The provision of business advice to SMEs by external accountants

Purpose – Business advisory services are an emerging service category for external accountants in the small and medium-sized enterprise (SME) environment. The purpose of this study is to investigate determinants of SME demand for business advice, drawing on the agency theory, relational marketing and resource-based literatures.

Design/methodology/approach – The study empirically tested theoretical predictions based on an Australia-wide survey of SMEs, in which 485 firms responded to a questionnaire.

Findings – The results show that the purchase of business advice is significantly and positively associated with the perceived competence of the external accountant, but significantly and negatively associated with length of the relationship. However, the authors observe a significant positive interaction between tenure of the relationship and competence. A unique contribution of this study is the development of the understanding of the combined role of the external accountant’s competence and the tenure of the relationship. The findings indicate that SMEs require time to verify whether accountants have the competence to provide business advice, suggesting that information asymmetry and uncertainty is minimised only after SMEs have nurtured relationships with their external accountants, and after they have developed some confidence in the competence of their external accountants. At the same time, the negative association with tenure suggests that when accountants are not perceived as competent advisors, SMEs purchase less advice over time.

Research limitations/implications – The paper has important theoretical implications by augmenting agency theory, the relational marketing and the resource-based literature, and it clarifies which antecedent factors are important in explaining demand for business advisory services provided by accountants to their SME clients. In particular, the paper highlights the importance of the combined roles that the external accountant’s competence and tenure play in the SME–accountant relationship, highlighting how these two factors can overcome credence issues and ex ante information problems.

Practical implications – The findings have practical implications for government initiatives targeting support to SMEs, as the findings identify small firms and firms planning to grow as likely to gain the greatest benefit from external advice and support.

Originality/value – This study adds to the limited literature and scant theoretical discussions on the emergence of business advisory services that accountants provide to their SME clients by drawing on several theories to explain the determinants of business advice.

Eiffel assertions and the external structure of classes and objects

The “external structure” in an object oriented system refers here to the  graphs of objects and classes. The class structure graph or class model is derived from the object structure graph or object model, and in this operation structural information is lost, or never made explicit. Although object oriented programming languages capture the class model as declarations,  contradictory assumptions about object model properties may be made introducing faults into the design. Consistent assumptions about the object model can be specified in the code using assertions such as Eiffel’s  invariants, preconditions and postconditions. Three examples specifying the external structure are considered.

Assessing financial competence

Some people have cognitive impairments that may reduce their capacity to manage their own financial affairs. The legal decision to limit a person's right to manage his or her own finances depends, in part, on an assessment of financial competence. Currently, tribunals and courts may receive information from a variety of different sources (e.g., family members, general practitioner, psychologist, social worker etc.) and have to reconcile this information in order to make guardianship decisions. The first aim of this article is to critique contemporary methods, procedures and practices for assessing financial competence. The second aim is to suggest a standard assessment framework that could be employed by tribunals and courts to help them evaluate the status of a person's financial competence.

General practitioners' perspectives regarding competence and confidentiality in an adolescent with suspected anorexia nervosa: legal and ethical considerations

In Victoria, Australia, the legal position regarding young people's competence to make medical treatment decisions has not been clarified in legislation, and a number of often vague common law decisions must be relied on for guidance. This situation produces a degree of uncertainty about appropriate professional practice, while also potentially impeding young people's rights claims in health care settings. With this in mind, the present research explored general practitioners' competence and confidentiality decisions regarding a 17-year-old female who presented with symptoms of an eating disorder. Questionnaires were sent to a random sample of 500 Victorian general practitioners, of whom 190 responded. After reading a case vignette, general practitioners indicated whether they would find the hypothetical patient competent and if they would maintain her confidentiality. Seventy-three per cent of respondents found the patient competent and most would have maintained confidentiality, at least initially. However, subsequent analysis of the rationales supplied for these decisions revealed a wide diversity in general practitioners' understandings and implementations of extant legal authority. This research highlights the need for general practitioners to be exposed to up-to-date and clinically relevant explanations of contemporary legal positions.

Dimensions of financial competence

Whether or not someone has the ability to look after his or her own financial affairs is one of the most common problems brought before courts and tribunals in Australia. At present, there is no agreed-upon objective standard for assessing financial competency. The aims of this study were twofold: (1) to clarify which financial skills and tasks are considered important to adults in the Australian community when assessing financial competence; and (2) to evaluate a model of financial competence proposed by Webber, Reeve, Kershaw and Charlton. Professional service providers and students judged the importance of 61 skills, tasks and characteristics related to financial competence. The results supported a 6-factor model of financial competence. The findings suggest that it is possible to identify agreed-upon criteria for financial competency and provide a first step towards the development of a valid scale of financial competency.

General practitioners' competence and confidentiality determinations with a minor who requests the oral contraceptive pill

The right of minors to make medical treatment decisions is an issue that is not explicitly addressed in the legislation of most Australian jurisdictions. While recent common law decisions allow competent minors to consent to treatment, current legislation in Victoria does not provide adequate guidelines on how competence is to be measured. It is also unclear whether the duty of confidentiality is extended to competent minors. The current study explored general practitioners' competence and confidentiality decisions with a hypothetical 14-year-old patient who requests the oral contraceptive pill (OCP). Questionnaires were sent to 1,000 Victorian general practitioners, 305 of whom responded. General practitioners were asked to determine whether "Liz" was competent to request the OCP, and whether they would maintain her confidentiality. A total of 81% of respondents found the patient competent, while 91% would have maintained her confidentiality. Results indicate that the majority of general practitioners used rationales that generally did not conform to current legal principles when making competence and confidentiality determinations regarding this patient.

Comparing external and internal dorsal-spine bands to interpret the age and growth of the giant lantern shark, Etmopterus baxteri (Squaliformes: Etmopteridae)

The giant lantern shark, Etmopterus baxteri, is taken as bycatch of commercial fisheries that operate in deepwater off southeastern Australia. Bands on the second dorsal spine were used to obtain age estimates. The number of bands on the external surface of the spine and within the inner dentine layer increased with animal length. Most spines had more bands on the external surface, and the rate of band formation was significantly different between the external surface and the inner dentine layer. Females had a maximum of 57 external bands and 26 internal bands, while males had up to 48 external bands and 22 internal bands. Age estimates from external bands suggest maturity (A ₅₀) at 20 years for males and 30 years for females. Internal band age estimates suggest maturity at 10.5 years for males and 11.5 years for females. Although there is a large discrepancy between these two preliminary (i.e., unvalidated) age estimates, they both suggest that E. baxteri is a long-lived and late maturing species that is likely to be susceptible to over fishing.

Professional competence for private practitioners in occupational therapy

The aim of the present study was to investigate the meaning of professional competence for occupational therapy private practitioners and their experience of the barriers to professional competence. Semi-structured interviews with 16 key informants from private practice in Victoria elicited diverse opinions and experiences. However, the difficulty of assessing competence, and the lack of standards that identify competent practice for occupational therapy were major themes in the findings. The role of theory in competent practice was evident in discussion but it was not clearly articulated by many participants. Experiences of professional socialisation varied yet participants perceived input from peers as contributing to assuring competence. Major barriers to professional competence were identified as professional isolation, time and finances. The present study highlights the complexity of current attempts to assess professional competence for practising occupational therapists including the implementation of an accreditation program by The Australian Association of Occupational Therapists Inc. (OT AUSTRALIA), the peak body representing occupational therapists.

Applying external solutions to organizational development : elearning as a platform for internal growth

Innovations in technology have facilitated eLearning process development, bringing significant impact into education. eLearning is not simply putting study materials online on the Web, nor is it a substitute for traditional classroom teaching (KPMG, 2002). Businesses worldwide have been using eLearning as a facilitator in organisational development through knowledge sharing, especially in the area of web based training and project management. eLearning has also become a large area of potential business for many organisations. In this study, we explore how eLearning has helped an organisation based in India – Tata Interactive Systems (part of TATA conglomerate), which provides eLearning solutions for businesses locally and globally. In this single case study, we explored how the organisation has not only utilised eLearning as an internal development process, but also successfully converted this learning into business opportunities for itself. To study the development process, we have applied the process theories of Van De Ven and Poole (1995).

Educating for professional capability in the field of information technology: integrating industry-based learning with the academic curriculum

In response to the forces of globalisation, societies and organisations have had to adapt and even proactively transform themselves. Universities, as knowledge-based organisations, have recognised that there are now many other important sites of knowledge construction and use. The apparent monopoly over valued forms of knowledge making and knowledge certification is disappearing. Universities have had to recognise the value of practical working knowledge developed in workplace settings beyond university domains, and promote the value of academic forms of knowledge making to the practical concerns of everyday learning. It is within this broader systems view that professional curriculum development undertaken by universities needs to be examined.

University educational planning responds to these external forces in ways that are drawing together formal academic capability/competence and practice-based capability/competence. Both forms of academic and practice-based knowledge and knowing are being equally valued and related one to the other. University planning in turn gives impetus to the development of new forms of professional education curricula. This paper presents a contemporary case of a designed professional curriculum in the field of information technology that situates workplace learning as a central element in the education of Information Technology (IT)/Information Systems (IS) professionals.

The key dimensions of the learning environment of Deakin University’s BIT (Hons) program are considered with a view to identifying areas of strong integration between the worlds of academic and workplace learning from the perspectives of major stakeholders. The dynamic interplay between forms of theorising and practising is seen as critical in educating students for professional capability in their chosen field. From this analysis, an applied research agenda, relating to desired forms of professional learning in higher education, is outlined, with specific reference to the information and communication technology professions.

Assessing financial competence in older adults with cognitive impairment

One common problem brought before Courts and Tribunals in Australia is whether or not someone is able to manage his or her own financial affairs. The problem is that currently in Australia there are no universally agreed upon standards for assessing financial competence. The aim of this study was to examine the reliability and validity of a new measure of financial competence, The Financial Competence Assessment Inventory (FCAI), in assessing financial competency of older adults with a cognitive impairment. The sample comprised 18 older adults with acquired brain injury, 10 adults with schizophrenia, 21 adults with dementia and 27 older adults without cognitive impairment. Ages ranged from 55 to 91. Each participant was individually interviewed using the FCAI. The findings revealed that the FCAI is a reliable and valid assessment tool for assessing financial competence of older adults with different types and levels of cognitive impairment. In particular, the FCAI was able to distinguish between older adults with global brain impairment and older adults with specific brain impairment; and older adults who had a legal administrator and older adults who did not. In addition, using the FCAI it was possible to obtain a profile of participants’ strengths and weaknesses across six domains of financial competence including; everyday financial abilities, financial judgment, estate management, cognitive based financial tasks, debt management, and support resources. The FCAI has the potential to assist clinicians and legal decision-makers regarding ‘least restrictive alternatives’ when financial competence is in question.

Emotional turmoil at the Bauhaus : problems of internal and external legitimacy : an historical case study

Walter Gropius established the Bauhaus in Germany in 1919. The organization established one of the most important design movements of the twentieth century. The organization had a very brief existence and was fraught with disruptions and emotional turmoil. Despite the difficulties, Gropius managed to keep the organization alive long enough for its extraordinary creativity to be harnessed and developed. The organization closed in 1933, but by that time its legitimacy as a source of design and pedagogy was assured. Organizational survival is often dependent on government subsidies, support through sales, donations or sponsorships. A factor in attracting this support is the perceived legitimacy of the organisation. Legitimacy is defined as a degree of consensus that the meanings and behavior of an organisation are valid and desirable by society in
general. Legitimacy remains an undeveloped concept. This paper reviews relevant theories of legitimacy, considers the role of emotions in shaping legitimacy and the emotions evoked as legitimacy is negotiated by internal and external stakeholders. A historical case study of the Bauhaus provides the backdrop for portraying the focal role emotions can play in institutionalization. The paper concludes with a discussion of the lessons of legitimacy available to contemporary cultural organisations.