What are the sensory individuals of audition? What are the entities our auditory system attributes properties to? We examine various proposals about the nature of the sensory individuals of audition, and show that while each can account for some aspects of auditory perception, each also faces certain difficulties. We then put forward a new conception of sensory individuals according to which auditory sensory individuals are composite individuals. A feature shared by all existing accounts of sounds and sources is that they (...) postulate sensory individuals that are non-composite. They identify the sensory individual of sound hearing or source hearing with one type of entity in the environment, be they sound waves, vibrations, or interactions. We question this assumption and argue that our perceptual systems represent two or more aspects of the environment as a single sensory individual. Finally, we show that taking auditory individuals to be composite sensory individuals allows for an account of audition that is less problematic than its existing alternatives. (shrink)

This study investigates whether audit partner gender is associated with the extent of auditor disclosure and the communication style regarding risks of material misstatements that are classified as key audit matters. Using a sample of UK firms during the 2013–2017 period, our results suggest that female audit partners are more likely than male audit partners to disclose more KAMs with more details after controlling for both client and audit firm attributes. Furthermore, female audit partners (...) are found to use a less optimistic tone and provide less readable audit reports, compared to their male counterparts, suggesting that behavioural variances between female and male audit partners may have significant implications on their writing style. Therefore, this study offers new insights on the role of audit partner gender in extended audit reporting. Our findings have important implications for audit firms, investors, policymakers and governments in relation to the development, implementation and enforcement of gender diversity. (shrink)

In this paper, we investigate the link between audit committees and earnings management providing a more comprehensive simultaneous analysis of the influence of audit committee features using a sample of 485 firm-years from Singapore's publicly traded firms during the 2000 2001 calendar period. Empirical findings indicate firms with a higher proportion of independent audit committee members are more effective at constraining earnings management. Firms with audit committees that are more diligent and/or lack the presence of independent (...) directors serving simultaneously on a substantial number of boards and committees are more effective at constraining earnings management. These findings are robust to alternative income-incentives facing corporate management. Overall, our findings have implications for stakeholders, regulators, and corporate governance. For example, our findings infer policymakers may need to focus on other audit committee characteristics to strengthen the committee's ability to constrain earnings management rather than continue the present fixation with independence. (shrink)

This article presents a theorized and conceptually informed method for the undertaking of an ethics audit organization. At an operational level, the overall integrity of an organization, it is argued, may be evaluated through the application of a conceptual frame-work that embraces the inter-related themes of individual responsibility, social equity and political responsibility. Finally, a method is presented for ethics audit which was developed in the auditing of a national public sector sports organization: sportscotland. This emphasizes the significance (...) of key personnel (individuals and in groups) in producing and reproducing the organizational ethos, whilst recognizing the importance of anonymity and confidentiality throughout the process. The theoretical terrain of the ethics audit is articulated through a consideration of ethics as applied moral philosophy, equity as social justice and corporate governance as the moral health (or otherwise) of a public sector sports organization. (shrink)

If cultures are always in the making, this book catches one kind of culture on the make. Academics will be familiar with audit in the form of research and teaching assessments - they may not be aware how pervasive practices of 'accountability' are or of the diversity of political regimes under which they flourish. Twelve social anthropologists from across Europe and the Commonwealth chart an influential and controversial cultural phenomenon.

Concept auditing explores the obligation of philosophers to honor the existing meanings of terms and concepts such as knowledge, truth, justice, fairness, and beauty. Nicholas Rescher explains how philosophers’ treatments of topics relate to our presystematic understanding and how their deliberations should relate to the prevailing conception of the matters.

Our exploratory study considers whether the internal audit function is an efficient “third line of defense” for risk management and control as proposed by The Institute of Internal Auditors. To that end, we interview chief audit executives and experienced internal auditors to examine whether CAEs manage the impressions of audit committee members in the annual accountability process. We also provide an illustration of impression management techniques through a documentary case that explores a unique and exclusive dataset consisting (...) of the main guidance, framework, and accountability documents of one of these organizations. Our analysis highlights how several macro- and microimpression management techniques were used to burnish the image of internal auditors and, more importantly, the management team. Rather than monitoring managers, the CAEs team up with them. Our findings cast doubts on the conceptualization of internal audit as the independent third line of defense envisioned to be a keystone of the governance mosaic. This study supports other research that questions the effectiveness of internal auditing as a governance mechanism. It also contributes to the impression management literature by exposing impression management practices that occur through a private reporting channel—the internal audit function’s annual accountability to the audit committee. Last but not least, significant ethical concerns are raised in regard to internal audit, and research is urged in that area. (shrink)

In this paper a corporate social responsibility audit is developed following the underlying methodology of the quality award/excellence models. Firstly the extent to which the quality awards already incorporate the development of social responsibility is examined by looking at the Malcolm Baldrige National Quality Award and the European Quality Award. It will be shown that the quality awards do not yet include ethical aspects in relation to social responsibility. Both a clear definition of social responsibility and an improved (...) class='Hi'>audit instrument are required. A definition and an audit instrument are developed which stimulate movement in that direction and help organisations to reflect on their position in relation to social responsibility. (shrink)

There is an international consensus that medical research involving humans should only be undertaken in accordance with ethical principles. Paradoxically though, there is no consensus over the kinds of activities that constitute research and should be subject to review. In the UK and elsewhere, research requiring review is distinguished from clinical audit. Unfortunately the two activities are not always easy to differentiate from one another. Moreover, as the volume of audit increases and becomes more formal in response to (...) the demand for evidence-based practice in medicine, the overlap between research and audit grows more acute. Arguably, similar ethical standards and systems for ensuring that those standards are met should be applied regardless of whether or not a project is classified as research or audit. At a time when the research ethics review system in the UK is undergoing significant reform it is important that the opportunity is not missed to address the longstanding research-audit problem. We discuss suggestions for further reform that addresses this issue. (shrink)

Audits of the informed consent process are a key element of a clinical research quality assurance program. A systematic approach to such audits has not been described in the literature. In this paper we describe two components of the audit. The first is the audit of the informed consent document to verify adherence with federal regulations. The second component is comprised of the audit of the informed consent conference, with emphasis on a real time review of the (...) appropriate communication of the key elements of the informed consent. Quality measures may include preparation of an informed consent history log, notes to accompany the informed consent, the use of an informed consent feedback tool, and the use of institutional surveys to assess comprehension of the informed consent process. (shrink)

We examine three characteristics of audit committees and their impact on the financial reporting quality for Singapore-listed companies. The main finding is that financial reporting quality will be higher if audit committees have mixed expertise in accounting, finance, and/or supervisory. In addition, we do not find evidence that incremental independence of audit committees enhances financial reporting quality because audit committees already consist of a majority of independent directors. Finally, we fail to find any impact of overlapping (...) membership on audit and remuneration committees on financial reporting quality. Overall, the results have policy implications on improving corporate governance effectiveness in terms of financial reporting quality. (shrink)

This paper aims to examine the impact of national cultural values on the relation between auditing and reporting standards and ethical behaviours of firms. Based on a regression analysis using data regarding 54 countries between the years 2007 and 2012, we found that the impact of the perceived strength of auditing and reporting standards on the perceived ethical behaviours of firms is accentuated when a society is characterized by low power distance and in-group collectivism, and high institutional collectivism, future orientation (...) and uncertainty avoidance. Empirically, the study addresses a gap in the literature by highlighting the influence of national culture on the effectiveness of legal settings and regulations on ethical behaviours. (shrink)

A series of recent developments points towards auditing as a promising mechanism to bridge the gap between principles and practice in AI ethics. Building on ongoing discussions concerning ethics-based auditing, we offer three contributions. First, we argue that ethics-based auditing can improve the quality of decision making, increase user satisfaction, unlock growth potential, enable law-making, and relieve human suffering. Second, we highlight current best practices to support the design and implementation of ethics-based auditing: To be feasible and effective, ethics-based auditing (...) should take the form of a continuous and constructive process, approach ethical alignment from a system perspective, and be aligned with public policies and incentives for ethically desirable behaviour. Third, we identify and discuss the constraints associated with ethics-based auditing. Only by understanding and accounting for these constraints can ethics-based auditing facilitate ethical alignment of AI, while enabling society to reap the full economic and social benefits of automation. (shrink)

This research examines the possibility of developing a new corporate social responsibility (CSR) auditing system based on the analysis of current CSR literature and interviews conducted with a number of interested and knowledgeable stakeholders. This work attempts to create a framework for social responsibility auditing compatible with an existing commercially successful environmental audit system. The project is unusual in that it tackles the complex issue of CSR auditing with a scientific approach using Grounded Theory. On the evidence discovered to (...) date in the literature review and the interviews, CSR seems to be perceived by many as the social strand of sustainable development. However, there is far less agreement regarding its measurement. Both the literature review and the interview analysis indicate that developing an applied CSR auditing procedure will be a challenging task. This is principally due to the lack of formal study of this complex subject, which, despite the widespread debate it has engendered, still lacks a single and broadly accepted definition. The concepts developed from the findings of this research, together with the key factors identified in a literature review of CSR, were developed into a prospective CSR audit protocol. (shrink)

Provides the theoretical and psychological framework to the philosophy of sounds and audition. I address auditory scene analysis, spatial hearing, the audible qualities, and cross-modal interactions.

One of the criticisms directed at the accounting profession is that auditing and accounting standards are subjective in nature and do not represent the society's widespread interests and values. This paper examines whether a general consensus exists regarding the significance of incorporating society's values into auditing standards. The examination revealed the lack of such general agreement and further indicated that the perceptual differences are subjective in nature and not influenced by the participant's qualifications, income, experience, gender or marital status.

Moral Seduction Theory suggests that auditors are morally compromised by the perceived consequences of their opinions. The root of the auditing problem appears to result in an unintentional bias rather than in dishonesty. Although important accounting reforms have been taken to deal with auditors' trustworthiness, their lack of independence has not been adequately addressed. The new regulation (Sarbanes-Oxley Act) is a consequence of an incorrect understanding of the main true source of auditor's biases. We have developed a cognitive approach by (...) connecting the Throughput Model (TM) to the Moral Seduction Theory. This approach allows a better understanding of how conflicts of interest lead auditors to avoid the issuance of warning signals to stakeholders. We have tested our model by conducting a hypothetical scenario with eighty experienced auditors from international accounting firms. Our results confirm auditors' unintentional reluctance to issue qualified audit opinions alerting investors due to their fear of precipitating clients' final bankruptcy. The main implication is that, more than a regulation, effort should be made in monitoring those conflicts of interest to reduce unintentional bias. (shrink)

Diabco Corporation, consisting of both domestic and international operations, aspires to be a world class company. Assumption of that status requires Diabco to develop a profile as a responsible member within the world community. Attributing morality to a corporation may seem somewhat inappropriate because it is merely an artificial entity. Yet, a corporation is only as ethical as its agents. At a minimum, Diabco must meet legal requirements, but the development of moral responsibility requires a conscious effort by all corporate (...) agents to avoid harming others. To appraise the company''s moral condition, the authors constructed the premise that Diabco conducted a comprehensive moral audit. Although the concept of a moral audit is still a relatively undeveloped appraisal activity, the purpose of the study is to demonstrate the desirability, feasibility, and possible inadequacies of such an endeavor. (shrink)

Our study finds that relative to firms managed by local CEOs, firms managed by CEOs who have returned from overseas (returnee CEOs) exhibit significantly higher audit fees. We also find this positive association to be stronger for returnee CEOs who manage firms with greater agency problems, have overseas experience in countries with better developed institutions, or have greater business knowledge. Further analyses indicate that firms managed by returnee CEOs tend to exhibit better financial reporting quality, lower propensities for financial (...) fraud, and fewer earnings restatements in subsequent years. In addition, firms managed by returnee CEOs are associated with greater internationalization and higher propensities for seasoned equity offerings (SEOs) than firms managed by local CEOs. Overall, our findings are most consistent with the conjecture that returnees tend to bring ethics and practices that ensure higher financial reporting quality back to their home countries. Our findings offer a plausible explanation that returnee talents could increase firm value. (shrink)

Our study examines whether gender-diverse engagement partners constrain unethical earnings management behavior in a French mandatory joint audit setting. The investigation of the joint audit setting, by raising concerns about audit team organization and management, provides new insights into how gender-diverse audit partners contribute to the effectiveness of audit decision-making, resulting in reduced earnings management. The need for effective collaboration and communication between joint auditors may foster a transformational leadership style on the part of (...) class='Hi'>audit engagement partners. In this regard, we argue that better interaction between male and female lead audit partners confers a comparative advantage on gender-diverse audit partners compared to all-male audit partners. In line with our expectation, our empirical results show that gender-diverse audit partners are negatively associated with discretionary accruals of client firms. Gender-diverse audit partners are also found to constrain earnings management irrespective of whether clients hire one or two brand-name audit firms. Finally, we find that the pervasiveness of earnings management declines when client firms switch from all-male audit partners to gender-diverse audit partners. Our findings underline the importance of considering audit partner gender by policy makers in contexts where joint audits are required or in countries that are considering introducing joint audits. (shrink)

The Mental Capacity Act (2005) was designed to protect and empower patients with impaired capacity. Despite an estimated 40% of medical inpatients lacking capacity, it is unclear how many patients undergo capacity assessments and treatment under the Act. We audited the number of capacity assessments on the general medical wards of an English-teaching hospital. A total of 95 sets of case notes were reviewed: the mean age was 78.6 years, 57 were female. The most common presenting complaints were feeling ‘unwell’ (...) (n = 25) and confusion (n = 24). In all, 52 patients had conditions, such as delirium (n = 26) and dementia (n = 15), which often impair capacity. Capacity was assessed in seven (7.4%) patients, all of whom disagreed with the medical team about their treatment. The number of documented assessments fell short of the estimated rate of incapacity, suggesting that some means of improving capacity assessment in busy medical environments is required. (shrink)

In recent years, the ethical impact of AI has been increasingly scrutinized, with public scandals emerging over biased outcomes, lack of transparency, and the misuse of data. This has led to a growing mistrust of AI and increased calls for mandated ethical audits of algorithms. Current proposals for ethical assessment of algorithms are either too high level to be put into practice without further guidance, or they focus on very specific and technical notions of fairness or transparency that do not (...) consider multiple stakeholders or the broader social context. In this article, we present an auditing framework to guide the ethical assessment of an algorithm. The audit instrument itself is comprised of three elements: a list of possible interests of stakeholders affected by the algorithm, an assessment of metrics that describe key ethically salient features of the algorithm, and a relevancy matrix that connects the assessed metrics to stakeholder interests. The proposed audit instrument yields an ethical evaluation of an algorithm that could be used by regulators and others interested in doing due diligence, while paying careful attention to the complex societal context within which the algorithm is deployed. (shrink)

. The aim of this paper is to put forward an ethical framework for the conceptualization and development of ethics audits, here understood as a catalyst for company dialogue and in general, for management of ethics in the company. Ethics auditing is understood as the opportunity and agreement to devise a system to inform on ethical corporate behavior. This system essentially aims to increase the transparency and credibility of the companys commitment to ethics. At the same time, the process of (...) elaborating this system allows us to introduce the moral dimension into company actions and decisions, thereby completing a key dimension of the production, maintenance and development of trust capital. To this end, the following four steps are taken. First, we analyze the relation between ethics auditing and trust as a basic moral resource in the dialogue between the company and its various stakeholders. Second, we examine the social balance sheet as a precursor to ethics auditing and focus on what prevents it from going further. Third, we attempt to reconstruct the basic moral assumptions underlying the companys social responsibility from the discourse ethics approach. Finally, we present a methodological framework from which to carry out our proposal, which embraces two basic theoretical perspectives stakeholder theory and the values derived from discourse ethics as a normative framework. (shrink)

Using a sample of 15,174 firms from 24 countries included in the 2009 World Bank Enterprise Survey, we investigate the impact of disclosure standards and auditing infrastructure on the bribery of public officials to secure government contracts. We find that firms are less likely to grant gift to secure a government contract in countries having more extensive financial reporting requirements and countries where audit firms face a higher litigation and sanction risk. Findings also show that firms are less likely (...) to bribe bureaucrats in case financial statements are reviewed by an external audit firm. Our results are economically significant and are robust to several sensitivity analyses. These findings support certain policies that are currently being implemented or discussed to mitigate bribery within the public sector across the globe. (shrink)

The Belgian Auditor's Office is not competent to judge good management. Parliamentary initiatives have been taken to extend its competence towards an efficiency, effectiveness and economy control. Up till 1985 the Belgian budget was drawn up according toa classification system with insufficient regard for the application ofmanagement objectives to budgetary allocation. Based on notions originating from the P.P.B.S. system the budget is drawn up now by programmes assigned to organisation divisions. In the future the parliamentary budget procedure could be transformed (...) into a ratification of the General Budget of Expenses and a supervision of the execution of the departmental budgets. The General Budget will contain the programmes. A similar system offers the external controller a better management and control instrument.An efficiency control exists in various farms in Germany, Great-Britain, Ireland, the Netherlands, France, Spain and Canada. The European Auditor's Office evaluates good financial management too. (shrink)

With the growing amount of clinical research, regulations and research ethics are becoming more stringent. This trend introduces a need for quality assurance measures for ensuring adherence to research ethics and human research protection beyond Institutional Review Board approval. Audits, one of the most effective tools for assessing quality assurance, are measures used to evaluate Good Clinical Practice and protocol compliance in clinical research. However, they are laborious, time consuming, and require expertise. Therefore, we developed a simple auditing process and (...) evaluated its feasibility and effectiveness. The screening audit was developed using a routine audit checklist based on the Severance Hospital’s Human Research Protection Program policies and procedures. The measure includes 20 questions, and results are summarized in five categories of audit findings. We analyzed 462 studies that were reviewed by the Severance Hospital Human Research Protection Center between 2013 and 2017. We retrospectively analyzed research characteristics, reply rate, audit findings, associated factors and post-screening audit compliance, etc. Investigator reply rates gradually increased, except for the first year. The studies were graded as “critical,” “major,” “minor,” and “not a finding”, based on findings and number of deficiencies. The auditors’ decisions showed fair agreement with weighted kappa values of 0.316, 0.339, and 0.373. Low-risk level studies, single center studies, and non-phase clinical research showed more prevalent frequencies of being “major” or “critical”. Inappropriateness of documents, failure to obtain informed consent, inappropriateness of informed consent process, and failure to protect participants’ personal information were associated with higher audit grade. We were able to observe critical GCP violations in the routine internal audit results of post-screening audit compliance checks in “non-responding” and “critical” studies upon applying the screening audit. Our screening audit is a simple and effective way to assess overall GCP compliance by institutions and to ensure medical ethics. The tool also provides useful selection criteria for conducting routine audits. (shrink)

This study of internal auditors and auditees, who engage in both financial and operational internal audits in Israel, extends theory and research on internal audits in organizational units. It develops and tests a model that examines the role of top management and internal auditors in facilitating learning from internal audits and driving perceived performance improvement. We argue that support from the top management for the internal audit as well as the auditor’s capacity facilitate learning from audits and help audited (...) units to improve ethicality, efficiency, and effectiveness in organizations. The results of time-lagged survey data provide general support for the hypothesized indirect relationships between auditor capacity, auditor–auditee relational exchanges, learning from audits, and three different perceived performance measures: ethical behavior, efficiency, and effectiveness. We discuss the implications for research on internal audits, proactive learning, ethics, and performance improvement of organizational units in the public sector. (shrink)

Internal auditing has been adding value in organisations across all sectors for many years. This paper is based on research by the authors into this value in the UK, widened to include the contribution by internal auditing's professional development worldwide. This development is based mainly on international internal auditing standards, now receiving recognition by governments, regulators, external auditors and other authorities across the world. Not least by the worldwide requirements of the US Sarbanes-Oxley Act of 2003, and board responsibility for (...) the effectiveness of internal control. The paper discusses how the assurance, compliance and consultant roles of internal auditing are being recognised today at board level in many organisations as valuable contributors to good governance practices. (shrink)

AI/ML increasingly impacts the ability of humans to have a good life. Various sets of indicators exist to measure well-being/the ability to have a good life. Students play an important role in AI/ML discussions. The purpose of our study using an online survey was to learn about the perspectives of undergraduate STEM students on the impact of AI/ML on well-being/the ability to have a good life. Our study revealed that many of the abilities participants perceive to be needed for having (...) a good life were part of the well-being/ability to have a good life indicator lists we gave to participants. Participants perceived AI/ML to have and continue to have the most positive impact on the ability to have a good life for disabled people, elderly people, and individuals with a high income and the least positive impact for people of low income and countries from the global south. Regarding indicators of well-being and the ability to have a good life given to participants, we found a significant techno-positive sentiment. 30% of respondents selected the purely positive box for 28 of the indicators and none did so for the purely negative box. For 52 indicators, the purely negative was below 10% (not counting the 0%) and for 10 indicators, none selected purely negative. Our findings suggest that our questions might be valuable tools to develop an inventory of STEM and other students’ perspectives on the implications of AI/ML on the ability to have a good life. (shrink)

‘Social auditing’ is everywhere. An increasing number of companies – and also public and voluntary sector organisations – are trying to assess their social performance systematically. Shell, BP and General Motors are among them. How are they doing it? What impact do NGOs and civil society organisations have on this process? Do they have a privileged place in social audits? This article looks at these questions, and sets out a framework for understanding social audits and civil society. Examples are drawn (...) particularly from the recent Camelot social audit . Camelot plc is the operator of the UK national lottery. (shrink)

This book takes the concept of social audit and lifts it beyond the role of functioning largely as a management tool. The book proposes a system in which social audit is regulated so as to provide a mechanism for effectively promoting corporate accountability in society. Taking this as its theme, this book provides both a conceptual explanation of the developmental perspectives of social audit regulation and empirical evidence of the impact of social audit practice from different (...) parts of the world. It is the first book to explore the issues and challenges related to the development of effective social audit regulation. (shrink)

An increasing number of regulations propose the notion of ‘AI audits’ as an enforcement mechanism for achieving transparency and accountability for artificial intelligence (AI) systems. Despite some converging norms around various forms of AI auditing, auditing for the purpose of compliance and assurance currently have little to no agreed upon practices, procedures, taxonomies, and standards. We propose the ‘criterion audit’ as an operationalizable compliance and assurance external audit framework. We model elements of this approach after financial auditing practices, (...) and argue that AI audits should similarly provide assurance to their stakeholders about AI organizations’ ability to govern their algorithms in ways that mitigate harms and uphold human values. We discuss the necessary conditions for the criterion audit, and provide a procedural blueprint for performing an audit engagement in practice. We illustrate how this framework can be adapted to current regulations by deriving the criteria on which ‘bias audits’ for hiring algorithms can be performed, as required by the recently effective New York City Local Law 144 of 2021. We conclude by offering critical discussion on the benefits, inherent limitations, and implementation challenges of applying practices of the more mature financial auditing industry to AI auditing where robust guardrails against quality assurance issues are only starting to emerge. Our discussion as informed by experiences in performing these audits in practice highlights the critical role that an audit ecosystem plays in ensuring the effectiveness of such methodology. (shrink)

We argue that the privatisation of education needs to be understood through an ethical lens, and suggest a broad framework through which privatisation policies and practices might be ethically audited. These policies and practices -- it is suggested -- are creating new ethical spaces and new clusters of goals, obligations and dispositions. Whatever the merits of our particular reading of these changes, we would call for an urgent public debate on these questions -- one that looks beyond broad ideological questions (...) to consider the effects of privatisation on the nature of the services provided. (shrink)

The research consists of analyzing the level of integration between environmental auditing and corporate social responsibility in the Junín Region, Peru. The approach used combines quantitative and qualitative elements of an applied type. In the quantitative aspect, a correlational level is adopted, while in the qualitative aspect, a descriptive methodology is chosen. The data collection was carried out through surveys directed to a sample selected by opportunity (121) Member Accountants, and through interviews to (12) Auditors, allowing the application of the (...) DITRIAC triangulation. This holistic approach contributed to improve the reliability and robustness of the research. The quantitative findings reveal a positive integration between both variables (0.598) with a p-value of,000, significant at a confidence level of 0.05. Likewise, a significant integration was observed between the systemic dimension (0.252), business efficiency (0.481), strategic foresight (0.520) and protective role (0.568) of environmental auditing, all with p-values less than 0.05, with corporate social responsibility (CSR). In agreement with the qualitative observations, the hypothesis proposed by the author is ratified. It is concluded that the improvement of environmental auditing practices leads to an increase in CSR, thus configuring a positive integration between environmental auditing and corporate social responsibility (CSR). (shrink)

Randomization is an integral part of well-designed statistical trials, and is also a required procedure in legal systems. Implementation of honest, unbiased, understandable, secure, traceable, auditable and collusion resistant randomization procedures is a mater of great legal, social and political importance. Given the juridical and social importance of randomization, it is important to develop procedures in full compliance with the following desiderata: (a) Statistical soundness and computational efficiency; (b) Procedural, cryptographical and computational security; (c) Complete auditability and traceability; (d) Any (...) attempt by participating parties or coalitions to spuriously influence the procedure should be either unsuccessful or be detected; (e) Open-source programming; (f) Multiple hardware platform and operating system implementation; (g) User friendliness and transparency; (h) Flexibility and adaptability for the needs and requirements of multiple application areas (like, for example, clinical trials, selection of jury or judges in legal proceedings, and draft lotteries). This paper presents a simple and easy to implement randomization protocol that assures, in a formal mathematical setting, full compliance to the aforementioned desiderata for randomization procedures. (shrink)

Although the foundation of financial accounting and auditing has traditionally been based upon a rule-based framework, the concept of a principle-based approach has been periodically advocated since being incorporated into the AICPA Code of Conduct in 1989. Recent high profile events indicate that the accountants and auditors involved have followed rule-based ethical perspectives and have failed to protect investors and stakeholders – resulting in a wave of scandals and charges of unethical conduct. In this paper we describe how the rule-based (...) traditions of auditing became a convenient vehicle that perpetuated the unethical conduct of firms such as Enron and Arthur Andersen. We present a model of ten ethical perspectives and briefly describe how these ten ethical perspectives impact rule-based and principle-based ethical conduct for accountants and auditors. We conclude by identifying six specific suggestions that the accounting and auditing profession should consider to restore public trust and to improve the ethical conduct of accountants and auditors. (shrink)