Accounting Profession Research Articles

Effects of COVID-19 on accounting professionals’ job behaviors, focusing on the moderating effect of organizational communication

BACKGROUND: The coronavirus disease (COVID-19) caused mandatory lockdowns across all organizations. Telework generated challenges in workflow due to limited organizational communication. OBJECTIVE: This study seeks to examine the impact of pre-, during, and post-COVID-19 on accounting professionals’ job behaviors and tests the moderating effect of organizational communication. Also, the study aims to provide implications for practitioners from the findings. METHODS: Survey data for accounting professionals working in North Carolina across COVID-19 time periods was collected to achieve a sample size of 333. Pairwise t-tests and hierarchical regression analyses were applied to test the hypotheses. RESULTS: The results suggest a statistically significant difference across certain time periods for job performance and turnover intentions but not job satisfaction. Furthermore, organizational communication moderates the relationship between post-COVID-19 and job performance and turnover intentions but not job satisfaction. CONCLUSIONS: Organizations should search for ways to enhance organizational communication to increase employee perceived job performance and decrease employee turnover intentions.

Leveraging on the fourth industrial revolution by African accountants in the sustenance of SDGs and AU Agenda 2063

AbstractThe research sought to assess the use of 4IR technologies by the accountancy profession in Africa in the sustenance of SDGs and AU Agenda 2063. The investigation adopted a pragmatic approach, associated with mixed‐methodological approach. The target population for the study was 114,800 Professional Accountancy Organisations (PAOs) members from all 44 countries in Africa who were members of the Pan African Federation of Accountants (PAFA). Online questionnaires and telephone interviews were administered to gather data. A total of 267 responses were received out of 114,800 members representing 0.23% of the population. Forty‐eight accountants were interviewed by telephone using the snowball sampling technique. Quantitative data gathered from online questionnaires was analysed using the IBM Statistical Package for Social Sciences (SPSS) version 26 and ATLAS.ti 9 was used to analyse responses from interviews. The study showed that accountants in Africa had heard about 4IR technologies, with the Internet of Things (IoT) mostly used and known by accountants. The study established that 4IR technologies improved the standard of living, reduced social marginalisation, eased manual work, improved agricultural productivity, reduced environmental pollution, improved health services, financial inclusion and knowledge sharing. These benefits are critical for achieving SDGs and the African Agenda 2063. Accountants are recommended to continuously train and retrain on new and trending technologies like computerised audits, big data analytics, machine learning, artificial intelligence, robotics, bitcoin and its risks in the monetary systems, cyber security in the 4IR era, cloud computing and information management systems to sustain SDGs and AU Agenda 2063.

Framework for Enhancing the Egyptian Accounting Standards Towards Convergence With International Financial Reporting Standards

The Generally Accepted Accounting Principles (GAAP) which are theoretically unique to each country, it provides standards for evaluating and comparing the financial position of companies. However, the International Accounting Standard (IAS), are developed to be used by all countries. The convergence of these national and international accounting standards is important for attracting foreign investors and potential domestic investors. Egypt has undergone serious steps towards convergence, such as the introduction of new standards or converging of old standards to be consistent with the international standards. A number of complex standards has been understood either by separating them into two or more standards or by adding supplements or guidelines to some of them. Alternatives of some of accounting standards are reduced to avoid differences in practices and manipulating profits. This research developed a framework towards convergence of Egyptian accounting standards and International accounting standard that include a number of viable points: started with determining the objective of the financial reports, determining the methods of applying the international standards, the importance of studying the cultural influence, developing accounting education, the need to develop professional organizations concerned with the profession of accounting and for implementing and follow-up of standards. Keywords: International accounting standard, convergence, Generally Accepted Accounting Principles, Egypt.

ChatGPT is Ready for the Profession—But is the Profession Ready for ChatGPT?

SYNOPSIS We investigate the accounting profession’s readiness for ChatGPT through a survey study of 136 practitioners and an interview with two experts. We find that accounting professionals are inexperienced with ChatGPT and use ChatGPT mostly for administrative tasks. However, they plan to use ChatGPT for more value-added tasks in the future. Leveraging a modified technology acceptance model (TAM), we find that perceived usefulness, perceived ease of use, and personal innovativeness are three factors encouraging ChatGPT adoption. However, perceived risk hinders adoption, whereas trust does not impact the adoption. We also find that organizational leaders have a stronger intention to use ChatGPT than lower-level employees. Compared with practitioners from other types of organizations, practitioners from public accounting firms exhibit stronger personal innovativeness toward using ChatGPT but also experience less positive attitude toward ChatGPT. We also provide an “interim scorecard” and other actionable insights that are of interest to both practitioners and academics. Data Availability: Contact the first author. JEL Classifications: M40; M41.

Exploratory Descriptive on the Self-Confidence of Prospective Accountants Toward Economic Digitalization

One of the key characteristic features of change in the modern socio-economic environment is information, which manifested in both the dynamic development of the information within the communication technology and in the transformation of the information itself into a strategic resource for the entities’ welfare, especially for an economic entity inside the turbulence of an ever-changing world. Accounting is considered one of the fragments that is significantly impacted by the speeding up of digital transformation. Academics and practitioners have noted several difficulties and issue that comes to the surface concerning the decline of accounting functionality and the reporting value of the information for stakeholders. The existence of new technological capabilities such as artificial intelligence does not eliminate the possibility of alteration on the role of an accountant, and this can create tension for students majoring in accounting. Whether it is a threat or an opportunity for accounting development for the 'generation Z’ facing the AI era. The existing volatility assessment of the future accounting profession has contributed to the decline in motivation of the current generation to see the prestige of the accounting profession, and negatively affected the demand for accounting education. This study examines how future accountants undergo formal education in the face of the digital accounting era, provide actionable recommendations for individuals and organizations to build and maintain self-confidence in the context of Industry 5.0. The analysis used in this study is qualitative methods with phenomenological approaches analyze with QSR NVivo12 which leads to the conclusion that the current vision and role of an accountant who was previously called a record holder must develop to a bigger role that possesses a certain influence within the present-day market and society. The function of an accountant cannot be fully automated, due to the wide variety of accounting functions that require professional judgment based on systems of expertise, experience, and intuition. By achieving a comprehensive vision and role, the acceleration of accounting information technology will require the role of an accountant and not vice versa.

EVALUATING TECHNOLOGY ADOPTION RELEVANCE IN AUDIT AND NON-AUDIT FIRMS: A COMPARATIVE ANALYSIS

Technology has substantially changed the accounting practice, impacting how financial information is processed, analysed, and reported. AI, RPA, and Big Data Analytics are not used very often, which could be a sign of problems that make them hard to adopt. The rankings for relevance and utilisation could demonstrate how practitioners see things rather than how people actually use them. It is necessary to understand the level of utilisation and relevancy of various types of technologies in accounting practices. The study aims to determine the current utilisation of technology in accounting practices and further outline the relevance of each technology specifically employed in both audit and non-audit firms. The current study is quantitative in nature and approached ten (10) practitioners, which consist of executives, managers, and senior management who are directly responsible for the process of preparing financial statements. The participants were requested to rank the relevance and current level of use of 17 types of technology established by the Malaysian Institute of Accountants (MIA). The findings ranked and assigned weightage to each item of technologies based on three (3) approaches. The most used and relevant technologies among audit and non-audit firms with scores over 90% are Microsoft Applications, Communication Technology, Mobile Applications, Fintech, Application Software, and Online Communication. However, the utilisation and relevancy of emerging technologies like Artificial Intelligence, XBRL, Robotic Process Automation, and Big Data Analytics remain relatively low, falling below 60%. If Weighted Cooke’s Index approach to be applied, blockchain will be assigned the highest weightage among other technologies due to its rarity and significant potential benefit to the profession. The limited number of participants and the exclusive focus on specific professionals within the accounting field might limit the applicability of the findings. Future research should investigate the actual usage of these technologies on a broad scale to validate the results that have been gathered and comprehend the factors that impact the utilisation and importance of technology in the real-world accounting profession.

Enricher learning: Bridging the gap between academics and practicing accounting professionals

The objective of this study is to investigate diverse methods of enhancing learning in the field of accounting while bridging the gap between academic knowledge and the practical skills required by accounting professionals. The research employed a systematic literature review and utilized bibliometric analysis to assess enriching learning in accounting. Through methodological mapping, this research sheds light on emerging trends in the global adoption of new technologies, the integration of technology-enabled practices among accounting professionals, and the prevailing preferences influencing revisions to academic curricula in universities and colleges. Most studies emphasize the importance of integrating technology into accounting classrooms to enhance the learning experience. Beyond pinpointing the disparity between academic theories and practical accounting needs, this paper provides a robust framework for further research into enriching learning in accounting. The findings of this study hold significant implications for academia, higher education institutions, and policymakers. They underscore the importance of understanding enriching learning in accounting, as effective technology-enabled teaching and learning strategies play a pivotal role in equipping new graduates with the skills necessary to pursue their career goals and meet industry standards.

Technique of Government Digital Auditing

The actions that must be taken to consider government digital auditing, given that we all function in the conditions of the “World Wide Web” (www). The use of www reality is essential for the functioning of government digital auditing. It enables the search for ways to solve the challenges of the rational use of budgetary resources and to optimise budgetary relations in a government. This article is about the benefits, challenges and technique of government digital auditing that intended to safeguard public interest and preserve government assets. The goal of this article is to provide a clear and concise representation of the main blocks of the technique for Government Digital Auditing. This technique is based on Author’s insights and practical experience as a government auditor, Chief of accountants, Professor of Accounting and Auditing.

Internal Audit Practices and Quality of Financial Reports of Listed Consumer Goods Manufacturing Firms in Nigeria

The quality of financial reporting has remained an issue of significant concern among professional accountants, regulators, and other users of financial information. This is because financial reporting has been a principal means of communicating result of financial transactions and events which transpired within the organization. To that end, this study investigated the relationship between internal audit practices and financial reporting quality of consumer goods manufacturing in Nigeria. The research design used in this study was descriptive survey. The targeted population of this study consists of all the twenty-one (21) listed consumer goods manufacturing firms in the Nigerian Exchange Group (NGX) with a respondent total of two hundred and ninety (290). The sample size of the study consists of ten (10) consumer goods manufacturing firms that have branches in South-South, Nigeria using purposive sampling technique. The study employed primary data sourced from questionnaires administered to the respondents and two hundred and fifty-one (251) representing a response rate of 86.6% was used as sample size for the study. The study used content validity and Cronbach alpha reliability test was used to determine the statistical reliability of the instrument. Descriptive statistics such as frequencies, percentages, means, and standard deviations and spearman rank correlation were used in data analysis. Findings indicated that a positive and significant relationship between internal audit control mechanisms and timeliness of financial reports, a positive and significant relationship between internal audit risk management and timeliness of financial reports, and a positive and significant relationship between management support and timeliness of financial reports of consumer goods manufacturing firms in Nigeria. Based on the findings, this study concluded that, internal audit practices positively and significantly influence financial reporting quality of consumer goods manufacturing firms in Nigeria. The study recommended amongst others that consumer goods manufacturing firms in Nigeria should adopt the effective use of internal audit activities since it has positive and significant influence towards an improvement in financial reporting quality.

THE PSYCHOLOGY AND SOCIOLOGY OF A FRAUDSTER: IMPLICATIONS FOR TODAY ACCOUNTING PROFESSION

The study examines the Psychology and sociology of a fraudster: Implications for today accounting profession. The investigation was guided by three questions and a hypothesis. The study employed a survey research approach, and the 274 auditing businesses in Nigeria's South-South geopolitical zone comprised the study's population., the Taro Yamane was uses to determine the sample of the study and Spearman rank correlation was used to analyse the data. Results from the research reveal that there was a correlation in capability (r= 0.121 p< 0.05), lifestyle (r= 0.561 p< 0.05 and environment (r= 0.108 p< 0.05) and the psycho-social behaviour of the perpetrator of fraud. The implication was that the professional auditors should apply professional scepticism and exercising due care in engaging their work for better delivery and discharge of their duties, as this will lead to the detection of fraud and the reporting of red flags that are of material misstatement. The study recommended that an active, strong and proper supervision of internal control system will put to serious check the action of fraudulent activities.

تأثير الإفصاح المحاسبي الاختياري في الأنشطة البيئية لتعزيز الأداء المستدام

Optional disclosure represents an episode in the development of the financial reporting function and was approved by the management of economic units as a result of the pressures of users of accounting information in light of a competitive economic environment that requires reducing the information gap between management and users in order to ensure the implementation of environmental activities to evaluate the efforts of the management of economic units and their ability to achieve strategic goals and create an advantage. Sustainable information . Many conclusions were reached, the most important of which is the weakness of voluntary accounting disclosure in the financial reports of the companies in the research sample, as well as the low levels of environmental activities that help in sustainability, which negatively affects the management’s ability to achieve its set goals and reduces the benefit of the information provided to users. The research concluded with a set of recommendations, the most important of which are: Professional accounting organizations and the management of the Iraqi Stock Exchange direct companies’ management to provide optional accounting disclosures in their reports prepared for users.

Digital disruption: unveiling antecedents propelling the revolution in contemporary accounting practices

Purpose This study aims to analyse the relative prominence of antecedents of digital accounting practices in the micro, small and medium enterprises (MSME) industry. The Ministry of MSME defines the sector as comprising manufacturing enterprises and enterprises rendering services in terms of investment in plant and machinery and the annual turnover. The study is motivated by the rapid usage of digitalisation that has become the driving force guiding organisational development. Design/methodology/approach This study builds on technological–organisational–environmental framework to analyse the objective. It identifies five technological sub-antecedents, six organisational sub-antecedents and five environmental sub-antecedents. Data were gathered from 202 accounting professionals from MSMEs and academicians. Semi-structured interviews with experts were also conducted to corroborate the analysis of results. Then, the study applied fuzzy analytic hierarchy process to analyse the prominence. Findings This study finds that the technological antecedent captures the topmost position among all three antecedents, followed by organisational antecedent. They play a critical role in driving digitalisation in accounting practices. Among sub-antecedents, the highest priority is provided to technological accounting infrastructure, followed by cybersecurity precautions, training and allied services for accounting software, support from management and availability of accounting resources. Originality/value The study contributes to the scant literature by establishing hierarchy of relevance of different antecedents of digital accounting practices in MSMEs. It offers valuable insights to accounting practitioners and MSME owners/managers. They can pay attention to the prominent antecedents identified in this study to build a robust innovation structure for implementing digitalised accounting practices. The study also has significance to policymakers, specifically when they are more focused on the growth and development of MSMEs.

Pelatihan Akuntansi Dasar untuk Meningkatkan Kompetensi Auditor di KAP Sarastanto dan Rekan Kota Semarang

Transparency of financial reports today is very wide open with advances in technological development. Openness of financial report information allows the public to assess the quality of financial reports. The quality of good financial reports can be seen from the results of opinions by the public accounting profession who provide services to assess the fairness of financial reports. Fairness of financial reports provides the assumption that the financial reports have been prepared in accordance with the financial accounting standards applicable in Indonesia. Financial Accounting Standards provide guidance on the process of recording, measuring and presenting financial reports. A good financial report must start first with recording the accounting cycle. Understanding an entity's accounting cycle makes the auditor understand the recording and reporting model of a client entity. An accounting cycle that is understood by the auditor will be useful in providing adjustments or audit correction journals if recording errors occur. The community service program carried out by a team of lecturers from the Faculty of Economics and Business, Dian Nuswantoro University with auditors at KAP Sarastanto and Pekan Kota Semarang provides several trainings related to basic accounting knowledge. This activity is expected to provide knowledge and skills in preparing financial reports in accordance with standards

RHETORICAL STRUCTURE OF PRESENTATIONS AT THE ASEAN FEDERATION OF ACCOUNTANTS (AFA) CONFERENCE

Members of the ASEAN accountant community are required to participate in the Continuing Professional Development (CPD) Programme as part of the lifelong learning program for accountants. One of the activities of the CPD Program is to carry out a conference presentation (CP), whereby presenters discuss issues and offer solutions in accountancy organisations and professional development in the region. This study examined the move structure of the CP presented by professionals who contribute to the development of accounting services, the accountancy profession, and the ASEAN Economic Community (AEC). The data consist of 13 conference presentations collected from the ASEAN Federation of Accountants (AFA) conference. The presenters are non-native speakers representing organisations that provide accounting services in the ASEAN region. Data were audio recorded and then transcribed. The findings showed that the presentations contain a structure that discusses the organisation's concerns and solutions for accountancy issues. It includes presenting the background of the study, the need for the proposed solution, describing the solutions, and evaluating the results. This study provides insight into the move structure of a conference presentation in a CPD program. It highlights the professional competence and professional practice of a disciplinary-based CP by accountants in the ASEAN region.

Practical Exploration of the Concurrent Emphasis on Civics and Professionalism in the Teaching of Accounting Majors

Promoting the design of ideological and political curriculum and integrating ideological and political education into vocational education can help students establish ambitious ideals and correct values. Accounting, as a core discipline, is of great significance for the integration of ideological and political education.This paper analyzes and explains the necessity of integrating ideological and political elements in accounting education, discusses the design of integrating ideological and political elements in accounting education, and finally proposes how to provide guidelines for the teaching of accounting majors in colleges and universities.The purpose is to explore how accounting education can effectively combine theory and achieve an organic combination between ideological and political education and professional accounting teaching.

Determinan Pemilihan Profesi Akuntan Publik di Kalangan Mahasiswa Akuntansi

The aim of this research is to determine the factors that encourage students' interest in choosing the public accounting profession. The aim of this study is to identify the elements that motivate students to choose to work in society, in terms of financial rewards, personality, level of job security, ease of information, and work environment towards interest in becoming a public accountant. We hope that this research will provide a broader understanding of the reasons why students choose the public accounting profession. This research uses quantitative descriptive methods using multiple regression analysis using primary data in the form of statements given directly to respondents. Respondents were students with a total of 115 participants. The results show that interest in a career as a public accountant is not influenced by awards, level of security and ease of information, but on the contrary, personality and work environment are factors that generate interest in a career as a public accountant.

Insights into financial reporting practices in the metaverse: evidence from Islamic financial institutions in Bahrain

Purpose This study aims to assess how prepared and flexible accounting professionals are to produce financial accounts that adhere to Shariah regulations in the metaverse. The study also highlights the potential positive and negative effects of metaverse utilization on the financial reporting quality of Islamic financial institutions (IFIs). Design/methodology/approach A questionnaire was distributed to a random sample of 102 accounting professionals employed in IFIs in Bahrain. Findings The capacity to provide real-time reporting within the metaverse would enhance the quality and reliability of Islamic financial reporting. Furthermore, the fluctuating values of digital assets in the metaverse pose a significant challenge to ensuring accurate financial reporting. IFIs fail to create an environment suitable for transitioning to the metaverse. Moreover, the participants expressed concerns about how the rapid expansion of the metaverse may challenge the adherence to Shariah governance principles in virtual financial transactions. They further recommended that the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) establish explicit directives on Shariah governance in the metaverse. Practical implications Various IFIs’ stakeholders, including practitioners, shareholders and employees interested in adopting the metaverse technology, can benefit from the findings of the studies. In addition, the study could help Islamic banks in Bahrain better grasp the readiness and adaptability of accounting professionals. This understanding would aid in establishing robust financial reporting standards that align with Shariah principles in the metaverse. Originality/value This research examines the metaverse through the lens of Islamic financial reporting, offering recent evidence on technological developments and financial reporting practices within an Islamic context. The research findings would contribute to advancing the knowledge among academics, professionals and all interested parties concerning the effects of metaverse implementation on Shariah governance principles and the quality of financial reporting. The study findings would offer policymakers and regulators in the Islamic finance sector essential insights.

Inner struggle or identity fit – control configurations that improve management accountants’ sense of their identity

PurposeThis study aims to investigate which configurations of organizational-level and group-level management controls support an identity fit for management accountants in the management accounting profession. It aims to complement recent qualitative management accounting research. This stream just begun to use role and identity theory to investigate role expectations, conflicts and coping strategies of management accountants when they struggle with their work identity.Design/methodology/approachBased on configuration theory, this study uses a fuzzy-set qualitative comparative analysis to indicate all possible configurations of formal and informal management controls that improve management accountants’ sense of their identity in an organization. The analyses are based on the results of a cross-sectional survey of 277 management accountants from Germany, Austria, Switzerland and Liechtenstein.FindingsThe results show that a strong group culture and high psychological safety at the group level are relevant conditions for a high identity fit. Further, the configurations differ regarding the career stages of management accountants.Originality/valueThis study contributes to work identity research of management accountants and to research on formal and informal control configurations as a control package. It is of particular importance for various professions that are affected by role change, as from the findings on management accountants’ identity fit, implications can also be made for other organizational functions that need to engage in identity work.

The Impact of Digitalization on the Accounting Profession

Abstract Our scientific approach aims to analyze and present the impact of digitization on speed and accuracy in accounting processes, highlighting the differences between traditional accounting methods and digital ones regarding the speed, accuracy and precision of accounting records, as well as the production, publication and preservation of accounting information. We also aim to provide a clear perspective on how digitization is reconfiguring the accounting landscape. Another objective of this article is to explore the challenges and possible limitations of digitization regarding the accounting profession in order to provide a balanced picture of this phenomenon. Finally, we intend to provide practical recommendations for accountants and organizations on the effective adoption of digital technologies in their accounting activities.

The Reflection of International Accounting Education Standards on Accounting Education and their Impact on Achieving Sustainable Development

The research aims to explore to which extent the application of international accounting education standards contributes to the development of accounting education curricula in Iraq. Also, it seeks to explain the fundamental role of these standards in supporting accountants with the experience and competence required in a workplace. A questionnaire survey (n=97) was distributed to the faculty members, a group of graduates, and a number of professional accountants. The research findings prove that international accounting education standards are essential in developing the accounting education curriculum and reducing the disparity between what is studied in theory and professional practice. Accordingly, the researcher recommends linking the accounting curriculum to the problems of the practical reality of the profession and introducing different accounting and behavioural skills to suit its needs.