nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2019‒12‒16
thirteen papers chosen by
Alexander Harin
Modern University for the Humanities

  2. The Causal Relationship between Auditor Turnover and Audit Fees |Evidence in Japan By Gaku,UENO
  4. Impact of IAS 39 reclassification on income smoothing by European banks By Ozili, Peterson K
  7. Corporate governance quality, firm size and earnings management: empirical study in Indonesia Stock Exchange By Mukhtaruddin, Mukhtaruddin Mr.
  10. Determinants of banks' profitability: Do Basel III liquidity and capital ratios matter? By Pierre Durand
  11. Bibliometric outlook of the most cited documents in business, management and accounting in Ibero-America By Cortés-Sánchez, Julián David
  12. THE EFFECT OF AUDITOR SWITCH TOWARD THE FIRM VALUE AND EARNING PERSISTANCE By Nuris, Dudung Ma'ruf; Juliardi, Dodik; zahroh, Fatmawati
  13. Perbedaan Perspsi Antara Mahasiswa Senior dan Junior Mengenai Profesi Akuntan Pada Program S1 Reguler Fakultas Ekonomi Universitas Lancang Kuning By KAMILAH, FAIZAH

  1. By: Gaku,UENO
    Abstract: Research on the determinants of audit fees has mostly focused on the U.S. and other countries. The Japanese Institute of Certified Public Accountants (JICPA) eliminated standard auditing fees in April 2004, leading to intense competition among audit firms. However, previous studies conducted in the U.S. and some European countries suggest that oligopolistic conditions exist. These studies also show that audit firms add additional inspection costs to the audit fees, when estimating further audit risks. This study aims to empirically confirm whether Japanese audit firm charge similar fees or if the auditors f effort is reflected in audit fees. This study focuses on audit quality because firms cannot cover the cost of conducting an audit in competitive scenario with low fees, leading to a decline in audit quality. To examine the scenario after the enactment of the Financial Instruments and Exchange Act, commonly referred as the Japanese Sarbanes-Oxley (hereafter, J-SOX), this study uses variables that estimate internal control risks and corporate governance risks. In conclusion, this study confirms that Japanese audit firms conduct risk adjustment activities.
    Date: 2019–11
  2. By: Gaku,UENO
    Abstract: This study investigates the causal relationship between auditor turnover and audit fees. The aim of this study is to accurately identify the real relationship between auditor turnover and audit fees. The analysis in this study is based on the counterfactual model provided by Rosenbaum and Rubin (1983). The propensity score is estimated using logistic regression, which generates a matched treatment sample and a control (counterfactual) sample. The matched dataset containing 486 firm-years is analyzed using liner regression to identify the causal relationship between auditor change and audit fees. The clearly significant result shows that low-balling exists in real audit contracts. As an additional study, the sample is divided using the auditor size variable (Dummy of Big 3 or not) into four parts. The additional results show that, after an auditor change from a Non-Big 3 auditor to Big 3 auditor, the contract exhibits low-balling. This suggests that clients who change auditors from a non-Big 3 firm to Big 3auditor do not receive an adequate audit because of the auditors' cost cutting. The coefficient of the auditor change from non-Big3 to Big 3 auditor is significant and relatively higher than the coefficients of the other parts. Audit fees need to cover the costs of the audit practice to maintain audit quality. The results of this study can serve as an alert for Japanese auditing practice quality issues.
    Date: 2018–06
  3. By: Journal, IJEMSS; Majid, Jamaluddin; Asse, Ambo
    Abstract: A public accountant as a profession that provides assurance services about historical financial report information to the public is required to have adequate accounting knowledge and accounting skills as well as personal qualities. Such personal qualities will be reflected in his professional behavior. Professional behavior of public accountant one of them embodied in the form of avoid dysfunctional behavior of accountant. dysfunctional behavior is related to time budget pressure and turnoer intention. A high level of time budget pressure will encourage auditors to perform dysfunctional behaviors. The desire to quit working is also judged to affect the irregularities of auditor behavior. There is a significant positive correlation between intention turnover and dysfunctional audit behavior due to decreased fears of possible sanctions if such behavior is detected.
    Date: 2018–02–22
  4. By: Ozili, Peterson K
    Abstract: The article examines the impact of the reclassification of IAS 39 on income smoothing using loan loss provisions among European banks. The author predicts that the strict recognition and re-classification requirements of IAS 139 reduced banks' ability to smooth income using bank securities and derivatives, motivating them to rely more on loan loss provisions to smooth income. The findings do not support the prediction for income smoothing through loan loss provisions. Also, there is no evidence for income smoothing in the pre- and post-IAS 39 reclassification period. The implication of the findings is that: (i) European banks did not use loan loss provisions to smooth income during the period examined, and rather rely on other accounting numbers to smooth income; (ii) the IASB’s strict disclosure regulation improved the reliability and informativeness of loan loss provision estimates among European banks during the period of analysis.
    Keywords: Earnings Management; Income Smoothing; Loan loss provisions; IFRS, IAS 39; Financial Crises; disclosure regulation; banks; European banks; real earnings management;
    JEL: G20 G21 G28 M40 M41 M42 M48
    Date: 2019–02–01
  5. By: Suryadi, Dedy
    Abstract: With the development of technology komputeryang more advanced, more and more companies are using the services of a computer to process accounting data and the computer is a tool that is very useful in accounting information systems. In addition to the shift in resource utilization, with the use of electronic data processing systems will arise various new characteristics, the characteristics of the new one of them is consistency. With the consistency, the use of electronic data processing system does not mean being a risk-free but the nature of this consistency can be a risk in processing the data into information. This study aims to determine the effectiveness to improve the processing of salaries and wages. The research method used descriptive method that is by outlining, collect, process and analyze data. The results showed that by using an electronic data processing systems all the required information can be obtained quickly, accurately and completely so as to increase the effectiveness of the processing of salaries and wages.
    Date: 2018–03–26
  6. By: Perdana, Aditya Halim; Ashoer, Muhammad
    Abstract: Akuntan publik merupakan auditor independen yang menyediakan jasa kepada masyarakat umum terutama dalam bidang audit atas laporan keuangan yang dibuat oleh kliennya. Tugas akuntan publik adalah memeriksa dan memberikan opini terhadap kewajaran laporan keuangan suatu entitas usaha berdasarkan standar yang telah ditentukan. Profesi akuntan publik bertanggungjawab untuk menaikkan tingkat keandalan laporan keuangan perusahaan, sehingga masyarakat memperoleh informasi laporan keuangan yang andal sebagai dasar pengambilan keputusan. Tujuan Penelitian adalah untuk menjawab fenomena terhadap variabel (Y) yaitu Pengaruh Kompetensi Auditor (X1), Kompleksitas Audit (X2), Independensi Auditor (X3) terhadap Kualitas Audit (Y). Metode Penelitian menggunakan Analisis Regresi Berganda dengan menggunakan sampel sebanyak 44 responden. Metode pengumpulan data dengan kuesioner. Hasil Penelitian menyatakan bahwa Kompetensi, kompleksitas audit dan independensi auditor berpengaruh positif dan signifikan
    Date: 2018–06–01
  7. By: Mukhtaruddin, Mukhtaruddin Mr. (Universitas Sriwijaya)
    Abstract: Earnings management (EM) is manipulation done by management in preparing financial statement in order to gain management advantages or to increase the firm value. EM can reduce the quality of financial statements because it does not show the real earning periodical. This research aims to identify the effect of good corporate governance (GCG) (institutional ownership, managerial ownership, frequency of board meetings, frequency of audit committee (AC) meetings), firm size, and leverage on the EM. Population comprises the companies in LQ 45 index of Iindonesia Stock Exchange (IDX) for the period 2010–2014. Samples of the research were taken using purposive sampling method, and the variables are tested using multiple linear regression analysis. The results of the research show that partially, only leverage has significant effect on EM, while institutional ownership, managerial ownership, frequency of board meeting, frequency of AC meetings, and firm size have no significant effect on EM, but all of the variables have simultaneously significant effect on EM. Limitations of the research are the only used 6 independent variables and 21 companies as samples of the research
    Date: 2018–01–11
  8. By: Sukma, STIM; Lubis, Dewi Shinta Wulandari; Winata, Edi
    Abstract: The purpose of this study was to determine how the accounting system of receivable at STIM Sukma Medan. the method that I use in this study is a comparative method, which compares to the company's accounting system with the accepted theory of the author during the time of the study, based on this comparison later analysis. research shows that the accounting system of receivable at a high school science field sukma management accounting system has not been doing well, as can be seen from the data receivable students in 2013 through 2014 to increase the number of student accounts.
    Date: 2018–05–15
  9. By: Abdullah, Rudi
    Abstract: ABSTRACT This paper aims to know Analysis Recording and Reporting Accounting Inventory at CV. Citra Niaga Cemerlang Baubau. Population is used as the target of this research is the recording and inventory, data analysis Guanakan is descriptive analysis. Results showed that the implementation of accounting systems for recording and reporting inventories at CV. Citra Niaga Cemerlang Baubau is adequate. In the company there has been a clear separation of functions between the warehouse and staff administartion registrar supplies. The selection of methods for recording inventory had been appropriate, by using the perpetual method, which every mutations inventory will be recorded in a book warehouse and inventory. The method for determining the cost or the cost of supplies had been appropriate for the company, by selecting the FIFO method. To prove the reliability of the recording made the warehouse and staff administartion registrar inventory, physical inventory counting is necessary to do. Keywords: Recording and Reporting of Inventory Accounting ABSTRAK Penelitian ini bertujuan untuk Mengetahui Analisis Pencatatan dan Pelaporan Akuntansi Persediaan Barang Pada CV. Citra Niaga Cemerlang Baubau. Populasi yang dijadikan sebagai target penelitian ini adalah pencatatan dan persediaan barang, analisis data yang di guanakan adalah analisis deskriptif. Hasil Penelitian menunjukan bahwa Pelaksanaan sistem akuntansi pencatatan dan pelaporan persediaan pada CV Citra Niaga Cemerlang Baubau sudah memadai. Dalam perusahaan tersebut telah terdapat pemisahan fungsi yang jelas antara bagian gudang dan staff administarsi pencatat persediaan. Pemilihan metode untuk pencatatan persediaan pun telah sesuai, yaitu dengan mengunakan metode perpetual, yang setiap terjadi mutasi persediaan akan segera dicatat dalam buku gudang maupun buku persediaan. Metode untuk menentukan biaya atau harga pokok persediaan pun telah sesuai untuk perusahaan tersebut, dengan memilih metode FIFO. Untuk membuktikan keandalan pencatatan yang dilakukan bagian gudang dan staff administarsi pencatat persediaan, penghitungan fisik persediaan memang perlu untuk dilakukan. Kata Kunci : Pencatatan dan Pelaporan Akuntansi Persediaan
    Date: 2018–05–11
  10. By: Pierre Durand
    Abstract: In this paper, we investigate the role played by the TCR and LCR among determinants of banks' profitability. To this end, using Random Forest regressions and a large dataset of banks' balance sheet variables, we assess the impact and predicting power of Basel III capital and liquidity ratios. Our results confirm the trade-off theory of the capital structure: banks have an optimal capital ratio below which the relation between capital and profitability is positive. On average, this optimum falls between 15% and 20%. Furthermore, we show that LCR has a positive, but weak, effect on profitability. Overall, our findings illustrate the fact that regulatory ratios do not constitute binding conditions for banks' performance.
    Keywords: Basel III, Capital ratio, Liquidity ratio, Banks' profitability, Random Forest regressions.
    JEL: C44 G21 G28
    Date: 2019
  11. By: Cortés-Sánchez, Julián David (Universidad del Rosario)
    Abstract: Research on business, management and accounting (BMA) in the past century has been overwhelming. Regardless of its significance, regions such as Ibero-America have been overlooked from exhaustive studies on bibliometrics in the subject of BMA. Here, a bibliometric outlook of the subject of BMA in Ibero-America was conducted by analyzing the ten most cited documents in BMA in each country from 1996 to 2017 using the citation database Scopus. The main findings showed: a rapid increase in documents’ production; both Spain and Portugal domain the overall documents’ production and citations; most of the documents are pay-walled; the most-desired journal in the region is also the most- suspicious; a Pareto distribution in both citations by documents and authors by documents; and institutional status has a significant effect on AACSB accreditation.
    Date: 2019–01–11
  12. By: Nuris, Dudung Ma'ruf (Universitas Negeri Malang); Juliardi, Dodik; zahroh, Fatmawati
    Abstract: The present study aims at examining the effect of audit quality measured by auditor switch on firm value and earnings persistence. The present study was conducted on public service companies which were listed on Indonesian Stock Exchange in 2010 – 2015, with 82 sample companies. The data was obtained through secondary data from Indonesian capital market directory and simple regression analysis for the data analysis.The result indicates that auditor quality has significant effect on firm value. The quality of an auditor has significant effect on earnings persistence. The Study limitation in term of the coefficient of determination because the independent variable of auditor quality is not the only one that can affect the firm value and earnings persistence. Therefore, it is suggested for futher research to add another independent variable in the future.
    Date: 2017–12–05
    Abstract: This Research aimed to see whether there are differences in perception between senior and junior students of the accounting profession in the S-1 Regular program. The results showed that the S-1 Regular program, senior students perceptions of the "accountant as a profession" is lower than the junior student perceptions. The results showed that the more senior they (the longer they follow accounting education), the more they do not like accounting and increasingly do not want a career and worked as an accountant.
    Date: 2018–04–17

This nep-acc issue is ©2019 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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