Chartered Accountants Research Articles

Globalized accounting profession and the U.S. certified public accountancy

Globalization has affected the accounting profession most throughout the world. In today’s environment, many international accountants have recently become Chartered Accountants (CA) of the United Kingdom or Certified Public Accountants of the United States and Territories, even though they do not live in those countries. In addition, the number of international candidates has been increasing gradually, and they should know how to be licensed for one or both of those designations. In this context, the paper argues how anglophone accounting institutes and associations of English-speaking countries overwhelmingly have impacted the global accounting profession during the last two decades. In addition, it discusses the requirements for international candidates to become a Certified Public Accountant (CPA) in the United States. Consequently, the paper summarizes and documents the education requirements for international candidates who want to be licensed as a certified public accountant in the United States. National and global stakeholders, such as accounting students, accounting organizations, and regulators, may find this helpful information.

Analisis Faktor-Faktor yang Mempengaruhi Minat Mahasiswa Akuntansi dalam Pengambilan Sertifikasi Akuntansi

This study aims to analyze the factors influencing accounting students' interest in obtaining accounting certification. This type of research is quantitative. The data used in this study are primary data. The data collection technique used is a questionnaire method in the form of statements distributed using Google Forms with a 5-point Likert scale measurement. The population of this study includes accounting students in the odd semester of 2023 at Universitas Internasional Batam, Universitas Universal, and Universitas Riau Kepulauan, totaling 981 students. The sample was selected using purposive sampling with the Slovin formula, resulting in a sample size of 91 respondents. The software used for data testing in this study is SPSS version 25. The tests in this study include validity tests, reliability tests, normality tests, multicollinearity tests, heteroscedasticity tests, multiple linear regression tests, partial tests (t-tests), simultaneous tests (F-tests), and determination coefficient tests (R²). The results of this study indicate that career motivation partially influences accounting students' interest in obtaining accounting certification (Chartered Accountant), the level of understanding does not partially influence accounting students' interest in obtaining accounting certification (Chartered Accountant), and cost perception partially influences accounting students' interest in obtaining accounting certification (Chartered Accountant). Additionally, career motivation, level of understanding, and cost perception simultaneously influence accounting students' interest in obtaining accounting certification (Chartered Accountant).

Commentary: The Canadian Accounting Hall of Fame—An Analysis of Early Inductees and Immanent Critique*,†

ABSTRACTThe Canadian Accounting Hall of Fame (CAHF) has inducted 31 members during its first three years of operation, with the stated intent of establishing a critical mass of inductees “who have made significant contributions to the development of the Canadian accounting profession” and of creating “a curated biographical history of accounting in Canada.” This paper provides an analysis of the group and an immanent critique of CAHF given its mandate and aspirations. It begins with a close reading of CAHF's public statement of intent and policies to clarify what it is committed to achieving and to identify ambiguities and contradictions within its mandate. The characteristics of the initial inductees are then compared with baselines reflecting CAHF's mandate and are used to identify how ambiguities are resolved in practice. The current members of CAHF overrepresent financial reporting and auditing (compared with other areas of accounting competence), academics (compared with those in practice/industry), the more populated provinces (compared with the Prairies and Atlantic region), Chartered Accountants (compared with other legacy designations), and men (compared with women). Current practice also reveals unresolved ambiguities in the definitions of “Canada,” “Canadian,” “contribution,” and “impact,” as well as an underdeveloped presentation of historical context and documentation to interpret the inductees' contributions. Best practices for “retrospective cultural consecration institutions” are identified in the literature and align with CAHF procedures. The paper also examines critical commentary on CAHF in the press and identifies areas where its mandate is challenged by public expectations of inductees.

Impact and Significance of Accounting Standards in Enhancing Financial Transparency within Pakistan’s Textile Industry

The investigation assesses the extent to which accounting standards foster financial openness in Pakistan's textile sector, which makes a substantial economic contribution to the country through employment, exports, and income generation. Accounting standards guarantee financial reporting's comparability, consistency, and dependability, which are critical for stakeholders' decision-making, including lenders, investors, and regulatory agencies. Implementing local standards established by the Institute of Chartered Accountants of Pakistan and International Financial Reporting Standards improves accountability and transparency in Pakistan's textile sector. Even with their advantages, the complicated regulatory environment, shifting market conditions, and disparities in compliance among various firms make it difficult to adopt these standards. This evaluation looks at how following these guidelines affects the transparency of financial statements, lowers fraud rates, and lessens the chance of financial misreporting. It also discusses the sector-specific issues that Pakistan's textile industry faces, such as differences in revenue recognition, inventory value, and related party transaction disclosure that can skew evaluations of financial health. The evaluation emphasizes the role of sound accounting procedures in promoting investor trust and, importantly, in streamlining regulatory supervision, which should give the audience confidence in the oversight of the industry. Additionally, it assesses current measures to enhance compliance, such as ICAP's attempts to harmonize national standards with IFRS and government incentives for better corporate governance in the sector. Standardized accounting procedures enable sustainable growth in Pakistan's textile sector and improve the nation's standing internationally by fostering a transparent financial environment.

The lived experiences of South African Black accountants within the framework of the chartered accountancy profession sector code

PurposeThis study investigates the progress of the Broad-Based Black Economic Empowerment (B-BBEE) Act 2003, and its associated Chartered Accountancy Profession Sector Code. In doing so, we explore why B-BBEE affirmative action has not yet achieved the Code's representational intentions, including systemic subtleties inhibiting this success.Design/methodology/approachUsing semi-structured interviews, we explore the lived experiences of Black aspirant Chartered Accountants (CAs) undertaking articles in global audit firms. The experiences are thematically analysed, embracing a comprehensive theoretical approach that encompasses professional and social closure, as well as boundary work, to adequately understand why affirmative transformational endeavours persistently face uphill tasks. The utilisation of multifaceted theorisation is deemed essential for a more nuanced portrayal of the intricacies inherent in the CA profession in South Africa.FindingsThe narratives presented by Black aspiring CAs unveil a complex web of exclusionary practices entrenched in institutionalised historical, professional, and social contexts. The multifaceted nature of closures, symbolised by racial, cultural, and linguistic factors, significantly impacts the experiences of Black trainees. The findings furthermore show that deliberate intervention beyond compliance with the Government’s framework is necessary for meaningful transformation.Practical implicationsThe paper brings to the fore the current lived experiences of underrepresented Black CAs in global auditing firms. In doing so, these firms are empowered with incremental knowledge of the prevailing challenges and can thus make tangible improvements towards authentic transformation. Additionally, the results help in tracking the advancements made through affirmative action, acting as a feedback loop for future developments in transformation policy.Originality/valueContributing to the critical accounting literature, our study extends scholarship on the barriers faced by CAs and the limitations in their capacity to challenge these obstacles within global audit firms. We offer practical policy-focused recommendations that, if implemented, can address the complex socio-political realities obstructing the success of affirmative action. By sharing first-hand accounts, our study aims to empower auditing firms and other related stakeholders with actionable insights, enabling them to improve genuine inclusivity and foster equitable representation in the accounting profession.

Factors Influencing Accounting Students' Interest in Taking Accounting Certification

Indonesia has a small number of public accountants and still needs a large number of professions, in anticipation of the expansion of the business sector. The number of CA graduates in East Java is still low compared to the number of accounting graduates every year. This is due to the relatively high enrolment costs, the lack of training for students on the purpose and benefits of having a Chartered Accountant (CA) certification itself. The research aims to find out the impact of career motivation, level of understanding, and cost perception on obtaining accounting certification. This research uses a quantitative approach, with the aim of testing the hypothesis. The population in this study is a student of the S1 Accounting Final Semester Program at Besuki Se-Karesidenan College. Sampling using probbalility sampling. Data analysis using the help of the IBM SPSS Statistics application. Research results show that career motivation and level of understanding influence the level of comprehension of the interest of students taking accounting certification. While the perception of costs has no influence on the interest of students taking accounting certification.

Effectiveness of Auditor’s Report as a Medium of Communication to Reduce the Level of the Audit Expectation Gap of Amon Chartered Accountants

Effectiveness of Auditor’s Report as a Medium of Communication to Reduce the Level of the Audit Expectation Gap of Amon Chartered Accountants

INTERNATIONAL FINANCIAL REPOTING STANDARDS & IT’S CONVERGENCE IN INDIA 1.

In order to improve financial statemet comparability, accountability, and transparency, the adoption and convergence of International Financial Reporting Standards (IFRS) have become essential components of financial reporting on a global scale. This study examines the development and effects of IFRS convergence in India, focusing on the corporate, regulatory, and financial ecosystem consequences. Financial reporting procedures have undergone major changes as a result of the gradual implementation of the Indian Accounting Standards (Ind AS), which are convergent with IFRS, across a number of sectors. The present study scrutinizes the advantages of implementing IFRS, such as enhanced investor trust and global comparability, in conjunction with the obstacles encountered by Indian enterprises, such as escalated compliance expenses and the intricacy of novel standards. The study also explores the role regulatory organizations play in promoting the convergence process, including the Securities and Exchange Board of India (SEBI) and the Institute of Chartered Accountants of India (ICAI). This study offers insights into the efficacy of IFRS convergence in India by a thorough analysis of the body of research, case studies, and empirical data. It highlights significant areas of success as well as persistent challenges. The results indicate that although convergence has helped India's standing in the international financial sphere, ongoing work is still needed to resolve implementation problems and guarantee the smooth adoption of IFRS in the Indian setting. Keywords: Finance, Financial Report, IFRS.

Zomato’s Quest for Survival

The case of ‘Zomato’s Quest for Survival’ focuses on the concept of value relevance of accounting information. The case deals with financial ratio analysis, comparative financial statement analysis, cost–volume–profit analysis and DuPont analysis. The case also deals with the effect of acquisition on the acquiring firm’s fundamentals, post-acquisition. The case explores the potential growth of India’s food delivery market and goes on to explore Zomato’s business strategy and source of income. The case starts with Mr. Arghadip considering purchasing Zomato Ltd. Shares. He, therefore, gathered information from various sources to assess the company’s fundamentals and prospects for the future. A lot of questions worth discussing were brought up by the case. The ideal students for the case would be students of B.Com, M.Com, BBA and MBA. The case can also be discussed in Chartered Accountant and Cost and Management Accountant courses.

A COMPARATIVE STUDY ON FINANCIAL REPORTING OF SELECT NIFTY FIFTY COMPANIES USING GRAY’S COMPARABILITY INDEX

The Institute of Chartered Accountants of India (ICAI) plays a crucial role in promoting globally recognized accounting standards in the Indian context. In this endeavor, ICAI has introduced the Indian Accounting Standards (Ind AS) to align with the International Financial Reporting Standards (IFRS). We aim to assess the impact of implementing the new accounting standards compared to the pre-existing standards. To achieve this, we employed Grays comparability index model on the key items of the consolidated financial statements of selected NIFTY FIFTY companies and examined the outcomes. The analysis reveals significant alterations in the figures of current and non-current liabilities, as well as total income and total expenses. These changes are attributed to various recognition and disclosure criteria introduced by the new accounting standard. KEY WORDS: Ind AS, IGAAP, NIFTY FIFTY, Grays Comparability Index

Misappropriation in the Nigerian Oil and Gas Sector: Strategies for the Accountant General of the Federation

The study addressed the “Misappropriation in the Nigerian Oil and Gas Sector.” The paper employed a theoretical and content analysis approach, conducting an extensive review of literature from online journals and databases of standard-setting bodies such as the Auditing Standards Board and the Association of Certified Chartered Accountants (ACCA). Drawing from the Fraud Triangle Theory, the paper highlighted the three primary factors-opportunity, pressure, and rationalization-that motivate individuals to engage in fraudulent activities. The findings underscored the role of weak governance structures, political interference, and institutional deficiencies as key drivers of misappropriation and corruption within the Nigerian oil and gas sector. Moreover, the literature reviews revealed strategies to combat corruption, including strengthening regulatory frameworks, leveraging technology, and promoting a culture of integrity and ethical leadership. Effective measures to address misappropriation in the Nigerian oil and gas sector require comprehensive reforms, collaborative efforts between stakeholders, and rigorous enforcement and monitoring of policies. As the Accountant General of the Federation, it is recommended to prioritize accountability, transparency, and good governance through regular independent audits, establishment of a specialized anti-corruption unit, adoption of international accounting standards, implementation of whistleblower protection mechanisms, and ongoing capacity building and training programs for finance professionals and public officials involved in managing finances within the sector.

Delineating the parameters of integrated thinking: A synthetic literature review

Background: Many accounting professional bodies, of which the South African Institute of Chartered Accountants (SAICA) is one, expect academics to develop integrated thinking skills in their students during higher education. Integrated thinking is, however, often confused with critical thinking, systems thinking and design thinking.Aim: This article aims to delineate the concept of integrated thinking by analysing the similarities and differences between integrated thinking, integrative thinking, critical thinking, systems thinking and design thinking.Conclusion: Integrated thinking is a higher-order thinking skill with a strong emphasis on the ability to think in a creative manner. Although there are differences between integrated thinking and other higher-order thinking skills, there are also similarities. This article sets integrated thinking apart from other higher-order thinking skills.Contribution: Limited research has been conducted to distinguish integrated thinking from integrative thinking, critical thinking, systems thinking and design thinking. This article endeavours to identify the true nature of integrated thinking by comparing it with other higher-order thinking skills. If lecturers at higher education institutions are to develop integrated thinking skills, it is important for them to have a clear understanding of what integrated thinking is, and how it differs from other thinking models. Without a grounded understanding of what integrated thinking is, it is nearly impossible to develop it in students.

Barriers towards research activities among academics in the chartered accountancy stream at the North-West University, South Africa

Generally, departments of accounting at universities in South Africa that are accredited by the South African Institute of Chartered Accountants (SAICA) mainly focus on teaching the syllabus as prescribed by the Institute. There is no research methodology module in this syllabus neither at undergraduate nor honours level. To qualify as a chartered accountant, one needs to pass an honours degree in accounting and write and pass two board exams. A qualified chartered accountant (CA/SA) will most likely encounter a research methodology module for the first time at master’s-degree level. Since 2008, in addition to teaching and learning and community engagement, the departments of accounting have embraced their scholarly activities, which include supervision and/or publishing. As a result, there is an increased effort by the departments of accounting to have its staff members with a chartered accountancy qualification to enrol for master’s and doctoral degrees (De Jager, Lubbe, Papageorgiou 2018). It is commonly believed that it seems easier to supervise students or write articles after attaining these qualifications. The purpose of this study was to investigate the barriers that are encountered by academics from a chartered accountancy background to engage in scholarly activities willingly. A qualitative research approach was followed in this study and data was collected by means of interviews. The population was accounting academics at the North-West University. The analysis of data was done qualitatively by means of thematic analysis. The findings revealed barriers such as not knowing where to start due to lack of background or knowledge in conducting research, time, workload, lack of management and lack of access to experienced mentors.

Leveraging information communication technology (ICT) and artificial intelligence (AI) to enhance auditing practices

PurposeIn the fourth industrial revolution, where business accounting integrates with automation through artificial intelligence (AI) and information communication technology (ICT), auditors must be able to access and analyze vast data and information to identify potential risks and issues. Using data analytics and AI to study significant amounts of data linked to audits, this study aims to investigate auditing practices by leveraging ICT and AI to enhance the audit process.Design/methodology/approachBibliometric and quantitative research techniques have been used in the study’s mixed-method process. The theoretical underpinnings of AI have been investigated using the bibliometric research method, and the challenge of implementing ICT-enabled auditing practices among auditing professionals has been studied using the quantitative research method. Surveys, interviews and bibliometric analysis have all been used as data-gathering techniques.FindingsResearch in AI and auditing has a broad worldwide scope, involving developed and developing nations. ICT perceived benefits have no direct effect on auditing practices. However, ICT training has a mediating effect on the relationship between ICT perceived benefits and auditing practices. ICT adoption has no moderating effect on the relationship between ICT training and auditing practices.Research limitations/implicationsFindings have significance for lead auditors, policymakers and the Institute of Chartered Accountants of India (ICAI), who are keenly interested in upgrading the auditing practice of accounting professionals in India by incorporating AI and ICT determinants.Practical implicationsThis research makes a significant contribution by offering a thorough framework for improving the knowledge management of practising auditors regarding ICT adoption, training and perceived benefits, a crucial component of auditing practices in the digital age. In addition, it provides insightful information about how AI affects accounting practices, which may point the way for further study in this area.Originality/valueThis research has significant implications for auditing firms in India. It can inform ICAI, policymakers and regulators in their attempts to foster the incorporation of AI and ICTs in auditing practice.

Implementation of the Altman z-score model in predicting bankruptcy at PT. Garuda Indonesia, Tbk.

Research aims: This study aims to forecast Garuda Indonesia’s bankruptcy rate using the Altman Z-Score model analysis tool based on financial statement data for the 2012-2021 period.Design/Methodology/Approach: A quantitative description method was used, with data sources from the Garuda Indonesia website.Research findings: Based on the data analysis, Garuda Indonesia was in a "gray area" or financial difficulty in the overall observation year.Theoretical contribution/Originality: Since 2020, Garuda Indonesia has implemented a statement of financial accounting standards (PSAK 73) on lease regulations. According to Institute of Indonesia Chartered Accountants (IAI, 2022), the objective of PSAK 73 on leases is to determine the principles for recognizing, measuring, presenting, and disclosing leases and determine whether the lessee and lessor provide relevant data with a method that presents transactions appropriately. PSAK 73 on leases categorizes assets from finance leases designated as right-of-use assets as part of property, plant, and equipment and lease liabilities as part of long-term liabilities that appear in the statement of financial position. Following the Institute of Indonesia Chartered Accountants (2022), right-of-use assets describe the tenant's right to use assets granted by the lessor to the lessee during the lease term.Research limitation/Implication: This research has limitations since the reference sources only came from research journals conducted at manufacturing and service companies in Indonesia and researched by Indonesian researchers. The data studied was only for the last 10 years (2012-2021) and during that time the 2019 Covid pandemic occurred, resulting in a lockdown which caused the number of domestic and international flights to Indonesia to decrease drastically.

Chartered Accountants' perception of the Fourth Industrial Revolution.

The Fourth Industrial Revolution (4IR) is an era of enormous technical progress that has impacted professionals across industries, including Chartered Accountants (CAs). This study explored how CAs view the impact of the 4IR on their profession, focusing on the shifting roles, competencies, and challenges they face during this transitional period. The research adopted a qualitative approach to data collecting, including 14 semi-structured interviews with participants from various CA backgrounds. This research provides a thorough knowledge of the 4IR's consequences for the profession and the perceptions of CA's of the 4IR. Rapid task automation via technologies such as AI is posing a challenge to traditional CA roles, forcing a change towards more analytical thinking and strategic insight. CAs need to develop critical thinking abilities and data analysis ability. Older generations might need support to adapt to the technological changes. Despite fears about job loss due to technology, members were largely optimistic about the 4IR's professional development potential. Conclusions are drawn and recommendations are given.

Enhancing Economic Sustainability Through the Formalization of the Informal Sector: A Taxation Strategy in Collaboration with the Institute of Chartered Accountants Ghana (ICAG)

Enhancing Economic Sustainability Through the Formalization of the Informal Sector: A Taxation Strategy in Collaboration with the Institute of Chartered Accountants Ghana (ICAG)

Impact of Articled Clerk Turnover on Audit Quality: A Study of BDO Zimbabwe Chartered Accountants

Impact of Articled Clerk Turnover on Audit Quality: A Study of BDO Zimbabwe Chartered Accountants

Tax Compliance Costs for SMEs: A Survey of Tax Professionals in Ghana on External Cost of Compliance

The study sought to ascertain the magnitude of the external tax compliance costs incurred by SMEs in Ghana from the perspective of the tax professionals who provide the service. Tax professional firms were selected from the Institute of Chartered Accountants and the Chartered Institute of Taxation for the study. The study distinguished between the average annual costs for small, medium and larger firms to compute and file returns, deal with tax authorities, implement changes in tax laws, and maintain records for tax purposes on behalf of their clients. The cost was found to be regressive in nature, indicating that the burden was relatively higher for small businesses.

Limning Auditing Indian Auditors

The boom of regulatory agencies is a common global phenomenon, and its basics are deeply rooted in national settings, leading to the setting up of specific regulators. Theoretically, auditors must demonstrate their professional prowess, skepticism, and analytical procedure, and effectively communicate audit outcomes to the stakeholders. Interestingly, the Indian audit profession is at its crossroads: constrained by scams and multiple regulators. Reform initiatives in the wake of corporate shenanigans compelled the creation of the National Financial Reporting Authority (NFRA) under Section 132 of the Companies Act, 2013. However, the accounting profession regulator, the Institute of Chartered Accountants of India (ICAI), alleges penetration of the former in its regulatory jurisdiction. Against this backdrop, adopting a descriptive approach, the current study attempts to unearth the factors leading to such face-offs for offering an amicable solution. The study concludes that the ICAI’s objections to treating the NFRA as a “super-regulator” cannot be supported. Consequently, the observation of the Committee on Experts constituted by the Supreme Court. Vesting investigating power in the NFRA could be a game changer in regulating auditors, audit firms, and audit networks. In light of the findings, the auditors could motivate to improve the audit quality substantially.