Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | The role of auditing and internal controls in buyer-supplier relations |
| Organization Unit |
|
| Authors |
|
| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
|
| Journal Title | Journal of Contemporary Accounting and Economics |
| Publisher | Elsevier |
| Geographical Reach | international |
| ISSN | 1815-5669 |
| Volume | 4 |
| Number | 1 |
| Page Range | 1 - 17 |
| Date | 2008 |
| Abstract Text | Supply chain management has emerged as one of the more important topics in managerial accounting. The importance of information exchange between parties involved in supply chains has also been well documented. By addressing the value of audits in this setting, this theoretical paper serves to link two strains of accounting research: the managerial topic of supply chain effectiveness and the value of the audit function, in particular audits of the suppliers conducted by the buyers. We analyze the role of supplier audits with long-term, profit sharing contracts between the buyers and suppliers. Through a stylized model, we demonstrate that when random supplier audits are conducted, the buyer can effectively leave zero informational rents to the supplier, regardless of the supplier's cost type. |
| Free access at | DOI |
| Digital Object Identifier | 10.1016/S1815-5669(10)70027-8 |
| Export |
BibTeX
|