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Contractual and Accounting Controls in Outsourcing Agreements: Evidence from the Australian Home Loan Industry
Author(s) -
Rooney Jim,
Cuganesan Suresh
Publication year - 2009
Publication title -
australian accounting review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.551
H-Index - 36
eISSN - 1835-2561
pISSN - 1035-6908
DOI - 10.1111/j.1835-2561.2009.00047.x
Subject(s) - outsourcing , accounting , business , context (archaeology) , control (management) , loan , accounting information system , exploratory research , finance , economics , marketing , management , biology , paleontology , sociology , anthropology
The objective of the article is to examine the contract–accounting control relationship in an outsourcing context and, specifically, issues such as the extent to which contracts and accounting are jointly implemented and integrated in managing supplier relationships. Through an exploratory analysis of outsourcing arrangements in the Australian home loan industry, the study finds that the contracts examined provided a broad relationship frame rather than controls that could be utilised to manage the relationship. Also, accounting controls were only implemented once the outsourcing relationship was underway. Finally, accounting controls operated independently of the contract in two of the three cases examined.