Abstract Management control system is meaningful for corporations.  It aims to define overall company-goals and develops strategies that eases the achievement of these goals. The purpose of the strategies is to create desirable performances through guidance of employees. The strategy and performance evaluation are correlated since both creates desirable performances. This is achieved through performance evaluation as it monitors and examines employees’ performances.  Prior research highlights performance evaluation through corporations' perspective, but does not present a connection between performance evaluation and its effects on auditors. Although, it has been established some effects of parts within performance evaluation. Due to that the research has been based on corporations' perspective, it becomes interesting to study the subject through auditors’ perspective. Performance evaluation is used in a wide variety within the large audit firms, thus relevant to study.  The purpose of the thesis is to create a broader understanding of which role performance evaluation has in audit firms. This has been studied through observations of how performance evaluation is executed and which effects it has on auditors. The thesis’s research-strategy is qualitative, though empirical data has been generated through interviews with eleven auditors.  All of the researched audit firms include overall company-goals, individual goalsetting, time budgets, feedback and monetary incentives in the process of execution of performance evaluation. This study presents which effects performance evaluation has on auditors. Positive effects of performance evaluation are increased performances and motivation. This increment is based on increased self-efficacy, clear expectations and guidelines, and active participation during goal-setting and feedback processes. The negative effects of performance evaluation are based on the work procedure that is created by the management tool, in terms of time pressure, stress and pressure regarding acquisition of customers. / Sammanfattning Ekonomistyrning är betydelsefullt för företag, då den syftar till att definiera översiktliga företagsmål samt utveckla strategier som ska underlätta uppfyllelsen av dessa mål. Strategiformulering har som funktion att skapa önskvärda prestationer genom att vägleda anställda. Strategin och prestationsmätningar är korrelerade i den bemärkelsen att de skapar önskvärda prestationer. Detta genomförs utifrån prestationsmätning genom att övervaka och utvärdera anställdas prestationer. Tidigare forskning framhäver prestationsmätning utifrån ett företagsperspektiv men visar inte på en koppling mellan prestationsmätning och dess effekter på revisorer i revisionsbyråer. Dock har det stadgats somliga effekter av delar inom prestationsmätning. Eftersom forskningen har varit utifrån ett företagsperspektiv är det intressant att studera prestationsmätning utifrån revisorers perspektiv. Prestationsmätning används i stor utsträckning inom de större revisionsbyråerna, denna bransch är således relevant att studera.     Syftet med uppsatsen är att skapa en bredare förståelse för vilken roll prestationsmätning har i revisionsbyråer. Detta har studerats genom att undersöka hur prestationsmätningar genomförs samt vilka effekter de har på revisorer. Uppsatsens forskningsstrategi är kvalitativ då empirisk data genererats utifrån intervjuer med elva revisorer. Samtliga undersökta revisionsbyråer inkluderar översiktliga företagsmål, individuell målsättning, tidsbudget, feedback och belöningar i processen för genomförandet av prestationsmätning. Studien visar även vilka effekter prestationsmätning har på revisorer. Positiva effekter av prestationsmätning är ökad prestation och motivation. Detta grundar sig i ökad självkänsla, tydliga förväntningar och riktlinjer samt aktivt deltagande under målsättnings- och feedbacksprocessen. De negativa effekterna av prestationsmätning grundar sig i det arbetssätt som skapas av styrverktyget, detta i form av tidspress, stress samt press gällande förvärv av kunder.

Den stereotypa bilden av revisorn är ett aktuellt ämne för revisorsbranschen. Uttalandet baseras på att revisionsbyråerna har svårigheter med att rekrytera de bäst lämpade kandidaterna till sina byråer. Denna studie önskade att kartlägga nuvarande ekonomistudenters bild av revisorn för att se i vilken utsträckning intentionen till revisorsbranschen påverkades av bilden. Syftet med studien var att identifiera ekonomistudenternas bild av revisorn och undersöka hur den påverkar deras intention att vilja bli revisorer. Eftersom det har visat sig att dagens revisionsbyråer lägger ett stort fokus på att lyfta fram egenskaper som studenterna vill identifiera sig med syftade även studien till att undersöka hur ekonomistudenternas identifikation till revisorsyrket, påverkar sambandet mellan deras bild av revisorn med deras intention till att bli revisor. Detta resulterade i studiens frågeställning: Hur påverkar ekonomistudenters bild av revisorn deras intention att vilja bli revisorer och vilken modererande effekt har studenters identifikation till revisorsyrket på detta samband? För att besvara studiens frågeställning samt uppfylla syftet genomfördes en kvantitativ studie genom en webbaserad enkätundersökning. Webbenkäten skickades ut till ekonomistudenter på högskolor och universitet i Sverige, vilket genererade 130 fullständiga svar. Statistisk analys genomfördes för att kunna tolka den erhållna datan. Resultatet indikerar på att ekonomistudenternas bild av revisorer som uppvisar egenskaper som extrovert, öppensinnad samt säljegenskaper leder till en ökad intention för ekonomistudenter att söka sig till revisorsyrket. Dessutom anses identifiering med revisorsyrket ha en negativ effekt på sambandet mellan ekonomistudenternas bild av revisorns och deras intention till att vilja bli revisor. / The stereotypical image of the auditor is a relevant topic to the auditor industry. The statement is based upon the struggles accounting firms has had with not being able to recruit the most suitable candidates. The aim of this study is to examine if business students image of the auditor have an effect on their intention to apply for the auditor profession. In addition, the study aim to investigate what effect the students identification to the auditor profession have on the relation between business students image of the auditor and their intention to apply of the auditor profession, since its has been shown that accounting firms are trying to create an image of the auditor which students can identify with. This resulted in the following research question: How does business students image of the auditor affect their intention to apply for the auditor profession? In order to achieve the purpose of this study and also be able to answer the research question a quantitative study was performed by using a web based questionnaire. The Questionnaire was sent out to university attending business students across Sweden, which generated in 130 answered questionnaires.  The results indicates that the students image of the auditor with characteristics extrovert, open to new experiences and sale characteristics increases their intention to become auditor.    Additionally, students identification with the auditor profession is considered to have an negative effect on the relation between business students image of the auditor and their intention to apply of the audit profession.

Evidence from research in psychology and auditor judgment has shown that perceptions that form early in a sequential judgment process can influence subsequent judgments. Auditing Standard 12 requires auditors to identify fraud risk factors and assess the risk of fraud as part of the process of assessing overall misstatement risk. While it is expected that fraud risk assessments should have a bearing on overall risk assessments, it is possible that perceptions formed from assessments of fraud risk can negatively affect the evaluation of any evidence reviewed thereafter. Because different classes of transactions may be affected by fraud risk factors in different ways, fraud risk assessments may differ across classes of transactions. These differences may make subsequent auditor judgments susceptible to the contrast effects bias, where subjects overreact to the differences such that the fraud risk assessments influence auditor judgment more than they should. This study examines whether auditors who learn that fraud risk is low for one class of transactions immediately after examining a class of transactions that has high fraud risk, can overreact to the contrast such that they reduce their sensitivity to evidence that suggests increased misstatement risk. The study also examines whether these contrast effects can be mitigated by acquiring information about fraud risk assessments later in the sequence of evidence, after auditors have reviewed and assimilated evidence related to other risks. The study finds that, as predicted, auditor judgments are influenced by contrast effects. Auditors who examined classes of accounts for which fraud risk assessments were different were less sensitive to evidence suggesting increased risk in accounts that had been identified as having low fraud risk. However, contrary to predictions, these contrast effects were not mitigated by evidence order.

Currently, auditors face changes in the auditing industry, which has increased the focus on marketing activities. Despite professional ideals, an increase in the commercialization of audit firms has been observed, shaping the identity of the auditor. Auditor identity has been found to be a driver for commercialization, but certain studies find commercialization to be negative for audit practice. We argue that individual auditor attributes can explain orientations in the auditor identity, which in turn could have implications for audit practice. The purpose of this study is to describe and analyze how auditor attributes are related to professional and commercial orientations, and how the various orientations are related to audit practice. The theories used in this study are agency theory, social identity theory, and the theory of professions. We employ a quantitative survey method, with a questionnaire sent out by e-mail including questions about attributes, professional and commercial orientation, and reduced audit quality acts. Our results indicate that a positive relation to professional orientation exists for attributes adaptability and marketing skills. A positive relation for commercial orientation exists for the attribute marketing skills, while a negative relation exists for communication skills. Our results suggest that commercial orientation has a positive relation to auditors’ propensity to engage in RAQ acts. We find that knowledge has a negative relation to RAQ acts. A weak positive relation exists between adaptability and RAQ acts. The degree to which these results explain professional and commercial orientation and RAQ acts is small, why more research is needed.

As responsabilidades que envolvem a atividade do auditor é um assunto muito debatido, principalmente em episódios de fraudes e outros escândalos financeiros. Em geral, são nesses momentos que a função do auditor é questionada, e o mercado atribui determinadas responsabilidades a esses profissionais que podem não corresponder com as suas atribuições (Audit Expectation Gap - AEG). Porter (1990) dividiu o AEG em dois principais componentes: (i) Gap de Desempenho e (ii) Gap de Razoabilidade. O último refere-se à diferença de expectativas sobre as quais os usuários das informações financeiras acham que os auditores devem executar determinada tarefa quando de fato eles não têm a obrigação nem o objetivo de fazê-la. Utilizando o constructo de Porter (1990), este trabalho teve como objetivo identificar a existência do AEG de razoabilidade nas decisões de litígios (acórdãos) nos quais as empresas de auditoria figuram como polo passivo. A intenção foi verificar se a diferença de expectativas com relação ao trabalho do auditor fez-se presente nos documentos de conclusão dos processos cíveis e administrativos. Para tanto, foram analisados: 11 acórdãos de processos cíveis, 19 acórdãos de processos administrativos CVM e 4 acórdãos de processos administrativos Bacen, totalizando 34 acórdãos. A metodologia empregada foi a análise documental e análise de conteúdo. Para auxiliar na organização e análise dos dados, foi utilizado o software Nvivo®. Além da análise dos acórdãos, foram realizadas entrevistas com ex-membros do Colegiado da CVM, para confirmar o entendimento de como funcionam os processos de julgamento nesse Regulador, bem como obter a perspectiva desses profissionais diretamente envolvidos em julgamentos dessa espécie. Para o total dos acórdãos analisados, foi identificada a presença de AEG de razoabilidade em 10 casos, o que representa aproximadamente 29% do total. Além da identificação AEG de razoabilidade nas argumentações dos juízes, o gap também foi identificado, de forma muito mais frequente, em diversos trechos dos documentos analisados, como, por exemplo, as argumentações da acusação e advogados envolvidos. Os achados desta pesquisa foram importantes pois a identificação da existência desse gap pôde auxiliar no endereçamento desta questão. A tomada de decisão com base em argumentos equivocados pode não apenas trazer prejuízos para as firmas de auditoria, mas também para o Sistema Financeiro Nacional e setor financeiro empresarial em geral, bem como ocasionar injustiças. Como uma das formas de endereçamento do problema, nos casos dos processos administrativos, sugere-se que a composição do Colegiado e do CRSFN seja diversificada, ou mesmo que tenha a presença de um especialista para casos de julgamentos específicos, como são os casos dos julgamentos que envolvem o auditor independente. / The responsibilities entailed in the work of the auditor are a subject of much debate, chiefly when frauds and other financial scandals occur. Frequently on these occasions the function of the auditor comes into question and the business world attributes certain responsibilities to these professionals that they may not actually have (Audit Expectation Gap - AEG). The author Porter B. A. (1990) separated AEG into two main components: (i) the performance gap, and (ii) the reasonableness gap. The latter refers to the difference between the expectations of users of financial information regarding the specific tasks they believe auditors should perform and the obligations and objectives those auditors actually have. Using the construct of Porter B. A. (1990), this work has the objective of identifying the existence of the reasonableness gap in legal rulings (decisions of appellate courts) in which audit firms were the defendant. The intention was to establish if the difference in expectations regarding the work of the auditor was present in the decisions and opinions of the civil and administrative proceedings. In order to do so, an analysis was made of 11 civil appellate court decisions, 19 administrative rulings of the Comissão de Valores Mobiliários - CVM (equivalent to the Securities and Exchange Commission in the USA) and four administrative rulings of Brazilian Central Bank; 34 judgments in all. The methodology employed was document analysis and content analysis. To aid in the organization and analysis of data, Nvivo® software was used. In addition to analysis of the judgments, interviews were conducted with former members of the CVM board to confirm the understanding of how trial procedures function at this regulator, as well as to gain the perspective of these experts, who are directly involved in judgments of this kind. From the total of the judgments analyzed, the presence of reasonableness AEG was identified in 10 cases, which represents approximately 29% of the total. In addition to identifying reasonableness AEG in the arguments of judges, this gap was also identified, and much more frequently, in various passages of the documentation on the argumentation of attorneys involved in the cases. The findings of this study are important because identifying the existence of this gap may aid in addressing the issue. Rulings based on misguided arguments can not only harm audit firms but also damage the National Financial System and the corporate financial sector in general, as well as causing injustice. As one way of addressing the issue, in administrative cases it is suggested that the composition of the panel and the CRSFN (Council of Appeals of the National Finance System) be made more diverse, and in certain cases even include a specialist, such as when judgments involve an independent auditor.

Made available in DSpace on 2014-06-12T15:07:22Z (GMT). No. of bitstreams: 2 arquivo1377_1.pdf: 219830 bytes, checksum: 7cec70c5254c29151b0e129060af89a4 (MD5) license.txt: 1748 bytes, checksum: 8a4605be74aa9ea9d79846c1fba20a33 (MD5) Previous issue date: 2006 / A auditoria de legalidade não vem atingindo os resultados esperados pela sociedade. Auditores e gestores estão insatisfeitos com a baixa eficácia do modelo de controle baseado na norma. A Constituição Federal e legislação inferior propõem a auditoria de desempenho, que se torna efetiva após os processos de reforma administrativa da década de 90. As primeiras iniciativas foram do Tribunal de Contas da União e, posteriormente, dos tribunais de contas estaduais e órgãos de controle interno. Nossa questão de pesquisa é: a mudança se restringe ao método ou deve envolver uma relação entre auditores e gestores baseada na nova noção de accountability, ambos voltados, segundo nossa hipótese, para uma instância social maior? O trabalho de campo mostrou que os auditores são contrários a uma responsabilização mais ampla enquanto os gestores entendem que todos devem assumir parte da responsabilidade. As condições e os limites impostos à nossa hipótese foram: independência e autonomia dos auditores, ausência de previsão legal, falta de interesse do controle, subjetividade da auditoria de desempenho, mudança necessária de cultura e decisão política. A teoria nos oferece os conceitos fundamentais de cidadania, democracia delegativa e, sobretudo, accountability. Esta última concepção está relacionada à prática, pelo sistema de transparência, de uma responsabilidade subjetiva de auditores e gestores perante a sociedade. As experiências do TCU, TCE e Controle Interno de Pernambuco demonstraram avanços na auditoria de desempenho, mas a relação continua baseada na noção de responsabilidade jurídico-administrativa e processual. Propomos uma mudança em relação à accountability horizontal e à consolidação da cidadania, para construirmos uma comunidade de interesses entre auditores e gestores

Submitted by Elizabete Silva (elizabete.silva@ufes.br) on 2015-01-02T18:35:45Z No. of bitstreams: 2 license_rdf: 23148 bytes, checksum: 9da0b6dfac957114c6a7714714b86306 (MD5) Dissertacao. William Brasil Rodrigues Sobrinho.pdf: 1324683 bytes, checksum: a5642ba6180e2eb461b4ac93994d4c14 (MD5) / Approved for entry into archive by Elizabete Silva (elizabete.silva@ufes.br) on 2015-01-07T16:45:16Z (GMT) No. of bitstreams: 2 license_rdf: 23148 bytes, checksum: 9da0b6dfac957114c6a7714714b86306 (MD5) Dissertacao. William Brasil Rodrigues Sobrinho.pdf: 1324683 bytes, checksum: a5642ba6180e2eb461b4ac93994d4c14 (MD5) / Made available in DSpace on 2015-01-07T16:45:16Z (GMT). No. of bitstreams: 2 license_rdf: 23148 bytes, checksum: 9da0b6dfac957114c6a7714714b86306 (MD5) Dissertacao. William Brasil Rodrigues Sobrinho.pdf: 1324683 bytes, checksum: a5642ba6180e2eb461b4ac93994d4c14 (MD5) Previous issue date: 2014 / O presente trabalho possui o objetivo de identificar os determinantes dos honorários e serviços fora da área de auditoria, bem como avaliar se a prestação destes serviços conjuntamente com a auditoria das demonstrações financeiras afeta a independência dos auditores externos das companhias abertas brasileiras negociadas na BM&FBovespa. A amostra contempla um total de 180 empresas não financeiras observadas no período de 2010 a 2012. Os resultados indicam que as proxies para esforço e risco elevam os honorários de auditoria, enquanto a governança corporativa apresentou tanto o efeito demanda (elevam os honorários) quanto o efeito risco (reduzem os honorários) dependendo da proxy observada. No que tange a contratação de serviços fora da área de auditoria foi constatado que empresas com maior necessidade de monitoramento e com comitês de auditoria demandam esses serviços, embora o conselho fiscal iniba a contratação dos mesmos. Por fim, as evidências indicam que a prestação de serviços fora da área de auditoria não afeta a independência do auditor. Estes resultados são mantidos mesmo quando observada a probabilidade de ocorrência da modificação no parecer da auditoria relacionada à violação da premissa de continuidade da firma (Going Concern Opinion). Os testes adicionais realizados confirmam a manutenção da independência do auditor, inclusive quando observado o tipo de auditor (não Big4), expectativa de ganhos futuros relacionados a serviços fora da área de auditoria adicionais, empresas consideradas ressalváveis, bem como o efeito de melhores práticas de governança corporativa. / This paper aims to identify the determinants of audit and non-audit fees. Additionally aims to assess if the provision of these non-audit services in conjunction with audit of the financial statements affect the independence of the external auditors of Brazilian companies traded on the BM&FBovespa. The sample contains 180 non-financial corporations observed in the period 2010 to 2012.Results indicate that, overall, the effort and risk proxies raise audit fees, while corporate governance variables show the demand effect (raising fees) and risk effect (lowering fees) depending on the proxy observed. Regarding the hiring of non-audit services, firms that need more monitoring and have audit committees require additional services, although the fiscal board inhibits hiring these services. Finally, evidence indicates that the provision of non-audit services does not affect auditor's independence. These results are the same even when considering the existence of a going concern opinion as a proxy for independence. Additional tests confirm the maintenance of the independence of the auditor, even when, type of auditor (non-Big4), unexpected non-audit services, possibility of modified opinion and the effect of best practices in corporate governance.

M.Comm. / South Africa is in transition. Changes are taking place on the political, social and economic fronts at an increasingly rapid pace. Past practices and wisdom are being openly challenged. Enterprise/Corporate managers today are deeply concerned with two major dilemma. Firstly to fully mobilise the energy of the organisation's human resources toward achievement of the organisation's performance objectives. Secondly to organise the work, the work environment, the communication systems, and the relationships of people. To resolve this dilemma in our rapidly changing environment, new organisation fon-ns must be developed. More effective goal setting and planning processes must be learned. Practised teams of interdependent people must spend real time improving their methods of working, decision-making and communicating. Competing or conflicting groups must move towards a collaborative way of work. In order for these changes to occur and be maintained, a planned, managed change effort is necessary - a program of affirmative action. This dissertation is about affirmative action in employment, and the development of people in organisations. These two concepts overlap in the sense that affirmative action is (or should be) about the development of black people and women but not at the expense of competent white men who are already part of an organisation.

The 1996 Constitution of South Africa and the Public Audit Act of 2004 provide the legislative framework for the Office of the Auditor General of South Africa (OAGSA). The Independent Regulatory Board for Auditors further enriched the interpretation of the framework – for government auditing. Over the years of democratic rule in South Africa, audit performance by State organs was generally poor. Despite the efforts by the OAGSA to improve the performance, very little improvement was notable. Most disturbing was the observation that there was widespread, a prevalence of recurring findings, which indicated that the OAGSA’s recommendations and guidelines were not acted upon, or largely ignored. Firstly, the research study established that the system of capitalist democracy, which comes in different varieties throughout world democracies, indeed brought about a situation where the electorate was effectively removed from its rightful place of being the principal, and had its place taken up by political parties (which are in fact, agents) - which (parties) governed on its (the electorate’s) behalf. This system, taken together with the Principal Agency and the Rational Choice Theories – fully explained the prevalence of maladministration and malfeasance in government in South Africa. Secondly, the study established that the OAGSA has done everything imaginable in its attempts to improve audit performance in government institutions – using the carrot rather than the stick approach. The legislative framework cited above, revealed that the OAGSA has the power to audit and report, while Parliament has the power to enforce corrective action. The lesson of this revelation is: that there is not much that the OAGSA can achieve without a high level of cooperation between itself and Parliament – if audit performance is to be effectively, and appreciably improved in South Africa. A disappointing discovery however was indirectly delivered to the world, through the results of a research study conducted by one Wehner in 2002, on Public Accounts Committees (PACs) (alias Standing Committees on Public Accounts (SCOPAs)) in world democracies. The Wehner study clearly demonstrated that there was nothing contained in these committees’ founding documents or enabling legislation – which in no uncertain terms, directed the committees on what procedures and processes to follow to ensure that their resolutions were acted upon. In other words there was no enforcement mechanism discernible for their resolutions. Thirdly, there were developments in case law in South Africa, which augured well for Constitutional Institutions in general. They are contained in court judgements relating to the mandate of the Office of the Public Protector (OPP). The question at the core of these developments was: whether the decisions or remedial action emanating from the OPP, were binding and enforceable. Two judgements cited as cases in point, one a High Court judgment and another a Supreme Court of Appeal’s (SCA’s), feature in the research report. The SCA, in summary found that decisions of administrative bodies of State – stand in fact and in law, until such time that a court of law invalidates them. The SCA ruled through citing a High Court judgement passed way back in 2004 - that Constitutional Institutions, although not organs of State per se – were certainly included in this 2004 finding, if one considers the rationale of this initial finding, taken together with the purpose for which Constitutional Institutions were established in South Africa in the first place. In conclusion, although visible root causes of poor audit findings appear overall to be poor consequence management and questionable leadership quality in government, the system of capitalist democracy is ultimately to blame. The system certainly had unintended consequences.

Employee turnover has long been an issue within the audit profession and is generally considered to have a negative impact on auditing firms. As auditing firms rely on the skills and knowledge of their employees, the recruitment process is crucial in order to appoint candidates who will benefit the firm. Previous research has studied the turnover within audit firms, where the majority of the studies have focused on why employees choose to leave. While previous research mainly focuses on the individual’s perspective, the purpose of this thesis will be to explore how audit firms’ HR-departments work with the recruitment of junior auditors from a turnover perspective.  A model that illustrates the recruitment process has been created through researching theories and literature regarding turnover. In order to collect information, semi-structured interviews were used. The questions were based on the created model and the literature presented throughout the thesis. Interviews were held with HR-respondents in order to explore their view on the recruitment process. Junior auditors were also interviewed in order to explore their perception of the recruitment process, and to identify if there were any differences from the HR-respondents’ views.  Our findings indicate that the participating firms’ recruitment process is both extensive and well developed in order to make sure that they hire a suitable candidate. It did not become apparent that the firms focused on tenure during the employment selection, although the well-established structure of the recruitment process might indirectly impact the turnover situation. Our results also indicate that firms invest much time and resource into their marketing activities and that they value the personal competence of their candidates greatly.