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It is a noisy, risky world out there for organizations today. On top of all the digital disruption and change of the last few years, the world was blindsided by [...]

In the late 1990s, online bookseller Amazon had a very uncertain future. Now its market capitalization is almost $900 billion. And it has revolutionized retailing. Around the same time, it [...]

In today's business environment, organizations must continuously adapt to evolving consumer interests and regulatory requirements. But as tempting as it may be to focus only on innovation and improvement, innovation, [...]

No company is immune from risk and uncertainty, and new approaches are needed to navigate risky environments. Creating a risk challenge culture should be a top priority. For example, the [...]

JPMorgan Chase & Co. was one of L the relatively few big banks to emerge from the financial crisis of the decade of the 2000s in reasonably good shape. However, [...]

One of the most shocking realizations to emerge from the recent global financial crisis is the extent to which the governing bodies failed to understand the level of risk their [...]

In late 2009 and early 2010, Toyota Motor Corp. recalled more than nine million vehicles worldwide to correct separate acceleration and brake problems, both of which were potentially deadly. The [...]

The coronavirus (COVID-19) pandemic has reminded CPAs that the world is risky, volatile, and uncertain. Some risk experts contend that the world has been this way for a long time. [...]

It's widely acknowledged that one of the culprits in the current economic crisis has been the underestimation or mismanagement of risk. No one ever imagined that real estate prices could [...]

Two of the greatest risks facing the world at the start of 2009 are the financial crisis and the threat of terrorist attacks. Before each of these risks dramatically and [...]

Porter's (1985) analysis of competitive strategy is used to explain industry specialization by Big 6 accounting firms. In Porter's framework, industry specialization can be viewed as a differentiation strategy whose purpose is to create a sustainable competitive advantage relative to nonspecialist auditors. A differentiation strategy will lead to higher audit fees if valued by clients. We find evidence of higher fees for Big 6 industry specialists relative to nonspecialists in the U.S. audit market, but only for companies in the lower half of the sample based on size (assets < $123 million). By contrast, companies in the upper half of the sample do not pay a specialist premium, and audit fees actually decrease as a company becomes increasingly large relative to its auditor's industry clientele. Together these results suggest that audit fees are higher when clients are small and have little bargaining power, but audit fees are lower when clients have greater bargaining power and this is more likely when companies are large in absolute size and large relative to their auditor's industry clientele. Keywords: auditor specialization; bargaining power; audit pricing; audit fees. Data Availability: Contact the first author about availability of the data., INTRODUCTION The purpose of this study is to examine audit pricing by Big 6 auditors, and the joint effects of industry specialization and client bargaining power on audit fees. Drawing [...]

AS TODAY'S COMPANIES PLAN THEIR RISK management strategies, the massive bankruptcies and colossal shareholder losses of the last two years are undoubtedly on the minds of corporate stakeholders. Numerous risk-related [...]

Successful businesses take calculated risks to achieve objectives. Globalization, deregulation, Web-based services, complicated financial instruments and contracts, emerging markets--all contain tremendous potential advantages for companies and carry the danger of [...]

In the wake of the international financial crisis that began in 2008, there has been a keen interest on the part of American-based organizations, large and small, in identifying and [...]

However, users may print, download, or email articles for individual use. Copyright of On Balance is the property of Wisconsin Institute of Certified Public Accountants and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. [Extracted from the article]

Managing risk on an integrated and enterprise-wide basis is a vital issue confronting executives. The CFO is a key decision maker in crafting the company's strategy. Twenty-first century businesses worldwide [...]

SUMMARY This paper examines the role of auditee profitability in pricing new audit engagements. Changes in the auditing environment are noted that suggest that auditors are managing their practices differently [...]

Managing risk is imperative for successful leadership in today's business world. Leaders must develop processes like enterprise risk management (ERM) to improve their ability to manage risks effectively ERM cuts [...]

The article discusses the importance to companies of developing a risk challenge culture. The authors cite the March 2011 earthquake that damaged the Fukushima Daiichi nuclear power plant in Japan and the recall by car maker General Motors Co. of vehicles equipped with faulty ignition switches as examples of a failure to anticipate and mitigate risks. They describe several key elements of the necessary culture including board oversight of risk and board expertise in enterprise risk management.

Relates the impact of prayer in handling the grief of the family of a pastor of the Mount Paran Church of God over the death of his son in a traffic accident. Background of the incident; Initial reaction of the family to the accident; Scriptures that guided the family.

This article describes a generic framework for risk management. Successful businesses take calculated risks to achieve objectives. Globalization, deregulation, Web-based services, complicated financial instruments and contracts, emerging markets--all contain tremendous potential advantages for companies and carry the danger of huge mistakes or unexpected developments. Businesses must measure these risks, try to minimize them and--if possible--use them to their advantage. The certified public accountant (CPA) is the professional best suited to help them manage risk. CPAs--as internal or external advisers--have the skills and competencies required to help companies evaluate and address risk. Although each business may have its own unique approach to risk management, current best practices suggest following these steps: establish the context and look carefully at an organization's strategy, stakeholders and environment; identify situations that can affect the business objectives; analyze and assess the risks; design strategies for managing risks, and implement and integrate management processes. INSETS: Taking a Well-Hedged Risk Boosts Sales for One Company;EXECUTIVE SUMMARY;Risk Management Resources;A Cartography of Risk

The article focuses on suggestions to use the Committee of Sponsoring Organizations of the Treadway Commission's (COSO) new Enterprise Risk Management (ERM) framework. It is advised to compare the current ERM practices to the five components and 20 principles of the framework, Enterprise Risk Management: Integrating With Strategy and Performance.