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Recent data breaches underscore the importance of organizational cybersecurity. However, the high costs of such security can force chief financial officers (CFOs) to make difficult financial and ethical trade-offs that have both business and societal implications. We employ a 2 × 2 randomized experiment that varies both an observed scenario CFO’s investment decision (invest/not invest in security) and organizational outcomes (positive/negative) to investigate these trade-offs. Participant managers assess the observed CFO’s investment behavior and indicate their own intentions to invest. Results indicate that when the observed scenario CFO invests in security, managers primarily follow their peers when making investment decisions. However, when the observed CFO does not invest in security, managers make their own decisions by engaging in more in-depth reasoning that includes assessment of the seriousness of consequences, as well as the ethical and societal considerations. Moderated mediation findings further deconstruct and corroborate these relationships.

Introduction Functional endoscopic sinus surgery (FESS) is one of the common surgical procedures requiring hypotensive anesthesia; many agents have been tried to reduce the amount of blood loss. This study aims at comparing the efficacy of two agents for providing deliberate hypotension. Objectives The aim of this study was to evaluate the efficacy of esmolol and of dexmedetomidine and compare which one of the two is a better agent to produce induced hypotension during FESS. Materials and methods This was a comparative study conducted in a tertiary care hospital in Odisha, India. There were two study groups with 30 participants each who were given either esmolol or dexmedetomidine (group E and group DEX, respectively). Results Esmolol is an anti-hypertensive agent with better hemodynamic stability. The amount of drug and dose requirement was low in group DEX. The emergence time, sedation score, and time to first analgesic request were found to be highly statistically significant in group DEX. Conclusion Dexmedetomidine was found to be a better agent at controlling intra-operative blood pressure than esmolol and had beneficial effects on recovery from anesthesia and analgesia.

Despite the importance of registration with the PCAOB, there is surprisingly little academic research on the registration process and its impact on audit outcomes (Abernathy, Barnes and Stefaniak 2013). The PCAOB allows registration of audit firms from non-US countries. However, China and a few other countries do not allow the PCAOB to conduct inspections of audit firms. We take advantage of this natural setting to investigate whether PCAOB-registered audit firms improve audit quality in the absence of inspections. We also examine whether PCAOB-registered audit firms charge an audit fee premium. We find that both audit quality and audit fees increase following PCAOB registration. Overall, our findings suggest that PCAOB registration has a positive impact on the quality of audits in China and that clients are willing to pay higher audit fees for audits by PCAOB-registered firms.

Data breaches experienced by companies such as TJX, Equifax, and Target underscore the importance of accounting information system (AIS) security protection. However, the cost of necessary security may be prohibitive, forcing CFOs to make difficult financial and moral tradeoffs. Our 2x2 randomized experiment varies both the scenario CFO’s investment decision (invest/not) and organizational outcomes (positive/negative). Participant managers judge the scenario CFO’s behavior and make intentions to invest in security themselves. Our findings indicate that perceptions about peers and society drive participant investments in AIS. We also find that as organizational outcomes move from unfavorable to favorable, participants are more forgiving of scenario CFO noninvestment gambling, display weakened moral reasoning, and conveniently alter their investment decisions in lockstep with altered perceptions about how peers and society would behave. In contrast, independent thinkers display strengthened moral reasoning and consistent investment in security patterns irrespective of outcomes.

Purpose– The purpose of this study is to develop a research agenda on internal controls for offshored accounting processes. It further develops a linkage between internal controls of offshored accounting processes and auditing of the organization. Offshoring of accounting processes has become a common business practice, pursued by firms to reduce costs and focus on core competencies. However, our understanding about internal controls of these offshored processes is limited.Design/methodology/approach– Grounded in theory that is supported by prior literature and interviews with practitioners, this paper attempts to develop a research agenda on internal controls for offshored accounting processes.Findings– The main findings of our study suggest that while offshoring saves costs and allows the clients to focus on their core competencies, it also poses risks to the clients’ organizations. To mitigate these risks and comply with the regulatory requirements of the countries where the clients are located, clients and their offshore vendors need to effectively establish adequate internal controls for offshored business processes. Clients should seek those vendors who have appropriate processes in place and are willing to provide Service Organization Control (SOC) reports (or at least are capable of getting a SOC report in the near future). Moreover, clients should avoid offshoring the processes that would exist in defective internal control systems. Similarly, vendors should avoid undertaking those processes for which they are incapable of maintaining efficient internal controls.Practical implications– Our study has implications for academicians as well as practitioners on understanding the determinants and consequences of internal control for offshored processes.Originality/value– While internal controls for offshored accounting process and related regulatory changes have been increasingly important topics, little research has been devoted to explore their implications on accounting and auditing literature. We attempt to bridge this gap by synthesizing prior research on internal controls and auditing, and further developing a set of research questions for academic research. Our hope is to spur a new area of research that has not been explored before.

Some researchers view information systems (IS) offshoring as extension of onshore IS outsourcing. However, others have the opinion that IS offshoring has its unique characteristics because of which, we cannot extend research made in onshore IS outsourcing without testing its applicability to the offshore context. This tension motivates our research to examine whether determinants of IS offshoring are indeed the same as determinants of onshore IS outsourcing? We examine the role of some firm level determinants of offshoring intensity. The four business related determinants that we analyze in this study are: business size, business cost, business financial leverage, and business performance. Results indicate a significant relationship between business size and offshoring intensity, and also between business financial leverage and offshoring intensity. Based on the results, we analyze similarities and differences between traditional onshore IS outsourcing and IS offshoring. Implications and contributions arising out of this study are also discussed.

Some researchers focusing on information systems (IS) offshoring argue that results from previous studies on onshore IS outsourcing can be extended and applied to IS offshoring. However, others have the opinion that IS offshoring has its unique characteristics because of which, research made in onshore IS outsourcing cannot be extended without testing its applicability to the offshore context. This tension motivates the current research to examine whether determinants of IS offshoring are indeed the same as determinants of onshore IS outsourcing? If not, what are the implications? This chapter examines the role of business related firm level variables in determining the offshoring intensity of firms. The four business related variables that are analyzed in this study are: business size, business cost, business financial leverage, and business performance. The results indicate a significant relationship between business size and offshoring intensity, and also between business financial leverage and offshoring intensity. Based on the results, we analyze similarities and differences between traditional onshore IS outsourcing and IS offshoring. Implications and contributions arising out of this study are also discussed.

Safeguarding reputation is one major incentive for large auditors to maintain high audit quality. We investigate the phenomenon of reputation by studying the impact of an audit failure on the reputation of a large audit firm in India. Specifically, we analyse the events surrounding the high profile audit failure of Satyam Computer Services and its resultant impact on the audit practice of PricewaterhouseCoopers (PwC) and its affiliates in India. The results of our analysis indicate that following the audit failure there was a high propensity for clients of PwC firms to switch to other firms. We interpret this behaviour as indicative of a loss of reputation for PwC due to the Satyam audit failure.

Auditing firms can potentially increase their organisational memory and enhance learning from computerised aids. One potential application of computerised aids in auditing firms is training for strategic systems auditing (SSA) or business risk auditing, which is increasingly popular in these firms. Even the American Institute of Certified Public Accountants, (AICPA) has endorsed the use of SSA for evaluating audit evidence (AICPA, 2002; Power, 2007). Better SSA expertise among auditors might help to avoid the problems that have been observed with this method. We suggest that different training mechanisms be implemented when training novice and experienced auditors.