Internal audit department characteristics/activities and audit fees : some evidence from Hong Kong firms

This study provides preliminary support for the notion that internal audit function assists in reducing external audit effort and fees. Data on internal audit characteristics and activities are obtained from survey respondents of Hong Kong companies and audit fee model data are acquired from their annual reports. The results of this study suggest that the external auditor of firms in Hong Kong rely on the internal audit function and subsequently charge a lower fee. Lower external audit fees are associated with a larger internal audit department and certain activities carried out by the internal audit. Specifically, lower external audit fees are associated with more internal audit effort spent on activities relating to financial statements, systems development and maintenance, operating efficiency and effectiveness, fraud investigations and unlimited access to internal auditors’ working papers. The results of this study suggest that the contribution of the internal audit may substitute for some substantive external auditing processes and lower monitoring costs.

Sustainable infrastructure project planning : progress in contemporary decision support tools

Most infrastructure project developments are complex in nature, particularly in the planning phase. During this stage, many vague alternatives are tabled - from the strategic to operational level. Human judgement and decision making are characterised by biases, errors and the use of heuristics. These factors are intangible and hard to measure because they are subjective and qualitative in nature. The problem with human judgement becomes more complex when a group of people are involved. The variety of different stakeholders may cause conflict due to differences in personal judgements. Hence, the available alternatives increase the complexities of the decision making process. Therefore, it is desirable to find ways of enhancing the efficiency of decision making to avoid misunderstandings and conflict within organisations. As a result, numerous attempts have been made to solve problems in this area by leveraging technologies such as decision support systems. However, most construction project management decision support systems only concentrate on model development and neglect fundamentals of computing such as requirement engineering, data communication, data management and human centred computing. Thus, decision support systems are complicated and are less efficient in supporting the decision making of project team members. It is desirable for decision support systems to be simpler, to provide a better collaborative platform, to allow for efficient data manipulation, and to adequately reflect user needs. In this chapter, a framework for a more desirable decision support system environment is presented. Some key issues related to decision support system implementation are also described.

Project-based organisations : overcoming lack of trust and social networks within small and medium project teams

In sustainable development projects, as well as other types of projects, knowledge transfer is important for the organisations managing the project. Nevertheless, knowledge transfer among employees does not happen automatically and it has been found that the lack of social networks and the lack of trust among employees are the major barriers to effective knowledge transfer. Social network analysis has been recognised as a very important tool for improving knowledge transfer in the project environment. Transfer of knowledge is more effective where it depends heavily on social networks and informal dialogue. Based on the theory of social capital, social capital consists of two parts: conduits network and resource exchange network. This research studies the relationships among performance, the resource exchange network (such as the knowledge network) and the relationship network (such as strong ties network, energy network, and trust network) at the individual and project levels. The aim of this chapter is to present an approach to overcoming the lack of social networks and lack of trust to improve knowledge transfer within project-based organisations. This is to be done by identifying the optimum structure of relationship networks and knowledge networks within small and medium projects. The optimal structure of the relationship networks and knowledge networks is measured using two dimensions: intra-project and inter-project. This chapter also outlines an extensive literature review in the areas of social capital, knowledge management and project management, and presents the conceptual model of the research approach.

The effects of content presentation format and user characteristics on novice developers’ understanding of process models

Process models are used by information professionals to convey semantics about the business operations in a real world domain intended to be supported by an information system. The understandability of these models is vital to them being used for information systems development. In this paper, we examine two factors that we predict will influence the understanding of a business process that novice developers obtain from a corresponding process model: the content presentation form chosen to articulate the business domain, and the user characteristics of the novice developers working with the model. Our experimental study provides evidence that novice developers obtain similar levels of understanding when confronted with an unfamiliar or a familiar process model. However, previous modeling experience, the use of English as a second language, and previous work experience in BPM are important influencing factors of model understanding. Our findings suggest that education and research in process modeling should increase the focus on human factors and how they relate to content and content presentation formats for different modeling tasks. We discuss implications for practice and research.

Human resource behaviour simulation in business processes

The structure and dynamics of a modern business environment are very hard to model using traditional methods. Such complexity raises challenges to effective business analysis and improvement. The importance of applying business process simulation to analyze and improve business activities has been widely recognized. However, one remaining challenge is the development of approaches to human resource behavior simulation. To address this problem, we describe a novel simulation approach where intelligent agents are used to simulate human resources by performing allocated work from a workflow management system. The behavior of the intelligent agents is driven a by state transition mechanism called a Hierarchical Task Network (HTN). We demonstrate and validate our simulator via a medical treatment process case study. Analysis of the simulation results shows that the behavior driven by the HTN is consistent with design of the workflow model. We believe these preliminary results support the development of more sophisticated agent-based human resource simulation systems.

Developing an IS-Impact decision tool : a literature based design science roadmap

This paper derives from research-in-progress intending both Design Research (DR) and Design Science (DS) outputs; the former a management decision tool based in IS-Impact (Gable et al. 2008) kernel theory; the latter being methodological learnings deriving from synthesis of the literature and reflection on the DR ‘case study’ experience. The paper introduces a generic, detailed and pragmatic DS ‘Research Roadmap’ or methodology, deriving at this stage primarily from synthesis and harmonization of relevant concepts identified through systematic archival analysis of related literature. The scope of the Roadmap too has been influenced by the parallel study aim to undertake DR applying and further evolving the Roadmap. The Roadmap is presented in attention to the dearth of detailed guidance available to novice Researchers in Design Science Research (DSR), and though preliminary, is expected to evolve and gradually be substantiated through experience of its application. A key distinction of the Roadmap from other DSR methods is its breadth of coverage of published DSR concepts and activities; its detail and scope. It represents a useful synthesis and integration of otherwise highly disparate DSR-related concepts.

A design science research roadmap

This paper proposes and synthesizes from previous design science(DS) methodological literature a structured and detailed DS Roadmap for the conduct of DS research. The Roadmap is a general guide for researchers to carry out DS research by suggesting reasonably detailed activities.Though highly tentative, it is believed the Roadmap usefully inter-relates many otherwise seemingly disparate, overlapping or conflicting concepts. It is hoped the DS Roadmap will aid in the planning, execution and communication of DS research,while also attracting constructive criticism, improvements and extensions. A key distinction of the Roadmap from other DS research methods is its breadth of coverage of DS research aspects and activities; its detail and scope. We demonstrate and evaluate the Roadmap by presenting two case studies in terms of the DS Roadmap.

Ensuring Correctness During Process Configuration via Partner Synthesis

Variants of the same process can be encountered within one organization or across different organizations. For example, different municipalities, courts, and rental agencies all need to support highly similar processes. In fact, procurement and sales processes can be found in almost any organization. However, despite these similarities, there is also the need to allow for local variations in a controlled manner. Therefore, many academics and practitioners have advocated the use of configurable process models (sometimes referred to as reference models). A configurable process model describes a family of similar process models in a given domain. Such a model can be configured to obtain a specific process model that is subsequently used to handle individual cases, for instance, to process customer orders. Process configuration is notoriously difficult as there may be all kinds of interdependencies between configuration decisions. In fact, an incorrect configuration may lead to behavioral issues such as deadlocks and livelocks. To address this problem, we present a novel verification approach inspired by the “operating guidelines” used for partner synthesis. We view the configuration process as an external service, and compute a characterization of all such services which meet particular requirements via the notion of configuration guideline. As a result, we can characterize all feasible configurations (i. e., configurations without behavioral problems) at design time, instead of repeatedly checking each individual configuration while configuring a process model.