Do Management Training Grounds Reduce Internal Auditor Objectivity and External Auditor Reliance? The Influence of Family Firms

Suh, Ikseon; Masli, Adi; Sweeney, John T.

doi:10.1007/s10551-020-04507-3

Cited by 9 publications

(6 citation statements)

References 87 publications

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“…It is paradoxical that, despite the fact that the term most used in ISAs is rely (reliance), research studies do not pay enough attention to it. The concept rely, in general, is more audit-oriented when referring to controls (Suh, Masli, & Sweeney, 2020), which validates the interpretation according to which this concept, with some exceptions, is oriented to control in the ISA terminology.…”

Section: The Use Of Rely (Reliance) In the Literature On Auditingsupporting

confidence: 65%

Hermeneutics to read ‘confidence’ and ‘trust’ in rely, confidence and trust in the ISAs translation,

Vargas-González¹

2022

Rev. contab. finanç.

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This study aimed to develop a hermeneutical proposal to read ‘confidence’ (“confianza”) and ‘trust’ (“confiar”) in rely, confidence, and trust in the International Standards on Auditing (ISAs) translation into Spanish, based on contrasting them with the scientific literature on auditing. The gap addressed by this proposal is the lack of criteria to interpret the ISAs translation of rely, confidence, and trust into Spanish, which leads to an inadequate reading of the standards, since these terms are translated into Spanish as ‘confianza’ and ‘confiar,’ a misleading terminological choice. Some keys are provided for a hermeneutical reading when dealing with the concepts ‘confidence’ and ‘trust’ in the ISAs, since they are used interchangeably. This article is a starting point for both researchers and auditors when interpreting the terms rely, confidence, and trust translated into Spanish. From the methodological field, in the first place, a search was made in the ISAs for three key concepts related to what is understood in Spanish by the concepts ‘confidence’ and ‘trust’: rely (reliance), confidence, and trust, specifically determining the place where the concepts were to try to grasp the general meaning of the text within the paragraph of the corresponding standard; second, a structured accounting literature review on the concepts rely, confidence, and trust was conducted in the scientific auditing publications. This study provides the following hermeneutical keys to read ‘confidence’ and ‘trust’ in rely, confidence, and trust in the ISAs translation: rely is more oriented to controls, confidence refers to the relationship between an auditor and the stakeholders, and trust is a threat to the auditor’s objectivity.

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Section: The Use Of Rely (Reliance) In the Literature On Auditingsupporting

confidence: 65%

Hermeneutics to read ‘confidence’ and ‘trust’ in rely, confidence and trust in the ISAs translation,

Vargas-González¹

2022

Rev. contab. finanç.

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“…An ordinal interaction has nonsymmetrical patterns of cell means or has "the crossover of predicted values at the boundary or outside the range of observed values" (e.g., Figure 1A in our case), whereas a disordinal interaction has a symmetric pattern of cell means or has "a crossover of predicted values within the observed range of values" (e.g., Figure 1C in our case). 47,49 In other words, ordinal interac tion presents "when the effect of one factor is in the same direction for each level of the other factor while it may vary in effect size." A disordinal interaction is also called "cross over interaction" or "double dissociation" and presents "if a factor has opposite effects across at least 2 levels of the other factor."…”

Section: Discussionmentioning

confidence: 99%

Dexamphetamine widens temporal and spatial binding windows in healthy participants

Kassim

Lahooti

Keay

et al. 2023

jpn

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Background:The pathophysiology of psychosis is complex, but a better understanding of stimulus binding windows (BWs) could help to improve our knowledge base. Previous studies have shown that dopamine release is associated with psychosis and widened BWs. We can probe BW mechanisms using drugs of specific interest to psychosis. Therefore, we were interested in understanding how manipulation of the dopamine or catecholamine systems affect psychosis and BWs. We aimed to investigate the effect of dexamphetamine, as a dopamine-releasing stimulant, on the BWs in a unimodal illusion: the tactile funneling illusion (TFI). Methods: We conducted a randomized, double-blind, counterbalanced placebo-controlled crossover study to investigate funnelling and errors of localization. We administered dexamphetamine (0.45 mg/kg) to 46 participants. We manipulated 5 spatial (5-1 cm) and 3 temporal (0, 500 and 750 ms) conditions in the TFI. Results: We found that dexamphetamine increased funnelling illusion (p = 0.009) and increased the error of localization in a delay-dependent manner (p = 0.03). We also found that dexamphetamine significantly increased the error of localization at 500 ms temporal separation and 4 cm spatial separation (p interaction = 0.009; p 500ms|4cm v. baseline = 0.01). Limitations: Although amphetamine-induced models of psychosis are a useful approach to understanding the physiology of psychosis related to dopamine hyperactivity, dexamphetamine is equally effective at releasing noradrenaline and dopamine, and, therefore, we were unable to tease apart the effects of the 2 systems on BWs in our study. Conclusion: We found that dexamphetamine increases illusory perception on the unimodal TFI in healthy participants, which suggests that dopamine or other catecholamines have a role in increasing tactile spatial and temporal BWs.

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“…In addition, the nature of internal audit tasks in non-family organizations, serving as a managerial training base, influences the degree of reliance on external audits due to perceived impartiality. Conversely, under a managerial training base system, external auditors' reliance on internal auditing in family companies and their perception of impartiality remain largely unchanged (Suh et al, 2020;Čular et al, 2020). The degree of trust external auditors place in the internal audit department is influenced by factors such as the delivery of risk management counseling, the strength of the audit committee, and the provision of assurances (Čular et al, 2020).…”

Section: The Role Of Iaf In Enhancing Financial Reporting Integrity A...mentioning

confidence: 99%

A Systematic Literature Review of the External Audit Reliance Issues

Ismail,

Sharabati,

bin AbdulHamid

et al. 2024

Preprint

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External audit reliance issues on the internal audit function (IAF) are increasingly important in financial auditing, yet its application in audit engagements lags behind other applications. Despite the belief that audit reliance will shape auditing in the future, limited and intervalley publications explore this transformative potential. This paper investigates the increasing importance of external audit reliance issues in financial auditing. It investigates the use of the IAF in external audit reliance decisions and its potential to enhance audit quality, process transparency, and stakeholders' credibility. Through a systematic literature review of 68 scientific articles from 1984 to 2022, factors influencing external auditors' dependence on the IAF are analyzed, including IAF work quality, assistance type, organizational factors, customer pressure, and business risk. The review highlights the IAF's crucial role in improving financial reporting integrity and external audit effectiveness. However, the challenges that allowed external auditors to decide whether to rely on the works of IAF like limited disclosures and accessible data hinder assessing IAF reliance effects, leading to information asymmetry that may impact stakeholder confidence. The paper discusses implications, limitations, and future research directions to explore technology adoption and optimize audit practices, promoting transparency in the audit process.

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Do Management Training Grounds Reduce Internal Auditor Objectivity and External Auditor Reliance? The Influence of Family Firms

Cited by 9 publications

References 87 publications

Hermeneutics to read ‘confidence’ and ‘trust’ in rely, confidence and trust in the ISAs translation,

Hermeneutics to read ‘confidence’ and ‘trust’ in rely, confidence and trust in the ISAs translation,

Dexamphetamine widens temporal and spatial binding windows in healthy participants

A Systematic Literature Review of the External Audit Reliance Issues

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