Newsletter Oktober 2021
26 October 2021
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In this newsletter:
- Latest publication
- Online FAR Masterclass by Prof. dr. Anna Gold and Ass. Prof Andrew Trotman about 'Improving the quality of global group audits: do group auditor involvement and component auditor involvement matter?' on 19 Novemer 2021
- FARview #17 with Tjibbe Bosmann on 'Audit Firm Culture Dimensions, Audit Quality and Office Growth' (Dutch)
- Drawings of the presentations of the FAR International Conference of 21 June 2021
- Honorary Doctorate for FAR board member Robert Knechel
- Online FAR Masterclass by Prof. Jean Bédard of 7 October postponed
- Upcoming events – save the dates
Latest publication:
A new Literature Review is available online on our website from the team of Anna Gold (VU Amsterdam), Tina Carpenter and Margaret Christ (both from University of Georgia - Terry College of Business), called 'Engaging Auditors' Innovation Mindset to Mitigate Goal Conflict and Improve Audit Effectiveness with Data Analytics: Thinking Outside of the Box'.
The study is entitled 'Engaging auditors' innovation mindset to improve fraud detection with data analytics'.
In this study, they investigate whether the cognitive flexibility of auditors and the overall audit effectiveness improves when auditors employ an innovation mindset and provide operational insights to the client in the course of an audit using data analytics.
The literature review first examines the psychological and accounting literature on adverse effects of goal conflict and how this problem applies to auditing and, more specifically, the use of data analytics by auditors. The team then discusses the literature on cognitive flexibility, which underlies our predictions about how an innovative mindset could (1) improve auditors' judgment and (2) mitigate the adverse effects of goal conflict.
You can read the literature review by clicking on the 'button' below.
Online FAR Masterclass by Prof. dr. Anna Gold and Ass. Prof Andrew Trotman about 'Improving the quality of global group audits: do group auditor involvement and component auditor involvement matter?' on 19 Novemer 2021
On Friday, November 19, 2021, from 3:30 - 5:00 pm, FAR is hosting an online Masterclass on 'Improving the quality of global group audits: do involvement of group auditors and component auditors matter?' with Anna Gold (Vrije Universiteit Amsterdam) and Andrew Trotman (Northeastern University, D'Amore-McKim School of Business).
What is this Masterclass about?
Audit deficiencies associated with group audits account for a significant portion of all audit deficiencies identified worldwide. Anna Gold and Andrew Trotman surveyed component auditors in the Netherlands to identify the primary engagement characteristics and coordination strategies as well as communication behaviors of both the lead auditor and component auditor that ultimately determine audit quality at group audits. In this masterclass they will present their main findings from quantitative and qualitative analyses and discuss those with the participants.
Registration is open until Thursday 18 November 2021 (11PM CET) via the button below.
FARview #17 with Tjibbe Bosman on 'Audit Firm Culture Dimensions, Audit Quality and Office Growth' (Dutch)
FARview podcast number 17 is now online. In it, UvA PhD student Tjibbe Bosman talks about his paper 'Audit Firm Culture Dimensions, Audit Quality and Office Growth' (with co-authors Jan Bouwens and Olof Bik).
Surveys of over 1,100 auditors (and over 7,000 of their financial statements audits) show that firm culture differs significantly between audit firms and between office locations. Culture appears to be related to audit quality, audit client retention and client portfolio growth. For example, firms with a quality-oriented culture have lower growth rates.
Audit quality is measured by the tendency to issue a report with an adjusted opinion (qualification, disclaimer of opinion or disapproval) or with a mandatory explanatory paragraph regarding going concern.
The culture dimensions examined are: (1) error climate (culture related to making, analyzing, and warning about errors); (2) voicing (saying what you think); (3) tone at the top of leadership; and (4) quality threatening pressures (forms of pressure that can affect quality).
Bosman advocates working on an open and safe mistake culture. This contributes significantly to the quality of audits.
Drawings of the presentations of the FAR International Conference of 21 June 2021
This past June, FAR hosted its annual international conference entitled "Auditing - the Human Factor."
The conference booklet with summaries of the presentations is currently being finalized. This year, in addition to the written versions, we also had summaries of the four presentations made in the form of a drawing, these can be seen above.
We hope that the drawings are a good addition to the texts and that they help to (better) understand the scientific research.
Via the buttons below you are able to view the drawings full screen, if you like.
Vanstraelen and Thuerheimer Hooghiemstra
Honorary Doctorate for FAR board member Robert Knechel
On 20 November 2021, FAR board member, Robert Knechel will (virtually) receive an Honorary Doctorate from Nyenrode Business Universiteit, that celebrates its 75th anniversary that day.
Barbara Majoor, as Department Head of the Auditing & Assurance department at Nyenrode, will grant an Honorary Doctorate on Stewardship to Robert Knechel.
Robert has been active for decades in the training and supervision of PhD students (including Nyenrode students) and is always willing to provide help or input to young researchers, such as in the Limperg Auditing Courses (where every auditing PhD student of the past 20 years has been in his class), many doctoral colloquiums, but also on invitation for guest lectures at Nyenrode for example.
You can follow the ceremony on 20 November (starting 3:00 pm CET) online via https://www.nyenrode.nl/dies-natalis.
Online FAR Masterclass by Prof. Jean Bédard of 7 October postponed
Due to personal circumstances, we unfortunately had to decide to postpone this Masterclass. We will of course keep you informed of a new date.
Upcoming events – save the dates!
Online FAR Masterclass by Prof. dr. Anna Gold and Ass. Prof. Andrew Trotman
On Friday 19 November 2021, 3:30 - 5:00 p.m. CET, FAR will organize an online Masterclass with Anna Gold (VU Amsterdam) and Andrew Trotman (Northeastern University) about their research project 'Coordination and communication challenges in global group audits: evidence from component audit leaders'. Registration is open now via this link!
FAR Young Auditing Academic Brown Bag Seminars
On Friday, December 3, from 3:30 - 4:30 p.m. CET, FAR is hosting its next Brown Bag Seminar for Young Academics and Young Profs.
Lena Pieper (Maastricht University) will present her paper "What is it about auditors that matter? An exploration of auditors' personality, skills, and performance", followed by a discussion by Linde Kerckhofs (VUB, Vrije Universiteit Brussel). Afterwards, there is an opportunity for the participants to ask questions.
Are you part of the target group and would you like to attend as well? Please send an email to info@foundationforauditingresearch.org
FAR International Conference 2022
We would like to let you know that we have set the date for our annual International Conference for 2022 on Monday, June 20 and Tuesday, June 21. At the moment we are busy setting the program, but please add these dates to your calendar for next year!
Online FAR Masterclass by Prof. Jean Bédard
This Masterclass has been postponed for the time being. As soon as we have a new date, we will let you know through our various channels.
Do you have suggestions on how to improve our newsletter or news you would like to share with us? Please let us know by sending an email to info@foundationforauditingresearch.org