nep-acc New Economics Papers
on Accounting and Auditing
Issue of 2022‒05‒02
five papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Determinants of Audit Quality at Public Accounting Firms By Audrey Michelle Wenny Yolanda
  2. Real Earnings Management: Do the Experience and Gender of Big4 Auditors Matters? By Abdul Halim Chew Abdullah
  3. External Shariah Audit Services from Practitioners' Views: The Case of Malaysian Islamic Banks By M R Yasoa
  4. Profit shifting by multinational corporations in Kenya: The role of internal debt By Roseline Misati; Kethi Ngoka; Anne Kamau; Maureen Odongo
  5. Contingency E-Learning for Accounting: Effective Communication in the New Normal Era By Syaiful Hifni

  1. By: Audrey Michelle Wenny Yolanda (Department of Accounting, Universitas Hasanuddin, 90245, Makassar, Indonesia Author-2-Name: Grace T. Pontoh Author-2-Workplace-Name: Department of Accounting, Universitas Hasanuddin, 90245, Makassar, Indonesia Author-3-Name: Kartini Author-3-Workplace-Name: Department of Accounting, Universitas Hasanuddin, 90245, Makassar, Indonesia 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 examine and prove the effect of education, experience and audit fee on audit quality. Methodology – The data used are primary data in the form of questionnaires distributed to auditors, both senior and junior auditors at Public Accounting Firms located in Sulawesi. The questionnaires distributed to respondents were 46 auditors and 42 questionnaires were returned and able to processed. Findings – This research used a quantitative approach by measuring the objective data through scientific calculations, derived from samples of certain objects to answer a number of questions. The sampling technique used in this study is purposive sampling by using certain criteria and the model used is multiple linear regression analysis. The results of this study indicate that education, experience and audit fee have an effect on audit quality. Novelty – Audit quality is a representation of the auditor's performance as an audit service provider and also the auditee as an audit service user. As a liaison between the interests of financial statement users and the company, auditors are required to improve the quality of their services which in turn will have an impact on quality of the audit results. Auditors with adequate education and experience and appropriate audit fee in performing audit services will have an effect on the quality of the resulting audit. Type of Paper - Empirical"
    Keywords: Audit, Education; Experience; Fee; Quality
    JEL: M40 M49
    Date: 2021–12–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr192&r=
  2. By: Abdul Halim Chew Abdullah (Center for Governance Resilience and Accountability, Faculty of Economics and Management Universiti Kebangsaan Malaysia Author-2-Name: Norman Mohd Saleh Author-2-Workplace-Name: Center for Governance Resilience and Accountability, Faculty of Economics and Management Universiti Kebangsaan Malaysia 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 examines whether the experience and gender of auditors in Big4 firm in relationship of deterring Real Earnings Management (REM).Different from the majority of previous studies, this study focuses on auditors in Big4 audit firms and real earnings management within Malaysian business environment. Big4 audit firms are associated with high quality audit because of the reputation to uphold, thusadopted stringent quality control and assurance approach, systems and procedures. Once adopted, the effect of individual characteristics may become less important. Thus, it is questionable whether individual characteristics such as auditor experience and gender could still have an influence on the outcomes of an audit, in this case, REM, when the audit firms are Big 4 (assuming very stringent quality control procedures are adopted). Methodology/Technique - This study substantiates prior literatureand conducted tests only on companies audited by Big4 audit firms.We also find that auditor experiences confirms to Agency Theory where REM reduces when the experience increases.Data was obtained from the Companies Commission of Malaysia (SSM), DataStream and Bursa Malaysia. Findings - The result confirms prior literature that auditor experience isstillanimportant factor that can limit REM, even in companies audited by the Big4 firms. The results howeverreveal that Big4 female auditors do not have any significant effect in reducing REM. Novelty - Although female auditors are claimed by Gender Socialization Theory, to have better moral judgments than male auditors, the result shows both genders are equal, at least in limiting REM. Type of Paper - Empirical."
    Keywords: Big4 Auditors; Auditor Experience; Real Earnings Management;Auditor Gender; Bursa Malaysia
    JEL: M40 M41 M42
    Date: 2021–12–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr206&r=
  3. By: M R Yasoa (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-2-Name: S F Muhamad Author-2-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-3-Name: T Abdullah Author-3-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-4-Name: M N H Yusoff Author-4-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-5-Name: N M Said Author-5-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-6-Name: S A Zainuddin Author-6-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-7-Name: N A M Nasir Author-7-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-8-Name: Author-8-Workplace-Name:)
    Abstract: "Objective - This paper investigates the possibility and feasibility of Malaysia's Islamic banking industry hiring external Shariah audit (ESA) services in the audit fraternity as one of the Shariah governance mechanisms. Some of the scholars argued that ESA is more independent and is able to strengthen the existing Shariah compliance in the industry. Methodology – This study employs a qualitative method by utilising semi-structured interviews with nine key industry players: Shariah auditors, Heads of Shariah audit, Shariah Committee (SC) Member, and Chief Shariah Officer. Data gathered from the interviews was transcribed and analysed using Atlas.ti software. Findings – A series of interviews reveal that given the current practices by the Islamic banking industry, it could be inferred that the Malaysian Islamic banking industry is not ready to exercise the ESA practices. This unreadiness is due to several factors, such as ESA costs outweighing its benefits, the fear of reputational risk, and anxiety of leaking confidential information to rivals. Novelty – The Shariah audit research especially relates to external Shariah audit is considered limited. Type of Paper - Empirical"
    Keywords: External Shariah audit; Islamic Banks; qualitative method; Shariah governance; Malaysia
    JEL: E44 G10 G20
    Date: 2021–12–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr193&r=
  4. By: Roseline Misati; Kethi Ngoka; Anne Kamau; Maureen Odongo
    Abstract: Illicit financial flows directly impact a country's ability to raise, retain, and mobilize its own resources to finance sustainable development. Against a backdrop of a weak public financial position attributed to capital flight, tax avoidance, and dependence on corporate income taxes, governments in Africa face impediments to their efforts to widen the tax base. Using firm-level annual data from 2015-19 from multinational corporations' audited financial statements, we assess the scale of profit shifting by those corporations with a presence in Kenya.
    Keywords: Profit shifting, Corporate tax, Multinational firms
    Date: 2022
    URL: http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-39&r=
  5. By: Syaiful Hifni (Faculty of Economic and Business, University of Lambung Mangkurat, Banjarmasin, Indonesia Author-2-Name: Akhmad Sayudi Author-2-Workplace-Name: Faculty of Economic and Business, University of Lambung Mangkurat, Banjarmasin, Indonesia Author-3-Name: Rano Wijaya Author-3-Workplace-Name: Faculty of Economic and Business, University of Lambung Mangkurat, Banjarmasin, Indonesia Author-4-Name: Moh Yamin Author-4-Workplace-Name: Faculty of Teacher Training and Education, University of Lambung Mangkurat, Banjarmasin, 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 article is to examine the structural aspects of the contingent variables from the user side and the provider side of e-learning in accounting education and to explore and develop insights on how it can be applied to the changing ways of communication today in the new normal era. Methodology/Technique - We conducted research on e-learning users through 359 (three hundred and fifty nine) students majoring in accounting by using path analysis to obtain measurement results from 2 (two) structural equations. Findings - From the expectations of students as users of e-learning, it showed, first, there are no significance from relevant learning-teaching methods, students self-interest, outcome- based education (OBE) curriculum base, towards implementation of contingency e-learning . Otherwise, engagement within regulatory compliance as the only variable that can be used as an antecedent to predict the implementation of contingency e-learning. Second, relevant learning -teaching methods, and OBE curriculum base play a role in predicting the achievement of learning outcomes effectiveness. Novelty - This research provides insight and contribution to support the accounting education process that takes place in the new normal era after the Covid-19 crisis. Effective communication leads to the achievement of effective learning outcomes. This is explained by the role of engagement within regulatory compliance from students towards contingency e-learning in the accounting department as well aswith the role of relevant teaching and learning, and the role of OBE curriculum as new insights from the facts of this research. Type of Paper - Empirical."
    Keywords: Accounting E-Learning; Effectiveness of Learning Outcomes; Engagement of Regulatory Compliance; Learning Teaching Method; OBE Curriculum Base; Student Self Interest
    JEL: M40 M49
    Date: 2021–12–31
    URL: http://d.repec.org/n?u=RePEc:gtr:gatrjs:afr205&r=

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