Volume 03 Number 02
An Empirical Investigation Into The Importance To An Internal Control Structure Of Human Resource Practices And Policies In The Prevention And Detection Of Fraud
Peter Carey and Carolyn Stringer
Recent literature on internal control (CoCo 1994; COSO 1994; Hooks, Kaplan & Schultz, 1994) has recommended much greater emphasis on the internal control environment. One component of the internal control environment on which has been suggested that increased emphasis be placed is human resource policies and practices. The aim of this study is to determine the current priority given to such policies and practices. It is proposed that, in today's environment, companies would rate a representative number of human resource practices and policies as important to the internal control structure. Any increased emphasis can be determined by contrasting the results with those from a 1988 survey by Collier, Dixon and Marston (1990, 1991), and the low priority traditionally accorded human resource practices and policies in the literature. Results from a survey of 42 financial managers confirmed the increased emphasis given to human resource practices and policies. This research focuses on one purpose of internal control, the prevention and detection of fraud, because previous research that had considered the importance of human resource practices and policies did so in the fraud context. The finding is consistent with the professional control literature that has identified deficiencies in human resource practices and policies as contributing factors in actual fraud cases. The result therefore provides an empirical justification to refine and extend the reference to human resource practices and policies in the Auditing Standards and in related reference material.
The Efficiency Of Expert Systems As A Technique For Modelling Audit Judgement
Peter Goldschmidt, Paul Lloyd and Gary Monroe
The artificial intelligence field embodies a number of different types of modelling approach. One such approach is a modelling technique based on the concept of Expert Systems. This approach has been advocated for a wide range of auditing applications. A central characteristic of an expert system is possession of a knowledge base. It is possible that the benefits of the use of a knowledge base can be brought to the audit problem domain without the complexities embodied in the construction of a "classic" expert system.
European Monetary Union - Where Now?
Within Europe vociferous debate continues over future prospects for monetary union. We are now mid-way through the three-stage process formalised in the 1991 Maastricht Treaty, and within a decade, we could have relinquished sovereignty over our economic and monetary policies, and dispensed with our Pounds, Francs and Marks in favour of a single currency. However, if monetary union is achieved within the prescribed timetable, it will be a remarkable feat in view of the chequered history of various arrangements tried since the 1950s, including the European Monetary System (EMS) and associated Exchange Rate Mechanism (ERM) and European Currency Unit (ECU). Nowhere has this progress been more variable than in the UK's experience, the history of which, makes us appear as 'reluctant Europeans', a perception which goes beyond our unique cultural and geographical position.
Consumption Pattern And Lifestyle Differences Between English-French Canadian And Australian Consumers
Michael Laroche, Ronald McTavish, Michael Hui, Chankon Kim, Lester Johnson and Susan Rankine
No abstract - opening paragraph reads: A great deal of research has documented various aspects of consumption pattern and lifestyle difference between French Canadians and English Canadians. Although using different methodologies, papers such as Tigert (1973), Mallen (1973), Barnes and Bourgeois (1977), Saint-Jacques and Mallen (1981) Schaninger, Bourgeois and Buss (1985) and Laroche, Joy and Kim (1989) amply document these differences in various contexts.
An Empirical Investigation Of The Motivations Behind Scrip Dividend Decisions
Damien McMahon and Kwaku K Opong
Academic writers have long argued that scrip dividends are no more than a cosmetic exercise that add no value to the companies that issue them. Nevertheless, several firms continue to issue scrip dividends. This study examines some of the motivations behind the payment of scrip dividends in the United Kingdom (UK). The results of the study suggest that scrip dividends are issued for entirely different reasons in the UK to those in the United States. The study found that scrip dividends in the UK are not a signal of favourable future information, as the American studies found, but rather a symptom of and a signal of relatively poor performance.
Exchange Rate And Expropriation Risk In Multinational Capital Budgeting: A Stochastic Calculus Appoach
John Pointon and Vince Hooper
Multinational companies undertake their capital budgeting decisions within a harsh environment of volatile exchange rates and political risks as well as other factors. This paper develops a capital budgeting framework, by applying a geometric Brownian motion process to model the exchange rate behaviour and a Poisson process to reflect the arrival of an expropriation by a hostile government. A practical example of the stochastic model is given in this paper. The solution to the stochastic model could be used by multinational managers as a decision tool, especially for those companies where expropriation risk is a cause for concern.
Quality And Value: An Exploratory Study
Jillian C Sweeney and Geoffrey N Soutar
Product quality has become accepted as a vital strategic marketing variable. Recently service quality has also attracted much attention, in product as well as in service organisations. The need for a measure beyond quality that is more closely associated with purchase intentions has, however, been noted by several researchers. Consumer value, which has been suggested as filling this need, has come under closer scrutiny by marketing organisations because of its potential impact on business performance and is seen as a powerful force in today's marketplace.
This paper discusses exploratory research that investigated the meaning of the concepts of quality and value from the consumers' point of view and discusses findings in the light of previous research. Results suggest that, for some consumers, the two concepts are equivalent but, for others, they are very different. Further, value is perceived along several dimensions. Suggestions as to modelling the value construct are given along with suggestions for further research to increase understanding of the relevance of the various value dimensions.
Quality Self-Assessment: Managing The Quality Journey
Ton van der Wiele and Alan Brown
Quality award models have stimulated considerable interest in quality management and provided guidelines for organisations seeking to introduce quality management. In this paper the authors discuss the use of quality awards, specifically the Australian Quality Award model as a self-assessment mechanism for management to monitor progress in the pursuit of Total Quality Management.
The paper focuses on how self-assessment can be beneficial and the use of the quality award framework to assist with this process. Several case examples are given to demonstrate how the guidelines can be applied in practice.The conclusion is that the award models give a comprehensive idea of the criteria for a Total Quality Management organisation. These criteria are important for measuring the progress of TQM in the organisation and for establishing the direction for improvement activities.