee and auditor tenure has no effect on earning management.

Purpose – Within the framework of Resource-Based View (RBV) we evaluated the relationship between corporate culture and superior business performance in a sample of 62 Latin American firms traded on the NYSE.Design/methodology/approach – Data retrieved from 20-F forms and the CRSP database, covering the period 2011-2016, was submitted to multiple linear regression with robust errors and random effects. Findings – Our results revealed that i) the 7 Latin American countries represented in the sample displayed a very similar mix of corporate culture, with a slight predominance of the competitive type, ii) less indebted and larger firms attained higher levels of superior business performance, and iii) auditing by one of the Big Four was associated with better performance in firms with competitive and creative culture. In the multiple regression analysis, creative culture was the best explanatory factor of superior corporate performance. Thus, we conclude that a culture with an emphasis on innovation generates competitive advantage.Originality/value – The organizations should make efforts to understand and manage the dynamics of corporate culture, harnessing their own dominant culture in the quest for superior corporate performance. As posited by RBV, our results show that investment in creative and innovative culture is particularly favorable to the creation of competitive advantage and, consequently, business performance.

Artificial Intelligence (AI) is the human-like intelligence given to systems and demonstrated by machines in doing tasks associated with human intelligence. AI systems can therefore, think like humans, act like humans, think rationally or act rationally. AI systems are not only more powerful and more useful than ordinary computers, but they also solve complex emerging human problems. These systems can be used in areas such as medicine, to conduct guided surgery; transportation, for autonomous vehicle control; face recognition; speech recognition; decision making in agriculture, manufacturing and housing. The present study is a review of the AI technology trend. A search was conducted on literature, technology magazines, and other internet sources. A discussion is presented on how AI systems have been widely applied in the developed world and the extent these systems are being embraced in other countries like China to spar development. Thereafter, this paper discusses the extent to which AI has been applied in the specific areas that relate to the Kenyan Big Four Agenda. The contribution of this paper is a framework that the Kenya Government can adapt in the application AI’s world transforming technologies to achieve its development agenda. We discuss the challenges that hinder full application of the AI technology and present the way forward.

The purpose of this study was to examine the effect of auditor reputation (big four and non-big four) and auditing learning (with audit learning and without audit learning) on the trust of users of financial statements. Testing the influence of the auditor's reputation and learning will show a halo effect on users of financial statements. The research method used was an experiment. Participants were 102 students. Data analysis was performed with the two-way Anova test. The results showed a halo effect so that the auditor's reputation and audit learning affected the users of financial statements.

Risky investments under incomplete information (i.e. about future behaviour, future state of the world) characterize international institution enlargements. In clubs, a logic of lowest common denom...

Revision is an iterative process; it is not something that only happens at the end. This chapter focuses on four major issues that are commonly observed in engineering student writing, along with examples, rationales for why they are problematic, and potential revisions. The issues are ineffective or missing topic sentences, fluffy writing, globalisms, and lack of connection or synthesis between topics or articles. All paragraphs need to have a topic/umbrella sentence that encompasses the scope of the paragraph that follows it. Eliminating fluff means getting rid of excessively wordy alternatives to more direct words. One of the most prevalent examples is the tendency of engineers to overuse the word utilize . The chapter presents some real examples of globalisms in action, along with revisions and comments on the examples. An effective literature review is to show the connections between the articles rather than asking readers to surmise the connection between the articles.

This article focuses on a transformational gender-inclusion project in a large global consulting firm based in Australia. It describes the historical context of what is known as the “big four” and ...

This study begins with the problem of auditor performance on the Big Four Public Accounting Firm and requires an improvement in audit quality due to a decreased audit quality assessment on the Big Four Public Accounting Firm. Problem related to audit quality is also experienced by government internal auditors. This is due to several factors such as the minimum standards set by the Financial and Development Supervisory Agency (FDSA) that have not been met by government internal auditors, auditor staff with accounting education backgrounds are still very few, auditors have not applied the Government Internal Oversight Apparatus (GIOE) code of ethics and so forth. The aims of this study to determine the extent of the audit quality produced by the government's internal auditors at the FDSA of Java island Representatives. Through the theory of behaviorism, this study has four objectives is to find out the implementation of professional accounting ethics, auditor competence, integrity, professional commitment on audit quality. Therefore, this study contributes to FDSA of Java Provinces to carry out the functions and duties of government internal auditor based on the GIOE codes and ethics and standards.

In the context of assessing the impact of IT concern on financial audit missions, the purpose of this paper is to investigate how new Big Data technologies shape the auditor profession, the methods and tools used. Motivation: technology has put its mark on all fields of activity and professionals tend, step by step, to experiment within auditing by testing new technologies; taking into account the hypothesis of large-scale adoption of modern technologies offered by IT, Big Data development and Data Analytics (BDA) represent a highly interesting case, on which the author pleads for debating. The two qualitative and fundamental research methods, together with the critical observation that consisted in manual selections of the online publications of the professional bodies in audit and accounting, the specialized literature and discussions with IT and audit Big Four specialists support the analysis of Big Data impact, completing previous specialized papers, given the fact that the need for (extended) documentation in this regard is further pointed out. The results of this investigation propose Data Analytics, Hadoop, NoSQL as Big Data top technologies applicable on financial audit missions, in order to simplify audit procedures, improve the organizational performance and reduce the level of risk.

This article provides a concise review of the three books, Disruption in the Audit Market: The Future of the Big Four (ISBN: 978–0367–220‐66‐2), Financial Failures & Scandals: From Enron to Carillion (ISBN 978–036‐7,220‐73‐0), by Prof. Krish Bhaskar and Prof. John Flower, together with Mr. Rod Sellers, and The Future of Auditing (ISBN: 978–0367–220‐66‐2) by Prof. David Hay.

PurposeThis paper compares and contrasts graduate accountant skills and employers' expectations in South East Asia (SEA).Design/methodology/approachWe analyse the employers' expectation performance gap (EPG) in three countries – Indonesia, Malaysia and Vietnam – to provide a reflection on current professional accounting development in SEA. The study relies on data derived from multiple sources including job advertisements, CIMA “ready for business” project, Glassdoor website and other secondary data sources.FindingsThe findings indicate that over recent decades, the changing nature of the economy, state, and interest of the business sector (including the “Big Four”) have led to the wider adoption of professional accountancy qualifications. The findings suggest that graduates should be equipped with active learning activities such as project-based and work-integrated training to fill the expectation gaps between local university educators and employers.Research limitations/implicationsDrawing upon a literature review of professional accounting education, we use the results of the documentations and secondary analysis to describe the performance expectation gap of accounting education in SEA.Originality/valueThe study indicates a large discrepancy between the teachings in accounting education and employer requirements in Vietnam, Malaysia and Indonesia and propose different methods to fill this employability gap in South East Asia.

In this study, there are objectives intended to discuss corporate governance disclosures given by the board of commissioners (BOC), independent commissioners (BOC_IND), audit committee (AC), internal audit (IA) and the big four KAP for using fraud in finance. The population in this study is non-bank financial sector companies listed on the Indonesia Stock Exchange from 2016-2018. The sampling technique used purposive sampling of 108 companies. The data analysis method uses logistic regression models by taking into account the feasibility test (goodness of fit test) through the Hosmer and Lameshow tests, testing the model simultaneously using the Omnibus Model Coefficient Test, and testing the hypothesis through the variable values in the equation. The results showed the board of commissioners (BOC) and large KAP four had a positive and significant influence on indications of fraud in financial reporting. Whereas the independent commissioner variable (BOC_IND) has a negative and significant effect on fraud indications. The audit committee (AC) and internal audit (IA) variables have no influence on fraud indications in financial reporting. Keywords : corporate governance, fraud and financial reporting.

PurposeThe study aims at examining whether or not poor macro-economic conditions can lead auditors to change their risk management policies when performing an audit.Design/methodology/approachThe present study is based on a questionnaire distributed to auditors working at the branches of the big four audit firms in Egypt over two rounds under different economic conditions. The responses in each of the two rounds were analyzed to identify any similarities or differences in auditors' behavior when performing analytical procedures under different economic conditions.FindingsAuditors appear to alter their risk management strategies during challenging economic times. The present study results suggest that auditors increase their dependence on non-financial data and information as supporting evidence when assessing audit risk during times of economic difficulties. The findings also show that when the macro-economic trends are declining, audit firms tend to assign the performance of analytical procedures to more experienced audit personnel (i.e. senior auditors, audit managers and partners) with less of this work being done by the audit staff.Research limitations/implicationsThe present study is based on a sample of 40 respondents. It is recommended for future research to use a larger sample size as results may differ for a greater sample. The present research did not consider the effect of auditors' specialization in a certain industry on the audit judgment during an audit engagement. Future research would examine the impact of auditors' industry specialization on audit judgments during periods of unfavorable economic conditions. The present study is based on a survey that aims at capturing auditors' perception. Further research would use other research techniques (e.g. laboratory experiment) to examine the effect of the general economic conditions on auditors' assessment of audit risk.Practical implicationsAuditors need to give sufficient attention to the analyses of non-financial information of their audit clients during the performance of the analytical procedures under unstable economic conditions rather than depending solely on financial information. Moreover, audit firms could use a much richer labor mix for audit teams through increasing their reliance on experienced senior auditors, audit managers and partners during periods of deteriorating macro-economic conditions to mitigate risk and improve audit judgment.Originality/valueThis study adds to the scarce literature in developing countries investigating the influence of external economic factors on the audit process. The present research provides information to practitioners and educators about risk management policies that could be considered in case of performing analytical procedures during an audit conducted under poor economic conditions.

Objective – This study aims to determine the effect of institutional ownership, managerial ownership, board size and debt on the selection of public accounting firms in mining sector companies listed on the Indonesia Stock Exchange (IDX). Design/methodology – This study uses big four and non-big four public accounting firms classification as a proxy of the quality of the firm that will be selected by the company. It utilizes 120 observations during the 2015-2017 period. The analysis technique used is logistic regression. Results – The results showed that the size of the board of commissioners affected the election of qualified public accountant. While institutional ownership, managerial and debt holdings have no effect on the selection of qualified public accounting firms.

PurposeThis paper aims to investigate the impact of International Financial Reporting Standards (IFRS) adoption on audit and non-audit fees in the UK setting. The study investigates whether UK firms adopting IFRS for the first time or reporting under IFRS, in general, are being charged higher audit and non-audit fees and whether this impact is conditional on audit firm size and tenure.Design/methodology/approachUsing empirical data for UK listed firms from 2003-2007, the paper uses a regression model that explains audit and non-audit fees by independent variables measuring auditors’ and auditees’ characteristics including IFRS adoption and reporting. Additional regressions with interaction terms were performed to test the hypothetical conditional impact of auditor size and audit firm tenure on the above-mentioned association.FindingsAudit and non-audit fees increase significantly for companies adopting IFRS for the first time and this increase is persistent during later years. In addition, results suggest that both Big four and non-Big four auditors charge higher audit and non-audit fees to their clients adopting or reporting under IFRS in a similar manner. Furthermore, findings indicate that audit firms increase audit and non-audit fees for old and new clients using IFRS which suggests no low-balling effect is detected.Research limitations/implicationsResults reported in this study provide insights to regulators in jurisdictions similar to the UK regarding the cost of IFRS adoption which includes higher audit and non-audit fees imposed by both Big four and non-Big four audit firms. In addition, this study argues, to some extent, against the notion that auditors may charge lower fees in the early years of the audit engagement to win new audit clients.Originality/valueTo the best of the knowledge, the findings are unique at two levels. First, the paper provides evidence on the cost of using IFRS in the UK jurisdiction which was not explored by previous research. Second, the paper investigates the potential conditional effect of auditor size and audit tenure on the association between IFRS adoption and auditors’ fees.

PurposeThe purpose of this study is to examine whether institutional investors monitoring attenuate (exacerbate) weaker earnings persistence in politically connected firms (PCFs). In addition, it investigates whether earnings persistence do vary according to different types of political connections.Design/methodology/approachThis study employs earnings persistence as measure of earnings quality and ordinary least squares (OLS) model to examine: (1) the moderating effect of institutional investors’ ownership on the association between earnings persistence and PCFs and (2) the association between different types of political connections and earnings persistence.FindingsThis study finds that institutional investors' ownership attenuates weaker earnings quality in PCFs, indicating effective monitoring. However, stronger earnings persistence is associated with PCFs with longer political ties, audited by big four audit firm and with higher CEO power.Originality/valueThis study reveals the lower earnings persistence in PCFs can be attenuated by institutional investors monitoring. However, findings also suggest that earnings persistence in PCFs is affected by duration of political ties, big four audit firm and CEO power. This suggests that PCFs should not be viewed as a homogeneous group of firms.

PurposeThis study aims to explore how commercial and professional management instruments are combined in accounting firms.Design/methodology/approachThe authors conducted a qualitative study based on 30 semi-structured interviews with partners from 30 different accounting firms (sole practitioners to Big Four) in Germany. The study mainly draws from the literature on the management of accounting firms.FindingsThe findings of this study indicate that professional and commercial management instruments structure the use of time by accountants. In these management instruments, professional and commercial goals are interwoven by three mechanisms revealed in this study and named as ambivalence, assimilation and integration. The authors further identify the managerial aspects of professional instruments.Originality/valueThis paper offers three mechanisms that combine commercial and professional goals in the management of accounting firms. The authors thereby contribute to the literature on the management of accounting firms by analysing these mechanisms that enable the pursuit of both goals simultaneously. Further, the authors argue that the minimum organisation, defined by regulators, of accounting firms is an essential infrastructure for the commercialisation of accounting.

This paper explains a brief examination of a milestone in global recent push for environmental protection, the world-renown ‘four’ big pollution diseases of Japan, and their use inside country’s development assistance. This branch of foreign policy was selected because of its exceptional potential to disseminate country’s voice, ideal niche for experience to be heralded, and opportunity to actually prevent similar catastrophes in other countries, thanks to its access to resources and political leverage. Experience is an overtly accepted source of lessons but, as a social phenomenon, it is not static. This essay is an examination of the use of the ‘four’ big pollution diseases experience inside Japanese initiatives on international aid, looking for the changes in understanding such tragic events. Attention is placed on the elements introduced and the nuances of meaning among them. The period reviewed, from the late 80’s to 2005, indicates a positive movement of the official view towards a comprehensive recognition of the history, not without voids and pending challenges.

Starptautiskā mārketinga un biznesa vadība Vadība, administrēšana un nekustamo īpašumu pārvaldība Management of International Marketing and Business Management, Administration and Real Estate Management Maģistra darba “KPMG Baltics SIA darbinieku iegūšanas un noturēšanas stratēģijas izstrāde” mērķis ir, balstoties uz teorētiskajām atziņām par darbinieku iegūšanas un noturēšanas stratēģijām, kā arī empīrisko datu analīzi par KPMG darbiniekiem svarīgiem darba devēja kritērijiem, izstrādāt stratēģiju darbinieku iegūšanai un noturēšanai uzņēmumā KPMG Baltics SIA. Pašlaik darba tirgū ir augsts pieprasījums pēc augsti kvalificēta profesionālā darba spēka, kas nozīmē, ka uzņēmumi cīnās, lai piesaistītu labākos kandidātus, kā arī no otras puses – pieliek lielas pūles savu darbinieku noturēšanā. Līdz ar to organizācijās, jo īpaši tādās, kurās galvenais resurss ir cilvēks, tikpat svarīga kā uzņēmuma kopējās pozīcijas nodrošināšana tirgū ir svarīga arī uzņēmuma kā darba devēja konkurētspējas nodrošināšana, lai veiktu atbilstošu un piemērotu kandidātu piesaisti un iegūšanu, un arī noturētu esošos darbiniekus. Bez tam, KPMG Baltics SIA pastāv vairāk kā 30% darbinieku mainība, kas norāda un nepieciešamību ar augstu prioritāti strādāt uz darbinieku noturēšanu. Pētījums sastāv no trīs nodaļām, kur, izmantojot dažādas metodes, tiek noskaidrota un raksturoti: 1) cilvēkresursu stratēģiskā vadība un darbinieku iegūšanas un noturēšanas metodes un elementi, kā arī darba devēja konkurētspējas veicināšanas faktori, pielietojot monogrāfisko metodi; 2) KPMG Baltics SIA pārstāvētā nozare, cilvēkresursu vadības specifika uzņēmumā un darba devēja konkurētspēja, pielietojot kvalitatīvo un kvantitatīvo kontentanalīzi un dokumentu analīzi; 3) KPMG Baltics SIA kā darba devēja raksturojums, darbinieka vērtības piedāvājuma noteikšana un stratēģijas mērķu un aktivitāšu noteikšana, pielietojot sešas daļēji strukturētas intervijas ar uzņēmumu darbiniekiem, kas nostrādājuši ne vairāk kā sešus mēnešus, un KPMG darbinieku aptauju, kurā piedalījās 108 respondenti, kuri uzņēmumā strādā vairāk par sešiem mēnešiem. Visa informācijas analīze tiek veikta, izmantojot loģiskās analīzes un sintēzes metodi, kā arī tiek pielietota grafiskā metode datu un rezultātu atspoguļošanai. No veiktā pētījuma izriet, ka cilvēkresursu vadība mūsdienās ir uz biznesu vērsta stratēģiska funkcija. Katrai organizācijai ir nepieciešams īstenot individuālu pieeju, lai piesaistītu un noturētu darbiniekus, taču darbinieku noturēšanas kontekstā galvenais priekšnosacījums ir rūpēties par darbinieku labsajūtu organizācijā. Kā galvenie problēmjautājumi, kas ietekmē darbinieku labsajūtu KPMG Baltics SIA, ir darba un dzīves balanss, augsts stresa līmenis un liela darba noslodze, neapmierinātība ar atlīdzību un atzinību, kā arī jaunākos līmeņos – neskaidras attīstības iespējas. Maģistra darba apjoms ir 80 lapaspuses, darbā ievietoti 19 attēli, 6 tabulas, pievienoti 18 pielikumi. Pētījuma izstrādē izmantoti 70 literatūras un informācijas avoti. The aim of the master’s thesis “Employee acquisition and retention strategy development in KPMG Baltics SIA” is to develop a strategy based on theoretical knowledge of employee acquisition and retention strategies as well as empirical data analysis to attract and retain KPMG Baltics SIA employees. There is a high demand in the labour market for a highly skilled workforce, meaning that companies are struggling to attract the best candidates and are making great efforts to retain their employees. Therefore, in organizations, especially those where the main resource is human, just as important as ensuring the company's overall market position, is to ensure the company's competitiveness as an employer in order to attract and retain most suitable candidates and retain existing employees. In addition, KPMG Baltics SIA has a turnover of more than 30%, which indicates the need to focus with high priority on employee retention. The research consists of three main parts, where using different methods, author explain and describe: 1) strategic management of human resources (HR), methods and elements of employee acquisition and retention, and factors promoting the employer's competitiveness using the monographic research method; next 2) the industry represented by KPMG Baltics SIA, the specifics of HR management in the company and KPMG Baltics SIA competitiveness as an employer, applying qualitative and quantitative content analysis and document analysis; finally 3) characterization of KPMG Baltics SIA as an employer, determination of employee value proposition (EVP) and determination of strategy goals and activities conducting six semi-structured interviews with company employees who have worked for no more than 6 months and KPMG employee survey with 108 respondents who have worked in the company for more than 6 months. All information analysis is performed using the method of logical analysis and synthesis, as well as a graphic method to visualize the data and results. The study shows that in nowadays HR management is a strategic, business-oriented function. Each organization needs to implement an individual approach to attracting and retaining employees, but in the context of employee retention, the main prerequisite is to take care of how employees feel in the organization. The main issues affecting the well-being of employees at KPMG Baltics SIA are work-life balance, high levels of stress and workload, dissatisfaction with remuneration and recognition, and, at junior levels, uncertain development opportunities. Master's thesis consist of 80 pages, contains 19 figures, 6 tables, 18 appendixes, and is based on 70 literature and information sources.

Multi-professional service firms must deal with external pressures, such as increasing digitalization and internal tensions arising from differences between professions. Advances in digital technologies affect the content and control of work among professions, reshaping established jurisdictions. Although the importance of digital technologies for professions and their organizations is growing, our understanding of how digitalization affects the content of professional work and jurisdictional arrangements between existing and emerging professions is limited. Drawing on data collected from 25 semi-structured interviews, participant observations, and archival data in a Big Four firm, we explored the changes in content and control of audit work due to digitalization, and how auditors responded to jurisdictional conflicts through boundary work. Findings of the study show digitalization impacts critical activities and jurisdictions of auditors in diagnosis and treatment phases, increasing the effectiveness and value of audit work. Accounting auditors can respond to jurisdictional conflicts through different boundary work types for each act of professional practice. The study advances our understanding of digitalization’s implications on professions by revealing that professions can reduce contestation and increase collaboration through boundary work in the diagnosis and treatment phases. In contrast, professions’ ability to abstract helps them maintain favorable conditions in the inference phase.

In recent years, with the rapid development of artificial intelligence, various industries have gradually introduced artificial intelligence to replace part of the manpower. Since 2016, artificial intelligence technology has been introduced into the financial field. Big Four have successively launched financial robots. More and more basic accounting positions have been replaced by robots. The unemployment rate of accountants without certificate has risen sharply, and the accounting industry is facing new challenges. Traditional financial work is done by artificial intelligence. Compared with manpower, artificial intelligence has a lower cost and more efficient. More and more accountants need to realize the transition from financial accounting to management accounting based on their own advantages. With the rapid development of science and technology, now that the future is coming. Accountants need to improve their comprehensive capabilities to adapt to the new environment in the era of artificial intelligence.

Purpose The purpose of this study is to explore how the commercialization of audit firms relates to the subjective well-being (SWB) of auditors. Drawing on the conservation of resources and social identity theories, the authors argue that the commercialization of audit firms enhances auditors’ subjective well-being in its overall happiness and job-related dimensions through two theoretical mechanisms. First, it constitutes a valuable resource for an auditor, and second, it reinforces the auditor’s identification with a firm. The authors subsequently contend that this relation is contingent on whether auditors are used in Big four or non-Big four audit firms. Design/methodology/approach The authors test our hypotheses-based data obtained from a survey of 166 Swedish auditors. The data are explored by means of descriptive statistics, correlation matrixes and linear moderating multiple regression analyzes. Findings The authors show that commercial orientation can have a positive effect on auditors’ SWB. The authors also find that the positive relationship between commercialization and SWB is stronger for auditors employed by one of the Big four firms. Originality/value The results contribute to the ongoing debate about the normalization of commercialization within the audit profession by theorizing on and providing empirical support for the positive consequences of commercialization.

Objetivo: Investigar se existe relação entre as características do Comitê de Auditoria (tamanho; expertise; independência; participação feminina) constituído com as características da Auditoria Independente: (Audit Report Lag; Big Four; quantidade de principais assuntos de auditoria; opinião da auditoria no relatório), sendo essa análise realizada com as características de forma agregada e isolada. Metodologia: A pesquisa foi realizada inicialmente com 294 entidades, e posteriormente, reduzida a 64 empresas que efetivamente tinham Comitê de Auditoria constituído. Foram estimados quatro clusters para cada grupo de variáveis (auditoria independente e comitê de auditoria) e depois os grupos foram relacionados de forma agregada utilizando a técnica ANACOR, para analisar a relação entre as características apresentadas. Também foi aplicado teste Qui-quadrado a todas as empresas para analisar se existe relação entre o Comitê de Auditoria constituído com as características do relatório de auditoria de forma isolada. Resultados: Por meio da ANACOR foi verificada apenas uma relação aproximada entre os clusters AUD1 e COM1, sugerindo que as empresas auditadas por Big4 e com maior tempo de entrega do relatório de auditoria, têm Comitês de Auditoria cujos membros possuem expertise, porém há baixa participação feminina. Foi constatada ainda na análise isolada, significância para as variáveis PAA, BIG4 e AUDL, evidenciando que existe relação com a presença do Comitê de Auditoria na entidade. Contribuições do Estudo: Apenas as análises de forma isolada puderam evidenciar relação entre características da Auditoria Independente com a existência do Comitê de Auditoria, tais como a divulgação dos principais assuntos de auditoria no relatório do auditor independente, o fato da firma ser uma Big Four e o Audit Report Lag. Tal resultado possibilita que as pesquisas futuras possam fundamentar a utilização dessas variáveis, incluindo a divulgação dos PAA que ainda carece de estudos que os relacione com o Comitê de Auditoria.