Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Study Finds Brainstorming Rules Can Lead to Real-World Success in Business Settings

28.09.2010
Researchers have long held that there are steps that can be taken to make brainstorming sessions more productive. New research from North Carolina State University finds that these recommendations actually do contribute to success when applied in real-world business environments.

“Previous research has laid out best practices that are conducive to brainstorming, or group decision making, and we wanted to see whether using those practices makes a difference in the real world,” says Dr. Joe Brazel, associate professor of accounting at NC State and co-author of a paper describing the research.

“We found that, when tackling complex issues, the use of best practices to produce high-quality brainstorming did result in better decision making,” Brazel says. For example, if an accounting firm has a client with a high fraud risk, what procedures do you need to employ in order to detect fraud? “When an audit team had taken steps to ensure high-quality brainstorming, we found them employing fraud detection techniques, such as surprise inventory checks, sales verifications, et cetera. When an audit team wasn’t using the brainstorming best practices, we saw them identify risk and then take no pursuant action.”

Brainstorming is a required component of the planning process for firms that are responsible for detecting corporate fraud. In this study, the researchers wanted to see if there was variation in how these firms conducted their brainstorming sessions, and whether those variations affected the quality of their work. The study found that there are 21 specific best practices that contributed to successful brainstorming efforts, and that the benefits of high quality brainstorming could be attained when at least 10 to 11 of those practices are put into place – such as the inclusion of subject-matter specialists and an openness to input from all team members.

While this research is certainly applicable to fraud detection, Brazel says that its findings are broadly applicable throughout the business world. “When facing a complex problem in any field of business, this research tells us that it is important to incorporate high-quality brainstorming techniques in order to improve your ability to successfully resolve the problem.”

The researchers also found one variable that can negate any potential benefits of high quality brainstorming: managerial bias. If a team leader comes into the brainstorming process with well-known preconceived notions, that effectively short-circuits the brainstorming effort – and using best practices will not help.

NC State’s Department of Accounting is part of the university’s College of Management.

-shipman-

Note to Editors: The presentation abstract follows.

“Auditors’ Use of Brainstorming in the Consideration of Fraud: Reports from the Field”

Authors: Joseph F. Brazel, North Carolina State University; Tina D. Carpenter, University of Georgia; J. Gregory Jenkins, Virginia Polytechnic Institute and State University

Published: July 2010, The Accounting Review

Abstract: Audit standards require auditors to conduct fraud brainstorming sessions on every audit. The Public Company Accounting Oversight Board has raised concerns about auditors’ fraud judgments and the quality of their brainstorming sessions. We develop a measure of brainstorming quality to examine how it affects auditors’ fraud decision-making processes. We test our measure using field survey data of auditors’ actual brainstorming sessions for 179 audit engagements. Respondents report considerable variation in the quality of brainstorming in practice. We find some evidence that high-quality brainstorming improves the relations between fraud risk factors and fraud risk assessments. We also determine that brainstorming quality positively moderates the relations between fraud risk assessments and fraud-related testing. Our results suggest that the benefits of brainstorming do not apply uniformly, because low-quality sessions likely incur the costs of such interactions without receiving the attendant benefits. By documenting best practices from high-quality brainstorming sessions, our findings can inform auditors on how to improve their consideration of fraud.

Matt Shipman | EurekAlert!
Further information:
http://www.ncsu.edu

More articles from Studies and Analyses:

nachricht Real-time feedback helps save energy and water
08.02.2017 | Otto-Friedrich-Universität Bamberg

nachricht The Great Unknown: Risk-Taking Behavior in Adolescents
19.01.2017 | Max-Planck-Institut für Bildungsforschung

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Safe glide at total engine failure with ELA-inside

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded after a glide flight with an Airbus A320 in ditching on the Hudson River. All 155 people on board were saved.

On January 15, 2009, Chesley B. Sullenberger was celebrated world-wide: after the two engines had failed due to bird strike, he and his flight crew succeeded...

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Existence of a new quasiparticle demonstrated

28.02.2017 | Materials Sciences

Sustainable ceramics without a kiln

28.02.2017 | Materials Sciences

Biofuel produced by microalgae

28.02.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>