Auditor communication in an evolving environment : going beyond SAS 600 auditors' reports on financial statements

In 1993 the Auditing Practices Board issued an expanded audit report, SAS 600 Auditors’ Reports on Financial Statements, in an attempt to educate users and to clarify certain matters pertaining to the audit function. This paper investigates the extent to which the new audit report, SAS 600, has been successful in aligning the views of auditors, preparers and users about issues dealt with in the expanded audit report, and the extent to which the three groups considered that it would be useful for additional matters, including corporate governance, to be reported upon by the auditor. Our findings suggest that SAS 600 has been successful in clarifying the purpose of the audit and the respective responsibilities of auditors and directors. However, to meet the expectations of users and to add more value, the audit report needs to provide more information about the findings of the audit.

Salaries, recruitment, and retention for CRNA faculty - Part 1

The nature of differences in salaries between academic faculty and Certified Registered Nurse Anesthetists (CRNAs) working in clinical positions using recently collected data are explored. The differences in median salaries among program directors, assistant program directors, academic faculty, and clinical faculty are large. Furthermore, survey results imply that the most important barrier to recruiting teaching faculty is salary differentials. Part 1 of this 2-part column discusses salaries, recruitment, and retention of CRNA faculty; Part 2, to be published in the June 2008 issue, will focus on clinical faculty contributions to the education of CRNAs.

Invisible ties : implicit contracting and its implications for the agency relationship in corporate governance research

Research that applies agency theory to boards of directors suffers from being quite narrow as it does not recognize the true legal relationships between directors, managers and shareholders. Instead, the board of directors is best conceptualized as the principal, management as agents and stockholders’ relationships as a mix of legal and implicit contracts. We propose a recast agency relationship and develop a contingency approach that proposes (1) how a corporation’s goals vary with a board’s implicit contracting and (2) a reconceptualization of the agency problem facing boards.

The Construction and Performance of Commercial Contracts

This book analyses the principles underlying the construction and application of a number of boilerplate and other clauses commonly included in commercial contracts. The first Part of the work deals with general principles of interpretation. It then considers clauses which allocate commercial risk; clauses relating to performance; clauses introducing new parties by way of assignment, novation or nomination; clauses such as guarantees and indemnities which create liabilities in third parties; and dispute resolution clauses including governing law. The authors highlight common issues surrounding the application of these clauses in practice and, where appropriate, make drafting recommendations based on their analysis of case law and the operation of relevant statutes. This is a very accessible resource for all commercial practitioners.

Enterprise Business Technology Governance: Three Competencies to Build Board Digital Leadership Capability.

The competent leadership of digital transformation needs to involve the board of directors. The reported lack of such capability in boards is becoming a pressing issue. A part of leadership in such transformation is the board of director’s competence to lead Enterprise Business Technology Governance (EBTG). In this paper we take the position that EBTG competencies are essential in boards, because competent EBTG has been shown to contribute to increased revenue, profit, and returns. We update and expand on the results of a multi-method approach to the development of a set of three board of director competencies needed for effective EBTG.

Turnbull : generating undue expectations of the corporate governance role of audit committees

Following an initial consultation draft (Turnbull 1999a), the Internal control Working Party of the Institute of Chartered Accountants in England and Wales, chaired by Nigel Turnbull, executive director of Rank Group plc. has published Internal Control: Guidance for Directors of Listed companies Incorporated in the UK (Turnbull, 1999b). The guidance is commonly referred to as the Turnbull Report. This paper outlines the key recommendations of the report and discusses some of its implications, particularly in the context of the increasing emphasis on a broader corporate governance role for audit committees. The paper suggests that the increasing role envisaged of audit committees for example lately in the UK by Turnbull, may generate undue expectations are premised on an unsubstantiated notion of the contribution of audit committees.

Public policy on corporate audit committees : case study evidence of current practice

Corporate failures and malpractices have led to an increasing emphasis on the governance role of audit committees. The Smith report Audit Committee Combined Code Guidance and the Higgs Review of the Role and Effectiveness of Non-Executive Directors (now incorporated in a Revised Combined Code) represent further attempts to strengthen corporate accountability in the UK. Although the regulatory focus on audit committees indicates confidence in their role as part of the solution to governance failures, questions remain about their efficacy in practice. Against the background of the publication of the Smith report and the wider reliance on audit committees in several countries to help improve corporate accountability, this paper provides research evidence, drawn from an ACCA-sponsored project, on the processes and effects of the audit committees in three UK companies. This study complements other research on audit committees by adopting a case study approach, in order to reflect the importance of investigating audit committee operations from within the organisation and to develop a closer understanding of audit committee impact than is available from generally observable data. The empirical evidence for the case studies was obtained from semi-structured interviews with personnel involved in the audit committee process, internal documents made available by the companies, and publicly available information, including annual reports.

Unpacking director financial literacy : a Delphi study from Australia

The ‘Centro case’ confirmed that each individual director is responsible for financial governance and must be able to ‘read and understand’ financial statements. Despite the centrality of director financial literacy to directors duties, practitioner and academic literature have failed to clearly define or provide evidence-based reliable measures of director financial literacy. This paper seeks to address this weakness by presenting the initial results of a Delphi study on unpacking the conceptualisation of director financial literacy. We have found that director financial literacy involves more than reading and understanding financial statements. Rather, it encompasses capabilities in applying accounting concepts to the analysis and evaluation of financial statements. As such director financial literacy may be more accurately described as ‘director accounting literacy’.

Transmedia Victoria

Christy Dena was commissioned by the Australia Council for the Arts to organise and curate a special conference and workshop event on transmedia. Her brief was to secure all the relevant funding bodies to support it financially (the first time they ever all funded the same event). Christy brought in transmedia professionals from around the world, and targeted directors, writers, designers, and producers, from film, TV, theatre, gaming, music, literature and digital sectors. She curated the audience as well as the speakers. It was a huge success, and follow-up meetups with the IGDA were also organised.

A little learning is a dangerous thing: Factors influencing the increased identification of special educational needs from the perspective of education policymakers and school practitioners

This article considers the increased identification of special educational needs in Australia’s largest education system from the perspectives of senior public servants, regional directors, principals, school counsellors, classroom teachers, support class teachers, learning support teachers and teaching assistants (n = 30). While their perceptions of an increase generally align with the story told by official statistics, participants’ narratives reveal that school-based identification of special educational needs is neither art nor science. This research finds that rather than an objective indication of the number and nature of children with SEN, official statistics may be more appropriately viewed as a product of funding eligibility and the assumptions of the adults who teach, refer and assess children who experience difficulties in school and with learning.

Lindquist and Pytel

The foremost event in the international architecture calendar is the Venice International Architecture Biennale. In 2012, Creative Directors Gerard Reinmuth and Anthony Burke with TOKO Concept Design, led the Australian Pavilion exhibition, entitled FORMATIONS: New Practices in Australian Architecture. The exhibition focus was to explore and celebrate “the nature of innovative configurations of architectural practice in Australia today and the desire for a renewed form of architectural agency which drives them”. The Australian Pavilion exhibition purposely chose to highlight the actions and processes behind contemporary architectural practice, focusing not on ‘starchitecture’ projects but those far reaching and socially-engaged “practitioners who are making a substantial and consequential impact in the field and well beyond it”. FORMATIONS had two overarching themes: (1) to stimulate critical disciplinary commentary on a range of new types of Australian practices and their potentialities and (2) exciting a public audience with a spatially dynamic and thought provoking exhibition of new forms of architectural practice, their spatial consequences and transformative potentials. Six projects were displayed in the Australian Pavilion in Venice, with the printed catalogue showcasing 33 ground-breaking examples of Australian practitioners addressing internationally relevant issues in their practice. Lindquist and Pytels collaborative practice is programmed between the demands of academia and commercial fashion practice. Their interests lie in exploring the relationship between the body, new materiality and its application within different facts of design production. The creative practice is underpinned by scholarly theory such as Heidegger’s "nearness and revealing" (1927-1954), Simondon’s "transduction theory" (1989) and the Burke's "sublime" (1757). Outcomes feedback into academic studio programs, scholarly research and material development for commercial, installation and speculative design production.

The rise of englightened shareholder primacy and its impact on US corporate self-regulation

Enlightened shareholder primacy (“ESP”) is a new approach in the corporate governance (“CG”) framework. The emergence of this approach is important owing to its role in answering a vital question: is the company really a private organisation to be seen only through the economic prism of contract? Or is it public and about a wider group of interests and underwritten by communitarian concern about social responsibility? Apart from answering this question, ESP explains the changes in corporate directors’ roles and self-regulation strategies of companies.

Corporate governance and bankruptcy risk

We examine how firm characteristics, particularly the degree of firm complexity and the firm’s need for specialty knowledge, affect the relationship between corporate governance and the risk of bankruptcy. We find that having larger boards reduces the risk of bankruptcy only for complex firms. Our results also suggest that the proportion of inside directors on the board is inversely associated with the risk of bankruptcy in firms that require more specialist knowledge, and that the reverse is true in technically unsophisticated firms. The results further reveal that the additional explanatory power from corporate governance variables becomes stronger as the time to bankruptcy is increased, implying that although corporate governance variables are important predictors, governance changes are likely to be too late to save a firm on the verge of bankruptcy.

After Darkly Catwalk Design, QUT Fashion Graduate Showcase 2013

QUT Fashion collaborated with QUT Interior Design to design the Catwalk for the After Darkly Graduate Fashion Show 2013. The ephemeral work (catwalk canopy) was developed through a collaboration between the authors based upon an undergraduate interior design unit 'Filmic Interiors'. The unit exploited the potential of film to influence, understand, and develop novel interior spaces – particularly through consideration of mise en scene, cinematic effects and atmospheric design strategies engaged by key film directors. The design outcome represented a hybridisation of student design proposals, contemplating both film and emerging fashion collections from QUT fashion graduate class of 2013. The creative work built upon material experimentation research explored by the designers either through prior QUT interior design units ('Strange Spaces') or through previous practice ‘Making Strange’(1). The work explored a number of iterations each testing material qualities and associated immaterial cinematic affects. The final catwalk proposed a unique design, which posited the spectators centrally within the space, encircled by a hand formed flexible material canopy used as an entrance for the fashion collections. The proposal exploited the malleable yet tensile character of the canopy to inform a temporary installation, intensified further through a varied program of sceno-graphic lighting. (1) Lindquist, M. & Pytel, A. (2013)

Corporate governance quality, audit fees and non-audit services fees

This paper extends prior research on the relationship between governance quality and auditor remuneration.We examine the influence of audit committee effectiveness (ACE), a proxy for governance quality, on audit fees (AF) and non-audit services fees (NASF) using a new composite measure comprising audit committee independence, expertise, diligence and size. We find that after controlling for board of director characteristics, there is a significant positive association between ACE and AF only for larger clients. Our results indicate that effective audit committees undertake more monitoring which results in wider audit scope and higher audit fees. Contrary to our expectations, we find the association between ACE and NASF to be positive and significant, especially for larger clients. This suggests that larger clients are more likely to purchase non-audit services (NAS) even in the presence of effective audit committees probably due to the complexity of their activities. Overall, our findings support regulatory initiatives aimed at improving corporate governance quality.