Accounting Audit Research Articles

Editorial: Advances in corporate governance practices

Corporate governance has gone through three decades of profound changes in terms of new regulations, new practices, and environmental conditions. Many countries drafted guidelines for best corporate governance practices following Cadbury report (Cadbury, 1992). These practices were mainly related to the board of directors (composition and functioning), internal controls, and internal audit. The Enron scandal followed by the collapse of Arthur Andersen, one of the big five audit firms, and the enactment of the “Public Company Accounting Reform and Investor Protection Act” (Sarbanes-Oxley law) in 2002 were other milestones in the evolution of corporate governance. This law brought about significant changes related to public company accounting oversight, auditor independence, financial disclosure, and corporate responsibility. The financial crisis in 2008 started in the United States and has shaken the world economy. This crisis was due to weak corporate governance that led to fraudulent financial reporting and excessive risk-taking. Grove and Victoravich (2012) consider CEO duality, lack of board independence, weak management control systems, short-termism, weak codes of ethics, and opaque disclosures among the main drivers of this crisis. The COVID-19 has consistently shown that firms with better corporate governance and corporate social responsibility practices were the most resilient entities during the first quarter of the pandemic (Ramelli & Wagner, 2020). All these topics are addressed in this collection of high-quality research papers of this year’s first issue of Corporate Board: Role, Duties, and Composition.

Análisis de los determinantes del rendimiento académico. El caso de Contador Auditor de la Pontificia Universidad Católica de Valparaíso

This article proposes an econometric model that allows to determine the number of semesters a student in the Accountant Auditor career of the Pontificia Universidad Catolica de Valparaiso (Chile) invests in completing his university degree. In addition, it is about identifying the factors, related to academic performance or not, that determine this duration. The results obtained show how variables of both types affect the duration of university studies. In relation to the variables associated with academic performance, the average grades in the subject areas of finance and mathematics are the most influential in the duration of the career of Auditor Accountant. In addition, the age, the type of establishment where the previous studies were conducted, and the sex of the students have been identified as valid predictors of the academic performance of the graduates.

The effect of environmental regulations on innovation in heavy-polluting and resource-based enterprises: Quasi-natural experimental evidence from China.

Environmental protection regulations adopted by governments affect the microeconomic behavior of enterprises. The Chinese government began piloting the outgoing leading officials’ accountability audit of natural resources assets (OANRA) in some regions in 2014. Based on this quasi-natural experimental setting, this paper chose heavy-polluting and resource-based enterprises in pilot regions of China from 2011 to 2016 as examples for studying the impact of the OANRA on enterprise innovation and further examines the role of government subsidies in this process. The study finds that the OANRA has no significant impact on enterprise innovation. However, with support from government subsidies, the OANRA dramatically accelerates enterprise innovation investment. The results are still seen after applying propensity matching analysis (PSM), balancing panel data and deleting special provinces. Further analysis shows that this effect is more obvious among small-scale, state-owned enterprises that are located in areas with high degrees of marketization and high bank credit constraints. This study advances the research of the OANRA’s effects on the microeconomic behavior of enterprises. Moreover, the adjustment effect of government subsidies also provides great reference value to making rational use of policy to cooperate with the OANRA.

ISSUES OF PERSONNEL TRAINING IN THE FIELD OF ACCOUNTING AND STATE AUDIT

The current Kazakhstani education system in the field of training accounting and auditing personnel unites numerous links, including colleges, universities, postgraduate education, etc. Continuous learning systems such as express courses, seminars, conferences, courses, etc. become more relevant. At the same time, the priority of higher and postgraduate education in Kazakhstan is the trinity of education, science and production. The directions for further effective development of the new system of governmental audit and financial control by improving the quality of training and the effectiveness of external governmental audit were also identified. The article presents the results of training specialists of higher education in the field of accounting and state audit. According to the authors, in the context of distance learning in connection with the COVID - 19 pandemic in Kazakhstan, as in the entire international space, there are problems associated with shortcomings and unpreparedness for such changes in education. For several years, the authors have been analyzing the current system of training highly qualified specialists in the field of accounting and audit. The paper provides the existing information on the training of such personnel in the context of a dual training system, which is widely covered in Internet resources. To improve the status of these specialists in this area, it is proposed to systematically monitor and publish analytical reviews based on special generally accepted research methods and techniques such as questionnaires, observation, etc. In addition, the area of ​​scientific research should be expanded, based on positive world experience Нынешняя казахстанская система образования в области подготовки бухгалтерского и аудиторского персонала объединяет многочисленные звенья, в том числе колледжи, университеты, послевузовское образование и т.д. Системы непрерывного обучения, такие как экспресс-курсы, семинары, конференции, курсы и т.д. становятся более актуальными. При этом приоритетом высшего и послевузовского образования в Казахстане является триединство образования, науки и производства. Также определены направления дальнейшего эффективного развития новой системы государственного аудита и финансового контроля за счет повышения качества обучения и эффективности внешнего государственного аудита. В статье представлены результаты подготовки специалистов высшего образования в области учета и государственного аудита. По мнению авторов, в условиях дистанционного обучения в связи с пандемией COVID - 19 в Казахстане, как и во всем международном пространстве имеются проблемы, связанные с недостатками и неподготовленностью к подобным переменам в образовании. Авторами в течение нескольких лет проводится анализ действующей системы подготовки высококвалифицированных специалистов в сфере учета и аудита. В работе приведена существующая информация о подготовке таких кадров в условиях дуальной системы обучения, которая широко освещена в интернет ресурсах. Для повышения статуса данных специалистов предлагается систематически проводить мониторинг в этой сфере и публиковать аналитические обзоры, основанные на специальных общепринятых методах и приемах исследования, таких как анкетирование, наблюдение и др. Помимо этого, следует расширять область научных исследований, опираясь на положительный мировой опыт

Accountability audit of natural resource, air pollution reduction and political promotion in China: Empirical evidence from a quasi-natural experiment

Using the Accountability Audit of Natural Resource (AANR for short) issued in 2015 as a quasi-natural experiment, this thesis has explored the relationship of AANR, air pollution reduction, and political promotion in China. The results show that AANR has to some extent effectively reduced air pollution, except for Ozone. In addition, the spatial spillover effect of AANR on reducing air pollution is not only basically supported among the treated cities, but also partially established in the untreated cities neighboring the treated cities. Furthermore, there is a clear evidence that AANR has effectively broken the excessive dependence on the traditional “political tournament mechanism”, while the establishment of a new political promotion mechanism still has a long way to go. Overall, this thesis sheds light on the coordination of economic development and environmental protection from the perspective of the career concerns of local officials.

Reversing type 2 diabetes: journal review and a case study

Type 2 diabetes (T2D) has for quite some time been recognized as a serious interminable malady dependent on conventional methods for treatment. Exploration currently exists that proposes reversal is conceivable through different implies that have as of late been grasped in the rules. This account audit looks at the proof for T2D reversal utilizing every one of the three strategies, including points of interest and constraints for each. Techniques: A research was performed, and an aggregate of unique articles containing data relating to diabetes reversal or abatement were incorporated. Results: Evidence exists that T2D reversal is attainable utilizing bariatric medical procedure, low-calorie nutrient dense and moderate protein diet (LCNP), or starch limitation (LC). Bariatric medical procedure has been suggested for the therapy of T2D since 2016 by a global diabetes agreement gathering. Both the American Diabetes Association (ADA) and the European Association for the Study of Diabetes (EASD) presently suggest a LC eating example and backing the momentary utilization of LCNP for weight reduction. Nonetheless, just T2D treatment, not reversal, is talked about in their rules. End: Given the condition of proof for T2D reversal, medical services suppliers should be taught on reversal choices so they can effectively take part in guiding patients who may want this way to deal with their sickness

Stages of inventory accounting audit of a commercial organization

Stages of inventory accounting audit of a commercial organization

FAKTOR – FAKTOR YANG MEMPENGARUHI AUDIT REPORT LAG PADA PERUSAHAAN INDUSTRI PLASTIK DAN KEMASAN YANG TERDAFTAR DI BEI PERIODE 2013 – 2018

The purpose of this research is to test the impact of the size of the KAP, the financial ratio (debt equity ratio, current ratio), 2018 2013 The audit opinion and the company. The study used 11 plastics and packaging industry companies listed on the IDX period 2013-2018. Simultaneous testing results show that the debt equity ratio, current ratio, size of the HOOD, audit opinions and company size together have the same effect on the audit report lag. The results of the hypothesis test showed that the current ratio and size of the KAP affect the audit report lag, while the results of the debt equity ratio hypothesis test, audit opinions and company size have no influence on the audit report lag Plastic and packaging industry companies.Keywords: Size Public Accountant Office, Financial Ratios, Audit Opinions, Company Size and Audit Report Lag

파트너 감사시간비율과 회계투명성 간의 관계 : 기업의 감사인 규모를 중심으로

파트너 감사시간비율과 회계투명성 간의 관계 : 기업의 감사인 규모를 중심으로

Predictors of Audit Quality: An Empirical Model

This study aims to determine the relationship of auditor’s independency, work experience, professional competence and audit accountability on audit quality through a survey conducted in five branches of the Public Accountant Firm Doli, Bambang, Sulistiyanto, Dadang & Ali (CPA FIRM DBSDA), based in Bandung, Malang, Central Jakarta, West Jakarta and South Jakarta. The population is permanent employees who have worked for at least one year in five DBSDA CPA FIRM branches and have completed a Bachelor of Education. The research sample consisted of 38 employees who responded to the distributed questionnaire. The results showed that independence, work experience, professional competence and audit accountability have a positive influence on audit quality. Through the partial testing, we find that auditors’ independency, work experience, professional competency, and accountability have a positive effect on audit quality. The practical implications of the results of the study are: (1) audit work is to be carried out by experienced auditors who have adequate knowledge, (2) senior auditors need to supervise junior auditors in conducting audits and examine work performed by junior auditors, and (3) auditors need to maintain auditor independence to ensure that auditor independence is not influenced by the client.

Pengaruh Sistem Pengendalian Mutu dan Kompetensi Auditor Dalam Meningkatkan Kualitas Audit

The increasing number of public accounting firms in Indonesia certainly creates very tight competition among public accounting firms in getting clients. With the existence of the cases related to external auditors, it is very natural that companies become very critical in selecting public accounting firms. To overcome this, public accounting firms and public accountants need to improve their audit quality in order to produce relevant and reliable information so as to make accounting information useful in making decisions.
 This research aims to analyze the effects of the quality control system and auditor competence in improving audit quality on public accountant auditors in Jakarta. The research method used in this research was descriptive research with a quantitative approach. The population was all public accountant auditors registered in Directory AP & KAP 2019 in the Jakarta area compiled by the Indonesian Institute of Certified Public Accountants (IAPI). The sampling technique was convenience sampling. The type of data was primary data using a questionnaire as a primary data collection method. The data analysis technique was the statistical analysis method using the SPSS program. The processing method was multiple linear regression analysis.
 The results show that partially there is a positive and significant effect of the quality control system (significance value of 0,000 < 0,05 and t count value of 5,995 > 1,969) and auditor competence (significance value of 0,000 < 0,05 and t count value of 8,859 > 1,969) in improving audit quality on public accountant auditors in Jakarta. Moreover, the results of this research also indicate that there is a positive and significant effect of the quality control system and auditor competence simultaneously in improving audit quality on public accountant auditors in Jakarta, which is illustrated by a significance value of 0,000 < 0,05 and F count value of 173,519 > 3,029.
 
 Keywords: Quality Control System, Auditor Competence, Audit Quality

Auditor Independence and Value Relevance in the European Banking Sector: Do Investor Protection Environment and Corporate Governance Matter?

Our study explores the effects of statutory auditor’s independence on value relevance, measuring the different impact against the quality of country-level investor’s protection and firm-level corporate governance. A sample of 98 European financial entities listed on the stock markets of 15 countries in the period from 2009 to 2014 is used to measure statutory auditor independence by taking into account audit firm tenure, partner tenure, and the percentage of nonaudit fees. Findings demonstrate that in different investor protection environments or in the presence of differences in corporate governance quality, phenomena that could be interpreted as a deterioration of the auditor independence do not necessarily determine a decrease in the value relevance of accounting numbers. Rather, they may determine a possible increase if the knowledge spillover effects prevail over the perception that independence has deteriorated. These findings add to the literature and provide regulators with insights by suggesting that not only accounting and auditing practices but also country features or firm-level corporate governance quality might influence the outcome of reforms on the independence of the statutory auditor as well as value relevance judgments.

Impact of Environmental Information Disclosure on Certified Public Accountant Audit of Chinese Listed Companies in the Energy Industry

Abstract This paper sets up an individual fixed-effect model. Taking environmental information disclosure index and independent report as an alternative to environmental information disclosure, this paper studies the impact of environmental information disclosure on Certified Public Accountants’ audit fees and audit opinions. The results show that the environmental information disclosure level of the Chinese listed companies in the energy industry is positively correlated with the audit fees of CPA, and negatively correlated with the issuance of non-standard audit opinions, but whether the disclosure of independent reports has no significant impact on audit fees.

A Study on The Role of Environmental Accounting and Environmental Auditing in Achieving Sustainable Development

A Study on The Role of Environmental Accounting and Environmental Auditing in Achieving Sustainable Development

회계담당자의 경력과 감사시간

[연구목적] 본 연구는 2018년에 새롭게 공시되는 회계담당자의 경력이 감사시간과 어떠한 관련성을 갖는지를 분석함으로써 회사의 회계역량이 내부통제에 영향을 미치는 요인 인지를 확인하고, 효과적인 내부통제 운용을 위해 회계담당자가 갖추어야 할 특성을 고찰한다.BR[연구방법] 내부회계 관련 인적자원에 대한 선행연구를 기초로 가설을 설정하고, 회계담당자 경력정보를 2018년에 공시한 1,858개 기업을 이용하여 실증분석을 수행하였다.BR[연구결과] 회계담당임원에 대해서는 근속연수와 감사시간이 유의한 음(－)의 관련성을 보였으며, 회계담당직원의 경우 회계 관련 경력연수가 길수록 감사시간이 감소하는 것으로 나타났다. 이러한 결과는 Non－BIG4 선임회사와 코스닥 등록기업에서 유지되어 감사인 또는 기업 측면에서 체계적인 회계시스템이 구축되지 않은 경우, 회계담당인력의 역량이 내부통제에 중요하게 작용함을 알 수 있다.BR[연구의 시사점] 본 연구는 내부회계 시스템이 양호하지 않을 것으로 기대되는 중소형 기업들의 경우 회계담당자의 역량이 내부회계의 효과에 중요하게 작용하므로 이들 기업에 대해서는 회계인력의 전문성을 강조하는 규제 및 제도가 필요함을 시사한다. 이와 더불어 본 연구결과는 정책당국의 회계담당자 경력정보의 추가공시가 기업의 회계역량을 나타내는 유용한 정보임을 의미한다.

INTERNATIONAL AND RUSSIAN EXPERIENCE OF INTERACTION BETWEEN AUDITING AND TAX ACCOUNTING

International and Russian experiences in the interaction of auditing and tax accounting have been studied. The differences between two accounting models, applying in various countries, have been analysed. The main characteristics of tax (continental) and proprietary (anglo-saxon) accounting models have been given. The analysis of two models of auditing and tax accounting has been carried out. The features of the Russian system of auditing and tax accounting have been considered. The main differences of auditing and tax accounting, using in the Russian Federation, have been analysed. The recommendations on improving the interaction of auditing and tax accounting, taking into account international practice in this area, have been given. It has been concluded about the influence of world experience on improving the Russian system of auditing and tax accounting.

Auditing Concepts and Stakeholders’ Expectations

The mixed reactions occasioned by disappointing top-level financial reporting failures has not dampened the unsettling loss of confidence of key players and other financial statement users on the relevance of audit and financial statements in making the right investment decisions. There is a contemporary debate trying to resolve mixed feelings and misplaced perceptions of auditing concepts in filing widened expectation gaps of auditor’s expression of opinion. Contributing to the argument involves a detailed review of auditing concepts and broadening the understanding and educating the stakeholders on the essence of auditing. In this consideration, the study employed an exploratory research approach, reviewed related materials, journals, and periodicals in the field of auditing and financial accounting. The outcome of the review showed that Auditing concepts are specific and inclusive. Auditors are guided by these concepts and standards set out by the international standards on auditing. While these concepts are valid, there are divergences and misconceptions of what stakeholders expect from the audited financial statements. The study recommended that stakeholders require audit education and understand the essence of auditors’ reporting dilemma of regulated auditing guidelines or go beyond the auditing standards to please the stakeholders’ expectations.

Preface to the Fourth Volume Second Issue of Indian-Pacific Journal of Accounting and Finance

Preface to the Fourth Volume Second Issue of Indian-Pacific Journal of Accounting and Finance

Tipos de racionalidades y modelo para su identificación en procesos de enseñanza aprendizaje de contadores auditores

El presente trabajo, tiene por objetivo primario definir el concepto de racionalidad y sus distintos tipos a través de la revisión de la literatura. Posteriormente, se plantea las racionalidades explicitas e implícitas en la formación de profesionales de la contabilidad, para finalmente describir un modelo que, en estudios posteriores, permitirá realizar un análisis de las racionalidades explicitas e implícitas presentes en la formación de profesionales contadores auditores en Chile.

The use and benefit of management accounting practices in Libyan oil companies

PurposeThe purpose of this study is to describe the use and benefit of TMAPs and CMAPs in Libyan oil companies.Design/methodology/approachThe data were collected by distributing 210 mailed questionnaires to senior financial staff, such as financial managers, heads of cost department, financial accountants, department of management accounting employees, managerial accountants and Auditors. IFAC-based model was used in analyzing evolution stages in Libyan management accounting practices.FindingsThis study finds that Libyan oil companies use CMAPs more than TMAPs, the latter being commonly used in Libyan manufacturing companies. This study also finds that CMAPs are more beneficial than TMAPs.Practical implicationsThis study provides more understanding of the use and the benefit of TMAPs and CMAPs and fills research gap regarding the matter, as well as provides new findings that can be used for further research regarding the use and benefit of TMAPs and CMAPs for Libyan oil companies.Originality/valueThe results contribute to a better understanding concerning the use and benefit of TMAPs and CMAPs in Libyan oil companies.