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3752. The Government Contracting Supply Chain and Audit Outcomes
Invited abstract in session WB-59: OR in Accounting: Planning, Taxation, and Reporting, stream OR in Financial and Management Accounting.
Wednesday, 10:30-12:00Room: S08 (building: 101)
Authors (first author is the speaker)
| 1. | Tracie Frost
|
| School of Accounting and Finance, Hong Kong Polytechnic University |
Abstract
This study explores the impact of government contractors’ supply chain characteristics on auditors' decisions related to risk, cost, and compliance. Supply chain contracts are economically important and subject to substantial risks, as shown by reporting of supply chain risks in firms’ Item 1A disclosures; however the exact influence of supply chain risks on audit outcomes remains unclear due to the lack of publicly available contract details for commercial supply chains. To overcome this issue, I use detailed data from US government contracts.
Government contractors an institutionally interesting setting for studying supply chain contract characteristics because they operate within complex bureaucratic frameworks and accounting guidelines, which require robust financial operations to remain in compliance with regulations. Government contracts also account for approximately 13% of public firms' major customers.
Given the importance of government contracts and the detailed contract data that is available, this study investigates how supply chain contract characteristics influence auditor decisions. Specifically, leveraging data from the Federal Procurement Data System, I analyse the impact of these characteristics on audit outcomes, including audit risk and control weaknesses.
Keywords
- Accounting
- Supply Chain Management
- Risk Analysis and Management
Status: accepted
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