nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2017‒10‒08
eleven papers chosen by

  1. The Influence of the Quality of an Audit to Relationship Other Comprehensive Income (OCI) And Relevance of Value Accounting Information, And Asymmetry of Information (Study on Companies in Indonesia) By Yurniwati
  2. "The Impact of Bankruptcy Prediction, Company’s Financial Condition, Previous Year Audit Opinion, Firm Size and Audit Tenure Towards Auditor’s Going Concern Opinion" By Lisa Cellica
  3. "Do Intellectual Capital, Corporate Social Responsibility, and Good Corporate Governance Affect Indonesia’s Mining Companies Value?" By Nadia Azalia Putri
  4. "Factors Affecting Earnings Management in the Indonesian Stock Exchange" By Nico Alexander
  5. "Prior Academic Performance and Passing Professional Accounting Examinations, Empirical Evidence from Malaysia" By Puteh Mariam Ismail
  6. "Revealing the Accounting Existence Through Debt-Receivable Practice at Majapahit Kingdom Era (1350)" By Novrida Qudsi Lutfillah
  7. "A Critical Analysis of Startup Business in Indonesia by Means of Mato-Based Profit Sharing Accounting" By Hanif
  8. "Accounting Students’ Perceptions of AEC 2015 on Public Accounting Profession" By Mirna Dianita
  9. "Transparency and Accountability of Local Government by Internet Financial Reporting in Ex Besuki Residency" By Isti Fadah
  10. "The Influence of Ethics and Locus of Control to Do Whistleblowing Intention with Profession of Auditor and Non-Auditor as a Moderating Variable" By Atika Zarefar
  11. Funders-of-Last-Resort: Legal Issues Involved in Using Central Bank Balance Sheets to Bolster Economic Growth By Michael, Bryane; Dalko, Viktoria

  1. By: Yurniwati (Andalas University, Indonesia. Author-2-Name: Amsal Djunid Author-2-Workplace-Name: Andalas University, Indonesia. Author-3-Name: Nini Sumarni Author-3-Workplace-Name: Andalas University, Indonesia. Author-4-Name: Ike Pranita Author-4-Workplace-Name: Andalas University, Indonesia.)
    Abstract: "Objective – This study examines the influence of the quality of an audit to the relationship of Other Comprehensive Income (OCI) and Relevance of Value Accounting Information, and Asymmetry of Information in Indonesia’s companies. Methodology/Technique – This research uses secondary data obtained from the company's annual report in 2012 - 2014. A purposive sampling method is used to collect data and the analysis of the hypothesis was conducted using multiple linear regression analysis. Findings – The research has shown that Quality of Audit has a significant influence to the relationship of the OCI disclosure and Relevance of Value Accounting Information has a value of sig. 0.000, F calculate is 26.816 larger than F table 2.396 and adjusted R square 0.241. Novelty – The study looks at the disclosures of OCI component’s role in the investors decision making and it increases value relevance of accounting information and reducing information asymmetry."
    Keywords: Comprehensive Income (OCI); Relevance of Value Accounting Information; Information Asymmetry; Quality of Audit.
    JEL: D82 M41 M42
    Date: 2017–01–08
  2. By: Lisa Cellica (Universitas Multimedia Nusantara, Indonesia Author-2-Name: Ratnawati Kurnia Author-2-Workplace-Name: Universitas Multimedia Nusantara, Indonesia)
    Abstract: "Objective – The auditor is responsible for obtaining sufficient audit evidence about the accuracy and proper use of the going concern assumption from the company’s management through its financial statements. These evidence are used for the purpose of deciding whether there are material uncertainties about the entity's ability to maintain the continuity of its business. Thus, the objective of this paper is to examine the impact of bankruptcy prediction, company’s financial condition, previous year audit opinion, firm size and audit tenure towards Auditor’s going concern opinion. Methodology/Technique – The object of this paper is the service companies listed on the Indonesia Stock Exchange for the period of 2011-2014. This paper uses secondary data and samples taken were determined based on the purposive sampling method. The regression logistic is used to analyse data. Findings – The results of this research show that bankruptcy prediction, company’s financial condition, previous year audit opinion, firm size, and audit tenure all simultaneously, have a significant impact towards Auditor’s going concern opinion, particularly Previous Year Audit Opinion. Novelty – This paper provides insights into the factors affecting auditors in providing a going concern opinion in the case of Indonesian companies."
    Keywords: "Bankruptcy Prediction; Company’s Financial Condition; Previous Year Audit Opinion, Firm Size; Audit Tenure; Auditor’s Going Concern Opinion."
    JEL: D81 M42
    Date: 2016–12–18
  3. By: Nadia Azalia Putri (University of Jember, Indonesia. Author-2-Name: Tatang Ary Gumanti Author-2-Workplace-Name: University of Jember, Indonesia. Author-3-Name: Isti Fadah Author-3-Workplace-Name: University of Jember, Indonesia. Author-4-Name: Supriyadi Author-4-Workplace-Name: Jember State Polytechnic, Indonesia)
    Abstract: "Objective –The purpose of this study was to analyze the effect of Intellectual Capital (IC), Corporate Social Responsibility (CSR) disclosure, and Good Corporate Governance (GCG) on the value of mining companies (as measured by Tobin's Q) listed in Indonesia Stock Exchange period 2011-2015. Methodology/Technique – Intellectual capital was measured by Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), and Structural Capital Value Added (STVA). CSR disclosure was measured using Global Reporting Initiative index. GCG was proxied using independent commissioner, managerial ownership, audit committee, and institutional ownership. Empirical analysis was conducted using linear multiple regression analysis. The samples consisted 15 mining firms. Findings –The results showed that VACA, VAHU, and institutional ownership had a positive and significant effect on company value. STVA and independent commissioner have a positive but insignificant effect on company value. Audit committee and managerial ownership have a negative and insignificant effect on company value. Novelty – The study suggests managers to improve the company value by investing IC subcomponents; that is, physical capital and human capital and also add the number of shares held by institutions."
    Keywords: Company Value; Corporate Social Responsibility; Good Corporate Governance; Intellectual Capital.
    JEL: M14 M41 M51
    Date: 2017–04–13
  4. By: Nico Alexander (Trisakti school of Management, Indonesia. Author-2-Name: Hengky Author-2-Workplace-Name: Trisakti school of Management, Indonesia.)
    Abstract: "Objective – The purpose of this research is to analyze the effect of growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence toward earnings management. Methodology/Technique – The population of this research consist of various sectors of non-financial companies that were listed on the Indonesian Stock Exchange (IDX) between 2013 and 2015. The research uses three recent years of data and tests variables that have not been used by prior research. The sample was chosen by using a purposive sampling method. The hypothesis is tested using multiple regression with an SPSS program to investigate the influence of each independent variable to earnings management. Findings – The research results show that return on assets influences earnings management and growth, leverage, fixed asset turnover, profitability, firm size, firm age, industry, audit quality, and auditor independence do not influence earnings management. Novelty – The study supports that the manager in a company will engage in earnings management to receive a bonus from investors because they have received a higher profit."
    Keywords: "Earnings Management; Growth; Leverage; Fixed Asset Turnover; Profitability; Firm Size; Firm Age; Audit Quality; Auditor Independence; Industry"
    JEL: L25 M12 M41
    Date: 2017–05–20
  5. By: Puteh Mariam Ismail (Faculty of Accountancy, Universiti Teknologi MARA, Malaysia Author-2-Name: Nor Farizal Mohammed Author-2-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA, Malaysia Author-3-Name: Mahfuzah Ahmad Author-3-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA, Malaysia Author-4-Name: "Normahiran Yatim" Author-4-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA, Malaysia)
    Abstract: "Objective – The purpose of this research is to examine the relationship between prior academic performances at the secondary school level with passing professional accounting examinations. Methodology/Technique – Data for this research was extracted from the database of the Department of Professional Accounting Studies, Faculty of Accountancy, Universiti Teknologi MARA. University Teknologi MARA or UiTM is the only local university offering professional accounting courses by the Association of Chartered Certified Accountants (ACCA) and is a Platinum Approved Learning Partner with ACCA. Data was extracted on the students’ success in completing ACCA, together with results of the secondary school examination Sijil Pelajaran Malaysia (SPM). The population used in this study included students who had either successfully completed or did not complete their professional studies at the university. The sample consisted of 780 students, of which 400 had not successfully graduated and 380 had successfully graduated. Data from 780 students were used for the statistical analysis. Findings – The study found that for successfully completion of professional accounting examinations, receiving distinction in Additional Mathematics during SPM, scoring a maximum number of A’s, and starting from the science stream were highly significant. Novelty – This research is significant as it contributes to the literature on professional accounting education. It may be used to review prerequisites for entering professional accounting courses, which would help increase the number of professional accountants in Malaysia."
    Keywords: "Professional Accounting Qualifications; Success; Secondary School Performance; Examinations; English; Mathematics; Science; Malaysia"
    JEL: M30 M31 M41
    Date: 2017–04–21
  6. By: Novrida Qudsi Lutfillah (Economic and Business Faculty, Brawijaya University, Indonesia Author-2-Name: Eko Ganis Sukoharsono Author-2-Workplace-Name: Brawijaya University, Indonesia Author-3-Name: Aji Dedi Mulawarman Author-3-Workplace-Name: Brawijaya University, Malang, Indonesia Author-4-Name: "Yeney Widya Prihatiningtias" Author-4-Workplace-Name: Brawijaya University, Malang, Indonesia)
    Abstract: "Objective – The Kingdom of Majapahit was a phenomenal civilization in the Indonesian history. Accounting was then practiced in the everyday life of the kingdom. The purpose of this study is to explore the accounting practices of debtreceivable accounts during the Majapahit Kingdom era of 1350 and to find the values behind their use. Methodology/Technique – This study is a historical qualitative study. Its primary source of data are inscriptions and legislation manuscripts taken from the Kutara Manawasastra of the Majapahit era. Historical analysis is used to analyze data with historiography so as to expose the results of the historical research. This will help to reveal the underlying values in debt-receivable practices in the era. Findings – The findings of this study reveal that the values of debt-receivable accounts being practiced in the Majapahit era comprise the social, economic and spiritual dimensions. The trust and spiritual values were practiced as a means to tie the mutual benefits between creditors and debtors. Novelty – The findings reveal the accounting existence of the historical past."
    Keywords: "Debt; Receivables; Accounting History; The Kingdom Of Majapahit, Trust; Spiritual Values. JEL Classification:"
    JEL: H63 M41
    Date: 2016–12–24
  7. By: Hanif (Accounting Department, Insitutut Bisnis dan Informatika Kwik Kian Gie, Indonesia)
    Abstract: "Objective – This research aims to analyze and deconstruct digital-based startup business practice and offer a new concept of sharing economy. The online transportation companies operated in Indonesia, have been selected as the subject of the research. Methodology/Technique – A critical paradigm referring to mato-based profit sharing accounting was used as a method of the research. Data was collected from online transportation companies’ websites as well as either news or media article published on mass media. Findings – On the other side, it has not completely been in line with the practice of profit sharing economy concept which has long been the ideal of the constitutional ideology of Indonesia. Thus, in the final section of this research, a new concept of sharing economy, which is relatively in line with the constitutional ideology of Indonesia is proposed for practice in startup companies. Novelty – The study proposes new concept of sharing economy for startup business."
    Keywords: Incentive; Startup Business; Sharing Economy; Profit-Sharing; Mato System; Constitutional Ideology.
    JEL: M13 M21 M41
    Date: 2017–04–12
  8. By: Mirna Dianita (Economics Department, Widyatama University, Indonesia Author-2-Name: Niki Hadian Author-2-Workplace-Name: Economics Department, Widyatama University, Indonesia)
    Abstract: "Objective – The economic growth of a country is very important because it reflects the country's economic development and success. This study’s objective is to examine how accounting students' perceptions of the public accounting profession are taken into account in facing the AEC 2015. In that regard, this study gauges how Indonesian companies can fulfil their needs to be more competitive in meeting the goals of the AEC 2015. Methodology/Technique – This study is qualitative in nature thus analysis will be descriptive. Questionnaires were distributed to currently active students of accounting in Indonesia. The samples were extracted from a nonprobability sampling technique. The 339 respondents were selected based on a set of basic considerations. In this context, the participants must have knowledge of the AEC 2015 and are currently studying in public accountancy as a profession All were from Indonesia. Findings – Results drawn from the respondents indicate that they do not deeply understand the description of the AEC 2015.Majority of the respondents (27.4%) understood that the implementation of the AEC 2015 will make goods and services flow freely and majority (39.8%) also feel that they have a good ability in speaking with almost half of them assuming that they also write well in English. With regards to their competence in accounting after graduation, more than half (52.2%) of the respondents agree that the competence of public accountants from the host country will not be able to compete with those from ASEAN countries. Novelty – This paper enables accounting students to understand the challenges they face ahead, especially for those who are prospective successors to the Indonesian nation."
    Keywords: AEC 2015; Public Accounting Profession; Accounting; Accounting Students Perceptions.
    JEL: M41 P46
    Date: 2016–12–27
  9. By: Isti Fadah (Faculty of Economics, University of Jember, Indonesia Author-2-Name: Astri Kurniawati Author-2-Workplace-Name: Faculty of Economics, University of Jember, Indonesia Author-3-Name: Purnamie Titisari Author-3-Workplace-Name: Faculty of Economics, University of Jember, Indonesia)
    Abstract: "Objective – The objective of this research to describe and explore transparency and accountability of local government in Ex Besuki Residency by Internet Financial Reporting and evaluate the implementation of the Law on Public Information Disclosure. Ex Besuki Residency is called an administration area in East Java which consists of local government Banyuwangi, Jember, Bondowoso, and Situbondo in the Dutch East Indies era. Methodology/Technique – This research is a qualitative non-interactive (non-interactive inquiry) research by using phenomenological approach. This research uses content analysis to analyze Local Government website content appearance related to Internet Financial Reporting. This research uses primary and secondary data. Primary data is in form of observation result in local government website appearance. Secondary data is in form of Internet Financial Reporting obtained by downloading on local government website. Findings – The results show there is no local government to show its Internet Financial Reporting in full. No publication of most categories of Internet Financial Reporting means reduced accessibility and understanding of Internet Financial Reporting. Novelty – The paper identifies that accountability and transparency of local governments to the central government through the State Audit Board opinion was not yet able to make local government to be accountable and transparent to the public."
    Keywords: "Transparency, Accountability, Local Government, Internet Financial Reporting, Public Information Disclosure."
    JEL: D82 H83
    Date: 2017–03–10
  10. By: Atika Zarefar (Accounting, Politeknik Caltex Riau, Indonesia. Author-2-Name: Arumega Zarefar Author-2-Workplace-Name: Department of Accounting, Universitas Riau, Indonesia)
    Abstract: "Objective – The purpose of this study is to know the influence of ethics and locus of control toward do whistleblowing intention with auditor and non-auditor profession as a moderating variable. Methodology/Technique – Model analysis used in this study is multiple linear regressions and based on the results of the questionnaire of 123 respondents; consist of 52 auditor respondents and 71 non auditor respondents. Findings – This study proves that ethics significantly give positive effect on the intention of doing whistleblowing, whereas locus of control significantly gives negative effect to the intention no whistleblowing. This study also proves that auditor and non-auditor profession can moderate the influence of ethics and locus of control to do whistleblowing intentions. Novelty – The study contribute literature with its original data."
    Keywords: Locus of control; Profession of Auditor and Non-Auditor; Whistleblowing Intention.
    JEL: J21 M41 M42
    Date: 2017–04–05
  11. By: Michael, Bryane; Dalko, Viktoria
    Abstract: What role does unconventional monetary policy – and particularly unconventional policies like private asset purchases under a quantitative easing or lender of last resort scheme – play in influencing economic growth directly? Emerging and developing countries’ central banks could contribute to GDP growth by following the example of jurisdiction like the US, UK and EU, by buying private sector and specific obligation public sector assets. Such a scheme would like most benefit jurisdictions like Greece, Bulgaria, Ukraine and others. Unsurprisingly, we find a weak relationship between these purchases and investment world-wide for the last 10 years. We also find the existence of a “sloth effect” – a pattern in the data whereby more central bank asset purchases actually coincides with lower investment. We estimate the gains to increasing central bank balance sheet sizes with these assets. We also show how statutory mandate for nominal GDP targeting set the best legal foundations for such asset purchases. We finally describe an internal audit engagement which would collect the specific data needed to verify the results in this study.
    Keywords: unconventional monetary policy,funder of last resort,nominal GDP targeting,central bank balance sheet,sloth effect,internal audit
    JEL: E58 E42 K23 O23
    Date: 2017

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