A Field Study on Small Accounting Firm Membership in Associations and Networks: Implications for Audit Quality

Bills, Kenneth L.; Hayne, Christie; Stein, Sarah E.

doi:10.2308/accr-52003

Cited by 62 publications

(37 citation statements)

References 53 publications

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“…Given the fact that auditors perceive it as aggressive, this will ultimately cause greater proposed adjustment on an unrelated audit difference (Commerford et al 2018). The empirical study conducted by Bills et al (2018) indicated that small firms use accounting associations and networks resources as expertise, documenting that such demarche is critical to their audit quality. Also, the positive impact of social bonds on audits of complex estimates was documented by Kachelmeier and Van Landuyt (2017).…”

Section: Discussionmentioning

confidence: 99%

See 1 more Smart Citation

Auditing Research: A Review of Recent Research Advances

Cuzdriorean¹

2018

EJEF

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We survey recent auditing research published in top 5 leading accounting journals over the last two years (2017-2018). We use the recent findings as a roadmap aiming to offer useful suggestions for future research. Finally, we urge more research on topics related to: implications of social challenges facing audits of complex estimates, implications of contrast effect for audit quality, assessing the effects of conservative bias in audit work, examining the factors affecting accounting firms` competencies.

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Section: Discussionmentioning

confidence: 99%

“…Gerakos and Syverson, 2017) and three studies the interview (e.g. Cohen et al (2017); Bills et al (2018); Johed and Catasus (2018). Our discussion highlights that excepting the mathematical / statistical research method and experiment, other research methods are clearly underused.…”

Section: Table 1 Descriptive Data On Journal Articles On Auditing Rementioning

confidence: 93%

Auditing Research: A Review of Recent Research Advances

Cuzdriorean¹

2018

EJEF

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“…Audit pricing is a common concern of the company's internal financial and auditing industries, which is affected by various company characteristics such as company size and property rights. Customers will also set their own audit pricing according to their business development and operation, so there is a pricing game between the psychological price of customers and the audit pricing of accounting firms (Bills et al, 2018). The tripartite game participation methods, including the regulators such as the China Securities Regulatory Commission and the China Investment Association, are shown in Figure 1.…”

Section: Impact Of Customer Psychological Price On Audit Pricing In Smentioning

confidence: 99%

The Impact of Customer Psychological Price on Audit Pricing in the Start-Up Company Market

Ding¹

2020

Front. Psychol.

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Start-up companies are confronted with various risks and many uncertainties, and professional auditing can fully analyze start-up companies. In this way, both parties may maximize their interests through auditing the market activities. Based on the characteristics of start-up companies, this study explores the impact of customer psychological prices on audit pricing. The impact of customer psychological prices on audit pricing decisions was systematically analyzed from various angles, thereby determining whether it will affect the development of the product market. The results show that product market dominance reduces the agency costs between the owner and manager of the customer company. In other words, if the customers have greater control over the product market, they will have a lower business risk, and the auditor risk will be reduced accordingly, hence a lower audit fee. In the start-up company market, even if the financing dilemma restricts the survival and development of the company, customers still have psychological expectations for audit pricing. When their psychological price of products is different from the market price of products, it may affect the market advantage of products with lower audit fees, and further expands the previous research. In the market, customers also have certain psychological expectations for "auditing" products. Therefore, strengthening the relationship between auditors' pricing and customers' psychological prices has a positive effect on enhancing the competitiveness of product markets, which also increases the operating efficiency of start-up companies.

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“…This study also examines the extent to which human capital development strategies are influenced by membership to an accounting association or network (AAN) where one of the perceived benefits cited among US small firms was access to joint conferences and technical training (Bills, Cunningham, & Myers, 2015). Studies have shown that membership to AAN lead to higher audit quality, and hence audit fee revenue (Bills, Walton, Hayne, & Stein, 2018;Mao, Qi, & Xu, 2017 The measure of the level of competitiveness of the SMPs based on total clients billed per annum is calculated using a maximum of 90 clients for each of the three business lines of audit/assurance, tax and consulting. This corresponds to 270 clients per annum.…”

Section: Variables Descriptionmentioning

confidence: 99%

The Influence of Human Capital Development Strategies on Competitiveness of Small and Medium-Sized Practices in Uganda

2018

EJBM

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Small and medium-sized practices (SMPs) in Uganda play an important role in providing professional services to Ugandan organizations, especially the Small and medium-sized entities (SMEs). The increasing number of SMPs in Uganda means that each firm must devise means of outcompeting the others. This study aimed to ascertain how human capital development strategies may be influential in the competitiveness of SMPs in Uganda. Human capital development strategies are schemes or programmes by which SMPs train their partners and professional staff to offer effective and top-quality work and promote the trust and confidence of their clients. There is also an ethical requirement to undertake work with due care and diligence. Methodology: The SMPs in Uganda were selected randomly to respond to a structured questionnaire. A total of 124 responses were used for data analysis representing almost 90% of the sample size. Results: Confirmatory factor analysis was used to determine how human capital development strategies influence the competitiveness of SMPs in Uganda. There was evidence that human capital development strategies significantly influence the competitiveness of SMPs in Uganda. Whereas there were only 18 out of 124 SMPs in Uganda that are part of an Accounting Association or Network, evidence showed that there was a significant difference between the two groups in terms of the composite human capital development index and development spend. However, there was no significant difference in terms of development days allocated to assistants, supervisors or partners. Over 60% of the SMPs in Uganda spent less than USD 2000 per annum on human capital development programmes. The SMPs in Uganda were put into five groups depending on their level of spend. Evidence showed there was significant difference between SMPs that spent less than USD 1000 per annum and those that spent over USD 3000 per annum, with the latter showing higher levels of competitiveness. Significance of study: This study will supplement the worldwide SMP surveys conducted by the International Federation of Accountants, the latest of which was conducted in 2018. In particular, the study reveals a need for SMPs in Uganda to invest more days (at least 20 per professional staff) and money on human capital development programmes. In addition, the argument for an outputs-based continuing professional development regime is supported. Whilst SMPs have invested time/money (inputs-based approach) on continuing professional development, it has not yet translated into higher levels of competitiveness with 96% of SMPs in Uganda earning less USD 1million in annual fee revenue.

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A Field Study on Small Accounting Firm Membership in Associations and Networks: Implications for Audit Quality

Cited by 62 publications

References 53 publications

Auditing Research: A Review of Recent Research Advances

Auditing Research: A Review of Recent Research Advances

The Impact of Customer Psychological Price on Audit Pricing in the Start-Up Company Market

The Influence of Human Capital Development Strategies on Competitiveness of Small and Medium-Sized Practices in Uganda

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