Visit the American Institute of Certified Public Accountants (AICPA) Web site at www.aicpa.org and search for recent AICPA Disciplinary Actions against auditors who did not exercise due professional care and skepticism in performing the audits.
Write a brief summary of one case, describing the auditing standards violated. (Avoid choosing a case that another student has already posted about.)
Discuss whether you agree or not with the AICPA Disciplinary Actions in each case and whether you think the actions were sufficient and fair.
Adams (1963, 1965) developed a motivation model based on to the comparison of oneself with others in context to the output – input ratio at work. Equity is achieved when the input and output ratio is the same for different individuals. The employees of a firm try to compare their own ratio with that of others (Adams, 1963, p. 422-436, cited in McShane and Travaglione, 2007, p. 154). Thus get either get motivated if they think that the results are rational or else they get de motivated if they think that there is a lack of fairness in the work outcome. The major challenge lies with the managers to allocate a right mix of input and output considering a diverse global workforce so as to maintain equity in the organization. For instance, Dutch researchers found that pay inequity leads to negative behavior and frustration (Van Dierendonck et al, 1994; Van Y Peren et al, 1992) whereas Australian studies show that the situation results in lower job satisfaction (Carr et al., 1996). EXPECTANCY THEORY Expectancy theory suggests that an individual acts through self interest and adopts a pathway of actions which he perceives will maximize the chances of desirable results for themselves (Isaac, Wilfred, and Pitt, 2001, p. 212). The theory is based on three components; valence, expectancy and instrumentality. Vroom (1964, p. 15) defined valence as an “affective orientations toward particular outcomes”. Expectancy refers to a momentary belief of an individual that a stated level of performance will follow a particular outcome. Finally, instrumentality is related to an individual’s expectations that “if she or he behaves in a certain way, he or she will get certain things” (Nadler and Lawler, 1997, p. 218). Expectancy theory is thus grounded on the fact that the work performance is directed towards individual behaviors’ that people perceive, will lead them to the desired outcomes (McShane and Travaglione, 2007, p. 146). HERZBERG’S “TWO FACTOR THEORY” Herzberg ‘s (1959) Motivation- Hygiene or two – factor theory suggest that the intrinsic and the extrinsic aspects of a job are different from each other. The theory breaks job satisfaction into two factors: Motivation and Hygiene factors. Motivators relates to the intrinsic factors such as responsibility, recognition, achievement and the work profile. On the other hand hygiene factors are associated with the extrinsic factors such as remuneration, working environment, policies of the organization and position ((Manolopoulos, 2008, p. 66). Herzberg(1959) suggest that job satisfaction and dissatisfaction are two different independent variables. According to the theory job dissatisfaction is an outcome followed by lack of hygiene factors. However, even their presence dosent motivates or satisfies the work force. On the other hand motivation factors acted as elements to enrich an individual’s job. Motivation factors had long term positive effects on the workforce performance whereas hygiene factors had a short term impact on the attitude and performance of the employees (Gawel Joseph E. (1997). Herzberg’s theory of motivation and Maslow’s hierarchy of needs. Practical Assessment, Research & Evaluation, 5(11). Retrieved August 18, 2009 from http://PAREonline.net/getvn.asp?v=5&n=11 . This paper has been viewed 290,800 times since 11/13/1999..)eg is required. However, questions have been raised about the application of Herzberg’s theory on diverse workforce. A few of the motivation factors may lead to dissatisfaction and a few of hygiene factor may result in satisfaction (Gardner, 1977, p. 197). It is totally based on individuals or groups requirement. Implementation of Motivational Theories It is an important aspect of a manager’s job profile to keep the employees motivated towards the organizational goals. A manager should understand the needs of both the organization and the employees and should try to align them so as to get favorable results. Despite having a lot of Motivation theories , managers still face a lot of problem in motivating their employees and one major factor behind this is the global workforce having altogether different values and beliefs >