The dynamics of a regulatory space realignment: Strategic responses in a local context

Canning, Mary; O’Dwyer, Brendan

doi:10.1016/j.aos.2013.01.002

Cited by 93 publications

(162 citation statements)

References 53 publications

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“…The ultimate ally in a reporting standard's bid for dominance is a regulator which has the power to require its application (Chua and Taylor 2008, Zeff 2012, Guilloux et al 2013. Private transnational standard setters rely on national regulators for acceptance, and in many cases, implementation (Canning and O'Dwyer 2013). ,IR.…”

Section: Theorising the Development Of The Frameworkmentioning

confidence: 99%

The emergence of <IR>

Rowbottom

Locke

2015

Accounting and Business Research

151

117

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The emergence of ,IR. as developed by the International Integrated Reporting Council (IIRC) is traced from antecedent concepts of 'integrated reporting' and earlier voluntary corporate reporting initiatives. The paper uses actor network theory and its conceptions of detour, affordance and laboratory to examine the development of ,IR. while still controversial and where meanings remained open and malleable to the inscription of interests from a wide coalition of actors. The programme of action is interpreted through interviews with key individuals, official documents, publications and integrated reports circulated by the IIRC. The analysis highlights the imperatives of private standard setters and indicates how integrated reporting corporate governance regulation in South Africa provided a laboratory prototype for reshaping the UK 'Connected Reporting' initiative into the IIRC ,IR. framework. The analysis reveals important detours and the associated affordances made during the development of ,IR.: (a) the repositioning of ,IR. in the corporate reporting infrastructure to ensure that it did not usurp the pre-existing frameworks of supporting actors; and (b) the specification of providers of financial capital as the intended reporting audience to ensure that it could meet the interests of those actors seeking a solution for more entity-specific, communicative, 'de-cluttered' corporate reporting.

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Section: Theorising the Development Of The Frameworkmentioning

confidence: 99%

The emergence of <IR>

Rowbottom

Locke

2015

Accounting and Business Research

151

117

View full text Add to dashboard Cite

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“…Audit regulation outside the United States Much of prior research on audit regulation outside the United States has interpreted regulation and regulatory compliance through the lens of institutional-based theories of power and professionalism in which regulation is a complex and dynamic process between accounting firms and regulators (e.g., Cooper and Robson 2006;Suddaby et al 2007;Malsch and Gendron 2011). As this dynamic process unfolds during the creation of independent regulation, regulatory oversight and compliance can take various forms, depending on contextual factors in the jurisdiction (Canning and O'Dwyer 2013;Hazgui and Gendron 2015). For instance, both Malsch and Gendron (2011) and Hazgui and Gendron (2015) provide evidence from the audit industry in Canada and France, respectively, that resistance to new regulation can reduce the "independence" of external oversight by creating a state of "co-regulation," in which members of the profession influence the design and execution of the oversight process.…”

Section: Audit Regulation In the United Statesmentioning

confidence: 99%

U.S. Auditors' Perceptions of the PCAOB Inspection Process: A Behavioral Examination

Johnson

Keune

Winchel

2019

Contemporary Accting Res

111

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This study examines U.S. auditors' observations of the PCAOB inspection process, and its impact on their work, in order to understand the current U.S. regulatory audit climate. Using 20 interviews with experienced auditors, we consider behavioral factors (e.g., perceived power of and trust in the PCAOB) that can impact the level and form of auditor compliance according to theory from the slippery slope framework on audit regulation (Kirchler et al. 2008; Dowling et al. 2018). Our participants described an audit climate with a powerful regulator. They reported that their desire to receive “clean” inspection reports has had a substantial impact on audit procedures and quality control. However, our participants do not appear to have high trust in the PCAOB, as they questioned aspects of the inspection process and its expectations. Accordingly, we conclude that U.S. public company auditors operate in an antagonistic environment in which auditors perceive the PCAOB has high coercive power. In other words, they comply due to fear of enforcement rather than agreement with the PCAOB's views on audit quality. Some auditors also indicated that they consider both the costs and benefits of compliance. Theoretical intuition implies that any future increases to perceived costs relative to perceived benefits of compliance could ultimately decrease the PCAOB's coercive power and reduce U.S. auditor compliance. Our findings have implications for regulators and researchers interested in understanding behavioral factors that may influence regulatory compliance.

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“…Whereas Malsch and Gendron (2011) conclude that, in the Canadian setting, the large global accounting firms wield increasing power over regulatory bodies, Canning and O'Dwyer (2013) conclude, in the Irish setting, that national regulators retain significant influence over regulatory outcomes.…”

Section: Auditing Standards and Enforcementmentioning

confidence: 99%

Auditor–Client Interactions in the ChangedUKRegulatory Environment – A Revised Grounded Theory Model

2014

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Audit and financial reporting quality are under intense scrutiny nationally and globally. The outcome of high-level auditor-auditee discussion and negotiation issues (auditorclient interactions) is central to this debate. Beattie et al. (2001) developed a grounded theory model of these interactions in the 1997 UK setting. This paper reports on a field study of 45 interactions in nine case companies in the radically changed post-SOX regulatory environment. Crucially, interviewees in each case company extend the chief financial officer -audit partner dyad to include the audit committee chair. Fundamental revisions to the model emerge. The strongest influence on interactions has become the national enforcement regime, overlaid upon the international standard-setting regime. The outcome in both the eyes of the participants and in our evaluation is full compliance (contrary to the findings from the 1997 setting), regardless of the perceived quality of the standards and the integrity of the outcome. Personal and company characteristics, which were of most importance in 1997, have become peripheral. The audit committee chair is shown to fulfil a gatekeeping role in relation to the full audit committee.

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The dynamics of a regulatory space realignment: Strategic responses in a local context

Cited by 93 publications

References 53 publications

The emergence of <IR>

The emergence of <IR>

U.S. Auditors' Perceptions of the PCAOB Inspection Process: A Behavioral Examination

Auditor–Client Interactions in the ChangedUKRegulatory Environment – A Revised Grounded Theory Model

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