Audit committee members play a pivotal role in the audit process, specifically, when negotiating disputes between management and the external auditor concerning audit adjustments. According to Auditing Standard 16 (formerly AU Section 380.34-.44), the external auditors are required to discuss, with the audit committee, all significant findings resulting from the completion of the audit including: (i) qualitative aspects of estimates; (ii) uncorrected misstatements; and (iii) disagreements with management (PCAOB 2015). Prior literature suggests an audit committee’s propensity to support the external auditor when dealing with the issues described above (Knapp 1987; DeZoort and Salterio 2001; DeZoort et al. 2003b; DeZoort et al. 2003a). However, these studies do not address how behavioral factors such as a relationship between the external auditors and audit committee members can affect a member’s stance on a proposed audit adjustment. The purpose of this study is to investigate the effect that the relationship between audit committee members and external auditors has on a member’s recommendation for proposed audit adjustments during a management dispute with the external auditor (i.e., whether they side with the external auditors or management). Specifically, this experiment examines the effects of relationships and the mediating effect of external auditor tenure on an audit committee member's judgments through the application of several social cognitive theories: (i) attachment theory; (ii) social judgment theory; (iii) and internal working models. Results indicate that external auditor/audit committee member relationships and auditor tenure significantly influence an audit committee member’s decision making when faced with an auditor/management dispute. Also, auditor tenure (long) does not negatively affect audit quality.

This research is motivated by the interest in understanding the usage of the Generalised Audit Software (GAS) by external auditors within public accounting firms. GAS is a tool used by auditors to automate various audit tasks. It helps auditors to analyse accounting data electronically where it is quite impossible to do so manually. GAS is claimed to be the most influential Computer Assisted Audit Tools and Technique (CAATTs) that can facilitate the audit objective. However, research has found that there is little evidence that auditors have extensively adopted GAS. Even greater benefits have been promoted since the existence of GAS, but auditors do not really seem to be interested in this tool. Most previous studies have focused on either internal auditors, large accounting firms, other countries or merely adopters of GAS. However, there is little evidence that the study of GAS has been conducted on external auditors, especially in small and medium sized accounting firms in the United Kingdom (UK). This study helps to fill this gap by exploring the use of GAS among them, and covers both adopters and non-adopters of GAS. Through an online survey using both close and open-ended questions, this issue has been investigated among registered statutory auditors. The primary aim of this study is to explore the current usage of GAS and to understand the factors that influence the use of GAS as well as the perceptions and expectations of using GAS. The views are gathered from both auditors who are already implementing GAS and those who are not using GAS. A framework was developed to identify a range of relevant factors which are important when considering the application of GAS. Responses from 205 statutory auditors across the UK were then mapped against the framework. Of the 14 variables used to test the factors that influence the use of GAS, only six of them are found to be significant from logistic regression analysis. These are firm size, experience of auditors in computerised auditing, organisational influence, client factor, audit engagement allocation and perceived usefulness. The findings show that the utilisations of GAS is unusually low among audit firms in the UK. Almost 73% of external auditors make no use of GAS, due to the limited perceived benefit of using GAS for auditing small clients. While some respondents recognised the advantages of GAS, they were put off by what they believed to be high implementation costs; the significant learning curve and adoption process; and lack of ease of use. Some auditors expressed their awareness of GAS, but most of them showed a preference for using traditional auditing methods instead. A few problems have also been identified in causing the limitation of GAS usage. This study contributes to the literature on suggestions to improve the use of GAS that can be used by small and medium sized public accounting firm, which is lacking in existing research related to this group. In sum, this study has deepened current understanding of the GAS usage among small and medium sized audit firms in the UK, and has provided useful insights for audit professionals, software developers, vendors, standards setters, academicians and researchers. This study has also opened up the possibilities for further study on GAS or related areas either in the UK or other places in the world.

Following the collapse of Arthur Andersen in the Enron debacle, whistle-blowing within audit firms has taken on greater importance. Given the profession's requirements to be confidential, independent and to act in the public's interest, there is a need for a model that addresses auditors' whistle-blowing intentions. This thesis presents a conceptual model on whistle-blowing intentions among external auditors, where individual-led antecedents influence whistle-blowing intentions, but are moderated by isomorphic and issue-specific factors. Survey questionnaires were administered to 226 external auditors, and 18 individual interviews as well as 2 focus groups were conducted in Barbados. Results indicated that individual antecedents (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting, and personal cost of reporting) were significantly related to internal whistle-blowing, but only perceived behavioural control was significantly related to external whistle-blowing. Partial support was found for the moderating effects of perceived organizational support, moral intensity, team norms and group cohesion on the relationships between the majority of the independent variables (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting) and internal whistle-blowing. However, partial support was found for the moderating effects of perceived organizational support, moral intensity, team norms iii and group cohesion on the relationships between fewer independent variables and external whistle-blowing. Overall, respondents preferred anonymous internal channels of reporting, and showed a general reluctance to report externally. The presence of an open-door policy, ethics partners, hotline, on-going training and clearly defined policies could encourage whistle-blowing. Further implications for research and practice are discussed.

businesses,butfortextilecompaniesinparticular.ManyarethecompaniestoadaptanowndefinitionofCSRandassumeresponsibilityforhumanrightviaCodesofConduct.Theproblem,ontheotherhand,ariseswhenthesetextilecompanieslackknowledgeandroutineregardingrealizationoftheirpurposesonimprovementworkonfactorylevel.ThesolutionforseveralSwedishtextilecompaniesisequaltooutsourcingtheimplementationofCSRaccordingtotheirCodeofConducttoexternalauditors.However,whencontractinganintermediary,questionscanbeaskedregardingifthecompany’sattitudeanddefinitionofCSRstillwillbereflectedontothefactoryhandornot.Further,sparseresearchofexternalauditorsexistsbutdespiteofthisexternalauditorshavebeenpointedoutasineffective.ThepurposewiththisstudyistomapoutattitudesandmotivesforCSRactivities,withtheaimtocreateanunderstandingamongthreeactorsinasupplychain–theCompany,theAuditorandtheFactory.ThisapproachprovidesaholisticperspectivetointerprethowaSwedishSMEcantakeadvantageofanexternalauditorwhenimplementingitsCodeofConductalignedwithitssupplychaininaqualitymethod,basedoninterviewsandobservations.Theempiricalresultistobeanalysedthroughanexploratorystrategytodeliverthecontributedconclusion.ThecontributionofthisstudyisthusthatSwedishSMEslackknowledgeandexperiencewhenimplementingaCodeofConductwithinthesupplychain.ItisholdthatSwedishSMEscouldtakeadvantageofexternalauditorstoeludetheabovementionedproblem,sincesupportforexternalauditorsasnotineffectivehavebeenfound.ToformulateaCodeofConducttogetherwithitssupplierisfortheSMEadvisable,duetotheprospectsofinvolvingtheactordirectlyaffectedoftheCodeofConductintotheconstructionofit.Bythewayofconclusionindicatorsindicatingthatintheend,CSRisallaboutmoney,consideredfromallactors’perspective.CSRärenständigtaktuelltillikaväxandefrågaförföretagiallmänhetmenkanskeförtextilaföretagisynnerhet.MångaföretagskaparsinegendefinitionavCSRochsocialtansvarstagandeochämnarförverkligadessagenomenCodeofConduct.Problematikkanåandrasidanuppstådåföretagetifrågasaknarkunskapomochrutinerkringimplementeringavförverkligandetavsinaförbättrandeavsikterpåfabrik.LösningenförflerasvenskatextilföretagärsynonymmedattoutsourcaimplementeringenavCSRienighetmedsinCodeofConducttillenexternauditör.DockuppstårfrågorkringföretagetsattitydtillochdefinitionavCSRkommerattavspeglashosfabriksarbetarenomförmedlandetavdenskerviaentredjepart.Tilläggaskanattdetännufinnsrelativtsparsamforskningomjustexternaauditörerochdessinverkaniförsörjningskedjanmenattdenforskningsomfaktisktfinnspekarutexternaauditörersomineffektiva.SyftetmeddennauppsatsärattkartläggaattityderochmotivrörandeCSRförattskapaenförståelsemellanolikaparterienförsörjningskedjaochpåsåsätttolka,utifrånetthelhetsperspektiv,hurensvenskSMEkananvändasigavenexternauditörförattimplementeraenCodeofConductiförsörjningskedjan.Uppsatsenharfokuseratpåatthittaförståelseienstudiegjordifältmedutvaldapartersomidagslägetärintressantaattundersöka.Studienhargjortsutifrånenfallstudiemedtreaktörer,därenkvalitativmetodtillämpatsförattintervjuaochobserveraordochhandling.Empirinharanalyseratsutefterenutforskandestrategiförattnådeslutsatsersomvihärmedämnabidramed.BidragetfråndennastudieärsåledesattsvenskaSME:ssaknarkunskapocherfarenhetförattarbetamedenimplementeringavenCodeofConduct.VianserattsvenskaSME:sböranvändasigavenexternauditörförattkringgåproblemetjustnämntdåvifunnitbeläggsommotsättersigteorinsompekarmotineffektivautföranden.ViharfunnitstarkbetydelseiattupprättaenCodeofConductisamrådmedallapartersomberörsavden.AvslutningsvisharvihittatindikatorerpåattCSRislutändanhandlarompengar,settutifrånallapartersperspektiv. / Program: Textilekonomutbildningen

Following the collapse of Arthur Andersen in the Enron debacle, whistle-blowing within audit firms has taken on greater importance. Given the profession's requirements to be confidential, independent and to act in the public's interest, there is a need for a model that addresses auditors' whistle-blowing intentions. This thesis presents a conceptual model on whistle-blowing intentions among external auditors, where individual-led antecedents influence whistle-blowing intentions, but are moderated by isomorphic and issue-specific factors. Survey questionnaires were administered to 226 external auditors, and 18 individual interviews as well as 2 focus groups were conducted in Barbados. Results indicated that individual antecedents (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting, and personal cost of reporting) were significantly related to internal whistle-blowing, but only perceived behavioural control was significantly related to external whistle-blowing. Partial support was found for the moderating effects of perceived organizational support, moral intensity, team norms and group cohesion on the relationships between the majority of the independent variables (attitudes, perceived behavioural control, independence commitment, personal responsibility for reporting and personal cost of reporting) and internal whistle-blowing. However, partial support was found for the moderating effects of perceived organizational support, moral intensity, team norms iii and group cohesion on the relationships between fewer independent variables and external whistle-blowing. Overall, respondents preferred anonymous internal channels of reporting, and showed a general reluctance to report externally. The presence of an open-door policy, ethics partners, hotline, on-going training and clearly defined policies could encourage whistle-blowing. Further implications for research and practice are discussed. / University of the West Indies

本研究利用問卷調查內部稽核人員與外部審計人員兩者對於內部稽核功能之認知、雙方互動之情形、以及內部稽核功能與審計公費之關係。研究結果發現外部審計人員對於國內內部稽核功能能否有效發揮，仍有所保留，特別是在獨立性的部分，但對於內部稽核人員的專業能力則表示肯定。另外，大多數的填答者皆有與對方互動之經驗，但互動的程度並不高，以「偶而會」及「偶而詢問」為主。縱使互動程度不高，但是雙方皆認為互動對於外部查核工作或內部稽核工作是有助益的。此外，大多數的外部審計人員認為，內部稽核功能的好壞與審計公費有一定的關係存在，但其影響的比例以5%以下居多，這可能也是間接造成雙方互動不密切的重要因素之一。 / This thesis uses questionnaires to examine the external auditors’ perceptions of the internal auditing function, the level of co-operation between the internal and external auditors, and the relationship between internal audit function and external audit fees. The empirical findings indicate that external auditors expressed concern about the internal auditing function, independence especially. And the questionnaire responses show the lack of a close relationship between the internal and external auditors. They just occasionally co-operate with each other, but they consider that it is helpful to them. In addition, most external auditors are convinced of the existence of a direct link between internal audit function and external audit fees. But the percentage of external audit fee affected by internal audit function is below 5 percent, this may be one of the reasons why they lack a close relationship between each other.

本研究探討吹哨者保護制度對公司、員工與會計師產生之影響。模型結果顯示，完善的吹哨者保護制度可以提升員工的吹哨意願，進而使公司傾向誠實表達；完善的吹哨者保護制度可能增加或減少會計師的審計成本，會計師若預期公司因員工吹哨意願提高而傾向誠實表達，可降低審計成本，惟公司若不實表達且會計師並未經由查核發現時，會因為員工吹哨而產生商譽等重大損失。因此會計師於不同資本規模、客戶數量、事務所文化、員工素質等狀況下，會產生相異之審計成本變化。 / This study discusses the effect of Whistleblower protection system on firms, employees, and external auditors. Results of the models show that, a perfect Whistleblower protection system can motivate employees to blow the whistle and thus make the firm present honestly. A perfect Whistleblower protection system may increase or decrease external auditors’ audit costs. External auditors may decrease audit costs if they expect the firm will present honestly due to the enthusiasm of employees to blow the whistle, while external auditors may increase audit costs if they can’t afford the loss of goodwill when they couldn’t find the misstatement and the employee blowed the whistle. Therefore, external auditors have different changes in audit costs under different conditions, such as capital scale, number of clients, office culture and staff quality.