|
on Accounting and Auditing |
|
Issue of 2020‒01‒13
thirteen papers chosen by |
| By: | David Procházka (University of Economics, Prague); Tomá? Zouhar (University of Economics, Prague) |
| Abstract: | Intangible assets are the main drivers of value creation and the competitive advantage of many firms across all industries. Despite the importance of intangibles in economy increases, their recognition in corporate balance sheets is restricted. Conventional accounting struggles with reliability of their measurement as well as with the uncertainty of their future economic benefits, despite the intangibles reporting provides the users with value-relevant information. The paper tests empirically the level of compliance of listed Czech companies with the disclosure requirements of IAS 38 Intangible assets in their annual reports. Using dataset of financial and non-financial firms from the period 2008-2017 (in total 210 annual reports and 2,730 individual disclosures manually collected), we document a moderate increase in disclosure quality of the sample firms over the period. Consistently with recent research, the evidence of improvement can be attributed to reporting incentives of the firms, acknowledging the importance of capital market to raise capital and, thus, to deliver useful information to the users of financial statements. However, the analysis reveal heterogeneity in the level of compliance across the firms, depending on company?s auditor and their ownership structure. Other investigated determinants, such as industry and country origin of the issuer, are not found as relevant. |
| Keywords: | intangible assets; IAS 38; disclosure quality; listed Czech firms |
| JEL: | M41 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9912151&r=all |
| By: | LIGIA MEIBOL FAJARDO VACA (UNIVERSIDAD ESTATAL DE MILAGRO); CARLOS EFRAIN VÁSQUEZ FAJARDO (UNIVERSIDAD ESTATAL DE MILAGRO) |
| Abstract: | The accountant in his professional act leads to various situations that, if not observed the provisions, legal statuses and apply their code of professional ethics, would face inherent risks that may transgress their professionalism and lose the faith and trust of the interested parties, who as social actors deposit in this type of professionals. The practice of this profession has been questioned deliberately throughout history, due to the evident cases of unethical behavior that affect not only business activities but also the financial situation of companies. Society in general has placed its trust in these professionals, to maneuver financial, accounting, tax, fiscal and control information. The audits that it executes allow to formulate audit findings related to the weaknesses of internal control, to express non-binding opinions, opinions that may or may not serve administrative judicial outcomes according to the circumstances arising from the requirement to develop their work, largely with responsibility and independence, with applicability of the rules of conduct, as a guarantee of transparency, that allows generating trust in companies and society. The objective of this research is to generate a reflexive analysis about the ethical behavior of the accounting professional and his contribution to society; it shows some ethical tools that can guide and facilitate the fulfillment of its delicate functions, they are regulated by fundamental principles and Ethics Rules that allow the strengthening of their public work in the profession. The type of study is qualitative, descriptive, and bibliographic. The main conclusions revolve around the importance of the ethics of the public accountant and the need to become aware, to acquire on a large scale the principles and rules of behavior, with primacy in their moral and personal values within their independent and professional actions, always oriented to the social function, always demonstrating its ethical integrity, morality, purity and justice, that of applying them contribute in a timely manner to the quality of life of society in general. |
| Keywords: | Ethical behavior, the accountant, responsibility, code of ethics |
| JEL: | M49 M41 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9911914&r=all |
| By: | Saribulan Tambunan (Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia Author-2-Name: Erlina Author-2-Workplace-Name: Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia Author-3-Name: Azhar Maksum Author-3-Workplace-Name: Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia Author-4-Name: Khaira Author-4-Workplace-Name: Faculty of Economics and Business, Universitas Sumatera Utara, Medan, Indonesia Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective –The purpose of this research is to prove by analysing whether the effectiveness of accounting information systems influence the quality of financial statements by adding organizational commitment as a moderator in the regional apparatus organization in North Sumatra, Indonesia. Methodology/Technique – This research is carried out by surveying and identifying the field directly on the regional apparatus organization (OPD) of the city. field and district deliserdang of 190 respondents as the sample selected in this study. The sampling technique used by surveying the executive of the regional apparatus organization (OPD) selected to be the target population. Findings – Hypothesis testing using the SPSS approach, version 23. The results of the study show regularly variables exogenous namely the effectiveness of accounting information systems directly affects the quality of financial statements and organizational commitment plays a role in strengthening the influence of exogenous accounting information system variables on its endogenous variables. Novelty –This research explores the influence of the government to make the effectiveness of accounting information systems an important factor that is taken into account when preparing financial statements that synergize with the role of organizational commitment. Type of Paper: Empirical |
| Keywords: | Accounting Information Systems, Quality of Financial Statements, Organizational Commitment, Effectiveness |
| JEL: | M40 M41 M49 |
| Date: | 2019–12–25 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr179&r=all |
| By: | Afriyeni, Afriyeni; Marlius, Doni |
| Abstract: | This research is aimed to analyzes the factors that influence of timely submission of financial statements of listed companies in Indonesia. Factors tested in this study are profitability, liquidity, financial leverage, firm size, complexity of companies operations, public ownership, accounting firms reputation, and auditors opinion as independent variable whereas timely submission as dependen variable. The study sample consisted of 296 companies listed on the Indonesian stock exchange (IDX) and submit financial reports to Bapepem in the period 2009 – 2011. Data used in this study is secondary data and the selection of the sample by using purposive sampling. Analysis tool used is the logistic regression analysis at a significance level 5%. Hypothesis testing results show that profitabilty, firm size, complexity of companies operations, public ownership, and accounting firms reputation significantly influence the timeliness of financial statement however, no evidence that liquidity, finacial leverage and auditors opinion influence the timeliness of financial statement. From the eight variables studied only five variables that significantly affect the timeliness of financial statement namely profitability, firm size, complexity of companies operations, public ownership, and accounting firms reputation. |
| Date: | 2019–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:rv4qf&r=all |
| By: | Said, Jamaliah; Alam, Md. Mahmudul (Universiti Utara Malaysia); Johari, Razana Juhaida |
| Abstract: | Ensuring accountability in the public sector is a very crucial issue as it could lead to failures in governance, fraud, inefficacy, corruption as well as weak financial management. This study evaluated the state of present accountability practices among public sector employees from various Malaysian service schemes. Primary data were collected, using a questionnaire survey approach with 194 heads of departments in the Malaysian federal ministries. Data was collected in accordance with the perspective of 12 factors in accountability practices, using a five-point Likert scale. Factor analysis and descriptive statistics were utilized for data analysis. In addition, data reliability was checked by Cronbach’s alpha test; data normality was examined by Skewness and Kurtosis tests, and data validity was tested by using Kaiser-Meyer Olkin test and Barlett’s test. The findings show that 94.9% of the participants reported that they practised accountability within their departments. Nevertheless, the priority for these accountability factors varied according to the service schemes. In general, the perceived accountability practice was the highest within the group of the administrative scheme and the lowest among the employees under the accounting scheme. Moreover, the perceived accountability practice of the audit scheme was below the general average level. This findings of the study would help policy makers to take necessary steps to improve the practices of accountability in the public sector for creating a more dependable and efficient public sector in Malaysia. |
| Date: | 2019–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:5djfu&r=all |
| By: | Johari, Razana Juhaida; Alam, Md. Mahmudul (Universiti Utara Malaysia); Said, Jamaliah |
| Abstract: | At present, the public sector is a matter of global concern due to the constant cases of failures in governance, fraud, inefficacy, and corruption. Management commitment is a critical issue as lack of it could lead to failures in governance, fraud, inefficacy, corruption as well as weak financial management, particularly in the public sector. This study evaluated the state of present practices of management commitment among public sector employees from various Malaysian service schemes. Primary data were collected using a questionnaire survey approach with 194 heads of departments in the Malaysian federal ministries. The collection of data was in accordance with the perspective of 10 factors in management commitment practices, using a five-point Likert scale. Factor analysis and descriptive statistics were utilized for data analysis. In addition, data reliability was checked by Cronbach’s alpha test, data normality was examined by Skewness and Kurtosis tests, and data validity was tested by using Kaiser-Meyer Olkin test and Barlett’s test. The findings show that 97% of the participants reported that they practised management commitment within their departments. Nevertheless, the priority for these management commitment factors varied according to the service schemes. In general, management commitment practice was the highest within the groups that used the finance scheme and the lowest among the employees who were under the accounting and audit schemes. The result of the study will help policy makers to take necessary steps to improve the practices of management commitment in the public sector in order to create a more dependable and efficient public sector in Malaysia. |
| Date: | 2019–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:kfncr&r=all |
| By: | Phanthipa Srinammuang (Faculty of Business Administration, Kasetsart University); NADHAKAN SHINNARANANTANA (Faculty of Business Administration, KASETSART UNIVERSITY) |
| Abstract: | This study investigated the Accounting fraud of XYZ University, Thailand and examined the significance of forensic accounting base on the scenario of the case and determined the preventive measure that will be useful in the future, and creating a strategy to keep such case from occurring not only in public university but as well as in government institutions. The examination utilized the subjective research by mulling over the announcement of official statement circulated in Television and newspaper. The examination discovered that the forensic accounting application both XYZ University and ABC Bank rehearsed poor interior control framework. The case of XYZ University demonstrated the insufficiency of present philosophies of inner and outside controls and auditing framework, thus we recommended the following: real-time checking, initiate periodical investigations, recording systems and arraignment, and separate accounting tasks. Also, we suggested to develop forensic accounting in the organization, especially the personnel involve in the finances of the company and awareness of fraud triangle. |
| Keywords: | fraud, fraud triangle, pressure, opportunity, rationalization, and forensic accounting |
| JEL: | M40 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9712039&r=all |
| By: | Byard, Donal (Securities and Exchange Commission); Darrough, Masako; Suh, Jangwon |
| Abstract: | A recently published study (Hong, Hung, and Lobo, The Accounting Review 2014) claims to show that, depending on the benchmark sample used, the 2005 mandatory adoption of IFRS is associated with a 38-82% reduction in IPO underpricing. We re-examine this result controlling for the concurrent adoption of the Prospectus Directive (PD), which mandated increased IPO prospectus disclosures, and the enforcement of these disclosures in the member states of the European Union (EU). First, we find that there is a significant data error in Hong et al.’s study that renders their reported results unreliable: approximately 30% of the treatment firms this study categorizes as mandatory IFRS adoptions are not, in fact, subject to a mandate to report in IFRS. These are firms admitted to trading on “exchange-regulated” markets in the EU that do not require IFRS. We use hand-collected prospectus data to identify the correct treatment sample. Our analysis shows that, for affected firms, there is a statistically significant decrease in IPO underpricing associated with adoption of the PD for firms based in countries that also concurrently enhanced accounting enforcement (see Christensen, Hail, and Leuz 2013), but there is no association between mandatory IFRS adoption and IPO underpricing. We also examine voluntary IFRS adoptions by firms admitted to trading on exchange-regulated markets after 2005. Overall we find no evidence that mandatory IFRS adoption resulted in very large economic gains for IPO firms. This study also provides a brief but comprehensive description of much of EU capital markets law. |
| Date: | 2019–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:b56u2&r=all |
| By: | Giovanna Tagliaferri; Daria Scacciatelli; Pierfrancesco Alaimo Di Loro |
| Abstract: | Tax evasion is the illegal non-payment of taxes by individuals, corporations, and trusts. It results in a loss of state revenue that can undermine the effectiveness of government policies. One measure of tax evasion is the so-called tax gap: the difference between the income that should be reported to the tax authorities and the amount actually reported. However, economists lack a robust method for estimating the tax gap through a bottom-up approach based on fiscal audits. This is difficult because the declared tax base is available on the whole population but the income reported to the tax authorities is generally available only on a small, non-random sample of audited units. This induces a selection bias which invalidates standard statistical methods. Here, we use machine learning based on a 2-steps Gradient Boosting model, to correct for the selection bias without requiring any strong assumption on the distribution. We use our method to estimate the Italian VAT Gap related to individual firms based on information gathered from administrative sources. Our algorithm estimates the potential VAT turnover of Italian individual firms for the fiscal year 2011 and suggests that the tax gap is about 30% of the total potential tax base. Comparisons with other methods show our technique offers a significant improvement in predictive performance. |
| Date: | 2019–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1912.03781&r=all |
| By: | Khaldoon Aldaoud (Yarmouk University) |
| Abstract: | In developing economies, fraud is an important subject due to the impact on the financial reporting quality. This study discovers the impact of board independence, women on board and auditor independence on the fraud in financial reporting for a sample covers of 86 year observations of industrial firms listed in Amman Stock Exchange from 2015 to 2016. In this study, income smoothing was a proxy for fraud in financial reporting. Using the multiple regression analysis, the results revealed that board independence and auditor independence plays the key role in prevention the fraud in financial reporting. This study concluded that more independent directors would make lower fraud in financial report. This study provides evidence that the provision of NAS by an external auditor positively contributes to fraud in financial reporting. Nevertheless, the outcomes show that the women on board do not have any effect on the fraud in the financial reporting among industrial Jordanian firms. The current study contributes to the existing literature of fraud and stimulates future research about the factors determinants of the fraud in financial reporting in other developing countries. |
| Keywords: | Fraud, Corporate Governance, External Auditor and Jordanian Firms |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:9710771&r=all |
| By: | Kamaluddin, Amrizah; Kassim, Nawal; Alam, Md. Mahmudul (Universiti Utara Malaysia); Abu Samah, Siti Akmar |
| Abstract: | To identify the human capital construct that significantly relates to the performance of Islamic organizations, this study obtained data from Islamic microfinance organizations in Malaysia using the survey questionnaire method. In addition, we interviewed renowned scholars in the fields of Islamic accounting and Shariah law. Consequently, this study proposes an extended model of human capital that is applicable to Islamic organizations. Apart from knowledge and competency, this study includes spiritual value as another construct of human capital in Islamic organizations. Knowledge includes ideas that are relevant to the accounting and auditing spectra, as well as Shariah principles and jurisprudence. By contrast, competency refers to the ability to innovate unique Shariah-compliant products that are rare and difficult to imitate. Meanwhile, spiritual values embrace the elements of “Siddiq,” “Amanah,” “Fathonah,” and “Tabligh.” This study affirms that knowledge, competency, and satisfaction are the most significant constructs of human capital that explain performance. Factor analysis indicates that spiritual value is embedded in and forms part of the human capital construct. Hence, spiritual value is a key element in company culture and contributes significantly to organizational success. This model can be a platform for human capital reporting in the relevant Islamic and conventional organizations. |
| Date: | 2019–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:962yu&r=all |
| By: | JOURNALS, INTERNATIONAL SCIENTIFIC Available online at https://int-scientific-journals.com; Mukherjee, Vihaan K. |
| Abstract: | Audit cost greatly affects the freedom of review work and the nature of review report, which has excited numerous researchers' exploration and discourse. Hazard arranged inspecting requires confirmed open bookkeepers to place endeavors in the current financial condition, investigate and assess the significance dimension of reviewing from different perspectives, for example, the industry circumstance, business exercises and inside control of undertakings, to decide the part with higher hazard dimension of examining and lead key evaluating. This article chooses A recorded organizations' money related announcing information, building up review expenses and estimating business chance list of the relapse demonstrate, numerous relapse investigation. In the meantime, the impact of review expenses related file has carried on the experimental research. The exploration results show that: the advantage risk proportion and review expenses of recorded organizations are decidedly connected; money due turnover and net loan cost on deals are contrarily associated with review charges. What's more, as indicated by the aftereffects of research and investigation, I set forward significant assessments and recommendations. |
| Date: | 2019–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:gqsk6&r=all |
| By: | Noorina Hartati (Department of Accounting, Faculty of Economics, Universitas Terbuka, Banten, Indonesia Author-2-Name: Irma Author-2-Workplace-Name: Department of Accounting, Faculty of Economics, Universitas Terbuka, Banten, Indonesia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective – This study aims to investigate the motivation and interest of Accounting Students at Economy Faculty of UT to participate in Accounting Professional Education, several motivational factors such as quality, career, economy, degree, and achievement. Accounting Professional Education has been implemented since September 2002, with the commencement of Accounting Professional Education, the title of accountant is no longer the monopoly of certain state universities are given special privileges by the Ministry of National Education. Thus, all Accounting graduates have the same opportunity to get an accountant degree. Opportunities have been widely opened but the problem now is the willingness of every accounting student himself to continue his education at Accounting Professional Education. Methodology/Technique – Using 296 accounting students from Bogor, Bandung, Purwokerto, Batam, Gorontalo UT Regional Offices, we run the form of Structural Equation Model (SEM) to test the accounting students' motivation to follow Accounting Professional Education. Meanwhile for the measurement model in this study using a Confirmatory Factor Analysis (CFA) which shows a latent variable measured by one or more observed variables.Findings – The result shows that quality motivation has a significant effect towards the interest of accounting students at undergraduate degree of Accounting Study Program at Universitas Terbuka to follow the Accounting Professional Education.Novelty – This finding implies that the greater the motivation of the quality of students, the greater their interest in taking the Accounting Professional Education.Type of Paper: Empirical |
| Keywords: | Accounting Professional Education, Motivation, Interest |
| JEL: | A29 M41 M49 |
| Date: | 2019–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr178&r=all |