Company Accounting Research Articles

Patients’ Perceptions of Cannabis Contamination in Florida's Medical Program

Introduction As medical cannabis becomes more accessible, product quality must be evaluated. Researchers identified a social media community where Florida medical cannabis patients discuss personal experiences. The objective of this study was to analyze posts in this community to understand patient experience with products purchased from Florida medical dispensaries they believed to be contamination, perceptions of product quality, and desired changes to the Florida program. Methods Social networking theory acted as the underlying framework, and we employed a qualitative case study design to identify mentions of possible contamination and understand patient perceptions of contamination and the Florida medical cannabis program from the Reddit community FLMedicalTrees. The lead researcher conducted a social media analysis of posts identified as containing discussions relevant to product contamination. Constant comparison methods were used to code data, arrive at themes, and maintain validity and reliability of interpretation of coded themes. Results Of 300 post mentions of contamination, 98 posts were identified as relevant following review. Key results were: 1. Multiple mentions of possible contamination for products from medical cannabis dispensaries reported by Florida program patients. 2. Patients sought second opinions when concerned about possible contamination and shared personal experiences as well as advice on what concerned patients should do if they believe they have contaminated products. 3. Some patients expressed feelings of anxiety and worry about health, safety, and quality control, while others that described possible product contamination did not express concern. 4. Patients wanted changes regarding vertical integration, company accountability, state oversight, and home grow law. Conclusions Medical cannabis patients and providers could benefit from education on responding to possible contamination within medical cannabis products. Policymakers should consider these findings when setting regulations around contamination testing thresholds, dispensary oversight, and other regulations that directly impact patient safety like allowing patients to see products before purchase.

Do Investors Perceive Improvements in Fair Value Accounting for Investment Assets After PCAOB Inspections?

ABSTRACTWe examine whether fair value (FV) deficiencies highlighted in Public Company Accounting Oversight Board (PCAOB) inspection reports improve perceptions of the reporting quality of FV investment assets. Qualitative studies illustrate that subjective and complex estimates pose unique challenges to audit improvement. Using a market‐based measure of financial reporting quality (i.e., implied asset‐specific betas), we find a positive association between the intensity of FV‐deficient reports and perceived reporting quality of level 2 (but not level 3) FV investment assets and show that the association is stronger when audit office FV expertise is high. Consistent with improvements in disclosures, after a FV‐deficient report, we find FV footnotes become relatively more readable and include less cautionary language as level 2 holdings increase. Overall, our evidence suggests investors value PCAOB inspections regarding level 2 FV assets.

A Pilot Empirical Study of “Intra-firm Boilerplate” CAM Reporting – DOW 30 Companies

On June 1, 2017, the Public Company Accounting Oversight Board (PCAOB) promulgated the new auditing standard AS 3101: The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion. This new standard significantly expands the auditor’s report by requiring the inclusion of critical audit matters (CAMs) in an unqualified opinion. The primary objective of this paper is to examine whether the auditors were using an “intra-firm boilerplate” practice in CAM reporting. We analyzed the 10-Ks filed by the DOW 30 companies during the two-year fiscal periods of 2019 and 2020 by comparing the related CAMs. To run the binomial test on SPSS, we coded the relevant qualitative data in our data sheet before operationalizing them into the required binary format. Our empirical data indicate that most of the CAMs reported in fiscal year 2020 were either on new audit topics or with significant modifications in comparison to 2019. However, a substantial number (38%) of the CAMs reported in fiscal year 2020 were virtually the same as in fiscal year 2019. Our empirical results support former SEC chairperson Jay Clayton’s concern on “boilerplate” practice in CAM reporting.

Does CEO age matter in auditor choice and audit pricing? The role of CEO dominance

PurposeThis study examines the impact of the age of the chief executive officer (CEO) on the demand for audit quality, as reflected in auditor choice and audit fees. Furthermore, the study investigates whether CEO dominance moderates the association between CEO age, auditor choice and audit fees.Design/methodology/approachUsing a sample of 14,066 firm-year observations from 2000 to 2017, the study employs logistic regression and ordinary least squares (OLS) regressions to estimate the research models. The study also employs various techniques to address the endogeneity issue in the findings.FindingsUsing industry specialist auditors and brand name (Big 4) auditors as proxies, the study finds that firms with older CEOs are more likely to appoint higher-quality auditors. The study also finds that firms with older CEOs pay higher audit fees than firms with younger CEOs, which is likely to be due to increased demand for higher-quality audits and to risk aversion among older CEOs. In addition, the study finds that CEO dominance attenuates the positive association of CEO age with auditor choice and audit fees. The findings are found to be robust in our analyses, which address the endogeneity issue with firm fixed effects, two-stage least squares (2SLS) regression and entropy balancing. In addition, the study provides evidence that the positive association between CEO age and audit pricing persists when firms replace younger CEOs with older CEOs.Research limitations/implicationsThe study’s findings suggest that the United States (US) Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) may need to be more cautious when monitoring financial statements from firms with younger CEOs.Originality/valueThis study contributes to a growing stream of research investigating the links between managers’ idiosyncratic age differences and the quality of financial reporting and corporate decisions.

Rol del contador público en las organizaciones de Medellín desde una perspectiva empresarial

The article examines the current strategic role of public accountants in modern companies, highlighting their importance not only in ensuring compliance with tax and regulatory obligations, but also in ensuring the long-term viability of organizations. Focused on companies in Medellin, the study shows how the accountant’s function has evolved from a traditional technical role to a more strategic position. A qualitative methodology was used based on interviews with managers and owners of companies. The results reveal that 53.67% of the participants believe that accountants should act as strategic advisors in the business decision-making processes. Additionally, they are seen as key contributors to improving operational efficiency and supporting the long-term sustainability of companies. Despite these advances, a traditional view of the accountant still persists in some organizations, indicating that there is still a way to go to fully recognize their strategic role as a key factor in decision making and business management, actively integrating them in working committees and long-term planning.

Methodological approaches to the study of the causes of temporary disability at employees

Introduction. Temporary disability (TD) is one of the main indicators characterizing the state of health of workers. The legislation in force in the Russian Federation on the protection of personal data has significantly limited the possibilities of analyzing the incidence of temporary disability at the enterprise level. The study aims to evaluate the possibility of using the results of the analysis of temporary disability according to enterprise data in the risk management system for the health of workers. Materials and methods. The scientists used data from four enterprises of different types of economic activity with the number of employees from 1,647 to 5,882 people to assess the possibility of analyzing the causes of temporary disability, they also received information about all cases of temporary disability in the form of depersonalized personal data. For statistical data processing, specialists used Microsoft Excel 2013. Results. The company's own accounting data allows to consolidate and analyze personalized data on the causes of temporary disability of employees. The level of temporary disability can be determined considering the gender and age structure of employees, length of service, working conditions, profession and other characteristics of the workers. Limitations. The study is limited by the lack of information on diseases that cause temporary disability. Conclusion. At the present stage, it is necessary to develop new methodological approaches for analyzing the causes of temporary disability at the enterprise level, introducing them into systems of social and hygienic monitoring and risk management for the health of workers.

Internal Audit of Hospital Services to Achieve the Implementation of Good Corporate Governance

Internal Audit is an examination conducted by a company's independent internal audit department, covering financial statements, company accounting records, control systems, and compliance with applicable government regulations to assist the organization in achieving its objectives. This research was conducted at RSUD Gambiran Kediri to assess the role of internal audit in implementing Good Corporate Governance. The research results indicate that medical personnel work professionally and hold competency certificates in their fields, while the hospital has implemented transparency principles. The analysis shows a correlation coefficient value of 0.478, categorized as moderate, and the t-test results demonstrate a comparison with a value of 2.666. Based on the distribution table with degrees of freedom n-2 and a significance level of 5%, the value obtained is 2.064. Thus, 2.666 ≥ 2.064, which leads to the conclusion that the null hypothesis is rejected, and the alternative hypothesis is accepted. Therefore, it is concluded that internal audit plays a role in implementing Good Corporate Governance.

THE STRATEGIC ROLE OF ENVIRONMENTAL ACCOUNTING IN PROMOTING BUSINESS SUSTAINABILITY IN INDONESIA

Environmental accounting is increasingly recognized as an important strategic instrument for organizations faced with sustainability challenges. This article investigates the utilization of environmental accounting in Indonesian companies, with a particular emphasis on how this practice can improve transparency, operational efficiency, and corporate reputation. Using document analysis methodology, the research examined related reports on sustainability, environmental policies, and government regulations. The results showed that companies implementing environmental accounting successfully achieved reductions in carbon emissions and waste, in addition to improving energy efficiency. In addition, the adoption of environmental accounting resulted in substantial financial benefits, including reduced operating expenditures. Nonetheless, barriers such as initial investment requirements and regulatory intricacies continue to pose challenges for many companies. Consequently, collaboration between government entities, private companies, and non-governmental organizations is essential to promote wider adoption of environmental accounting practices. This study sheds light on the importance of environmental accounting in fostering a more sustainable future for Indonesia.

Analisis perlakuan akuntansi sewa berdasarkan PSAK No. 73 pada PT. PLN (Persero) Unit Induk Distribusi Suluttenggo

State-Owned Enterprises (BUMN) must follow changes in the applicable accounting standards policy. This includes the lease accounting policy in accordance with PSAK No. 73. These standards are designed to ensure consistency and transparency in financial reporting. The transition from PSAK No. 30 to PSAK No. 73 will have a significant impact on the accounting treatment of leases and the company's financial statements. This study will analyse the accounting treatment of leases and their impact on State Electricity Company (PT PLN Persero) Unit Induk Distribusi Suluttenggo. This study employs a qualitative research method with a descriptive analysis approach. The data was obtained through interviews with the relevant parties and a thorough examination of the company's financial statements. The results clearly show that the company's accounting treatment of leases is in line with PSAK No. 73. However, there are some areas where the presentation of leases could be improved. The transition has had a positive impact on the company's financial statements, with an increase in total assets and liabilities due to the recognition of lease assets and liabilities on the balance sheet and a decrease in total operating expenses.

The impact of integration between lean accounting and just-in-time technique on cost reduction in modern sustainable manufacturing environment in Saudi companies

This article examines the impact of integration between Lean Accounting (LA) tools and Just-in-Time (JIT) techniques on Cost Reduction (CR) in a modern sustainable manufacturing environment in Saudi companies, Ethical Standards (ESs) mediate these two variables. A quantitative methodology was used for realizing the study goals and answering study questions. The main tool used for producing the primary data was a fully structured questionnaire with closed-ended questions which was designed and distributed online through a chosen sample of 109 managers and accountants in Saudi industrialization companies. Descriptive and deductive statistics were adopted to deduce the findings. The gathered responses analyzed by SPSS and AMOS and the results pointed out that there is a direct and indirect impact of LA tools and JIT techniques on CR in Saudi industrial companies especially when using ESs. Moreover, these findings could provide decision- makers in Saudi manufacturing companies with the importance of adopting both methods in an integrated way to maximize the profits of these firms. The practical implications of this study are that the implementation of these methods has a positive impact on the promotion of sustainable manufacturing and consequently the achievement of distinct sustainable performance.

Societal Trust and Modified Audit Opinions: International Evidence

ABSTRACT This study examines how societal trust influences auditors’ likelihood of issuing modified audit opinions. Analyzing cross-country data, we find that auditors in countries with high levels of societal trust are less prone to issue modified audit opinions. Specifically, our findings indicate that this effect is moderated by formal audit-related institutions, such as heightened auditor liabilities, the presence of Public Company Accounting Oversight Board (PCAOB) inspections, and a more advanced audit profession. These results are consistent even when applying a difference-in-differences (DiD) approach. Further analysis shows that the moderating impact of formal institutions is more pronounced for clients operating domestically, clients of non-Big N auditors, and auditors with long tenure. Overall, our findings highlight societal trust as a significant informal institution influencing auditor opinions, with a complex interplay between this trust and formal audit-related institutions. The study offers important implications for policy, practice, and future research. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M40; M41.

Analisis Cara Pengenaan Biaya Disbursement Account dan Tingkat Pelayanan Kapal terhadap Daya Saing Perusahaan Keagenan Kapal di PT. Adhika Samudera Jaya

The more rapid the development of the number of ship agency companies in Indonesia, the competition is also getting tighter. Therefore, ship agency companies must have a strategy to win the competition. One of the main factors to win the competition is the calculation of disbursement accounts and ship service levels. In the data taken, there is a relationship between the way disbursement account fees are charged and the level of ship service on the competitiveness of ship agency companies. Therefore, the author took the title "Analysis of How to Charge Disbursement Account Fees and Ship Service Levels on the Competitiveness of Ship Agency Companies". The purpose of writing this thesis is to determine the relationship between the method of charging disbursement account fees and the level of ship service on the competitiveness of ship agency companies. In this research, the author used quantitative methods. Correlation analysis is one of the steps to carry out an analysis of how shipping agency company account disbursement fees are charged and service quality on competitiveness. The results of the research concluded that the method of charging PT Disbursement Account Fees. Adhika Samudera Jaya is included in the very good category based on respondents' answers via questionnaire with an average of 4.70. PT. Service Level. Adhika Samudera Jaya is included in the very good category based on respondents' answers via questionnaire with an average of 4.68. There is a very strong, unidirectional and positive influence on the way disbursement account fees are charged and service levels on competitiveness at PT. Adhika Samudera Jaya with a correlation coefficient value of r = 0.813.

Regulating AI in Mental Health: Ethics of Care Perspective.

This article contends that the responsible artificial intelligence (AI) approach-which is the dominant ethics approach ruling most regulatory and ethical guidance-falls short because it overlooks the impact of AI on human relationships. Focusing only on responsible AI principles reinforces a narrow concept of accountability and responsibility of companies developing AI. This article proposes that applying the ethics of care approach to AI regulation can offer a more comprehensive regulatory and ethical framework that addresses AI's impact on human relationships. This dual approach is essential for the effective regulation of AI in the domain of mental health care. The article delves into the emergence of the new "therapeutic" area facilitated by AI-based bots, which operate without a therapist. The article highlights the difficulties involved, mainly the absence of a defined duty of care toward users, and shows how implementing ethics of care can establish clear responsibilities for developers. It also sheds light on the potential for emotional manipulation and the risks involved. In conclusion, the article proposes a series of considerations grounded in the ethics of care for the developmental process of AI-powered therapeutic tools.

How hours allocated to year-round auditing procedures affect audit quality

PurposeThis paper aims to examine how the allocation of audit hours to the year-round procedures, based on the risk of material misstatements in financial statements, impacts audit quality.Design/methodology/approachUsing a data set on audit hours spent on year-round and year-end procedures, the authors build an empirical model for testing the effectiveness of year-round auditing of Korean public firms during the period of 2014–2018.FindingsThe initial tests do not show that proportionate increases in year-round procedures increase audit quality. However, after the authors control for the risk of material misstatements, the authors find that proportionate increases in year-round audit hours generally increase audit quality, except for high-risk firms where audit quality increases only as year-end hours proportionately increase. For high-risk firms, the results suggest that increases in year-round audit procedures occur at the cost of the essential year-end work. Similarly, except for high-risk firms, the authors find that the allocation of more audit effort to year-round procedures improves audit efficiency.Originality/valueTo the best of the authors’ knowledge, this study provides some of the first empirical evidence showing how a risk-based approach to allocating audit effort over the duration of an audit can impact audit quality and efficiency. Regulatory bodies, such as the International Auditing and Assurance Standards Board and Public Company Accounting Oversight Board, which consider the proper allocation of audit hours as a key audit quality indicator, should find the results useful.

Cost Management in an Agro-Industrial Company in a District of Lambayeque

Cost management has positively impacted the accounting and tax processes of companies in Peru. The present research aimed to determine the factors in cost management in an agro-industrial company in a district of Lambayeque. The methodology was based on a quantitative approach and non-experimental design. The survey technique was used, and a Likert-type questionnaire related to the study variable was used as an instrument. These data collection means were answered by 30 workers of said company through a questionnaire of 15 questions corresponding to the study variable, which was validated by three experts on the subject. Obtaining as results, with respect to the variable, that there is a high level of factors in cost management with a percentage of 86.67%; following the dimensions such as the budget with a percentage of 86.67% at a high level; consequently, we have planning with 86.67% at a high level; finally, cost calculation with a percentage of 86.67% at a high level. Therefore, we infer that the budget, planning, and cost calculation are factors that affect cost management in an agro-industrial company in a district of Lambayeque.

Additional Comments of the American Accounting Association Auditing Section Auditing Standards Committee on the PCAOB’s Amendments to PCAOB Auditing Standards Related to a Company’s Noncompliance with Laws and Regulations and Other Related Amendments

SUMMARY In June 2023, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its Amendments to PCAOB Auditing Standards Related to a Company’s Noncompliance with Laws and Regulations and Other Related Amendments (“NOCLAR”; PCAOB 2023a). On February 26, 2024, the PCAOB (2024) reopened the comment period for additional feedback, in conjunction with a March 2024 public roundtable about the proposal. This commentary summarizes the participating committee members’ views on the proposal that are incremental to our original comments provided previously (Boland et al. 2024). Due to ongoing fundamental concerns, as well as new evidence of extraordinarily different interpretations of the proposed standard, our lack of support for the proposal remains unchanged. We strongly encourage the PCAOB to issue a revised proposal for public comment before any final standard is issued or to consider other alternatives.

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s Proposal on Firm Reporting

SUMMARY On April 9, 2024, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its proposal Firm Reporting (PCAOB 2024). This comment letter summarizes the views of the participating members of the Auditing Standards Committee of the Auditing Section of the American Accounting Association. We commend the PCAOB for its efforts to promote audit firm transparency. Our comments include overall observations and perspectives on the Board’s economic analysis.

The Research of Financial Analysis of Li Auto Based on Harvard Analysis Framework

The new energy vehicle industry is currently experiencing robust growth, with numerous companies actively engaged in various business activities of the industrial chain. Recognizing its potential, the Chinese government has placed significant emphasis on the new energy vehicle industry, considering it a key driver of economic growth. Focusing on the financial reports from 2021 to 2023 for Li Auto Inc., this essay employs the Harvard Analysis Framework to comprehensively assess the company's financial landscape, encompassing strategic, accounting, finance, and future prospects. Employing the strategic model, which involves a PEST and SWOT analysis for Li Auto, along with a detailed examination of key accounting and financial data, the findings indicate that the company's solvency, while on average, displayed a declining trend, and its profitability was less than stellar. However, the operating ability exhibited a favorable condition. The recommended solutions for addressing the company's challenges primarily revolve around internal management strategies, emphasizing the reduction of operating expenses, enhancement of profitability, and the cultivation of a technological competitive advantage. These measures aim to improve the company's financial performance and overall development in the dynamic landscape of the new energy vehicle industry.

The Association between PCAOB Revenue-Deficient Audit Engagements and Revenue Quality

ABSTRACT The Big 4 auditors are inspected annually by the Public Company Accounting Oversight Board (PCAOB), with the summarized findings (labeled “audit deficiencies”) being publicly available on its website. Although the PCAOB claims that its inspection findings and process are designed to increase audit quality, there is limited empirical evidence to support this claim. We examine whether changes in revenue-deficient audit engagements are associated with subsequent year changes in client revenue quality. A revenue-deficient audit engagement is an inspected engagement that has at least one revenue-related audit deficiency. To infer audit quality, we link year-over-year changes in revenue-deficient audit engagements to the subsequent year’s change in engagement-level revenue quality—a common financial reporting quality proxy. We predict that audit firms will react asymmetrically to changes in revenue-deficient audit engagements: increases will prompt audit quality improving actions, but decreases will not. Our results support our prediction. JEL Classifications: M42.

ANALISIS PERAN AUDIT INTERNAL TERHADAP PENCEGAHAN FRAUD BERDASARKAN LITERATURE REVIEW TERINDEKS SINTA

Fraud is currently a concern for business stakeholders in companies and institutions, many entities are experiencing setbacks and even bankruptcy due to a lack of prevention and discipline regarding actions that can lead to fraud so that public trust in a company decreases. Fraud should be detected and prevented from the start, to avoid the company's credibility and accountability. Therefore, the aim of this research was to find out and comprehensively analyze the role of internal audit in the context of fraud prevention efforts. The research design uses qualitative descriptive analysis using a literature review approach. Data was collected in the form of journals or scientific articles totaling 16 articles from journal provider websites. Based on the results of analysis of 16 Sinta indexed articles for 2019-2024. There are 14 articles which state that internal audit has a role in preventing fraud. This finding is supported by the results of data analysis from several studies which show a positive and significant correlation between the role of internal audit and fraud prevention efforts. Then 2 research articles stated that the role of internal audit did not have a significant influence on fraud prevention efforts