The rise of the professional accountant in British management

Matthews, Derek; Anderson, Malcolm; Edwards, John

doi:10.1111/1468-0289.00062

Cited by 90 publications

(63 citation statements)

References 31 publications

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“…From the 1940s to the mid-1960s accounting, auditing and the accounting profession in the United States and the UK reached the height of their standing and reputation (Zeff, 2003a;Matthews et al, 1997). Throughout this period "generally accepted accounting principles" (GAAP) were established, as were the auditing procedures that auditing firms were to adopt in their engagements.…”

Section: Audit Sampling Eramentioning

confidence: 99%

The application of business risk audit methodology within non-Big-4 firms

Kutum¹,

Fraser

Hussainey

2015

Journal of Financial Reporting and Accounting

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Purpose – This paper aims to explore the application of the business risk audit (BRA) approach within non-Big-4 audit firms in the USA, the UK and Canada. This paper focuses on the motivation for adopting this approach for non-Big-4 audit firms in the three countries, and the advantages, disadvantages and aftermath of applying this method. Design/methodology/approach – A combination of qualitative and quantitative methods to obtain the data necessary to address the research questions was used. Findings – It is found that non-Big-4 audit firms in the three countries have adopted BRA; their motivation was primarily to follow the standards in each country, and the general trend in the industry. The advantages identified are consistent with previous research; a direct benefit was noted for audit effectiveness and risk management for both clients and auditors. One major disadvantage of applying BRA is the cost burden to both the audit firm and their clients. Some of the interviewees claimed that this method is better suited to large firms and large audits. Originality/value – This is an innovative study that addresses a contemporary auditing issue. The majority of the audit research studies concentrate on the big audit firm practices; this study is the first to examine the application of audit practices within smaller audit firms.

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Section: Audit Sampling Eramentioning

confidence: 99%

The application of business risk audit methodology within non-Big-4 firms

Kutum¹,

Fraser

Hussainey

2015

Journal of Financial Reporting and Accounting

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“…Leake Lecture, I was encouraged not to focus on financial reporting and audit -which is where so much of the public debate about accounting ethics tends to concentrate -but to look at ethics in a way that might be relevant to all members of the profession. After all, one of the notable features of the British accountancy profession is the variety of roles its members occupy, particularly as -for various reasons -accountancy has served as a general management qualification in the UK (Armstrong, 1987;Matthews et al, 1998). One of my tasks, inter alia, will therefore be to review some aspects of the general business ethics literature in a way that might be of interest to accountants and relevant to their thinking about ethics.…”

Section: Introductionmentioning

confidence: 99%

“…In this case the members are seen as customers. Several of the professional accounting bodies based in the UK are large organizations, which enables them to exploit economies of scale, but with that size based on the professional success of accountants in the UK (Armstrong, 1987;Matthews et al, 1998) comes a varied membership, with many different roles performed and hence the challenge of providing a sufficient range of services to meet members' needs and expectations.…”

mentioning

confidence: 99%

Accounting and the ethics challenge: Re‐membering the professional body

Cowton

2009

Accounting and Business Research

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Based on the P.D. Leake Lecture given at Chartered Accountants' Hall in May 2007, this paper looks beyond recent financial reporting 'scandals' to consider the 'standing challenge' that ethics represents for accountants and the professional bodies that represent them. It examines the notion of a profession and argues for a position that recognizes both the potential benefits of professionalization and the self-serving tendencies to which professions can be prone. Such a position entails a view that the outcome of professionalization for society is a contingent matter rather than an inevitability (whether positive or negative) and therefore something that is worth attempting to influence. In developing the argument, two major areas from the business ethics/corporate social responsibility literature, oriented towards business enterprises but also of relevance to professional bodies, are reviewed: whether being ethical 'pays' in financial terms; and whether formal codes are useful in promoting ethical behaviour. The paper concludes by positing three models of the professional body and contending for a renewed notion of membership if professional bodies are to function as effective 'moral communities'.

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“…Accounting standards were introduced in 1906. Nonetheless, accounts were generally inspected by auditors before that date (Matthews et al, 1997).…”

Section: Data Qualitymentioning

confidence: 99%

Corporate Governance and Incentive Contracts: Historical Evidence from a Legal Reform

Bayer¹,

Burhop

2008

SSRN Journal

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This paper proposes to exploit a reform in legal rules of corporate governance to identify contractual incentives from the correlation of executive pay and firm performance. In particular, we refer to a major shift in the legal and institutional environment, the reform of the German joint-stock companies act in 1884. We analyze a sample of executive pay for 46 firms for the years 1870 to 1911. In 1884, a law reform substantially enhanced corporate control, strengthened the monitoring incentives of shareholders, and reduced the discretionary power of executives in Germany. Pay-performance sensitivity decreased significantly after this reform. While executives received a bonus of about three to five per cent in profits before 1884, after the reform this parameter decreased to a profit share of about two per cent. At least the profit share that is eliminated by the reform must have been incentive pay before. This incentive mechanism was replaced by other elements of corporate governance. JEL-Classification: G30, J33, N23

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The rise of the professional accountant in British management

Cited by 90 publications

References 31 publications

The application of business risk audit methodology within non-Big-4 firms

The application of business risk audit methodology within non-Big-4 firms

Accounting and the ethics challenge: Re‐membering the professional body

Corporate Governance and Incentive Contracts: Historical Evidence from a Legal Reform

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