The Greying Church: The Impact of Life Expectancy on Religiosity

Many churches are concerned about older and dwindling congregations. We develop a theoretical framework to explain not only the downward trend in church attendance, but also the increase in the proportion of older people in the congregations. Religiosity depends positively on the expected social and spiritual benefits attached to religious adherence, as well as the probability of entering heaven in the afterlife. While otherworldly compensation in terms of salvation and spiritual benefits motivates religiosity, the costs of formal religion in terms of time allocated to communal activities and foregone income work in the opposite direction. We show that higher life expectancy discounts expected benefits in the afterlife and is hence likely to lead to postponement of religiosity. For this reason, religious organizations should be prepared to attract older members to their congregations, while emphasizing contemporaneous religious benefits to increase overall church attendance.

Factors Affecting Audit Quality in the 2007 UK Regulatory Environment: Perceptions of Chief Financial Officers, Audit Committee Chairs and Audit Engagement Partners

In line with global changes, the UK regulatory regime for audit and corporate governance has changed significantly since the Enron scandal, with an increased role for audit committees and independent inspection of audit firms. UK listed company chief financial officers (CFOs), audit committee chairs (ACCs) and audit partners (APs) were surveyed in 2007 to obtain views on the impact of 36 economic and regulatory factors on audit quality. 498 usable responses were received, representing a response rate of 36%. All groups rated various audit committee interactions with auditors among the factors most enhancing audit quality. Exploratory factor analysis reduces the 36 factors to nine uncorrelated dimensions. In order of extraction, these are: economic risk; audit committee activities; risk of regulatory action; audit firm ethics; economic independence of auditor; audit partner rotation; risk of client loss; audit firm size; and, lastly, International Standards on Auditing (ISAs) and audit inspection. In addition to the activities of the audit committee, risk factors for the auditor (both economic and certain regulatory risks) are believed to most enhance audit quality. However, ISAs and the audit inspection regime, aspects of the ‘standards-surveillance compliance’ regulatory system, are viewed as less effective. Respondents commented that aspects of the changed regime are largely process and compliance driven, with high costs for limited benefits, supporting psychological bias regulation theory that claims there is overconfidence that a useful regulatory intervention exists.