American Accounting Association Research Articles

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.

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s Proposed Auditing Standard—Designing and Performing Substantive Analytical Procedures and Amendments to Other PCAOB Standards

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s <i>Proposed Auditing Standard—Designing and Performing Substantive Analytical Procedures and Amendments to Other PCAOB Standards</i>

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

SUMMARY On April 9, 2024, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its proposal Firm and Engagement Metrics (PCAOB 2024a). 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 quality by emphasizing firm and engagement metrics. Based on our evaluation of the proposal, we offer some overall observations, key takeaways from academic research, and perspectives on the PCAOB’s economic analysis.

Response to the Financial Accounting Standards Board’s Exposure Draft “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)”

ABSTRACT The Financial Accounting and Reporting Section of the American Accounting Association has charged the Financial Reporting Policy Committee with responding to requests for comment from standard setters on issues related to financial reporting. The Committee is pleased to respond to proposed disclosure amendments in the FASB’s Exposure Draft, Disaggregation of Income Statement Expenses. The proposed disclosures in the Exposure Draft are intended to help investors better understand the components of an entity’s expenses and overall performance. The Committee evaluated the Exposure Draft and believes that, overall, the proposed amendments will provide decision-useful information to investors by enhancing their ability to evaluate and predict an entity’s performance. However, the Committee has several specific recommendations that we believe will better meet the objectives of the Exposure Draft. We summarize relevant findings from academic research to support our conclusions and recommendations. We also offer suggestions for future research. JEL Classifications: M41; M48.

Post-COVID Teaching Reflections and Take-a-Ways: The Keepers, Innovators, and Losers

During the COVID-19 pandemic, almost overnight, accounting educators moved their courses online. Many universities and faculty felt they were unprepared to make this move. In a session at the American Accounting Association Southeast Regional Meeting, accounting educators expressed their opinions about how they felt about the changes instituted during the COVID-19 pandemic. The faculty members rated their level of preparation and that of their university for the changes required. They also provided ratings about their feelings about the situation and the faculty and student experiences with the changes. Finally, faculty members also identified what changes they felt should be kept after the end of the pandemic, such as improved Wi-Fi, social distancing, using Zoom in classes, and virtual student meetings. Activities identified for elimination after the pandemic included only online classes, Zoom recordings, grade inflation, and online proctoring

Gordon Peter Wilson (1946–2020): Teacher, Mentor, Scholar, and Friend

SYNOPSIS G. Peter Wilson, most recently on the faculty at Boston College, was a consummate academic and leader. He profoundly influenced accounting research and the art and science of accounting instruction. He also advanced the accounting academy through his various leadership roles at the American Accounting Association. This memorial article documents Wilson’s early upbringing, academic career, professional activities, and achievements. The overarching themes are love and impact. Wilson loved life, loved his work, and above all, loved his family, friends, students, and colleagues. As a result, he profoundly impacted each aspect of the academy—research, teaching, and service. Indeed, his impact continues through the undergraduate and master students he inspired, the doctoral students he mentored at various universities and consortia, the colleagues he collaborated with, and the many who continue to learn from his innovations. This article sets forth the most significant impacts to preserve the past and inspire future generations. JEL Classifications: M41; M42; M48.

Perbedaan Tingkat Pemahaman Akuntansi Di Antara Mahasiswa Berdasarkan Kelulusan Pada Mahasiswa Semester II Tahun Angkatan 2017 Di Program Studi Akuntansi Universitas Muara Bungo

This study aims to investigate whether disparities exist in the comprehension of accounting concepts among students with diverse educational backgrounds. The research is conducted at the Faculty of Economics, Muara Bungo University, focusing on students majoring in Accounting. The study population comprises 62 second-semester students at Muara Bungo University (UMB). Quantitative descriptive data analysis, presented in the form of frequency tables, is employed for this research. The Likert scale is utilized as the scoring technique to evaluate respondents' answers to the questionnaire. According to the American Accounting Association, accounting is defined as the process of identifying, measuring, and reporting economic information to facilitate informed decision-making for stakeholders. The findings indicate significant discrepancies in the comprehension levels of assets among students from vocational schools specializing in accounting, high schools with a focus on social studies, and general Madrasah Aliyah. Similarly, there are noteworthy variations in the understanding levels of liabilities and equity among students from different educational backgrounds.

How hegemony works: the fate of a presidential initiative

ABSTRACT This study charts the course of an American Accounting Association initiative designed to overcome perceived stagnation in US accounting scholarship by removing impediments to innovation within the research infrastructure. It analyses events using Gramscian theory of hegemony, extended to embrace Raymond Williams’ development of the cultural dynamics of the phenomenon and concepts of disciplinary hegemony and micro-hegemony. It shows that the structurally complex disciplinary micro-hegemony of US accounting scholarship underwent challenge and some modification and recreation of its elements but was largely successful in defending its cultural ascendency and repressive capacity. Some tentative ideas about how paradigmatic domination might be overthrown are sketched out.

PERBEDAAN TINGKAT PEMAHAMAN AKUNTANSI MAHASISWA BERDASARKAN LULUSAN PADA MAHASISWA SEMESTER II TAHUN ANGKATAN 2017 PRODI AKUNTANSI UNIVERSITAS MUARA BUNGO

This research hopes to prove whether there are differences in understanding of accounting material from different school backgrounds. Research object at the Faculty of Economics, Muara Bungo University. In this study, the population used as the population in this study were students majoring in Accounting, totaling 62 second semester students at Muara Bungo University (UMB). This research uses quantitative descriptive data analysis outlined in the form of a frequency table. The scoring technique that will be used is a Likert scale to assess respondents' questionnaire answers. The definition of accounting according to the American Accounting Association is a process of identifying, measuring and reporting economic information to enable clear and firm research and decisions for those who use the information. The results of this research show that there is a significant difference in the level of understanding of assets between students from vocational school majoring in accounting, high school majoring in social studies and Madrasah Aliyah General. Assets, There is a significant difference in the level of understanding of obligations between students from the Accounting Department Vocational School, the Social Sciences Department High School and the General Madrasah Aliyah. Obligations, and There is a significant difference in the level of understanding of capital between students from the Accounting Department Vocational School, the Social Sciences Department High School and the General Madrasah Aliyah Equity.

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

SUMMARY On June 6, 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 (Public Company Accounting Oversight Board (PCAOB) 2023b). This commentary summarizes the participating committee members’ views on the proposal. Based on our consideration of the issues, we do not support the proposal, due to a number of fundamental concerns.

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s Proposed Amendments Related to Aspects of Designing and Performing Audit Procedures That Involve Technology-Assisted Analysis of Information in Electronic Form

SUMMARY On June 26, 2023, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its Proposed Amendments Related to Aspects of Designing and Performing Audit Procedures That Involve Technology-Assisted Analysis of Information in Electronic Form (Public Company Accounting Oversight Board (PCAOB) 2023a). This commentary summarizes the participating committee members’ views on the proposal. We first provide answers to specific questions posed in the release, viewing the issuance of a new standard as a given. Subsequently, we also examine how well the proposal’s economic analysis establishes a solid foundation for new standard setting.

An Awkward Signal: The ‘Petroleum and Minerals’ Imprint on the First Conference on Accounting, Governance and Sustainability

ABSTRACT This essay was prompted by an ‘atypical’ announcement, regarding an Accounting, Governance and Sustainability Conference co-organized by the American Accounting Association (AAA) and the King Fahd University of Petroleum and Minerals. I mobilise an epistemological base, drawing on Naomi Oreskes’ recent work, to question the logic and the appropriateness of associating Petroleum and Minerals’ interests with an academic conference on the topic of sustainability. My point is that significant epistemological consequences ensue when a ‘mere’ association of words arouses skepticism regarding the extent of conflict of interest surrounding an event being aimed at fostering knowledge production and dissemination processes on the theme of sustainability. One feature of my argument is that involving explicitly as co-organizer, in the frontstage, a university whose name carries the wording ‘Petroleum and Minerals’ constitutes an awkward signal, which is a disconcerting occurrence given the strong influence of ‘signaling theory’ in the eyes of many AAA members, who adhere to mainstream economic-based accounting research.

Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB’s A Firm’s System of Quality Control and Other Proposed Amendments to PCAOB Standards, Rules, and Forms

SUMMARY On November 18, 2022, the Public Company Accounting Oversight Board (the Board or PCAOB) issued a request for comment on its proposed quality control standard, A Firm’s System of Quality Control and Other Proposed Amendments to PCAOB Standards, Rules, and Forms (Public Company Accounting Oversight Board (PCAOB) 2022). This commentary summarizes the participating committee members’ views on (1) the overall standard and selected questions and (2) recent research that we encourage the PCAOB to consider.

Comments by the Ad Hoc Task Force of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the Proposed Auditing Standard, the Auditor’s Use of Confirmation, and Other Proposed Amendments to PCAOB Standards

SUMMARY On December 20, 2022, the Public Company Accounting Oversight Board (PCAOB) issued a request for comment on its proposed auditing standard, The Auditor’s Use of Confirmation, and Other Proposed Amendments to PCAOB Standards. The proposed auditing standard describes principles-based requirements that apply to paper-based and electronic confirmations, improves integration with risk assessment standards, requires confirmation for cash held by third parties, and carries over existing requirements regarding confirming accounts receivable. Further, it considers additional audit procedures when using negative confirmation requests and clarifies certain activities where the auditor should not use an internal auditor to provide direct assistance. The proposed standard is important, as the audit confirmation process touches nearly every audit. The comment period ended on February 20, 2023. This commentary summarizes the participating members’ views on the questions posed by the PCAOB. Data Availability: Proposed Auditing Standard—The Auditor’s Use of Confirmation, and Other Proposed Amendments to PCAOB Standards, including questions for respondents, is available at PCAOB Proposes New Standard for the Auditor’s Use of Confirmation | PCAOB (https://pcaobus.org/).

A Systematic Literature Review on Corporate Tax Planning

An overview of the evolution of tax planning research is the goal of this study. Corporate tax planning, or the capacity of the corporation to plan its tax affairs, refers to the use of a variety of techniques to legally lower its tax bills or to take advantage of tax law gaps. The narrative method of reviewing the literature is used in this work, and it entails compiling and synthesising previously published studies on corporate tax planning. The information was gathered from publications by American Accounting Association, Emerald, Elsevier, Inderscience, Taylor and Francis Ltd. that were published in international journals that were indexed by Scopus. Samples from 2010 to 2022 included up to 33 articles about corporate tax planning. Many empirical studies use a quantitative approach by showing that by utilizing transfer pricing with agency theory, corporate tax planning performance can be measured.

Literature Review on Auditor Independence

This study aims to provide an overview of the development of auditor independence research. Data were taken from articles published in Scopus indexed international journals from American Accounting Association publishers, Emerald, Wiley, Elsevier, Routledge, Academic Press Inc, and Taylor and Francis Ltd. Samples were taken from 2002 to 2022 as many as 27 auditor independence articles. The method of analysis is through classifying articles based on the research method used, the name of the journal, the year of publication, and the country of origin of the first author. In general, the results of the study found that research on auditor independence has increased from year to year and is still an interesting research topic to study.

Be the Thought Leaders!

ABSTRACT This essay is based on my plenary address at the 105th Annual Meeting of the American Accounting Association (AAA). I am honored to have been selected as the AAA 2021 Presidential Scholar. This essay represents a call to action. I invite my fellow accounting professors to fulfill our stated mission and shared values to be thought leaders in accounting. I present ideas and suggestions on how we can lead our students, our academic institutions, and the accounting profession in supporting a prosperous and just society.

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A Systematic Literature Review on Analytic of Costing System Design

This paper aims to find, discuss, and provide recommendations about the impact of business analysis and its elements on management accounting and the accounting profession. The management accountant's role and responsibilities have evolved from simply reporting overall historical figures, to include measuring organizational performance and providing information relevant to management decision making. proposes a Managerial Accounting Data Analytics (MADA) framework based on the balanced scorecard theory in the context of business intelligence. Information is derived from publications by the American Accounting Association, Emerald, Elsevier,. in international journals indexed by Scopus. The 2010-2022 sample included up to 30 articles on analytic of costing system design. This paper contributes to research by examining the influence of business analytics on managerial accounting in the context of enterprise systems. This study presents a Managerial Accounting Data Analytics (MADA) framework that integrates

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