An initial recall by one firm prompts clusters of additional recalls in close proximity by competitor firms, according to Hiding in the Herd: The Product Recall Clustering Phenomenon, forthcoming in Manufacturing and Service Operations Management from Kaitlin Wowak, assistant professor of IT, analytics, and operations at Notre Dame s Mendoza College of Business.
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Regulators have expressed concerns that audit firms emphasis on non-audit services (NAS) such as consulting could distract from an audit, and quality does suffer in certain cases, according to new research from the University of Notre Dame. The distraction effect of non-audit services on audit quality is forthcoming in the
Journal of Accounting and Economics from Erik Beardsley and Andrew Imdieke, assistant professors of accountancy at Notre Dame s Mendoza College of Business, along with Thomas Omer at the University of Nebraska-Lincoln.
Prior research has examined individual clients and whether they hire their auditor for other services. This study is the first to directly examine the distraction effect when the audit office places an overall emphasis on non-audit services, not just to a specific client.