Experimental evidence on external auditor reliance on the internal audit

With the revised version of ISA 610 (revised 2013), external auditors now face both requirements and guidance addressing their responsibilities when relying on the internal audit function (IAF). The reliance decision of an external auditor has important economic consequences and implications for the efficiency and effectiveness of the annual audit. Using an experimental design, we explore how German external auditors’ reliance decisions regarding the IAF are affected by varying levels of environmental factors, like client business risk, effectiveness of the internal control system, and quality of the corporate governance. Furthermore, the experiences of external auditors in collaborating with an IAF are taken into consideration. The results indicate main effects for each factor and a two-way interaction between the effectiveness of the internal control system and the quality of corporate governance. Specifically, a strong internal control system can compensate for weaknesses in corporate governance with respect to the confidence of external auditors in the IAF. Also, the type of audit procedure influences the willingness of auditors to rely on the IAF, and the inherent risk of the examined transaction strengthens the negative impact of client business risk on the reliance decision. Moreover, past experiences of external auditors with an IAF have a significant impact on their reliance decision. Overall, the findings suggest that organizations can foster internal–external auditor coordination by enhancing corporate governance effectiveness and strengthening the internal control system.

     

Life Balance and Work Addiction Among NCAA Administrators and Coaches

Intercollegiate athletics represent an industry prone to challenges of work addiction and life balance. Work addiction and life balance domains in male and female intercollegiate athletic coaches and administrators (N = 245) were examined using multiple regression analysis. Higher levels of stress/anxiety, sleep disturbance, and career satisfaction and lower levels of quality of relationships and friendships were the strongest predictors of work addiction. Counseling focused on reducing the negative aspects of work addiction, while maintaining job performance, may benefit this population.     

Analyzing the Efficient Execution of In‐Store Logistics Processes in Grocery Retailing—The Case of Dairy Products

In this article, we examine in‐store logistics processes for handling dairy products, from the incoming dock to the shelves of supermarkets and hypermarkets. The efficient execution of the in‐store logistics related to such fast‐moving, sensitive, and essential items is challenging and crucial for grocery retailers' sales, profits, and image. In our empirical study, we survey in‐store logistics processes in 202 grocery supermarkets and hypermarkets belonging to a major retail chain in central Europe. Using a data envelopment analysis (DEA) and simulation, we facilitate process benchmarking. In particular, we identify ways of improving in‐store logistics processes by showing the performance impacts of different managerial strategies and tactics. The DEA results indicate different efficiency levels for different store formats; the hybrid store format of the small hypermarket exhibits a comparatively worse performance in the analyzed execution of in‐store logistics processes. The process simulation analysis reveals that the strategic and tactical design of in‐store logistics processes (such as store locations/layouts, capacity management, reorder time, order period, and safety stock factors) lead to substantial service performance improvements (such as higher on‐shelf availability combined with reduced inventory obsolescence costs). The results also show marginal improvements in the performance figures when delivery delays and damage to products are reduced.     

The role of character in ethical leadership research

The study of character is a legitimate and essential topic for the analysis of leadership in organizations. We undertake three key objectives in this article to stimulate meaningful dialogue. First, a brief historical overview of the extant body of literature on character is provided. Second, working definitions of character and character-based leadership are introduced. Third, new directions for organizational scholars interested in examining the role of character-based leadership in both their research and teaching domains are suggested.     

Professional women: are distress and disease inevitable?

The unique sources of stress for professional women are discrimination, stereotyping, the marriage/work interface, and social isolation. The behavioral, physiological, and psychological consequences of mismanaged stress are examined and four preventive stress management moderators specifically for professional women suggested. These moderators that influence the stress-strain relationships are a mentor, locus of control, self-confidence, and self-awareness. Finally, a three-point research agenda is outlined for extending understanding of stress among professional women.     

An analysis of anti-money laundering in the German non-financial sector

Journal of Management and Governance - European anti-money laundering (AML) law obliges both financial and non-financial private companies to contribute to combatting money laundering. Since the...