ABSTRACT Both in Canada and internationally, accounting firms are struggling to recruit and retain staff. One underexplored factor that may help to explain and resolve these challenges concerns the integration of equity, diversity, and inclusion (EDI) considerations into firms' organizational processes. The accounting profession, in general, and accounting firms, in particular, have made significant progress in EDI aims, supported by the implementation of numerous initiatives and substantial investments. However, organizational processes designed to recruit, onboard, and promote those professionals deemed to be the highest performers—that is, the “ideal” auditors—still too often lead to the loss of qualified talent. Drawing on the academic literature, we show that certain practices, though not necessarily designed with discriminatory intent, remain non‐inclusive and thus hinder the access, advancement, and retention of several underrepresented groups within the profession. We further analyze the mechanisms and biases that contribute to these dynamics and propose various avenues for reducing bias in organizational processes and promoting greater EDI within accounting firms.
RÉSUMÉ Tant au Canada qu'à l'international, les cabinets comptables éprouvent des difficultés à recruter et à retenir leur personnel. Un facteur moins souvent mis de l'avant, mais susceptible d'expliquer ces enjeux et de contribuer à leur résolution, concerne l'intégration des considérations liées à l'équité, à la diversité et à l'inclusion (EDI) dans les processus organisationnels des cabinets. La profession comptable, de manière générale, et les cabinets comptables, plus particulièrement, ont pourtant réalisé des progrès notables en matière d'EDI, soutenus par le déploiement de nombreuses initiatives et par des investissements importants. Toutefois, alors que les cabinets comptables cherchent à recruter, socialiser et promouvoir les professionnels jugés les plus performants—soit les auditeurs « idéaux »—, leurs processus organisationnels conduisent encore trop souvent à la perte de talents qualifiés. En nous appuyant sur la littérature académique, nous montrons que, sans avoir nécessairement été conçues dans une optique discriminatoire, certaines pratiques demeurent peu inclusives et entravent l'accès, la progression et la rétention de plusieurs groupes sous‐représentés au sein de la profession. Nous analysons les mécanismes et les biais qui contribuent à ces dynamiques et proposons plusieurs pistes visant à réduire les biais dans les processus organisationnels et à promouvoir une plus grande équité, diversité et inclusion au sein des cabinets comptables.
ABSTRACT At present, work related to the diverse needs of current and prospective accounting practitioners, regardless of how they identify, has come under attack, especially in the United States. Initiatives variously labeled as diversity, equity, and inclusion (DEI); diversity, equity, inclusion, and belonging (DEIB); equity, diversity, Indigeneity, inclusion, and belonging (EDIIB); or some other acronym of equity and inclusion have been targeted by US government officials who seek to exterminate these efforts through intimidation. Some organizations have resisted the pressure, but others have capitulated, rescinding previous claims of the importance of diversity and inclusion in the business world. As DEI policy commitments vanish, part of the DEI world crumbles. For the accounting profession, it is an old story: Profit‐logic prevails over social justice. For those still interested in the latter, what is the next step? How can practitioners promote the goals of DEI in a way that works? This paper seeks to provide guidance to practitioners by (1) sharing best practices, (2) providing a window into relevant research, and (3) providing thoughtful tips to help practitioners navigate the present attempts to minimize the DEI world.
ABSTRACT Building on evidence that firms grant employee stock options (ESOs) in order to retain employees, we assess the impact of Financial Accounting Standard (FAS) 123R, and the reduction in ESO use that followed its adoption, on employee retention at the metropolitan statistical area (MSA) level. We assess two primary measures of employee turnover at the MSA level: the number of quarterly separated employees (overall separations) and the number of quarterly separated employees that find new employment within the same or adjacent quarter of separation (voluntary separations). Using a difference‐in‐differences design, we find relatively greater post–FAS 123R employee turnover in (1) MSAs with lower noncompete enforceability levels and (2) MSAs from states with greater R&D expenditure and no inevitable disclosure doctrine (IDD) laws, where IDD laws potentially deter employees from working for a competing firm. Our results suggest that the adoption of FAS 123R had a negative impact on firms' ability to retain employees in jurisdictions where employers had an ex ante incentive to compensate their employees with ESOs for retention purposes. We further show that these effects are amplified in financially constrained regions and are driven by employee reallocation to sectors unaffected by the regulation.
The exchange and sharing of knowledge within organizations is a critical element of organizations' success. In this research, our objective is to synthesize and critically assess the knowledge-sharing research published between 2006 and 2023. We address this objective in three ways. First, we conduct a systematic review of the accounting literature studying knowledge sharing from 27 highly ranked accounting journals across 17 years. Second, we organize and summarize the findings based on research themes. Third, we shed light on gaps in knowledge-sharing research and identify opportunities for future research in the knowledge-sharing field. L'& eacute;change et le partage des connaissances au sein des organisations sont des & eacute;l & eacute;ments essentiels & agrave; leur r & eacute;ussite. Dans le pr & eacute;sent article, nous visons & agrave; synth & eacute;tiser et & agrave; & eacute;valuer de fa & ccedil;on critique les & eacute;tudes portant sur le partage des connaissances publi & eacute;es entre 2006 et 2023. Nous abordons cet objectif de trois fa & ccedil;ons. D'abord, nous effectuons un examen syst & eacute;matique de la litt & eacute;rature sur la comptabilit & eacute; portant sur le partage des connaissances, parue dans 27 revues comptables prestigieuses sur une p & eacute;riode de 17 ans. Ensuite, nous classons les r & eacute;sultats par th & egrave;mes de recherche et les r & eacute;sumons. Enfin, nous faisons ressortir les lacunes dans la recherche sur le partage des connaissances et cernons des possibilit & eacute;s d'& eacute;tudes dans ce domaine.
ABSTRACT Accountants must master a considerable body of highly complex knowledge to attain the level of professional proficiency required to comply with accounting standards and uphold their public responsibility. Postsecondary education and professional certification bodies provide only a portion of the technical knowledge that accountants need to perform, while a significant amount of learning occurs in the workplace. By conducting a systematic literature review, we organize the identified research into topical areas using an established learning framework. Given the importance of workplace learning for the profession, the outcomes of this review are twofold: first, to synthesize and critically assess the literature on how accountants, across all areas of practice, learn outside of educational programs, and second, to identify avenues for future research in this domain. Our findings suggest that research on workplace training continues to be important for both novice and experienced accountants given the rapid advancements in technology, regulatory updates, and emerging areas. We also encourage more research to examine workplace learning in areas outside of audit and assurance.
ABSTRACT This case challenges students to apply managerial accounting concepts in the context of the Paris 2024 Olympic Games, a large‐scale event shaped by uncertainty, complexity, and public accountability. Positioned as advisors evaluating financial and strategic decisions before the Games, students analyze sponsorship value, cost structures, pricing pressures, and security planning using forward‐looking assumptions. The case reinforces core topics such as cost behavior, breakeven analysis, and cost allocation by requiring students to exercise judgment, test assumptions, and navigate trade‐offs with incomplete information. Its modular structure allows instructors to focus on one or more components, making it adaptable for a single session or multiple classes. Designed for introductory and intermediate managerial accounting courses, this case encourages students to move beyond procedural thinking and engage with managerial accounting as a practical tool for decision‐making in complex environments.
ABSTRACT There is growing interest in both practice and research on the use of prosocial rewards to recognize and motivate employees, though prior research mainly focuses on their motivational effects on effort. We use an experiment to examine the relative effectiveness of prosocial rewards versus cash rewards at increasing the likelihood of whistleblowing internally within the organization. We focus on a common organizational setting in which the employee encounters uncertainty when assessing the occurrence and impact of potential misconduct. We find that prosocial rewards (vs. no rewards) increase the whistleblowing likelihood and are also not less motivating than cash rewards, despite the personal economic disadvantage to the whistleblower. Our mediation analyses provide some weak evidence that the positive effect of prosocial rewards on whistleblowing works indirectly through increasing the perceived morality of whistleblowing, whereas no such indirect effect is observed for cash rewards. Our study offers insight on the outcomes of using prosocial versus cash rewards in internal whistleblower programs for organizations interested in incentivizing whistleblowing with different reward types.
ABSTRACT We investigate the impact of sustainability report assurance and assurance provider characteristics (i.e., Big 4, statutory auditor, and industry specialist) on the cost of equity in a setting in which reporting is mandatory and assurance is voluntary. Furthermore, we analyze the impact of peer behavior on these relationships, where peer behavior is defined as the proportion of other companies in the same industry and year that also opt for voluntary assurance or choose an assurance provider with the same characteristics. Our sample consists of German CDAX companies for the period 2017–2022. The results suggest that voluntary sustainability report assurance reduces the cost of equity, but this depends on peer behavior. Specifically, the cost‐of‐equity‐reducing effect of voluntarily choosing assurance or choosing the statutory auditor as assurance provider is diminished as more peers choose assurance or choose their statutory auditor, respectively.
ABSTRACT Academic misconduct has likely been an issue for as long as there have been graded assessments, and the COVID‐19 pandemic has arguably exacerbated the problem. Not surprisingly, most current research has focused on cheating in the online environment. This paper redirects these efforts to in‐class academic fraud by examining the joint influence of individual‐level psychopathy and elements comprising the fraud diamond on face‐to‐face exam cheating. Our findings indicate a direct and indirect association between psychopathy and exam cheating behaviors, as predicted. Moreover, there are observable differences in the reported cheating behaviors and other responses of interest based on respondents' reported psychopathy levels.
We perform a systematic literature review in accordance with the Preferred Reporting Items for Systematic reviews and Meta‐Analyses (PRISMA) protocol to uncover the characteristics and evolution of research on joint audits. The sample includes 53 papers published in the Scopus database from January 2007 to May 2025. Although many researchers have examined the primary benefits and drawbacks of joint auditing, the research on this subject remains relatively sparse compared to other areas of auditing, suggesting it warrants further exploration. Most joint audit research has focused on two main aspects—audit quality and fees—while only a few studies have examined audit report delays, the concentration of the audit market, and other limited topics related to joint auditing. This study also offers critical perspectives for future research avenues. This analysis serves as a valuable resource for researchers and practitioners seeking to deepen their understanding of joint audits.
Artificial intelligence (AI) tools are used to assist auditors in analyzing large amounts of data, automating audit tasks, and identifying risks and opportunities. AI can help improve the efficiency and accuracy of the auditing process as well as create value for both audit firms and their clients. Research on AI has grown rapidly over recent decades, yet the conceptualization and research structure remain disintegrated. This study aims to identify the current state of knowledge on AI and auditing using a bibliometric analysis. We analyze 219 papers collected using the Scopus database and highlight the most relevant manuscripts, countries, keywords, and journals and the most influential authors in this domain. The findings also highlight specific themes and elucidate gaps for future research on AI and auditing.
A long-standing debate exists between neutrality and conservatism in financial reporting. This debate has gained momentum following the 2010 FASB decision to remove the term conservatism from its Conceptual Framework. While neutrality is now promoted as a cornerstone of faithful representation, conservatism remains embedded in numerous accounting standards. We revisit the conceptual and practical tensions between these two principles. We introduce the idea of a spectrum of reporting bias, ranging from aggressive to conservative, with neutrality as the aspirational midpoint. Drawing on the evolution of the FASB's framework, historical episodes, and recent standard-setting developments, we examine the economic rationales behind conservatism and assess whether it supports or conflicts with the goal of neutral financial reporting. We identify implications for standard setters and practitioners and outline a research agenda to advance the understanding of this important tenet in financial reporting. Un d & eacute;bat de longue date oppose la neutralit & eacute; et le conservatisme dans le domaine de la communication d'information financi & egrave;re. Ce d & eacute;bat s'est intensifi & eacute; & agrave; la suite de la d & eacute;cision du FASB, en 2010, de retirer le terme conservatisme de son cadre conceptuel. Bien que la neutralit & eacute; soit d & eacute;sormais pr & eacute;sent & eacute;e comme un & eacute;l & eacute;ment essentiel d'une repr & eacute;sentation fid & egrave;le, le conservatisme demeure int & eacute;gr & eacute; dans de nombreuses normes comptables. Nous r & eacute;examinons les tensions, tant conceptuelles que pratiques, qui existent entre ces deux principes. Nous pr & eacute;sentons le concept d'un spectre des biais en information financi & egrave;re, s'& eacute;chelonnant d'une approche agressive & agrave; une approche conservatrice, et dont la neutralit & eacute; constitue le point m & eacute;dian vis & eacute;. En nous appuyant sur l'& eacute;volution du cadre du FASB, des situations historiques et les r & eacute;centes avanc & eacute;es dans le domaine de la normalisation, nous examinons les fondements & eacute;conomiques qui sous-tendent le conservatisme et & eacute;valuons s'il contribue ou nuit & agrave; l'atteinte de l'objectif d'offrir une information financi & egrave;re neutre. Nous cernons les cons & eacute;quences pour les normalisateurs et les praticiens et pr & eacute;sentons un programme de recherche visant & agrave; approfondir la compr & eacute;hension de ce principe fondamental en mati & egrave;re d'information financi & egrave;re.
We investigate the impact of sustainability report assurance and assurance provider characteristics (i.e., Big 4, statutory auditor, and industry specialist) on the cost of equity in a setting in which reporting is mandatory and assurance is voluntary. Furthermore, we analyze the impact of peer behavior on these relationships, where peer behavior is defined as the proportion of other companies in the same industry and year that also opt for voluntary assurance or choose an assurance provider with the same characteristics. Our sample consists of German CDAX companies for the period 2017-2022. The results suggest that voluntary sustainability report assurance reduces the cost of equity, but this depends on peer behavior. Specifically, the cost-of-equity-reducing effect of voluntarily choosing assurance or choosing the statutory auditor as assurance provider is diminished as more peers choose assurance or choose their statutory auditor, respectively. Nous examinons l'impact de la certification des rapports de durabilit & eacute; et des caract & eacute;ristiques du certificateur (c.-& agrave;-d., membre des quatre grands cabinets d'audit, auditeur l & eacute;gal et sp & eacute;cialiste de l'industrie) sur le co & ucirc;t des capitaux propres dans un contexte o & ugrave; la production de ces rapports est obligatoire et la certification est volontaire. En outre, nous analysons l'effet du comportement des pairs sur ces relations, le comportement des pairs & eacute;tant d & eacute;fini comme la proportion d'autres compagnies du m & ecirc;me secteur qui, au cours d'une m & ecirc;me ann & eacute;e, optent pour une certification volontaire ou choisissent un certificateur ayant les m & ecirc;mes caract & eacute;ristiques. Notre & eacute;chantillon est constitu & eacute; d'entreprises allemandes composant l'indice CDAX durant la p & eacute;riode de 2017 & agrave; 2022. Les r & eacute;sultats portent & agrave; croire que la certification volontaire des rapports de durabilit & eacute; r & eacute;duit le co & ucirc;t des capitaux propres, mais que cela est tributaire du comportement des pairs. Plus pr & eacute;cis & eacute;ment, l'effet de r & eacute;duction des co & ucirc;ts des capitaux propres caus & eacute; par le fait d'opter volontairement pour une certification ou de choisir l'auditeur l & eacute;gal en tant que certificateur diminue & agrave; mesure qu'un plus grand nombre de pairs optent pour la certification ou choisissent leur auditeur l & eacute;gal comme certificateur, respectivement.
This study investigates how evolving regulatory and professional standards have shaped engagement quality review (EQR) partners' assessments of the review process, compared with an earlier study of review partners' assessments of the EQR process, and how these views differ from those of engagement partners. One hundred sixty-seven audit partners recalled engagements in which they acted either as engagement or EQR partner and resolved difficult issues through discussion. Findings show a marked shift in EQR practice driven by heightened standards and regulatory scrutiny. Reviews now more frequently address complex matters, with sufficiency of audit evidence and internal controls as leading concerns. Valuation has overtaken income recognition as the most cited accounting issue, underscoring inspection-driven priorities. Regulatory emphasis on critical audit matters and documentation quality is reflected in EQR partners' greater focus on these areas, alongside changes in their independence and composition. Perceptions between partners diverge. Engagement partners often see resolutions as leaning toward the EQR's stance and attach greater career risk to outcomes, whereas EQR partners view discussions as collegial and guided by standards and expertise. Overall, the EQR process has become more rigorous, independent, and consequential for audit quality and professional dynamics within firms. La pr & eacute;sente & eacute;tude examine de quelle fa & ccedil;on l'& eacute;volution des normes r & eacute;glementaires et professionnelles a influenc & eacute; les & eacute;valuations du processus de revue de la qualit & eacute; de la mission (RQM) r & eacute;alis & eacute;es par les associ & eacute;s responsables de la RQM, en & eacute;tablissant une comparaison avec une & eacute;tude ant & eacute;rieure portant sur l'& eacute;valuation du processus de RQM, et analyse en quoi ces perspectives diff & egrave;rent de celles des associ & eacute;s responsables de la mission. Cent soixante-sept associ & eacute;s d'audit ont d & eacute;crit des missions dans lesquelles ils ont agi soit & agrave; titre d'associ & eacute; responsable de la mission, soit & agrave; titre d'associ & eacute; responsable de la RQM, et ont r & eacute;solu des enjeux complexes dans le cadre de discussions. Les r & eacute;sultats font & eacute;tat d'une & eacute;volution marqu & eacute;e des pratiques de RQM, laquelle est attribuable & agrave; des normes plus contraignantes et & agrave; une surveillance r & eacute;glementaire accrue. Les revues portent de plus en plus souvent sur des questions complexes, et le caract & egrave;re suffisant des & eacute;l & eacute;ments probants d'audit et des contr & ocirc;les internes figurent parmi les principales pr & eacute;occupations. L'& eacute;valuation a supplant & eacute; la comptabilisation des recettes & agrave; titre de question comptable la plus souvent cit & eacute;e, ce qui met en lumi & egrave;re les priorit & eacute;s d & eacute;gag & eacute;es lors des inspections. L'accent r & eacute;glementaire mis sur les questions cl & eacute;s de l'audit et sur la qualit & eacute; de la documentation se refl & egrave;te dans l'attention accrue que les associ & eacute;s responsables de la RQM portent & agrave; ces aspects, de m & ecirc;me que dans les changements qui touchent & agrave; leur ind & eacute;pendance et & agrave; leur composition. Les perceptions divergent entre associ & eacute;s : aux yeux des associ & eacute;s responsables de la mission, ces enjeux sont souvent r & eacute;solus par l'adh & eacute;sion & agrave; la position de la RQM, et ils associent les r & eacute;sultats & agrave; un risque professionnel plus important, tandis que les associ & eacute;s responsables de la RQM per & ccedil;oivent les discussions comme & eacute;tant coll & eacute;giales et guid & eacute;es par les normes et l'expertise professionnelle. Dans l'ensemble, le processus de la RQM est devenu plus rigoureux, plus ind & eacute;pendant et plus d & eacute;terminant pour la qualit & eacute; de l'audit ainsi que pour les relations professionnelles au sein des cabinets.
This case challenges students to apply managerial accounting concepts in the context of the Paris 2024 Olympic Games, a large-scale event shaped by uncertainty, complexity, and public accountability. Positioned as advisors evaluating financial and strategic decisions before the Games, students analyze sponsorship value, cost structures, pricing pressures, and security planning using forward-looking assumptions. The case reinforces core topics such as cost behavior, breakeven analysis, and cost allocation by requiring students to exercise judgment, test assumptions, and navigate trade-offs with incomplete information. Its modular structure allows instructors to focus on one or more components, making it adaptable for a single session or multiple classes. Designed for introductory and intermediate managerial accounting courses, this case encourages students to move beyond procedural thinking and engage with managerial accounting as a practical tool for decision-making in complex environments.
Accountants must master a considerable body of highly complex knowledge to attain the level of professional proficiency required to comply with accounting standards and uphold their public responsibility. Postsecondary education and professional certification bodies provide only a portion of the technical knowledge that accountants need to perform, while a significant amount of learning occurs in the workplace. By conducting a systematic literature review, we organize the identified research into topical areas using an established learning framework. Given the importance of workplace learning for the profession, the outcomes of this review are twofold: first, to synthesize and critically assess the literature on how accountants, across all areas of practice, learn outside of educational programs, and second, to identify avenues for future research in this domain. Our findings suggest that research on workplace training continues to be important for both novice and experienced accountants given the rapid advancements in technology, regulatory updates, and emerging areas. We also encourage more research to examine workplace learning in areas outside of audit and assurance. Les comptables doivent ma & icirc;triser un ensemble consid & eacute;rable de connaissances tr & egrave;s complexes afin d'atteindre le niveau de comp & eacute;tence professionnelle requis pour se conformer aux normes comptables et assumer leur responsabilit & eacute; & agrave; l'& eacute;gard du public. L'& eacute;ducation postsecondaire et les organismes de certification professionnelle fournissent seulement une partie des connaissances techniques dont les comptables ont besoin pour exercer leur profession; une part importante de l'apprentissage a lieu au travail. Dans le cadre d'une revue syst & eacute;matique de la litt & eacute;rature, nous structurons les & eacute;tudes retenues selon des champs th & eacute;matiques & agrave; l'aide d'un cadre d'apprentissage & eacute;tabli. Compte tenu de l'importance de l'apprentissage en milieu de travail pour la profession, les r & eacute;sultats de cette revue sont doubles : d'abord, une synth & egrave;se et une & eacute;valuation critique de la litt & eacute;rature portant sur la fa & ccedil;on dont les comptables, dans tous les secteurs de pratique, apprennent en marge des programmes & eacute;ducatifs, ensuite des pistes pour la recherche & agrave; venir dans ce domaine. Nos observations portent & agrave; croire que la recherche sur la formation au travail continue d'avoir son importance tant pour les comptables d & eacute;butants que pour les plus exp & eacute;riment & eacute;s, compte tenu des avanc & eacute;es rapides de la technologie, des mises & agrave; jour r & eacute;glementaires et des secteurs & eacute;mergents. Nous encourageons aussi la r & eacute;alisation d'& eacute;tudes additionnelles visant & agrave; examiner l'apprentissage au travail dans des domaines autres que l'audit et la certification.
