Institutional theory is becoming one of the dominant theoretical perspectives in organization theory and is increasingly being applied in accounting research to study the practice of accounting in organizations. However, most institutional theory research has adequately theorized neither the institutionalization process through which change takes place nor the socio‐political context of the institutional formations. We propose a social theory based framework for grounding and expanding institutional theory to more fully articulate institutionalization processes. Specifically, we incorporate institutional theory and structuration theory and draw on the work of Max Weber in developing a framework of the context and the processes associated with creating, adopting and discarding institutional practices. We propose that the expanded framework depicts the socio‐economic and political context better and more directly addresses the dynamics of enacting, embedding and changing organizational features and processes. Expanding the focus of the institutional theory based accounting research can facilitate a more comprehensive representation of accounting as the object of institutional practices as well as provide a better articulation of the role of accounting in the institutionalization process.
This paper reports the results of anempirical study examining the relationship between participation in anaccounting internship and increased job opportunities. Most prior studies haveexamined the benefits of internship programs while in school or the benefits ofinternships on professional learning, socialization, and personalcharacteristics in preparing students for entry into the profession. There hasbeen a paucity of empirical studies examining the relationship betweeninternships and job opportunities, which is a primary reason why students enterinternship programs, schools establish them, and employers hire interns. We surveyedprofessional employees below the manager level among three Big 4 firms and a largeregional CPA firm, and found that the effect of internship experience on jobopportunities depends upon the circumstances. The results indicate thatemploying firms highly value internship experience and that internshipexperience is useful for students in getting job opportunities whether or not theystay with the internship firm.
Purpose -To examine whether auditor-client relationships have an effect on the decision by an auditor to remove an audit qualification. Design/methodology/approach -The paper tracks the event history of a sample of firms from the issuance of a first time audit qualification for going concern and non-going concern contingencies (initial qualification issued between 1983 and 1987, all pre Statement of Auditing Standard (SAS) 58) to the issuance of a clean opinion (up through 1995 when SAS 79 was issued). Attachment theory provides a theoretical framework for the variables analyzed and discrete time survival analysis is used as the statistical method in the analysis so as to evaluate each company year from the initial unclean opinion to the year a clean opinion is issued. Findings -It is found that interpersonal and interorganizational attachment has a significant impact on those opinion decisions that require more auditor judgment (i.e. going concern). Originality/value -This study examines the linkage between auditor tenure and audit quality in a broader context than has been examined to date. Using attachment theory for the foundation, auditor tenure can be viewed as but one measure of the attachment between auditors and clients. In this study, a number of measures of both interpersonal and interorganizational attachment between auditors and clients are included. Further, auditor opinion judgments are examined as a determinant of auditor quality. Finally, discrete-time survival analysis is employed which allows the tracking of the entire event history from initial qualification to removal of the qualification, something not possible with most standard statistical techniques.
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