Financial Executives’ Responses to the Use of Artificial Intelligence in Financial Reporting and Auditing

Purpose – The purpose of this paper is to explore the views of top corporate financial executives on the success of implementation of systems outsourcing and offshore outsourcing, as well as the variables associated with success in these areas.Design/methodology/approach – An analysis of secondary data obtained from the Financial Executives International comprehensive survey‐based research on technology issues for financial executives. Regression analysis and other statistical methods are used.Findings – The study examined usage of outsourcing and offshore outsourcing from the top financial executive's perspective. Only 30 percent of the surveyed companies outsourced IT and only 25 percent engaged in offshore outsourcing IT. Size of the company did significantly influence usage. The major motivators behind the decision to pursue outsourcing were the views that IT is not a core competency and that significant cost reduction was possible. The experiences of the organizations surveyed reflect a general satis...

The coming era of the financial executive: A broadened, less specialized role

The beginning of controlling dates back to XIII century, when first in France and also at the English court have been employed so called Controllers. While in the USA in XVIII century Comptroller s had the role to keep in balance the state budget and the use of states assets. In this way in 1931 "Controllers Institute of America,, was established, which later had changed his name to: Financial Executive Institute, (FEI). FEI is today, preeminent professional association for senior level financial executives, consisting of 15.000 members, 1500 from them are Controllers. In the Europe the controlling had played serious role since 1970. Controlling can shortly defined as a process of navigation for the economic purpose. Further we make a distinctions from definitions which define controlling as an institution and a function, depending on implementation of controlling which had to be centralized or decentralized. In our economic theory in last years began to talk about control, which is usually used in the organizational part of finance department called planning and analysis, earlier, planning and control (now). Today's philosophy of the enterprise is to analyze facts which have happened, controlling first of all has a duty to solve a problem by the analyzing of current situation and to give certain proposal for the future. The main purpose in implementation of the controlling in our firms had to be its independence from other departments which guides to problem solving and proposals to better and the rational business making.

This study explores the impact of corporate image and service quality on customer satisfaction in the professional service industries. Data were collected on audit firms, sending a questionnaire to financial executives of leading Italian companies. The results show that the most important variable explaining customer satisfaction was the apparent effectiveness of the audit firm. In relation to service quality, managers' satisfaction was primarily driven by their perception of audit firm's work as a useful value-adding service. The length of audit firm–auditee relation, the location of the auditor's office, and the financial executive's personal characteristics were also significant drivers of customer satisfaction.

The article presents information related to recent developments in accounting. The 1963 convention of the American Accounting Association will be held on the Stanford University, Palo Alto, California, with the University of California at Berkeley, California as co-host, on August 26, 27 and 28. Much work has been and will be done to make one's visit a pleasant as well as profitable one. The committees involved ask only that one help them plan effectively by doing one's own planning as early as possible, and that one send in one's pre-registration forms as soon after they are issued as one can. The Controller, periodical publication of the Financial Executives Institute, an organization, has changed its name to The Financial Executive, effective with the January, 1963 number. The University of Illinois has announced the establishment of a new Center for International Education and Research in Accounting at Urbana, Illinois. Professors C.A. Moyer and V.K. Zimmerman will be director and associate director, respectively. The Center will be designed to stimulate the international exchange of ideas, students, faculty and research in international problems of accounting.

Innovations often fail to gain adoption by the accounting profession. A factor affecting the rate of adoption of innovations is the perceptions of innovations by individual groups within a profession. The objective of this article is to provide empirical evidence regarding the extent to which differences occur in accounting interest groups' perceptions of the need for and future rate of adoption of accounting innovations. The research evidence indicates that accounting academicians perceive a higher need for adoption and future rate of adoption of innovations. CPAs and financial executives are systematically lower on both variables, and investment analysts fall in the middle range. These findings suggest that the needs and values of the CPA and financial executive groups may be slowing the rate of adoption of accounting innovations. In summary, the findings of this research indicate that system effects are ubiquitous in the accounting profession and could be an important area for research directed toward discovering methods of affecting the rate of adoption of accounting innovations. System effects are the influences of the norms, values, and functions of a group on the behavior of the individual members of that group.

This study aims to measure the relationship between job satisfaction and intention to leave among the Financial and Internal Auditing Executive officers in the Public-Sector Universities in Sri Lanka. The objectives of the study are; to measure the level of job satisfaction of financial and Internal Executive Officers in the Public Sector Universities in Sri Lanka, identify the factors affecting the level of job satisfaction of financial and Internal Executive Officers in the Public Sector Universities in Sri Lanka and examine the influence of the level of job satisfaction of Financial and Internal Executive Officers in the Public Sector Universities in Sri Lanka on their intention to leave. Two models were used to measure the influence of variables; Model A assessed the relationship between the selected job-related factors and the level of job satisfaction. Model B measured the relationship between job satisfaction and intention to leave. Data were analyzed using descriptive and inferential (correlation, multiple regression analysis) statistics. One hundred and thirty executive staff members were selected through Proportionate Stratified Random sampling method from the public-sector universities in Sri Lanka. Questionnaires were administered to gather data and 128 questionnaires were received. Five job related factors; salary, promotion, training and development, relationships with co-workers and working conditions were selected for the study. The study’s findings show that there is a negative relationship between job satisfaction and intention to leave among the Financial and Internal Auditing Executive officers. Three factors; salary, relationship with co-workers and working conditions have shown a significant positive effect on the job satisfaction. Eexistence of negative relationship between job satisfaction and intention to leave from the organization will give signal for the authorities of higher education to consider that if the satisfaction is lower then there is a possibility of leaving from the organization.

Letter From the Editor

Investor Perceptions of the Earnings Quality Consequences of Hiring an Affiliated Auditor

The reforms taking place in Indonesia have resulted in the emergence of a democratic spirit, accountability and transparency in the government sector. Reforms in various fields have led to the realization of the implementation of the duties and functions of state governance and development characterized by the principles of good governance. In implementing education, schools have autonomy. This educational autonomy model is School Based Management (SBM). Schools have the authority to carry out creativity, innovation and improvisation in realizing quality education. The School-Based Management (SBM) concept makes education management more focused and well-coordinated in terms of implementation, funding, development and supervision. This Community Service Program seeks to provide answers and solutions to problems to create accountability and transparency in financial management in public institutions at the central and regional levels, including schools. Based on the problems faced by the community, the service that will be carried out is to provide training and education to the school, especially the Principal, Treasurer and Financial Executive at SD Muhammadiyah Semboro Jember. This community service method uses seminars/workshops, practice and discussions with the Principal, Treasurer and Financial Executive at SD Muhammadiyah Semboro Jember

Level of Compliance on PASs and PFRSs Disclosure Requirements of Publicly-Listed Companies in the Philippines

In this article, the authors explain the new Securities and Exchange Commission (SEC) rules for money market mutual funds (MMFs), which are designed to improve their transparency and provide investor protection during periods of market stress. With their effective date just over one year away, it is clear that corporate accountants and financial executives need to understand the financial reporting and tax implications so that any changes needed to accounting and tax systems can be implemented in a timely manner. © 2015 Wiley Periodicals, Inc.

One of the most important changes in the history of financial reporting is the change from local or national standards to a uniform, consistent set of rules known as IFRS (International Financial Reporting Standards).These standards are currently being reviewed by the US Securities and Exchange Commission (SEC) to replace US Generally Accepted Accounting Principles (GAAP).There are many advantages of a worldwide standard for accounting.But this change will require significant changes in organizational information systems.This study reviews financial executives views on preparation for this change as well as the impact on their IS (Information Systems).This study finds that 83% of financial executives estimate their Information Systems (IS) effort will be greater than 6 months and 45% estimate the effort to be greater than one year.Despite this however, less than 5% of executives' organizations have conversions in progress or completed.Only another 18% have started planning for the conversion.Little response variance is found due to size of company or industry.There is difference between public and private companies.Finally, this study found little IS involvement is IFRS conversion.

Financial statements are the main source of information showing the performance of an enterprise and its financial state. They are need for business management, analysis, internal and external audit, owners and state, investors, society. The set of financial statements is prepared by summarizing the company's financial year data. To prepare accountability, data is pre-accumulated and grouped in accounting records, synthetic and analytical accounting registers according to general principles: continuity, periodicity, permanence, prudence, monetary measure, accumulation, neutrality, relevance of content, importance of information (the most important ones, and necessary to know). These accounting principles are followed in the EU countries. According to A. Ivanauskienė, an annual stocktaking must be carried out before the annual financial statements are drawn up [3]. Accounting policy part includes accounting principles and a brief description of accounting methods and rules that are used by the entity in accounting and financial reporting. [2]. Accounting policies are general accounting principles, accounting methods, and rules intended for accounting management, formation and submission of financial - the definition is provided by A. Ivanauskienė [3]. For more information on accounting policies is written 6 BAS - the explanatory note of the accounting policy part should state that 'financial statements are prepared in accordance with business accounting standards. Other legal acts that have been used for accounting management and financial reporting purposes [1] are also included. At the end of the company's financial year, we have to prepare not only financial statements, but also to analyze it properly. Because only by submitting an annual analysis of financial statements we will be able to evaluate the company's performance and position. We will be able to determine whether the company's performance is profitable, whether by putting together and discussing all the reports, there is a risk for the company's future plans. Problem and Relevance - it is very important that the financial accountability reports would be prepared correctly and would perform their intended purpose. Accurate accumulation and systematization of accounting information allows to account correctly assets, capital, income and expenses. Otherwise, false information will result in distorted analysis results and its users will make wrong decisions. The aim of the work is to analyze the content of financial statements, principles of formation and use of data. Research object - financial accountability. Research objectives: 1. To analyze the essence and importance of financial accountability, to provide a systematic description of financial accountability. 2. To provide a procedure for regulating accountability and how to allocate it. 3. To set requirements for financial reporting. 4. To prove the importance of financial reporting with respect to companies. Research methods - analysis of scientific literature, including the comparison of theoretical statements, methods of generalization, logical and graphical representation. Conclusions: Financial statements should reflect fair information about the financial position and performance of the entity, as well as provide necessary information to internal and external users and disclose relevant information about significant events occurring during the reporting period. Preparation of financial statements is regulated by: Law on Accounting of the Republic of Lithuania, Law on Financial Accountability of the Republic of Lithuania, Consolidated Financial Accountability Compilation of the Republic of Lithuania, International Business Accounting Standards, National Business Accounting Standards, Accounting Policies shaped in the company. The data presented in the annual financial statements shall be prepared in accordance with the general accounting principles. The information received in the reports must be compared to the previous reporting periods and to the performance of other companies. The data obtained are needed for economic analysis, audit, planning of the company performance and forecasting

Capital-Market Liberalization and Asymmetric Auditor Behavior: Evidence from a Quasi-Experiment