Anne Fortin

The Internal Audit Function in Information Technology Governance: A Holistic Perspective

ABSTRACT: The internal audit functions (IAF) role has evolved from traditional (accounting and financial control) to more strategic (governance). The business environment has changed as well, and nowadays relies considerably on information technology (IT). Only a few studies have investigated IT governance from a holistic perspective. Further, no study has closely examined IAF involvement in IT governance as a whole. This study uses a holistic approach to describe IAF involvement in IT governance and to explore the influence of IAF characteristics on this involvement. Survey results indicate that IAF involvement in IT governance structures, processes, and relational capabilities has not fully expanded. Also, IAF resources and IT audit experience, IT personnel and IT training/certification, and interaction between the IAF and board of directors committees influence IAF involvement in overall IT governance. These IAF characteristics influence each dimension of IAF involvement in IT governance differently. ...

Exploring IT Dependence and IT Governance

The purpose of this study is to identify the IT governance mechanisms that are used at different levels of IT dependence (defensive or offensive IT modes) and to compare the degree of their use between these IT modes. The results of a survey suggest that the degree of use of IT governance mechanisms varies by IT mode, and it is greater when a firm is in offensive versus defensive IT mode.

The effects of a tax dividend cut on payout policies: Canadian evidence

Purpose - – The purpose of this paper is to examine whether the significant dividend tax rate reduction for individual investors in Canada in 2006 affected firms’ payout policies. Design/methodology/approach - – Using regression models, the authors examine the impact of the 2006 dividend tax cut on dividends and share repurchases in Canadian listed firms from 2003 to 2008. The authors also ran a multinomial logit regression to examine choices between payout policies. Findings - – Following the tax cut, firms increased their dividend payouts, with larger increases for firms in which shareholders benefited from the reduced tax rate. However, the 2006 tax cut appears to have had no negative effect on distributions through share repurchases. After the 2006 dividend tax cut, firms owned by shareholders subject to dividend taxes were more likely to use a combination of distribution mechanisms than share repurchases only, dividends only, or no payouts. Practical implications - – Shareholders’ tax preferences are an important factor for firms to consider when designing payout distribution policies. Following the 2006 dividend tax cut, firms increased their dividend payouts. Social implications - – The findings provide tax regulators with insight into how firms react to tax reform. They suggest that firms adapt their payout policy in the face of: a noteworthy dividend tax cut (6.2 per cent); a dividend tax cut that does not encourage tax arbitrage; and a dividend tax cut that does not economically favour dividend payment over share repurchases. Originality/value - – The paper considers the 2006 dividend tax rate cut in Canada, which presents a number of significant features that allow capturing the effect of a tax cut on payout policies.

Skinner's Thoughts on Professional Judgment and Recent Developments in Canadian Financial Reporting*/ LES RÉFLEXIONS DE SKINNER QUANT AU JUGEMENT PROFESSIONNEL ET LES RÉCENTS DÉVELOPPEMENTS DE L'INFORMATION FINANCIÈRE AU CANADA

In this commentary, we examine recent developments in Canadian financial reporting related to (1) the conceptual framework, (2) accounting standards, and (3) corporate governance issues, in light of Skinners (1995) thoughts on professional judgment. We consider how effective these developments are in addressing several questions and concerns raised by Skinner.

The moderating role of IT-business alignment in the relationship between IT governance, IT competence, and innovation

ABSTRACT Results from a survey of senior executives/officers in charge of IT suggest that while greater IT governance triggers more innovation, IT-business alignment does not moderate this relationship. Executive management IT competence has a direct and positive impact on innovation, and this relationship is stronger when moderated by IT-business alignment. However, regardless of IT-business alignment, innovation is not significantly affected by the board’s IT competence but is positively impacted by IT intensity. This study extends the IS literature on the role of IT in innovation and contributes to the IT governance literature.

Ineffective Learning Strategies: A Significant Barrier to Post-Secondary Perseverance.

Abstract Study programme withdrawal and student perseverance in post-secondary education are major challenges for post-secondary institutions, especially in view of the increasing difficulty of retaining the student clientele during the first year of university studies. To analyse the challenges students face in terms of learning strategies, we asked students to identify the cognitive and self-regulatory strategies that they would like to enhance in order to succeed in their education. We conduct a descriptive analysis of 824 respondents from 7 university accounting programmes to highlight the main learning strategies that failed to work for our sample, mainly for time management, listening, and reading, and attention, concentration, and memorisation management. The students report that they are unable to effectively manage their time (balance family, work, and studies) or estimate the time they need to devote to their studies. They mention being unaware of strategies for easily retaining the information they read in books or texts and for listening to teacher presentations, doing exercises to apply the procedures that they are required to learn, or problem solving. They also report difficulties with concentration and recall. Learning difficulties, lack of project writing skills, and thinking about dropping out are found to be positively related to study withdrawal. Gaps in information search strategies and feeling dissatisfied with results despite the effort expended negatively affect student academic performance and thus increase the likelihood of student withdrawal.

Payout differences between family and nonfamily listed firms

Purpose – The purpose of this paper is to explain family firm payout decisions based on socioemotional wealth (SEW) considerations. Design/methodology/approach – A sample of publicly listed Canadian companies is examined for the period from 2003 to 2008. Distinguishing family firms from nonfamily firms, a Probit regression is used to analyze the likelihood of making a payout. For payout firms, regressions are used to analyze the relationship between payout level (dividends and share repurchases) and payout mix and family firms. Findings – Results indicate that family firms are more likely to make a payout than nonfamily firms. Among payout firms, the level of payout among payout firms is lower for family firms than for nonfamily firms and their portion of payout in the form of dividends is higher. Lone founder family firms have a lower likelihood of making payouts than other family firms. However, among payout firms, they pay out more than other family firms and have a smaller percentage of their total pa...

Nontraditional student withdrawal from undergraduate accounting programmes: a holistic perspective

ABSTRACT A collaborative project of several Quebec universities, this study investigates nontraditional student withdrawal from undergraduate accounting programmes. A nontraditional student is older than 24, or is a commuter or a part-time student, or combines some of these characteristics. Univariate and multivariate analyses of student dropout factors were performed. A logistic regression for full-time students indicates several significant determinants of student withdrawal: returning to school after working for some time, enrolment in a non-first choice programme, dissatisfaction with programme choice and courses, and low grade point average (GPA). For part-time students, low GPA is the main explanatory factor for student withdrawal. Other factors appear to be instrumental in withdrawal decisions, such as management of external resources (time and family responsibilities) for women. The results suggest that students would benefit from university support services to acquire learning strategies that improve perseverance. Lastly, in-class learning activities that help bolster grades could decrease student withdrawal rates.

Users’ legitimacy perceptions about standard-setting processes

Standard-setting institutions require legitimacy to survive. Prior research infers their legitimacy mainly from the characteristics of standard-setting processes rather than from the legitimacy judgments of important constituencies. Using a survey of financial analysts, we quantitatively assess users’ perceptions about the characteristics of standard-setting processes, the relationships between these characteristics and legitimacy perceptions, and users’ legitimacy perceptions. Our first contribution is to use a sample of sophisticated financial statement users to empirically examine the theoretical proposition that users’ legitimacy perceptions could be a function of the perceived characteristics of standard-setting processes. We find that users’ perceptions about the characteristics of standard-setting processes affect the legitimacy they attribute to these processes. A combination of pragmatic, moral and cognitive legitimacies are at play in such legitimacy assessments. Our second contribution is to point out the importance of separately investigating various types of legitimacy, as users’ perceptions about them vary. Lastly, our third contribution is to highlight that the distinction between users’ perceptions of the characteristics of standard-setting processes and their legitimacy perceptions is not always clear-cut and that there are multiple interrelations among these concepts.

IFRS adoption and the opinion of OHADA accountants

With market globalisation and the adoption of international financial reporting standards (IFRSs) by more and more countries worldwide, it seems appropriate to investigate the level of IFRS knowledge among African accountants working in countries belonging to the Organization for the Harmonization of Business Law in Africa (OHADA). It is also important to determine how they feel about the relevance of IFRSs in Africa. This study is a seminal step towards any level of IFRS adoption by African standards setters and companies. The results indicate that participants appear to have fairly good knowledge of IFRSs and are in favour of applying them for listed companies, but not for all businesses. These results may be of interest to OHADA and will provide data for future decisions about the evolution of accounting standards in OHADA member countries.