nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2015‒05‒16
eight papers chosen by
Alexander Harin
Modern University for the Humanities

  1. The impact of internal audit on the financial risk management of SMEs in Romania in the context of fiscal harmonization By Mihaela Daciana Nanu
  2. Evaluating equity in fair value accounting By Josipa Mrša
  3. Value Added Tax and its place in the fiscal system of the Republic of Croatia during the financial crisis By Sonja Cindori
  4. A Study on R&D Tax Incentives - Final report By The Consortium consisting of CPB, CAPP, CASE, CEPII, ETLA, IFO, IFS, IHS
  5. Study on the relationship between the quality of external audit - financial performance, solvency and risk management in the Romanian banking system By Mariana Nedelcu (Bunea)
  6. The impact of moral intensity dimensions in ethical decision making process of Albanian accounting students. By Loreta Bebi
  7. The dark side of disclosure : evidence of government expropriation from worldwide firms By Liu,Tingting; Ullah,Barkat; Wei,Zuobao; Xu,L. Colin
  8. The effectiveness of using developed nursing documentation on nursing documentation quality and professional nurses’ satisfaction in the surgery inpatient department, Maharaj Nakhon Si Thammarat Hospital, Thailand By Poranee Rattanasiri; Janwamol Phangyota; Yuwadee Wittayapun

  1. By: Mihaela Daciana Nanu (Faculty of Accounting and Management Information Systems The Accounting and Audit Department University of Economic Studies)
    Abstract: The study has the following objective:The analysis of SME behaviour in the management of the risk, of the risk appetite, as factor of impact on the process of planning and performance of the internal audit within the context of internationalization of the Romanian accounting and of harmonization of tax legislation with European norms in the field.The premises of this work are meant to be a starting point for a systematic analysis of the current knowledge level concerning the integration of the internal audit for the risk management in order to reach the optimum risk balance of the entity’s results. The international financial environment is affected by the new exposures generated by the European sovereign debt crisis, concerns caused by the slowing down of world economy.Having been politically and culturally influenced by the countries of European Union, Romania represents an interesting environment for research, in order to raise awareness that the internal audit and the risk management bring additional value to the entity and they are integral part of the risk equation. For the recent years the use of the procedures and policies of integrated risk management at entity level (ERM-Enterprise Risk Management) has extended, the entities thus acknowledging the advantages of risk management approach.The internal audit has the purpose of providing safety and consultancy while contributing to the risk management. The relationship between the internal audit and the risk management starts from the presentation of the global economic context where they act and manifest themselves, following the influences that define their mutual relationship, from the national perspective anchored in the European perspective.The general research area is given by the sciences of management accounting, taxation and integration of the internal audit in the risk management process, respectively, so that at the level of the theoretical research, a deductive type of approach is observed, based on the existing concepts, in order to singularize them at the level of SMEs.Research is fundamental, deductive-inductive, aiming at measuring the awareness of the need to apply risk management, its management in terms of the economic efficiency of the entity, by explaining the current national and international legislative context of the analyzed interdisciplinary phenomenon.It is envisaged that information will be acquired in what concerns the status of the analyzed phenomenon, anchored in the national economic reality, the capitalization of the information available in the analyzed field of interest, the exchange of experiences and good practices.
    Keywords: risk management , management accounting, internal audit,planning and performance of the internal audit
    JEL: A10 D03 H32
  2. By: Josipa Mrša (Faculty of Economics Rijeka)
    Abstract: This paper discusses the results of the research problem evaluating equity in accounting. In principle, equity is a differential value, the difference of assets and liabilities and its value is derived from these elements, for each individual component of which the fair value is determined. However, accounting recognizes methodologically different equity evaluation as well. In a business combination, fair value of units can be determined through the fair value of equity financial instruments, the result of which may significantly be different from the valuation of equity through value of assets and liabilities. Moreover the accounting standards specifically provide guidance on measuring the fair value of the equity financial instruments, the quoted ones as well as those not quoted.
    Keywords: Fair value measurement of equity, equity instruments, fair value of equity in business combination, noncontrolling interest
    JEL: M41
  3. By: Sonja Cindori (Faculty of law)
    Abstract: Value added tax was introduced in the fiscal system of the Republic of Croatia in 1998 as a flat rate system with a rate of 22 %. Shortly thereafter zero rate and reduced rate of 10% were introduced. Tax rates and their scope have been changing periodically until nowadays when rates are 5%, 13 % and 25% by which the Republic of Croatia takes a leading position regarding the amount of standard rate applicable in the Member States of the European Union.At the beginning of 2015 value added tax legislation is going to be harmonized with the EU legislation completely and will create a basis for a stable and plentiful form of sales taxation, with respect to the fact that Value added tax is the most plentiful taxation revenue of Government Budget of the Republic of Croatia.Latest reforms of the Value Added tax system in the Republic of Croatia concern changes in several areas: tax rate levels, threshold for compulsory registration in the Value added tax system, tax exemptions (by selecting functional principles for certain categories of exemptions), modalities of Value Added tax computation (according to collected or issued invoices) and new control methods of cash turnover. The greatest effect was expected in the area of its buoyancy and resilience during the financial crisis whether there was attempt to indirectly influence its regressive nature. Regardless of changes in the taxation system by the Value added tax, developments in economy and changes in social and economic sphere, Value added tax revenue in the last ten years has been in relatively narrow limits. However, its buoyancy, cheapness of collection and resilience during the financial crisis as advantages of this form of taxation cannot be considered separately but must be placed in the context of current economic conditions.According to the recent efforts of raising the standard rate of Value added tax there is a question of reaching the limits of Croatian tax capacity and real possibilities of setting its goals. Therefore, cheapness and efficiency of tax collection, the stability of tax policy and the balance between scope of tax base and provided exemptions should be an imperative of fiscal policy of the Republic of Croatia, which has to aim at the effectiveness of the implementation of legislation in relation to the tax system as a whole.
    Keywords: financial crisis, tax policy, value added tax, regression, rate, exemptions.
    JEL: K34
  4. By: The Consortium consisting of CPB, CAPP, CASE, CEPII, ETLA, IFO, IFS, IHS
    Abstract: Investment in research and innovation plays a critical role in kick-starting smart growth and upgrading the competitiveness of European companies. In the post-crisis world, Europe needs innovation more than ever before to keep up with the rapid technology advances and growing global competition. R&D tax incentives are an important innovation policy tool widely used in Europe. In some countries, during the crisis, tax instruments have become increasingly important for stimulating private R&D than direct funding. The recent study conducted jointly by DG TAXUD and DG GROW finds fiscal incentives for R&D expenses to be effective in stimulating investment in R&D. The size of the effect varies across countries which can be linked to country specific features, but, crucially, also to differences in the design and organisational practices of the fiscal schemes. The study identifies what are good designs for R&D tax incentives and which features are to be avoided. To answer this question, the study benchmarks the 80 existing R&D tax incentives in 33 countries (including all EU Member States) based on a number of identified good practices in design and administration.
    Keywords: European Union, taxation, R&D tax incentives
    JEL: H20 H29
    Date: 2015–01
  5. By: Mariana Nedelcu (Bunea) (Bucharest University of Economic Studies)
    Abstract: At the European level - and even global – the prolonged economic and financial crisis was a challenge for the financial institutions, negatively affecting the banking system and beyond. The impact of the global crisis has affected gradually overwhelmingly the profitability of the banking industry, affecting all types of banking products and services offered to the customers, the models of supervision and the evaluation methods known so far. The audit function has an important role in the corporate mechanism, especially by extra value conferred to the governance process, so who, over time, this issue was debated assiduously in a series of studies and analysis on information transparency at the level of companies.The purpose of this article is to provide a more comprehensive analysis of the relationship between the quality of external audit and the financial performance, the solvency and requirements of capital adequacy at risk at the level of the Romanian banking system. Thus, concentrating attention on the quality of external audit, we tried to find answers motivated by the empirical analysis results to the general question "How influences the quality of external audit the performance of the banking system? How is the value added by the quality of external audit at the level of credit institutions?".In order to test the formulated hypotheses, the research methodology used is mainly quantitative, based on a statistical analysis deductive and having as starting point the agency theory having as objective the testing and possible links from cause - effect, and also analyzing the significance level thereof.
    Keywords: corporate governance, banking system, solvency, audit
    JEL: G20 G30 M40
  6. By: Loreta Bebi (\)
    Abstract: Several accounting and corporate scandals such as the collapse of Enron, Arthur Andersen, WorldCom, and Parmalat have shaken the business world over the last decade. After numerous studies, it is concluded that the main reason of this scandals have been especially the unethical conduct of accountants.Today more than ever, unfortunately, profit at any cost has become the most negative factor that endangers the accounting profession. Financial scandals all over the world, financial crisis that continues to be present, and the last cases of businesses rigging in Albania, in which are involved both accountants, have brought the issues of ethics in accounting in attention of the accounting professionals and academics. This paper investigates the ethical decisions of accountancy students and in particular analyses the effect of moral intensity dimensions: magnitude of consecuences, social consensus, temporal immediacy in ethical decision-making process of those individuals. Two classes of final year accountancy students of the "Aleksander Xhuvani" University in Elbasan, Albania were presented with four ethical scenarios. Based on their responses about this scenarios, this study came in the conclusion that three dimensions of moral intensity affect significantly the three first stages of ethical decision making process of the students that participate in the study.Since noticed a limited number of studies regarding ethical decision making of accountants in countries with developing economies, like Albania, this study will provide a valuable contribution in relation to this important issue of our country. It will conclude with some valuable recommendations on measures to be taken regarding the improvement of the current situation.
    Keywords: ethical decision making, Jone (1991) model, moral intensity, accounting students, Albania.
    JEL: M40 M41 M49
  7. By: Liu,Tingting; Ullah,Barkat; Wei,Zuobao; Xu,L. Colin
    Abstract: This paper studies the effects of voluntary accounting information disclosure through auditing on firm access to finance, exposure to corruption, and sales growth. Relying on a data set of more than 70,000 firms in 121 countries, the analysis finds that disclosure can be a double-edged sword. On the one hand, audited firms exhibit a slightly lower level of financial constraints than unaudited firms. On the other hand, audited firms face a significantly higher level of corruption obstacles. The net effects of voluntary information disclosure on firm growth are negative, which can largely be explained by the fact that most of the countries in the sample are developing countries where institutions are weak. The beneficial effect of disclosure increases as a country?s property rights protection improves. The qualitative results are robust to considerations of the endogeneity of auditing and to alternative measures of corruption and financial constraints. The findings reveal the dark side of voluntary information disclosure: exposing firms to government expropriation where institutions are weak.
    Date: 2015–05–04
  8. By: Poranee Rattanasiri (Maharaj Nakhon Si Thammarat Hospital); Janwamol Phangyota (Maharaj Nakhon Si Thammarat Hospital); Yuwadee Wittayapun (School of Allied Health Sciences and Public Health)
    Abstract: The quality of nursing documentation is an important issue for nurses to achieve patient outcome goals. The nursing documentation has constantly developed to increase accurate and legally prudent documentation.The purposes of this quasi-experimental research were: (1) to study the effectiveness of using developed nursing documentation on nursing documentation quality and (2) to study the satisfaction of professional nurses in using them. The first sample comprised 348 nursing documentation samples in the surgery inpatient department, including 174 documentation samples before and 174 documentation samples after using developed nursing documentation. The simple random sample was used to select sample. The second sample comprised 101 professional nurses working in the surgery inpatient department. The instruments used in this study included I) the developed nursing documentation, including (1) a form for nursing care plan and (2) a form for nursing progress notes (3) the nursing documentation audit form II) the nursing documentation manual and III) a questionnaire of professional nurses’ satisfaction in using the developed documentation. All instruments were approved for content validity by 3 experts. The Cronbach’s alpha coefficient of professional nurses’ satisfaction was 0.97. The implementation was applied for 3 months in 3 surgery inpatient wards. Data were analyzed using mean, standard deviation and independent t-test.The study showed that: 1) the mean quality of the nursing documentations after using developed nursing documentations was significantly higher than that before the experiment (p<.05).The professional nurses’ satisfaction regarding using the developed nursing documentation was at a high level (mean =3.41, sd =.51).The result suggested that the developed nursing documentation and the nursing documentation manual should be extended in nursing care practices to increase the quality of nursing documentation. That would reflect effective nursing care for patients.
    Keywords: nursing documentation, nursing documentation audit, professional nurses
    JEL: I19 I19 I19

This nep-acc issue is ©2015 by Alexander Harin. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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