International Journal of Critical Accounting (3 papers in press)

Regular Issues

• Assurance and consultancy internal audit roles in information technology risk management and investment decisions  
  by Reda Elazab, Ismail Gomma 
  Abstract: The purpose of this paper is to explore the impact of the disclosure of assurance and consultancy internal auditing roles in Information Technology (IT) risk management on investment decisions. The methodology used is an experiment where the disclosure of assurance and consultancy internal auditing roles in IT risk management and judgments about investments are made for three internal auditing disclosure in IT risk management scenarios. The results indicate that the disclosure of internal auditing roles in IT risk management has a positive impact on either investment decisions or stock market expectations. These results provide evidence that the disclosure of assurance and consultancy internal auditing roles in IT risk management provides signals to the stock markets. This is the first paper to examine whether intentions to invest and stock price expectations might be affected by the disclosure of assurance and consultancy internal auditing roles in IT risk management.
  Keywords: internal audit; risk management; investment decisions.
  
  
• Factors influencing the perception of non-accounting students in introductory accounting taught in universities in Ghana  
  by Newman Amaning, Edward Quansah, Tahir Ahmed Andzie, Leticia Sam, Paschal Kpimekuu Boruzie 
  Abstract: Stereotyping of the accounting profession by the public dates back over half a century ago when O’Dowd and Beardslee in 1960 first reported evidence of prejudiced perceptions about the accounting profession. This issue has since attracted attention of accounting education. This study, thus, aimed to examine the factors influencing the perception of undergraduate non-accounting students in introductory accounting taught in Ghana. We used both purposive and convenient sampling methods to collect data from a cross section of undergraduate non-accounting students pursuing introductory accounting in universities in Ghana. The study employed PLS SEM and process models in analysing the data collected from 333 respondents. Our findings indicated that occupational choice factors, the accounting curriculum, media representation, and teachers and career advisors have significant influence on the perception of undergraduate non-accounting students in introductory accounting taught in Ghana. However, it was found that both workplace tension and ignorance do not have such influence. Besides, when the gender of the undergraduate students is controlled, their perception in the subject is improved. The outcomes of this study have policy and practical implications to enhance effective teaching and learning of introductory accounting taught in Ghana and are, thus, discussed.
  Keywords: perception; undergraduate non-accounting students; introductory accounting; Ghana.
  
  
• Contingent perspective on the auditor-client relationship: a new determinant of audit quality  
  by Niels Van Nieuw Amerongen, Patrick Nieuwenhuizen 
  Abstract: Agency theory, which emphasises the importance of auditor independence, has dominated auditing research for many decades. Under this theory, the dyadic contractual relationship between auditor and client is perceived as undesirable because it is seen as biasing the auditor towards their clients. We call for a re-evaluation of the impact on audit quality of the auditor-client relationship, based on important insights from sociology, in particular drawing on the literature on social exchange theory. We suggest that, while agency theory remains applicable in the domain of public interest entities (and other settings that include separation of management and ownership), social exchange theory is more closely applicable to small and medium-sized entities (in non-PIE settings) that value a relational approach over a transactional approach. Therefore, we argue that a contingent perspective should be applied. Subsequently, the contribution of a high-quality auditor-client relationship towards audit quality requires audit firms and individual auditors to implement both individual and organisational controls to maintain objectivity. Our analysis suggests that the benefits for audit quality of a good auditor-client relationship may have been underrated by auditors as well as audit clients.
  Keywords: agency theory; social exchange theory; SET; auditor-client relationship; sociological controls; audit quality.