Dysfunctional behavior (DB) and staff turnover are associated with decreased audit quality (Public Oversight Board 2000). Dysfunctional behaviors such as premature sign-off, gathering of insufficient evidence, altering or replacing audit procedures, and underreporting of time have negative effects on the auditing profession. While recent studies suggest that dysfunctional behavior is a widespread problem (Smith 1995; Otley and Pierce 1995), extant research fails to adequately explain the causes. In this study, the organizational behavior and industrial psychology literatures provide the basis for developing and testing a model that identifies locus of control, performance, and turnover intentions as determinants of auditor acceptance of DB. Using a cross-organizational design and a structural equation modeling technique, survey results from 106 auditors generally support the explanatory model. Results indicate that auditors who are more accepting of DB tend to possess an external locus of control, report lower levels of self-rated performance, and exhibit higher turnover intentions. These results suggest that individual auditor characteristics play a role in identifying those who are more accepting of DB.

SummaryLee and Mitchell (1994) proposed a decision process-based voluntary turnover model, which identifies the psychological processes involved in the decision to quit a job. The current study tests and extends the Lee and Mitchell's (1994) unfolding model of voluntary turnover using a sample of voluntary 'quitters' and 'stayers'. Survey and interview results from 84 practicing accountants suggest that the Lee and Mitchell's (1994) model does an excellent job of capturing employee decision process-data in an accounting environment. Additional extension hypotheses pertaining to economic consequences and gender differences are also proposed and subsequently supported.

<div class="page" title="Page 1"><div class="layoutArea"><div class="column"><p><span>Dysfunctional audit behavior (DAB) is associated with decreased audit quality (Public Oversight Board 2000). While recent studies suggest that dysfunctional audit behavior is a widespread problem (Smith 1995; Otley and Pierce 1995), extant research fails to adequately explain the causes or determinants of this form of deviant behavior. This study develops and tests a theoretical model that identifies locus of control, position, and organizational commitment as antecedents of attitudes toward DAB. Using a cross-organizational design and a path analysis technique, survey results from 113 auditors support the theoretical model. </span></p></div></div></div>

Most fundamental analysis studies have focused on fundamentals selected by a data-driven approach on large samples of firms from numerous industries. This paper reports the results of a fundamental analysis of a single industry, the US oil and gas exploration and production industry, using variables identified by industry financial analysts. The results demonstrate a significant relationship between a number of the fundamentals with both the market value of equity and cumulative stock return. The results also suggest that the fundamentals provide incremental information beyond earnings, change in earnings, and book value of equity when explaining equity values and stock returns. Copyright Blackwell Publishers Ltd 2000.

This article presents the most recent results of an ongoing, longitudinal study of characteristics of accounting students conducted by the Federation of Schools of Accountancy (FSA). Surveys were administered to seniors and Mastera^€™s students at FSA member schools in the United States in 1995 and again in 2000. Data regarding student characteristics in 1995 and 2000 are presented. Specifically, the study contains evidence pertaining to student quality, future educational plans, career plans, plans for professional certification, extracurricular involvement, attitude toward the 150-hour requirement, and various demographic dimensions. The results of the survey do not coincide with those of other studies that have reported a decline in the quality of accounting students. On the contrary, our findings suggest that the quality of accounting students is not decreasing. Further research is necessary to more fully understand these contradictory findings and the direction and magnitude of any changes in student quality. Other findings of this study include a reversal in the gender mix of graduate students, with females now comprising the majority. More graduate students are pursuing their studies full-time. The average age of students is declining. More accounting students are interested in taking the Certified Public Accountant (CPA) exam and pursuing careers in public accounting, while interest in the Certified Management Accountant (CMA) exam and in pursuing careers in industry are declining. Both seniors and Master's students indicate a very high level of support for five or more years of college education for the CPA. Student involvement in internship programs has nearly doubled since 1995, while involvement in extracurricular organizations has dropped. These results are relevant to many currently debated topics in accounting education—including the effects of the implementation of the 150-hour rule in many states.