Elaine G. Mauldin

An Experimental Examination of Alternative Forms of Web Assurance for Business‐to‐Consumer e‐Commerce

This study reports the results of an experiment that examined alternative forms of web assurance for “B2C” e‐commerce. Specifically, using a repeated measures design, variations in purchase intent were examined across four within‐subjects web site conditions (two MP3 players and two digital cameras from different web sites) and five between‐subjects assurance conditions (undirected or directed retailer disclosures, VISA, TRUSTe, and WebTrust™). The effects of assurance (present vs. absent) on purchase intent were studied relative to the roles of retailer disclosures, information risk (security, disclosure, and product risk), and familiarity (with the retailer and product). Control variables encompassing previous Internet and online purchase experiences, general intent to buy online, and web site design were also incorporated in the study. No differences in intent to purchase were found for the three assurance conditions and they were combined for further data analysis. Results indicate that higher intent ...

Towards a meta-theory of accounting information systems

Abstract The purpose of this paper is to articulate a model for accounting information systems (AIS) research that synthesizes the primary theoretical perspectives of the extant literature. Building on the three orientations used in prior research (technological, organizational and cognitive approaches) and adopting an explicit systems perspective, we develop a model that links system design alternatives to the three orientations and to task performance. The model places a central focus on the accounting task and suggests a matching process between requirements of the task and system design alternatives at multiple levels of analysis. We also demonstrate how the application of the model suggests future research opportunities, organized around four research propositions.

An Experimental Examination of Information Technology and Compensation Structure Complementarities in an Expert System Context

This paper investigates the interaction between compensation structures and expert system technology. One hundred twenty‐two participants selected a contract (fixed pay or performance‐contingent incentives) and performed one of two risk‐rating tasks either in the presence or absence of an externally valid expert system. For both tasks, the expert system increased decision accuracy only for participants selecting performance‐contingent incentives, and these incentives increased decision accuracy only in the presence of the expert system, consistent with a complementary interaction. The results support the view that expert system technology changes task requirements and, hence, may also change self‐selection and effort compensation contracting effects. The results provide evidence about the interdependence of organization, system, and individual factors in determining task performance, and suggest that organizational performance may be improved through the joint implementation of expert systems and performa...

RETRACTED: Continuous monitoring and the status quo effect

Hunton et al. (Hunton J., Mauldin E., Wheeler P. Potential functional and dysfunctional effects of continuous monitoring. The Accounting Review 2008; 83(6):1551-1569) observed that while continuous monitoring reduced earnings management of discretionary expenditures, it also dampened the willingness of managers to increase investment in a risky but viable long-term project. The current study examines why continuous monitoring appeared to trigger such risk aversion. Sixty-one managers participated in a vignette-based experiment that replicated Hunton et al. (2008), except that instead of making their own decisions, participants evaluated a fictitious manager, Bob, who already made a decision consistent with the results reported in Hunton et al. (2008). This revised design seeks to minimize self-presentation bias while providing further evidence about the reasons for Hunton et al.s (2008) results. As expected, we find that continuous monitoring (relative to periodic monitoring) increased the perceived likelihood that Bobs decisions would be detected and the likelihood that Bob would be asked to justify his decisions to his superiors. We also find that managers rated the status quo decision to maintain the current level of investment in the ongoing project (made under continuous monitoring) easier to defend than either the decision to increase or decrease the current level of investment (made under periodic monitoring). Further, the status quo decision was viewed as equally credible and trustworthy to superiors as increasing the investment in the project, the latter being judged as most consistent with both the long-term success of the project and Bobs future opportunities. Combined, these results suggest that continuous monitoring can increase the perceived need to justify, which in turn encourages managers to maintain the status quo. Implications for practice and research are discussed.

IMPROVING AUDITOR INDEPENDENCE – THE PRINCIPLES VS. STANDARDS DEBATE: SOME EVIDENCE ABOUT THE EFFECTS OF TYPE AND PROVIDER OF NON-AUDIT SERVICES ON PROFESSIONAL INVESTORS’ JUDGMENTS

Abstract In response to reported corporate irregularities, in 2002 Congress and the General Accounting Office (GAO) addressed the issue of auditor independence in ways which continue to contrast the approaches identified as “principles vs. standards.” Non-audit services are included in the revisions because of concerns that auditor independence, in fact or appearance, could be impaired when the auditor also provides their client with non-audit services and that even a perceived lack of independence could cause investors to be less likely to invest in a company’s securities. This paper discusses differences in the revised regulations and reports the results of an experiment examining the impact of non-audit services on professional investors’ judgments with implications for the regulations’ relative effectiveness. The results indicate that the participants’ stock recommendations did not vary between outsourced internal audit and mergers and acquisitions non-audit services. Both were considered to impair independence, supporting the GAO’s principles-based approach to auditor independence. Further, the participants issued about twice as many “sell” stock recommendations when the non-audit services were provided by an associated entity than by either the accounting firm itself or an unrelated firm, supporting the GAO’s standard for, and the SEC’s expected administrative treatment of, associated entities.

How do auditors address control deficiencies that bias accounting estimates

Auditors commonly rely on reviewing managements estimation process to audit accounting estimates. When control deficiencies bias the estimation process by creating omissions of critical inputs, standards require that auditors replace or supplement review of managements estimation process with tests that can identify the omissions. Importantly, overreliance on reviewing managements estimation process when it has been biased by a control deficiency can result in auditor acceptance of an inappropriate accounting estimate. We use an experiment to examine whether auditors recognize the insufficiency of increased sampling of a biased estimation process and their selection of alternative tests to replace or supplement review of the biased estimation process. We find that a significant minority (33 percent) of Big 4 senior auditors erroneously increase tests of managements biased estimation process. We also find that auditors have difficulty selecting alternative tests to replace or supplement review of managements biased estimation process, frequently choosing tests that are either ineffective or inefficient. Our findings suggest that auditors often reach inappropriate judgments about the capability of audit evidence to address control deficiencies and that nonsampling risk (judgment risk) may be a larger risk than auditors realize.

Systematic differences in employee stock ownership plan contributions: some evidence

Abstract Under current federal law, ESOPs are intended to provide an employee benefit and also meet corporate financial objectives. These dual purposes may not always be compatible. This study examines total retirement plan contributions, using data from Department of Labor Form 5500s, and demonstrates systematic differences in those contributions between companies establishing the ESOP for different reasons. A significant increase in benefits after the ESOP is implemented is found in those firms using the ESOP primarily as an employee benefit with no apparent finance objectives, while a significant decrease in benefits is found in those firms using the ESOP primarily for corporate finance reasons. The difference in benefits suggests that the reason an ESOP is adopted may make a difference to the employees of the firm. Further analysis links total retirement contributions to a measure of firm productivity. ESOPs with positive increases in total retirement benefits are associated with increases in sales per employee.