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1 ACC8000 Research in Accounting Practice Assignment 3, Semester 1, 2018: Due 11 June 2018 ______________________________________________________________ Weight: 50%, Expected words (excluding...

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ACC8000 Research in Accounting Practice
Assignment 3, Semester 1, 2018: Due 11 June 2018
Weight: 50%, Expected words (excluding references) 2,700 – 3,100
Question XXXXXXXXXXTotal marks = 33)
You have recently started working at the Te
ific Telephone Company, which
provides mobile telephone services. The aim of your task is to structure
compensation packages so that the packages align the motivations of
executives (called goal congruency) with the desire of the company to
maximise the return to shareholders. Cu
ently all employees are on fixed
The industry is very competitive and the CEO would like you to answer the
following questions. Prepare separate answers for each question:
a. Explain why salaries may fail to motivate employees to work
productively (as suggested by agency theory).
(6 marks)
. Identify possible different components of compensation packages and
explain how different components may motivate employees to work
productively in the short and/or long term.
(8 marks)
c. Discuss how an employee’s attitude to risk might influence their desired
compensation package.
(5 marks)
d. Identify and discuss three factors that may limit the effectiveness of
performance based compensation packages in motivating employees to
work productively.
(9 marks)
e. Identify and discuss the benefits of using an executive compensation
committee in the determination of the components to include in
compensation packages.
(5 marks)
Question 2 XXXXXXXXXXTotal marks = 8)
a. How does agency theory explain the need for the preparation of
(4 marks)
. How does agency theory explain the need for an audit of accounts?
(4 marks)
Question 3 XXXXXXXXXXTotal marks = 10)
Van Puyvelde et al XXXXXXXXXXsuggest that agency theory alone is not enough
when studying governance in non-profit organisations.
a. Explain what is meant by the term governance (as it applies to
(2 marks)
. Explain why using agency theory as a single theory is not appropriate
to study governance in non-profit organisations?
(4 marks)
c. Briefly explain an alternate or supplementary theory that might be
used more appropriately when studying governance in non-profit
(4 marks)
Question XXXXXXXXXXTotal marks = 43)
The following questions relate to the articles by (Masoud 2017) and Salifu
and Mahama (2015), which examined the audit expectation gap issue.
a) Identify and explain the type of mixed method study that was used by
Masoud (2017).
(3 marks)
) Review the qualitative portion of Masoud’s XXXXXXXXXXstudy. For each
component listed below under (i) to (iv):
 Provide a
ief summary of what he has done, and
 Evaluate the appropriateness of what he has done (i.e., was it
satisfactory or could he have done something different to improve the
igour of his qualitative study?):
i. How were participants selected and was it an appropriate
(3 marks)
ii. Were the number of participants interviewed appropriate? If so,
why do you believe this is an appropriate number, and if not,
how many interviewees would have improved the rigour?
(3 marks)
iii. How were the qualitative data analysed and was this analysis
appropriate? If so, why do you believe this analysis is
appropriate, and if not, what alternative anlaysis would have
improved the rigour?
(3 marks)
iv. What is your opinion about how the qualitative data analysis
was written up?
(3 marks)
c) To what extent do you think Masoud XXXXXXXXXXhas been successful in
drawing on the first phase of his study to ca
y out the second
phase of his mixed-methods study?
(4 marks)
d) Explain how Masuod XXXXXXXXXXand Salifu and Mahama XXXXXXXXXXgo about
designing the questionnaires for their studies. Compare the two
studies and choose which study uses a more rigorous approach to
questionnaire design, stating your reasons why you believe one
approach is superior in its rigour.
(8 marks)
e) Explain how Masuod XXXXXXXXXXand Salifu and Mahama XXXXXXXXXXgo about
writing up the findings from their questionnaires. Compare the two
studies and choose which study uses a more rigorous approach, stating
easons why you believe one approach is superior in its rigour.
(8 marks)
f) Outline one aspect of Masoud’s XXXXXXXXXXstudy that has been done poorly
(other than the ones already discussed in question 4 b-e above).
(4 marks)
g) Outline one aspect of Salifu and Mahama’s XXXXXXXXXXstudy that has been
done poorly (other than the ones already discussed in question 4 b-e
above) .
(4 marks)
Appropriate in-text referencing for each answer and bibliography for
assignment XXXXXXXXXX6 marks)
Bibliography of references cited above
Masoud, N 2017, 'An empirical study of audit expectation-performance gap: The case of Libya',
Research in International Business and Finance, vol. 41, pp. 1-15.
Salifu, I & Mahama, M 2015, 'The evaluation of evidence of the audit expectation gap in
Ghana', Research Journal of Finance and Accounting, vol. 6, no. 24, pp. 20-30.
Van Puyvelde, S, Caers, R, Du Bois, C & Jegers, M 2012, 'The governance of nonprofit
organizations: Integrating agency theory with stakeholder and stewardship theories', Nonprofit
and Voluntary Sector Quarterly, vol. 41, no. 3, pp XXXXXXXXXX.
Answered Same Day Jun 02, 2020 ACC8000


Preeta answered on Jun 05 2020
146 Votes
WORDS COUNT:     3033
The case involves Te
ific Telephone Company which provides mobile telephone services. The motive is to form a compensation package so that the package supports the motivation of executives (called goal congruency) since the company wants to maximize shareholders return. At present fixed salary is given to all the employees.
The following answers are given in accordance with the given scenario:
Question 1:
(a)     Alfie Kohn, in his article has stated that incentives just change what we do for the time being but does not change the attitude of the persons and their behavior as well as does not create any enduring commitment to any value or action. There are several other factors which motivate the employees rather than only salary and incentives, those are listed below:
· Positive Working Ambiance – Employees spend most of their time at office, so a good working environment will make them work comfortably. Interactions among employees and leader will lighten the ambiance.
· Supportive Leader – Leaders must make their subordinates feel that they are skilled and can produce good work. They should be like role models to their subordinates.
· Job Satisfaction – Employees must be satisfied with their job to increase their productivity. Company should make an effort to eliminate any dissatisfaction present.
· Individual Applaud – Every employee should be applauded for the individual tasks done by them, this will increase their productivity.
· Teamwork – In the decision making process if the individual opinions are valued, employees will feel important, eventually increasing their productivity.
(b)     Jacques Igalens and Patrice Roussel, in their article have affirmed, there is a relationship between different components of compensation, job satisfaction and work motivation. A few components of compensation package are listed below:
· Commission – Employees will be given commission for each of the new customer they
ing for the company, thus motivating them to develop the business.
· Overtime Pay – Employees will be paid an incentive for the work they do beyond normal office time, it will increase their zeal to work overtime and increase their productivity.
· Bonus – Bonus will be given to the employees at the end of the year based on their performance, which will work as an incentive by motivating them to increase their productivity at the work.
· Travel Allowance – If any employee is required to travel for the office work, travel allowance will be provided for the expenses incu
· Retirement Benefits – Employees will be paid a fixed sum of money every month after their retirement, it will motivate them to be loyal to the company and working with it rather than going for other companies.
· Health Insurance – All the employees will be provided health insurance that is their hospital bill charges, medical expenses will be covered. This will make them think, company cares for them, motivating them.
· Stock Option – Employees will be provided stock options, that is company shares will be offered to them at a very nominal price, making them feel like a part of the company.
· House Allowance – House rents will be paid on behalf of the employees. House accommodation will also be provided for the employees based on their performance.
c.     Steven Slutsky and Scott Olsen, in their article has stated that compensation packages motivate employees but company should always look out if employees are putting business in the risk for their personal gain. But keeping this aside the employees must be encouraged to take risks by using the compensation packages. An employee will be required to take more risks to perform better and to produce more works, he will have to work overtime for the overtime incentive, have to perform better than the other for the year-end bonus, since travel expenses will be provided so employees will take more risk to explore more place to expand the business. The employees will take more risks to reach to new people to gain customers for the commission. The employee will also take the risk of staying in this company at bad times and will not go to other companies for the retirement benefits.
(d)    Bridget Miller, in his article has discussed the following three factors that may limit the effectiveness of performance based compensation packages in motivating the employees to work productively are:-
i. Enough fixed salary – If the fixed salary is enough for the employee he will not get motivated by the compensation packages and will not look out to increase the productivity of his work, so he will not be ready to work overtime, will not be interested to travel and even will not be interested to get new customers for the company. The employee is just happy with his cu
ent situation and find out no motivation to work harder or try to increase the productivity.
ii. Missing out of goals – If the employee misses any goal to achieve a compensation, he gets disheartened and lose his further interest to work for further incentives and loses his motivation as well as productivity. Like if an employee fails to achieve any new customer for a week he will get disheartened and will stop trying or if he fails to perform well one year and gets low bonus he will stop trying next year to perform well getting disheartened. This is a psychological state.
iii. Bad leader and negative work ambiance – If the work ambiance is uncomfortable or the leader does not have good relation with other employees, even a good compensation package will not be able to boost the motivation of employees. If an employee is always made to feel that he is unskilled and can not produce any good work, he will start to believe so and will not work for the incentives. A good leader and positive working ambiance is required for the compensation package to work.
(e)    As per Clifford W. Smith, Junior, a planned executive compensation package decreases the tax liability of the company as well as it influences the managers to...

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