Eric N. Johnson

Perceived effects of gender, family structure, and physical appearance on career progression in public accounting: A research note

Abstract This study measured whether gender, family structure, and physical appearance are perceived to influence future career success in public accounting. Practicing auditors indicated perceptions of success for 16 hypothetical audit seniors on three separate measures of career potential. Data were analyzed with repeated-measure ANOVAs. Peers who were described as female, married with children, and poor in physical appearance were generally perceived as less likely to succeed. Implications of these findings for both auditors and public accounting firms are discussed.

A review and synthesis of research on supplier concentration, quality and fee structure in non-U.S. markets for auditor services

Abstract This paper reviews and summarizes extant research into auditor concentration, audit quality, and the determinants of audit fees in audit markets outside the United States. Similarities and differences between studies, including methodologies and findings, are discussed. The review identifies some structural differences in audit markets between studies that are traceable to divergences in economic, cultural and social norms across developed and developing nations. The paper concludes with the identification of areas where future research may be most helpful in identifying other differences and similarities in international markets for audit services.

A Field Study of User versus Provider Perceptions of Management Accounting System Services

Purpose - The purpose of this paper is to investigate user versus provider perceptions of management accounting system (MAS) services using the DeLone and McLean information system success model and the theoretical lens of social perception theory. Design/methodology/approach - Quantitative survey data were collected and analyzed using ordinal regression. Qualitative interview data concerning user-provider perceptions of MAS service information quality, importance, use, and satisfaction were utilized to corroborate and explain the data analysis. Findings - The results suggest that there are significant perceptual differences about MAS service quality by users versus providers. For this organization, the paper identifies what these differences are, why they exist, and how organizations may identify and narrow identified gaps. Research limitations/implications - The paper is based on a case study that may not be generalizable to broader populations. It uses a cross-sectional, correlational, self-report survey, therefore is unable to make causal or directional inferences. Future research should assess MAS services in different organizations, industries, and cultures. Practical implications - The paper is among the first to provide quantitative and qualitative evidence of perceived differences in accounting service quality, approaches to uncovering sources of differences, and steps that organizations may take to improve service quality. Originality/value - This paper is the first to apply the DeLone and McLean information system success model in the context of MAS service quality. The paper examines perceptions of MAS providers and users to evaluate services and investigates perceptual differences across functions and at different organizational levels.

A new culture? Evidence of support for diversity in public accounting performance evaluation judgments

Prior research has documented the existence of a white male culture in large public accounting firms that has long dominated most aspects of these firms. This culture has arguably resulted in systematic workplace bias against females and minorities and their exclusion from opportunities for advancement. The accounting profession, led by the Big Five firms, has recently focused efforts on developing a new “diversity culture” intended to make the workplace more accessible to and supportive of all personnel. This exploratory study examines the current impact of race and gender on the performance evaluation judgments of audit seniors representing one Big Five firm. The results indicate that, under some circumstances, the job performance and career prospects of females (both non-white and white) were rated as high as, or higher than, those of white males. The implications of these findings for the profession and future research are discussed.

The Influence of Mood on Subordinates’ Ability to Resist Coercive Pressure in Public Accounting

This study reports on an experiment conducted to assess the influence of different affective mood states on auditors’ ability to resist obedience pressure to commit or overlook unethical acts in six audit contexts. Obedience pressure from superiors to comply with unethical directives is of particular concern in public accounting, given the hierarchical structure of audit teams and the power imbalance in superior–subordinate relationships. One hundred and seventy audit seniors from two large international public accounting firms participated in an experiment. Three different moods were induced in participants through work-related trigger events: one positive active mood state (arousal) and two negative passive mood states (fear and insignificance). These mood states were anticipated to influence auditors’ expressed willingness to comply with their superiors’ unethical directives as set forth in our ethical scenarios. Our results indicate that low levels of arousal and high levels of fear and insignificance influenced compliance intentions. Our results also indicate overall high levels of expressed willingness to comply with superiors’ unethical directives. Implications of our findings for understanding the antecedents of unethical conduct within the accounting profession and for future research are discussed.

Accountability and Role Effects in Balanced Scorecard Performance Evaluations When Strategy Timeline Is Specified

Abstract This study experimentally examines if fixation on lagging financial measures (relative to leading non-financial measures) as reported in prior balanced scorecard literature is mitigated when evaluators are provided with a strategy implementation timeline (a non-manipulated variable). The experiment manipulates whether or not evaluators are subject to process accountability as well as the role to which evaluators are assigned (i.e. supervisor or subordinate). We predict and find that, in general, the provision of an implementation timeline results in evaluators placing more weight on strategically linked, leading non-financial measures within a subordinates time span of control compared to strategically linked, lagged financial measures beyond the subordinates controllable time horizon. However, we also find that evaluators in the role of a supervisor differentiate less between strategically linked non-financial measures that fall within the subordinates control and strategically linked financial measures beyond the subordinates control when held accountable compared to supervisors not held accountable. On the other hand, participants in the role of a subordinate were able to differentiate appropriately between these measures when held accountable. Our results extend prior research by considering how linking a timeline to strategy implementation may assist evaluators when assessing performance in the presence of both leading and lagging strategic measures. Further, reference to an implementation timeline may influence role and accountability effects. Implications for future research in multidimensional strategic performance evaluation are discussed.

A Call for Research on Management Accounting Service Quality

The purpose of this chapter is to encourage investigation of management accounting service quality.

An Exploratory Investigation of Management Accounting Service Quality Dimensions Using Servqual and Servperf

Originality/value: This is the first empirical study to our knowledge that reports on MA service quality dimensions using both the SQ and SP instruments. This study investigated perceptions and expectations of MA service users and providers. Our sample is a cross-section of experienced professionals.

Transferring Classroom Knowledge to Real-World Accounting: The Savings and Loan Crisis

Abstract A topic of concern to accounting educators is whether accounting students can apply knowledge learned in the classroom to complex decisions. A timely example of such an issue is the use of regulatory accounting principles (RAP) versus generally accepted accounting principles (GAAP) by savings and loan institutions (S&Ls) in preparing their financial statements. Sixty-five accounting students and 105 other students at a public university participated in an experiment to determine their preference for two substantially identical S&Ls, one using RAP to inflate its reported net worth and the other using GAAP. Subjects allocated 100 points between the two S&Ls in a simulated deposit decision. Both subject groups exhibited similar preferences in their choice of S&Ls, indicating that accounting students could not distinguish between the two types of accounting principles better than nonaccounting students. Implications of this finding for accounting education are discussed.