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Background: Human gut microbiome has complex relationships with the host, contributing to metabolism, immunity, and carcinogenesis. Methods: Summary-level data for gut microbiota and metabolites were obtained from MiBioGen, FINRISK and human metabolome consortia. Summary-level data for colorectal cancer were derived from a genome-wide association study meta-analysis. In forward Mendelian randomization (MR), we employed genetic instrumental variables (IV) for 24 gut microbiota taxa and six bacterial metabolites to examine their causal relationship with colorectal cancer. We also used a lenient threshold for nine apriori gut microbiota taxa as secondary analyses. In reverse MR, we explored association between genetic liability to colorectal neoplasia and abundance of microbiota studied above using 95, 19, and 7 IVs for colorectal cancer, adenoma, and polyps, respectively. Results: Forward MR did not find evidence indicating causal relationship between any of the gut microbiota taxa or six bacterial metabolites tested and colorectal cancer risk. However, reverse MR supported genetic liability to colorectal adenomas was causally related with increased abundance of two taxa: Gammaproteobacteria (β = 0.027, which represents a 0.027 increase in log-transformed relative abundance values of Gammaproteobacteria for per one-unit increase in log OR of adenoma risk; P = 7.06×10−8), Enterobacteriaceae (β = 0.023, P = 1.29×10−5). Conclusions: We find genetic liability to colorectal neoplasia may be associated with abundance of certain microbiota taxa. It is more likely that subset of colorectal cancer genetic liability variants changes gut biology by influencing both gut microbiota and colorectal cancer risk. Impact: This study highlights the need of future complementary studies to explore causal mechanisms linking both host genetic variation with gut microbiome and colorectal cancer susceptibility.

Table S4 shows the SNPs for colorectal cancer.

Supplementary Methods shows the formulas for calculating F-statistics.

Background:Human gut microbiome has complex relationships with the host, contributing to metabolism, immunity, and carcinogenesis.Methods:Summary-level data for gut microbiota and metabolites were obtained from MiBioGen, FINRISK and human metabolome consortia. Summary-level data for colorectal cancer were derived from a genome-wide association study meta-analysis. In forward Mendelian randomization (MR), we employed genetic instrumental variables (IV) for 24 gut microbiota taxa and six bacterial metabolites to examine their causal relationship with colorectal cancer. We also used a lenient threshold for nine apriori gut microbiota taxa as secondary analyses. In reverse MR, we explored association between genetic liability to colorectal neoplasia and abundance of microbiota studied above using 95, 19, and 7 IVs for colorectal cancer, adenoma, and polyps, respectively.Results:Forward MR did not find evidence indicating causal relationship between any of the gut microbiota taxa or six bacterial metabolites tested and colorectal cancer risk. However, reverse MR supported genetic liability to colorectal adenomas was causally related with increased abundance of two taxa: Gammaproteobacteria (β = 0.027, which represents a 0.027 increase in log-transformed relative abundance values of Gammaproteobacteria for per one-unit increase in log OR of adenoma risk; P = 7.06×10−8), Enterobacteriaceae (β = 0.023, P = 1.29×10−5).Conclusions:We find genetic liability to colorectal neoplasia may be associated with abundance of certain microbiota taxa. It is more likely that subset of colorectal cancer genetic liability variants changes gut biology by influencing both gut microbiota and colorectal cancer risk.Impact:This study highlights the need of future complementary studies to explore causal mechanisms linking both host genetic variation with gut microbiome and colorectal cancer susceptibility.

For many cancers there are few well-established risk factors. Summary data from genome-wide association studies (GWAS) can be used in a Mendelian randomisation (MR) phenome-wide association study (PheWAS) to identify causal relationships. We performed a MR-PheWAS of breast, prostate, colorectal, lung, endometrial, oesophageal, renal, and ovarian cancers, comprising 378,142 cases and 485,715 controls. To derive a more comprehensive insight into disease aetiology we systematically mined the literature space for supporting evidence. We evaluated causal relationships for over 3,000 potential risk factors. In addition to identifying well-established risk factors (smoking, alcohol, obesity, lack of physical activity), we provide evidence for specific factors, including dietary intake, sex steroid hormones, plasma lipids and telomere length as determinants of cancer risk. We also implicate molecular factors including plasma levels of IL-18, LAG-3, IGF-1, CT-1, and PRDX1 as risk factors. Our analyses highlight the importance of risk factors that are common to many cancer types but also reveal aetiological differences. A number of the molecular factors we identify have the potential to be biomarkers. Our findings should aid public health prevention strategies to reduce cancer burden. We provide a R/Shiny app (https://mrcancer.shinyapps.io/mrcan/) to visualise findings.

Colorectal cancer (CRC) is a leading cause of mortality worldwide. We conducted a genome-wide association study meta-analysis of 100,204 CRC cases and 154,587 controls of European and East Asian ancestry, identifying 205 independent risk associations, of which 50 were unreported. We performed integrative genomic, transcriptomic and methylomic analyses across large bowel mucosa and other tissues. Transcriptome- and methylome-wide association studies revealed an additional 53 risk associations. We identified 155 high confidence effector genes functionally linked to CRC risk, many of which had no previously established role in CRC. These have multiple different functions, and specifically indicate that variation in normal colorectal homeostasis, proliferation, cell adhesion, migration, immunity and microbial interactions determines CRC risk. Cross-tissue analyses indicated that over a third of effector genes most likely act outside the colonic mucosa. Our findings provide insights into colorectal oncogenesis, and highlight potential targets across tissues for new CRC treatment and chemoprevention strategies.

To characterise the somatic alterations in colorectal cancer (CRC), we conducted whole-genome sequencing analysis of 2,023 tumours. We provide the most detailed high-resolution map to date of somatic mutations in CRC, and demonstrate associations with clinicopathological features, in particular location in the large bowel. We refined the mutational processes and signatures acting in colorectal tumorigenesis. In analyses across the sample set or restricted to molecular subtypes, we identified 185 CRC driver genes, of which 117 were previously unreported. New drivers acted in various molecular pathways, including Wnt (CTNND1, AXIN1, TCF3), TGF-β/BMP (TGFBR1) and MAP kinase (RASGRF1, RASA1, RAF1, and several MAP2K and MAP3K loci). Non-coding drivers included intronic neo-splice site alterations in APC and SMAD4. Whilst there was evidence of an excess of mutations in functionally active regions of the non-coding genome, no specific drivers were called with high confidence. Novel recurrent copy number changes included deletions of PIK3R1 and PWRN1, as well as amplification of CCND3 and NEDD9. Putative driver structural variants included BRD4 and SOX9 regulatory elements, and ACVR2A and ANKRD11 hotspot deletions. The frequencies of many driver mutations, including somatic Wnt and Ras pathway variants, showed a gradient along the colorectum. The Pks-pathogenic E. coli signature and TP53 mutations were primarily associated with rectal cancer. A set of unreported immune escape driver genes was found, primarily in hypermutated CRCs, most of which showed evidence of genetic evasion of the anti-cancer immune response. About 25% of cancers had a potentially actionable mutation for a known therapy. Thirty-three of the new driver genes were predicted to be essential, 17 possessed a druggable structure, and nine had a bioactive compound available. Our findings provide further insight into the genetics and biology of CRC, especially tumour subtypes defined by genomic instability or clinicopathological features.

In the version of this article initially published, the author affiliations incorrectly listed “Candiolo Cancer Institute FPO-IRCCS, Candiolo (TO), Italy” as “Candiolo Cancer Institute, Candiolo, Italy.” The change has been made to the HTML and PDF versions of the article.

Financial and internal controls are important to the success of firms. ABC group is undergoing internal controls and knowledge reengineering in the company to improve the group’s operations and financial performance. Various measures are implemented and the results provide insights for firms to succeed in today’s competitive financial markets.

Various models are adopted in the change process for a hotel group: Lewin’s Force Field model, Handy’s Shamrock structure, Hiatt change model, Classic Change Curve, Kotter’s model, Gap Analysis model and McKinsey Seven “S” model. The change model aims to strengthen the hotel's profitability. Traditional orthodoxies are challenged, new paradigms of change and operational audits are implemented.

Objective To evaluate the benefit of combining polygenic risk scores with the QCancer-10 (colorectal cancer) prediction model for non-genetic risk to identify people at highest risk of colorectal cancer. Design Population based cohort study. Setting Data from the UK Biobank study, collected between March 2006 and July 2010. Participants 434 587 individuals with complete data for genetics and QCancer-10 predictions were included in the QCancer-10 plus polygenic risk score modelling and validation cohorts. Main outcome measures Prediction of colorectal cancer diagnosis by genetic, non-genetic, and combined risk models. Using data from UK Biobank, six different polygenic risk scores for colorectal cancer were developed using LDpred2 polygenic risk score software, clumping, and thresholding approaches, and a model based on genome-wide significant polymorphisms. The top performing genome-wide polygenic risk score and the score containing genome-wide significant polymorphisms were combined with QCancer-10 and performance was compared with QCancer-10 alone. Case-control (logistic regression) and time-to-event (Cox proportional hazards) analyses were used to evaluate risk model performance in men and women. Results Polygenic risk scores derived using the LDpred2 program performed best, with an odds ratio per standard deviation of 1.584 (95% confidence interval 1.536 to 1.633), and top age and sex adjusted C statistic of 0.733 (95% confidence interval 0.710 to 0.753) in logistic regression models in the validation cohort. Integrated QCancer-10 plus polygenic risk score models out-performed QCancer-10 alone. In men, the integrated LDpred2 model produced a C statistic of 0.730 (0.720 to 0.741) and explained variation of 28.2% (26.3 to 30.1), compared with 0.693 (0.682 to 0.704) and 21.0% (18.9 to 23.1) for QCancer-10 alone. In women, the C statistic for the integrated LDpred2 model was 0.687 (0.673 to 0.702) and explained variation was 21.0% (18.7 to 23.7), compared with 0.645 (0.631 to 0.659) and 12.4% (10.3 to 14.6) for QCancer-10 alone. In the top 20% of individuals at highest absolute risk, the sensitivity and specificity of the integrated LDpred2 models for predicting colorectal cancer diagnosis was 47.8% and 80.3% respectively in men, and 42.7% and 80.1% respectively in women, with increases in absolute risk in the top 5% of risk in men of 3.47-fold and in women of 2.77-fold compared with the median. Illustrative decision curve analysis indicated a small incremental improvement in net benefit with QCancer-10 plus polygenic risk score models compared with QCancer-10 alone. Conclusions Integrating polygenic risk scores with QCancer-10 modestly improves risk prediction over use of QCancer-10 alone. Given that QCancer-10 data can be obtained relatively easily from health records, use of polygenic risk score in risk stratified population screening for colorectal cancer currently has no clear justification. The added benefit, cost effectiveness, and acceptability of polygenic risk scores should be carefully evaluated in a real life screening setting before implementation in the general population.

This paper evaluates AA’s financial performances by analyzing its financial reports throughout 2010 to 2012 using ratio analysis. Strengths and weaknesses are identified. Quantitative ratio analysis (liquidity measurement, profitability indicators, financial leverage/gearing, operating performance and investment valuation) indicates AA scores satisfactory among the five indicators, implying good corporate governance positively enhances financial performance. Positive cash flows reveal satisfactory liquidity positions. Results provide implications for companies to maintain better corporate governance in future.

To obtain a comprehensive picture of composite genetic drivers events and clonal dynamics in subtypes of paediatric acute lymphoblastic leukaemia (ALL) we analysed tumour-normal whole genome sequencing and expression data from 361 newly diagnosed patients. We report the identification of both novel coding and structural drivers as well as recurrent non-coding variation in promoters and cis-regulatory regions. The transcriptional profile of histone gene cluster 1 and CTCF altered tumours shared hallmarks of hyperdiploid ALL suggesting a ‘hyperdiploid like’ subtype. ALL subtypes are driven by distinct mutational processes with AID mutagenesis being confined to ETV6-RUNX1 tumours. Subclonality is a ubiquitous feature of ALL, consistent with Darwinian evolution driving selection and expansion of tumours. Driver mutations in B-cell developmental genes (IKZF1, PAX5, ZEB2) tend to be clonal and RAS/RTK mutations subclonal. In addition to identifying new avenues for therapeutic exploitation this analysis highlights that targeted therapies should take into account composite mutational profile and clonality.

Corporate governance system plays an important role in the contemporary accounting and management literature. The purpose of this study is to examine the auditors’ perceptions on corporate governance in the Hong Kong market. 92 experienced professionals of Big 4 audit firm auditors are interviewed to summarize the ideas of how to maintain an efficient corporate governance system. Results of the study show that effective corporate governance should avoid family directors to dominate the board. Second, effective audit committee plays a crucial role in order to maintain sound corporate governance. The study would be advantageous for listed companies in HK to adopt a better corporate governance structure in the firm.

Background The uptake of bone-seeking radiotracers in the amyloid heart is well recognised. 99 m Tc-DPD has been shown to be highly sensitive for cardiac transthyretin (ATTR) amyloid in an overseas population, but is not registered for use in Australia. We explored its utility as a diagnostic tool within our population. Methods Patients diagnosed with AL and ATTR (wild-type and inherited) cardiac amyloidosis were prospectively recruited from the Princess Alexandra Hospital Amyloidosis Centre. Patients underwent injection with 99m Tc-DPD then planar whole body imaging was performed at 5 minutes post-injection (soft tissue phase) and 3 hours (bone phase). A myocardial SPECT and low amperage CT were acquired after the late whole-body scan. Scans were analysed by two nuclear imaging specialists. Intensity of cardiac 99m Tc-DPD uptake was graded as 0 to 3 in accordance with previous criteria, and semiquantitative analysis was performed using a heart to whole body ratio (H:WB) on the 3-hour scan. Patients also underwent electrocardiography and transthoracic echocardiography, and blood samples were taken for troponin I and brain natriuretic peptide levels, to assess for any correlation with DPD uptake. Results Twenty-one patients (8 AL and 13 ATTR) completed the study. Median age was 58 and 70 years for AL and ATTR patients respectively, and 19 (90.5%) were male. 99 m Tc-DPD scintigraphy was positive in 2 (25%) of AL, and 13 (100%) of ATTR patients. Grade of cardiac uptake, and mean H:WB (0.1249 v. 0.0794) was greater in the ATTR cohort (p-value Conclusions 99 m Tc-DPD scintigraphy is highly sensitive for the diagnosis of cardiac ATTR amyloid, but less so for AL amyloid.

This study examines the impact of guanxi on auditor independence in China and the U.S. Using panel data from 2012–2015 surveys, fixed-effects regression models are used to analyse survey data with observations drawn from a total of 1076 Big 4 and 1044 non-Big 4 auditor-years for Chinese auditors, and 1168 Big 4 and 1140 non-Big 4 auditor-years for the U.S. auditors. The results indicate that ‘guanxi with clients’ has a negative influence on perceptions of auditor independence for Chinese auditors, but not for the U.S. auditors. According to our findings, both groups agree that imposing regulations/code has a positive influence on perceptions of auditor independence. Gender has no influence on the perceived independence of either group. After controlling for social desirability bias, our results remain robust. Sensitivity analysis further increases the robustness of the findings. Our results provide empirical support for public interest theory and pose implications for Western multinational compani...

This empirical study examines the determinants of factors influencing auditors' willingness to relocate nationally and internationally in public accounting on two cultural dimensions. This is the first study in the cross-cultural literature to examine this under-researched issue. A theoretical model is developed from family systems theory and social role theory. Logistic regression models (Models 1–16) are performed. While a cultural difference between auditors in the United States (US) and in Hong Kong (HK) might have been expected, we find similar results for both groups of auditors. Spouse willingness has the highest explanatory power among the family factor variables. Other family variables are also found to be significant. Male auditors are more willing to relocate nationally and internationally than female auditors. Furthermore, auditors' career plateau has the highest explanatory power among the organizational variables, followed by perceived organizational support and auditors' compensation. Our results support family systems theory and social role theory. A series of sensitivity analyses validate our main results and indicate the robustness of the findings. This study provides important implications for human asset accounting and the cross-cultural accounting literature.

Auditors’ professional scepticism is a topical concern for the audit profession and public interest. This study examines professional scepticism among fraud auditors in the forensic accounting profession in China (CN) and the United States (US). Data are collected from 373 and 401 CN and US auditors, respectively, in two economies with cultural differences. The multinomial logistic regression results indicate that both CN and US fraud auditors have higher levels of professional scepticism than general auditors do. There are no significant differences in traits between CN and US fraud auditors. High-ranking fraud auditors have higher levels of professional scepticism than junior-ranking fraud auditors for both CN and US auditors. The results of our sensitivity analysis validate the main results and indicate the findings’ robustness. Results support the normative pillar of the institutional theory (Scott 1995) that asserts actors (fraud auditors) of institutions would share common norms and beliefs ...

The variables of organizational commitment and job-related tension have been given much individual attention in studies of organizational behaviour, but little consideration has been given to the joint effect of both on budgetary behaviour. This paper reports a study of the effects of organizational commitment and job-related tension on the propensity of managers to create budgetary slack under conditions of high and low levels of budgetary participation. The results indicate that, in a situation of high budgetary participation, highly committed managers who report low job-related tension are associated with a reduced propensity to create budgetary slack, whereas lower committed managers with higher job-related tension are associated with a greater propensity to create slack. Additionally, the study finds that organizational commitment and job-related tension, in the low-participation situation, have no effect on propensity to create budgetary slack. The implications of the results for design of control systems and personnel management are considered

PurposeThe purpose of the study is to investigate the factors that may result in a high turnover rate of auditors in Macau. The factors considered include client importance, task complexity, time budget constraints, auditor independence and acceptance of dysfunctional behaviour by Macau's audit firms.Design/methodology/approachThis study involved three stages. In the first stage, interviews were carried out with auditors from Big‐4 (seven interviewees) and local non‐Big‐4 firms (three interviewees) in Macau to investigate the reasons for the high turnover rate amongst auditors in Macau. They were asked to speculate about common explanatory factors. The second stage involved 141 auditors from Big‐4 and local non‐Big‐4 accounting firms who were asked to complete a questionnaire survey for the explanatory factors. A total of 135 usable questionnaires were included in the multiple regression data analysis. The third stage of research comprised follow‐up interviews aimed at learning more about the reasons for dysfunctional behaviour.FindingsThis research provides valuable information for audit firms in Macau and will potentially help them to reduce their turnover rate and identify the factors affecting dysfunctional behaviour amongst auditors. The results extend the literature by focusing on the effect of perceived responsibility on professional responses to time budget pressures, task complexity, pressure from clients, and professional and ethical issues.Practical implicationsThe challenge facing auditors today is to expand their auditing practices and evolve standards for adequately monitoring the operations of business entities. The current high turnover rate alarms audit firms, which are concerned with training and the provision of sufficient resources to solve the problems that auditors face in the workplace.Originality/valueThis is the first paper to examine the reason for turnover intentions in Macau. This study sheds light on the factors that contribute to individual auditor differences in the acceptance of dysfunctional behaviour that may result from the stressful nature of their duties.

As the authors’ request, the paper "A Qualitative Study of the Internal Audit Functions of Two Leading Gaming Corporations: Macau Evidence" published in Vol.2, No.4, 110-114, 2013 has been withdrawn from the website.

Auditor independence has long been referred to as the cornerstone of the auditing profession. Guanxi refers to the networks of informal relationships and exchanges of favors that dominate all business and social activities that occur throughout China. This research will analyse the impact of guanxi and client size on the perceived independence of auditors in the setting of Hong Kong. Survey data is obtained from 524 questionnaire responses from Chief Financial Officers (CFOs), Big 4 and Non-Big 4 auditors. Two within-subjects independent variables: “guanxi” and the “client size”, and one between-subject independent variable: auditors versus CFOs, are employed. Results indicate guanxi is a significant factor influencing perceived auditor independence in Chinese society, which has largely been neglected in the accounting literature. Independence is severely impaired when the duration of guanxi with clients reaches five years or more. Large client size has a negative influence on the perceived independence of auditors and this result contradicts an earlier U.S. study. The results indicate that the longer the guanxi when the auditor is associated a with large audit client, the greater the decrease in their perceived independence and this has implications for audit legislation. CFOs generate the lowest mean scores (greatest threat to auditor independence) for the perceived effects of all levels (durations) of guanxi among the three groups. This result supports the stewardship theory that asserts stewards (CFOs) motives are aligned with the objectives of their principals. CFOs consider the increasing levels of guanxi associated with the auditors are not in the best interests of their principals, and hence affect the reliability of the audited accounts. Though this study is conducted in the Asia Pacific region, western counterparts will find the results useful. Multinational corporations which have subsidiaries or headquarters established globally, should be aware that guanxi has implications for their Asian operations and their consolidated audited accounts. In view of the critical importance of the guanxi factor on the perceived auditor independence, standard setters in this region should consider devising ethical guidelines requiring mandatory rotation of public accounting firms.

The uptake of bone-seeking radiotracers in the amyloid heart is well recognised. 99Patients diagnosed with AL and ATTR (wild-type and inherited) cardiac amyloidosis were prospectively recruited from the Princess Alexandra Hospital Amyloidosis Centre. Patients underwent injection withTwenty-one patients (8 AL and 13 ATTR) completed the study. Median age was 58 and 70 years for AL and ATTR patients respectively, and 19 (90.5%) were male. 9999

PurposeThe purpose of this study is to examine the influence of factors affecting students’ choice of accounting as a study major in Hong Kong.Design/methodology/approachMultinomial logistic regression and Hierarchical Generalized Linear Modeling (HGLM) are used to analyze the survey data for the level one and level two data, which is the first time such an approach has been used in the literature. Twenty semi‐structured interviews are conducted.FindingsResults reveal that parental influence has the highest explanatory power among all three groups of students (i.e. accounting major, accounting minor, and other majors). This finding reflects the inculcation in students of the Confucian cultural norms ingrained in Chinese societies. Intrinsic interest is the second most important influencing factor reported by students. Two factors, “intrinsic interest” (attitude towards the behavior) and “parental influence” (subjective norm) in the multinomial logistic regressions and HGLM make significant contributions to predicting a student's decision to major in accounting for the level one (undergraduate) and level two model (master's students). The results support the theory of reasoned action (TRA) model. “First accounting course,” “high school accounting,” and “financial rewards” are not found to be factors influencing the decision to major in accounting, in contrast to the findings of the literature prior to the Enron scandal. Females are more likely to choose accounting as a major or minor than are males in the level one and level two models.Practical implicationsThe findings indicate that Hong Kong universities and the Hong Kong Institute of Certified Public Accountants (HKICPA) need to promote accounting to improve the current negative image of the profession to attract more bright students, who traditionally might choose a non‐accounting major.Originality/valueThe findings of this study extend the application of the TRA model to the accounting profession. Besides, results provide insights for employers to better understand the mindsets of potential accounting graduates.

PurposeThis study aims to examine the potential factors influencing the hiring decisions of experienced auditors in public accounting practices in Hong Kong.Design/methodology/approachMultinomial logistic regression is used to analyze the survey data, which is the first time such an approach has been used in the literature. A total of 337 interview rating forms are collected in actual employment interviews from two Big 4 firms. Graves and Powell's hiring model is adapted to this Hong Kong study. Interpersonal attraction theory is employed to assist in analyzing the results.FindingsThe results indicate that subjective qualifications have the highest explanatory power. Big 4 recruiters regard subjective qualifications as important considerations in the evaluation of experienced auditors. Interpersonal attraction is the second most important factor. These findings are consistent with the theory of interpersonal attraction. Perceived similarity and objective qualifications are also perceived as significant factors. Physical attractiveness, dress effect and gender are not found to be factors influencing the hiring decisions, in contrast to the findings of earlier literature in the USA.Originality/valueThese findings indicate that recruiters would look for attributes other than those primarily based on objective qualifications. Job relevant skills, knowledge and demonstrated initiatives are important. The accounting profession could conduct more training programs for auditors to improve and demonstrate their “soft skills” in the interview process so as to enhance their chances of employment, particularly during a recessionary environment.

PurposeThe purpose of this study is to examine empirically the organizational factors that are associated with the absence of fraud.Design/methodology/approachFactor analysis using principal component extraction was first employed. Logistic regression was then performed to analyze the survey responses of 253 chief financial officers (CFOs) in Hong Kong. A total of 20 semi‐structured interviews were also carried out with CFOs to supplement the research results.FindingsThe results indicate that audit committee effectiveness, internal audit effectiveness, the tone at the top managerial level, and ethical guidelines and policies are positively associated with a lack of fraud within organizations. Neither auditors' prior success in fraud detection nor the type of auditor employed is an influential factor in the absence of fraud. These results are interesting and counter those of earlier studies conducted in the USA. Also contradicting prior research, the receipt of unqualified audit reports was not found to be significant in this study.Practical implicationsThe lack of significance for certain variables, and the counterintuitive nature of some of the results offers opportunities for further research. The results provide auditors with practical insights that will prove useful in the course of their work.Originality/valueThis is the first empirical study of its nature to be conducted in Hong Kong, and its results will make an important contribution to the corporate governance and auditing literature, particularly that focused on the Asia‐Pacific region. These results also have important implications for the accounting profession and for the corporate governance process within organizations.

Purpose – Recent corporate scandals have resulted in a greater focus on business ethics and governance. The purpose of this study is to examine whether the existing audit regulatory framework adequately serves the legitimate interests of stakeholders.Design/methodology/approach – This study is the first to collect survey data on audit regulatory issues in the post‐Lehman Brothers environment. In total, 190 responses to a mail survey were collected from Big Four auditors and from 166 CEOs. Stakeholder theory is used to analyse these responses.Findings – The results indicate that Big Four auditors and CEOs perceive the disclosure of post‐audit report event evidence to be important in discharging their ethical obligations. Both groups agreed that issuing timely audit reports is important, and that “introducing quarterly audit reporting” is a necessary step to enhance corporate governance. A risk‐based auditing approach necessitates the introduction of quarterly reporting. The findings support the notion unde...

PurposeMacau is a major gambling city in Asia, with many tourists and customers visiting its casinos every day. These visitors include not only recreational and pathological gamblers, but also professional people such as accountants. Although, past studies have been carried out on the gambling behavior of various individuals, no research has examined the actual gambling outcome of accountants. The rationale for this research is that accountants may be more confident in their ability to predict or calculate gambling outcomes than other individuals because of their numerical competency. This paper aims to address these issues.Design/methodology/approachThis study is ought to be the first to use data on professional accountants to examine the actual gambling outcomes for accountants against the background of human capital theory. The data are taken from an on‐site survey of 203 professional accounting professionals visiting a casino in Macau.FindingsThe results of the logistic regressions indicate that the variables of “age” and “previous win” have no significant influence on the actual gaming outcome for accountants, but that certified public accountants (CPA) status, self‐confidence, temper, and luck may positively affect the outcome. Further, female accounting professionals are less likely to win than male accounting professionals. The results support the validity of human capital theory, which asserts that the market compensates the cost of education. Although table games are based on casino mathematics, probability, and luck, it is interesting to note that human capital theory also applies in the gaming industries.Originality/valueThe results extend the theoretical development of human capital theory and broaden its application from business sectors to the gaming industry. Further research is recommended to validate the findings.

PurposeAuditor independence is regarded as the cornerstone in the auditing profession. But there is lack of research to examine the influence of the types of non‐audit services provisions and gift hospitality on auditor independence. This paper aims to fill this gap.Design/methodology/approachThis Hong Kong study differs significantly from prior studies and is the first to examine the perceived independence by encompassing both qualitative and quantitative analysis. Binary logistic regression is used to capture data from Big 4 auditors and financial analysts' viewpoints.FindingsResults indicate that auditor independence decreases as the auditors provide accounting services, internal audit or corporate finance services to the firms. Corporate finance services have the greatest negative impact. However, it contributes new knowledge to the literature that the provisions of taxation services to clients are value‐added service and confirms the result in the US study. Receiving gift or hospitality from client has no influence on perceived independence and revokes an early study by Pany and Reckers. There is no expectation gap found between the groups, narrowing the expectation gap theory in the post‐Enron and revokes the US and the UK studies.Practical implicationsThe expectation gap theory seems to be narrowed in the post‐Enron environment. It is hoped that a longitudinal study could be conducted in future.Originality/valueThis paper adds new contributions to the auditing literature in the Asia Pacific Region and provides better understanding for devising auditing guidelines in Hong Kong and their international counterparts.

PurposeThe purpose of this paper is to examine factors influencing the accounting students' career choice in public accounting practices.Design/methodology/approachMultinomial logistic regression is used to analyze survey data of 214 accounting students from three universities in Hong Kong. Three dependent variables are: pursue a career in public accounting (CPA); general accounting; and a non‐accounting careers.FindingsResults support the TRA model. The two constructs in the model – “intrinsic factors” (attitude toward the behavior) and “parental influence” (subjective norm), make significant and independent contributions to predicting the career choice of accounting students. Results indicate that “intrinsic factors” and “parental influence” have significant influence on the decision whether to select a CPA career. This result is not consistent with the New Zealand study and the Canadian study. Neither the “financial rewards factor” nor the “high school accounting” factor is an influencing factor on the career choice in the post‐Enron. This result is also in contrast to the findings of the literature in the pre‐Enron. The fact that financial rewards variable has no influence on career choice is an interesting finding. There may be a “cultural” factor in Hong Kong linked to the prestige of professions that may outweigh the financial rewards factor. “Flexibility of career options” factor has the highest influencing power among all the variables, possibly influenced by the US Sarbanes Oxley enactments that result in a buoyant job market, and China's convergence with the International Financial Reporting Standards in 2007. Females dominate over males in entering the CPA career or general accounting career.Research limitations/implicationsThe support of the TRA model in this paper could be applied as a useful theoretical framework to examine other accounting areas.Practical implicationsThe Hong Kong Institute of Certified Public Accountants and the Big 4 firms should exercise more efforts to improve the traditional accountants' negative image as boring and methodical so as to attract bright students to enter the accounting profession.Originality/valueThe lack of using a theoretical model and prior studies' limitations make any inferences drawn and generalizations difficult. This paper represents the first to the author's knowledge to use the theory of reasoned action (TRA) model from the social psychological literature to examine the issues into the Hong Kong environment.

PurposeThe inability of public accounting practices to retain female auditors is of concern to the profession. The purpose of this paper is to examine the factors associated with the actual turnover decisions made by female auditors in the public accounting profession.Design/methodology/approachMultinomial logistic regression is used to analyze survey data from 247 female auditors who were formerly employed by public accounting firms in Hong Kong. About 20 semi‐structured interviews are conducted to supplement the findings.FindingsThe results reveal that role conflict has the highest explanatory power among the independent variables. Social comparison with peers, stress and age are also influential factors in the turnover decisions made by female auditors in the public accounting field. These results support social comparison theory, which asserts that individuals are driven to evaluate their abilities and opinions through social comparison with others. A particularly interesting finding is that neither physical appearance nor gender discrimination is an influential factor, which contradicts the findings of research carried out in the USA and Japan.Originality/valueAccording to human capital theory, the departure of female auditors from the public accounting profession represents a significant loss in human capital. Public accounting firms should thus take immediate measures to retain this valuable source of human capital and achieve the goal of a gender‐diverse workplace.

Purpose – Auditors' employment with their former audit clients has been an issue of concern to regulators and accounting bodies because of its perceived effect on auditor independence. Little prior research examines this issue and the results are mixed. This paper is motivated by the lack of research on the impact of certified public accountings (CPAs) employment with former audit clients on auditor independence, particularly in the Asia Pacific region in the post‐Enron climate.Design/methodology/approach – This research is the first study of its type in the literature using both qualitative and quantitative analysis. The framework of the study is formed by the identification of gaps in the literature and semi‐structured interviews. Two within‐subjects independent variables – “auditors of different ranks” (rank factor) and “former auditor's direct prior professional relationship with the client” – and one between‐subject independent variable – “Big 4” CPAs vs non‐Big 4 CPAs – are examined. Mixed analysis ...

It is not uncommon for auditors to accept employment with their clients upon leaving their audit firm, but regulators have expressed concerns that this may impair auditor independence. The purpose of this study is to examine the perceptions of Hong Kong “Big 4” CPAs and the fund managers (users) of the impact of the employment by clients of former CPAs from different non audit services (NASs) departments on auditor independence. The time lapse between a CPA leaving the audit firm and taking up employment with a former client is also examined. To cover the most important issues and gaps in the literature, two within-subjects independent variables – types of NASs departments and the time-lapse factor – and one between-subject independent variable – “Big 4” CPAs versus users – are examined. This Hong Kong research is the first study to encompass these variables in a study in the post-Enron environment. A mixed ANOVA was employed to analyse the perceptions of 235 “Big 4” CPAs and 185 fund managers (users). Results show that former CPAs coming from different NASs departments have an influence on perceptions of auditor independence. However, the direction of the relationship may be positive or negative. The results show that former CPAs coming from compliance services and risk management departments enhance perceptions of independence whereas transaction services (due diligence) and corporate finance departments undermine independence. This study does support the earlier finding that NASs may increase the value of the auditor to the client (Goldman and Barlev, 1974; Gul, 1989). Second, the longer the lapse of time between a CPA departing from the audit firm and joining the audit client was, the greater the perceived auditor independence was. An interval of one year seems to be a reasonable time for independence to be preserved. Third, there is an interaction effect between the time-lapse factor and the types of NASs departments on perceptions of independence. When the time lapse between a CPA leaving the audit firm and joining the client is less than one year, audit clients should be restricted from employing CPAs from the transaction services (due diligence) and corporate finance departments of the audit firm. Finally, there are significant differences in the overall perceptions of auditor independence held by the CPA and users groups, with the CPA group ratings being higher for all types of services provided and all time lapse intervals. It may be the expectation gap that results in this difference in perception, but further research is needed to validate this theory.

PurposeAlthough the prior literature has examined gender in analysing the factors underlying departures from and career progression in public accounting practices, the inconclusive results that have been obtained and the evolution of the situation over time bring about opportunities for further research. The paper reported herein differs significantly from earlier studies in that it uses both qualitative methods and quantitative analysis to explore the underlying factors (including gender) behind advancement to partnership in certified public accountant (CPA) firms in Hong Kong. This paper aims to address these issues.Design/methodology/approachSix variables are identified from the literature and used to develop a survey that is carried out amongst 241 CPAs in Hong Kong. The quantitative data collected are then supplemented by semi‐structured, face‐to‐face interviews with ten partners of CPA firms. Finally, logistic regression is employed to analyse the survey data and examine the associations between the six variables and advancement to partnership in CPA practices.FindingsThe results of this paper refute those of the prior literature that have found “years of service in the firm”, “analytical ability” and “physical appearance” to have an influence on career progression or advancement to partnership in CPA practices. Instead, it is found that “social networking” and the “internal locus of control” have a positive influence on such advancement. Gender also plays a role, with males being the predominate partners of CPA practices in Hong Kong.Originality/valueThe findings of this paper contribute to the accounting literature and enhance the understanding of the factors underlying advancement to partnership in CPA practices in Hong Kong. Future research is recommended to determine whether these findings can be replicated.

PurposeEntrepreneurship plays a key role in society and is important for economic growth. Despite prior studies of entrepreneurial behavior, no research has been conducted to examine the influence of monetary and personality factors on the entrepreneurial start up of Certified Public Accountant (CPA) firms in Hong Kong. The purpose of this paper is to investigate into factors influencing Hong Kong CPAs in becoming entrepreneurial public practitioners.Design/methodology/approachData are collected through a questionnaire survey and analyzed by binomial logistic regression. A total of 212 CPAs of Chinese origin are randomly selected in Hong Kong. Social capital theory derived from the sociology literature is employed for analysing the findings.FindingsResults indicate that “profit motivation” and “education level” variables have no significant influence on the entrepreneurial start up, and contradict findings in prior literature. Results further reveal that “social networking” and “internal locus of control” variables could positively influence on the entrepreneurial start up of CPA practices. Results support the validity of social capital theory that reveals social networks have values and productive benefits. Gender plays a role in the entrepreneurial start up of CPA practices, with males predominate has entrepreneurs of CPA practices.Originality/valueThis study could add new contributions to the accounting literature on the study of the entrepreneurial start up of CPA practices in Hong Kong. With the booming Hong Kong economy and the vast supports from China's prosperous market, Hong Kong CPAs are more inclined to become entrepreneurs of CPA practices in the long run. Implications of this study could enable accounting bodies and education institutions focusing on CPAs' personality development and education.

PurposePerceived independence is one of the corner‐stones in auditing theory. Despite prior research on auditor independence, the results are inconclusive. The lack of research in the Hong Kong auditing environment motivates this study, particularly following the Enron débâcle. The purpose of this paper is to examine the non‐audit services (NASs), competition, rank and types of auditors, in respect of the independence problem as it relates to the practices of Hong Kong auditors in the post‐Enron environment.Design/methodology/approachFour independent variables identified from literature gaps are examined, namely NASs, levels of competition, auditors of different ranks and types of auditors. Mixed ANOVA are employed to analyze survey responses from 207 “Big 4” and 185 “non‐Big 4” auditors.FindingsResults of the study show that the provisions of NASs and high competition could have a negative influence on auditors' perceptions of independence. Second, auditors' perceptions that the influence of NASs on independence depends on an individual auditor's rank are supported. Senior managers have the highest mean rating on perceptions, while partners have the lowest mean rating. Results support the agency theory that the agent (senior manager) may not always act in the best interests for the principal. Finally, there is no difference between Big 4 and non‐Big 4 auditors' perceptions of the influence of NASs and competition on independence.Originality/valueThe study revokes earlier US research that indicates that NASs provisions favorably influence auditors' perceptions of independence. It would be advantageous for a regulatory body to reconsider professional reforms such as prohibitions of NASs and the repercussions of non compliance of independence.

PurposeThough assurance services framework has been defined in the Auditing Standards, the understandability of the concept of reasonable assurance are varied by different auditors. The audit risk model (ARM) that is being used on a worldwide basis to underpin the audit risk of companies, is often being criticized. The purpose of this paper is to assess auditors' perceptions of reasonable assurance in audit work and the effectiveness of the ARM.Design/methodology/approachThree independent variables are examined: CPA certification, ranks of auditors and gender for their influence on two dependent variables: the perceptions of reasonable assurance in audit work and the effectiveness of the ARM. MANOVA analysis and follow up Discriminant Analysis are employed.FindingsResults reveal that there are significant differences between the perceptions held by auditors of different ranks regarding reasonable assurance in audit work. Partners entertain higher perceptions of reasonable assurance than staff auditors. The “gender” variable does not have an influence on the two dependent variables. Auditors with CPA certifications have higher perceptions of reasonable assurance. There are no differences in the perceptions ratings by different rank of auditors, gender and CPA certifications on the effectiveness of the ARM. The three independent variables have average high‐mean ratings on the effectiveness of the ARM, confirming that the current ARM still can provide an effective assurance.Originality/valueThis empirical study revokes the UK study and The Netherlands study. Immediate attention need not be focused on restructuring the ARM. Future contemplation of other important issue such as auditor independence may be considered.

Financial and internal controls are important to organizations success. ABC group is undergoing internal controls and knowledge reengineering in the company so as to improve the group¡¯s operations and financial performance. Various measures have been recommended in this case. The results can provide insights for organizations to succeed in today¡¯s competitive financial markets.

The functions of bus stop shelters and factors affecting their placement at stops in transit systems are analyzed. Drawing on information from a variety of sources, current shelter placement policy in Los Angeles was found to be guided principally by the revenue-generating potential of shelter advertisements, secondarily by political concerns over geographic equity, and only peripherally on the basis of bus stop use. Using data on shelter and stop locations, boardings, and headways, a methodology is developed for measuring the cumulative use of bus stops with regard to person-min of wait time. Then this measure is used to evaluate three scenarios of bus stop placement, each of which optimizes the goals of ( a) private shelter providers, ( b) locally elected officials, and ( c) bus patrons, respectively. The conclusion is that either of the latter two scenarios would dramatically—by 2.3 person-years each day—increase the time that bus patrons in Los Angeles spend under shelter while waiting for buses at stops. This analysis both demonstrates the utility of using stop-coded boarding data in combination with headway data in the planning of bus stop shelters and shows the ineffectiveness and inequities that can arise when the sheltering of waiting passengers is not explicitly incorporated into policies guiding the placement of transit shelters.