Accounting Profession Research Articles

Data on selfـــefficacy and its sources during the COVID-19 crisis: A Saudi auditor’s perspective

Background Auditors during COVID-19 experienced an unprecedented situation, in which normal audit activities were difficult to conduct. Moreover, COVID-19 forced auditors to introduce a new audit approach, “remote auditing,” which was not common in most audit firms and required the adoption of more advanced technologies. Overall, auditors during the COVID-19 pandemic needed both cognitive and technical factors to deliver high-quality audits. Despite these challenges, research on how auditors deal with these issues is limited, presenting an intriguing area of study. Methods This dataset provides insights into Saudi auditors’ experience and beliefs regarding audit activities during COVID-19. Through an online survey, researchers collected data from 193 of 417 registered auditors with the Saudi Organization for Chartered and Professional Accountants (SOCPA). The survey assessed auditors’ self-efficacy in conducting audits during the pandemic and explored its sources and potential moderating factors. Specifically, the dataset includes responses to eight items related to self-efficacy, 19 items covering four common sources of self-efficacy (mastery experience, vicarious experience, social persuasion, and physiological/emotional states), and six items assessing virtual audit competency. Additionally, the dataset contains demographic information that is valuable for researchers analyzing the relationship between auditor self-efficacy, its sources, and other influencing factors. Conclusions Overall, the dataset included in this study may serve a broader audience and be useful in improving several stakeholders’ understanding of the effects of COVID-19 on auditors and how auditors assess their ability to adapt to COVID-19 consequences. This study contributes to the existing body of knowledge by highlighting the need for auditors to adapt to new circumstances and adopt innovative approaches during challenging times, thereby ensuring the delivery of high-quality audits.

Impact of auditor characteristics on audit quality during COVID-19: Evidence from Saudi Arabia

This study aimed to analyze the impact of auditor characteristics on audit quality in Saudi Arabia during the COVID-19 pandemic by assessing how auditor characteristics (such as gender, age, education level, professional certificate, sector, size of the employees, revenue, experience, and region) impact audit quality in crisis conditions. It employed a descriptive-analytical approach and quantitative regression analysis of cross-sectional data. The survey was conducted in 2021 among 203 auditors in Saudi Arabia. Data collection was facilitated through the assistance of the Saudi Organization for Chartered and Professional Accountants (SOCPA) to make the sample more structured and representative. The results reveal that auditor characteristics played a significant role in determining audit quality during the pandemic. Gender, education level, audit firm size, and professionalism experience showed a strong correlation (r = 0.619) between professional experience and adaptability to remote auditing conditions. The regression analysis indicates a positive impact on audit performance. The results suggest practical implications for improving auditor selection, training programs, and regulatory frameworks to enhance audit resilience in times of crisis. It offers theoretical contribution by validating existing models under pandemic conditions and providing insights for the future of auditing practices. It also assists in establishing confidence in financial reporting together with control, making investors feel secure, and maintaining stability in the business world.

Could a STEM Designation Help the Accounting Workforce Shortage?

The US is facing a shortage of accountants in the workforce, with numerous positions going unfilled every year. The number of college graduates earning a bachelor’s or master’s degree in accounting and the number of graduates sitting for the CPA Exam has also declined in recent years. The AICPA created an advisory group to help shape a national strategy to address the talent shortage, and one potential strategy is for accounting curricula to earn a STEM (science, technology, engineering, and mathematics) designation. Many believe a STEM designation would attract more international students to this field of study and help alleviate the shortage of qualified accounting professionals.

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.

Analysis of behavioral factors in management accounting research

The adoption of accounting as a social science suggests that subsequent development is associated with both the study of its role in real social and institutional contexts, and the study of behavioral factors of the activities of those responsible for the development of professional accounting judgments of persons and managers making decisions based on accounting information. However, today researchers do not fully assess the actual problem of studying the behavioral (behavioral) aspects of the activities of accounting specialists as significant factors affecting the functioning of the accounting and analytical system of any organization. The purpose of the study is to substantiate the need to assess the impact of behavioral factors on the effectiveness of the organization and development of management accounting, in the context of its interdisciplinarity. In this regard, the article, to a certain extent, examines the features of behavioral factors in accounting that form its interdisciplinarity; substantiates the necessity and justification of a behavioristic approach in management accounting; reveals the influence of emotional and psychological qualities of an accountant on the organization of the accounting process, the activities of the accounting service, the formation of accounting policy.

Stakeholders Pressure and Green Accounting Implementation in Kenyan Manufacturing Enterprises

The objective of this study was to establish the influence of stakeholders’ pressure on the Green Accounting (GA) implementation in Kenyan manufacturing enterprises. Lack of sufficient research on the factors influencing GA implementation and the paucity of existing literature created the need for this study. Stakeholder theory was applied. Data were gathered using questionnaires that the researcher self-administered. The Cronbach's alpha (α) reliability test was applied to evaluate the internal consistency of the measurements. The investigation's primary emphasis was on 1,107 manufacturing firms that are Kenya Association of Manufacturers members. The sample consisted of 294 firms. To ensure that each data stratum was fairly represented in the analysis, stratified random sampling was used in the study. The study's results showed that stakeholder pressure significantly and favorably impacted Kenyan manufacturing companies' adoption of green accounting. The study came to the conclusion that manufacturing companies in Kenya ought to embrace and apply GA. The study recommends that manufacturing enterprises in Kenya prioritize the training and development of their accounting professionals in environmental sustainability and the importance of stakeholders in green accounting implementation journey. Stakeholders pressure is an integral part of green accounting and thus stakeholders are recommended to continue having requirements to the manufacturing firms to adopt green accounting. Submitted 19th Jul 2024 Reviewed 27th Sep, 2024 Accepted 4th Oct 2024 Published 20th Oct 2024

‘We Can Help!’ Stories of Professional Accountants’ Quest for Social Worth

The commercialization of the accounting profession has been widely criticized, raising questions about its commitment to serving the public interest. This study nuances these critiques by focusing on professional accountants for whom altruism is a core value. Specifically, we examine the process by which individual accountants attempt to embody altruism by volunteering in accounting humanitarian missions. We theorize accountants’ desire to incarnate altruism as a significance quest in which they attempt to boost their social worth. Through a case study of two humanitarian missions, we uncover how volunteer accountants approached the missions with educational aspirations, wishing to embody altruism by sharing their knowledge. They faced challenges that shaped the situated possibilities of their missions and clashed with their aspirations. To navigate the resulting tensions, they mobilized different means that revealed the difficulties of embodying altruism and the fragility with which it can be accomplished. Our study highlights individual manifestations of altruism and offers a nuanced view of professionals’ understanding of altruism. It also broadens the horizons of how accountants can act in the public interest and integrate social considerations into their practice. Finally, it provides conceptual tools to further understand how accountants can contribute to (or detract from) social issues.

Uncovering Machiavellian Attitudes Among Accounting Students: A Descriptive Review

This study was conducted to determine the opinions of students as prospective accounting professionals aware of Machiavellian traits and take steps to reduce their negative impact on ethical behavior. The method used in this study is descriptive. Data were collected by distributing questionnaires to respondents, namely accounting students at FEB Untan. The questionnaire contained 16 questions using a Likert scale. The findings of this study indicate that students' opinions do not tend towards Machiavellian behavior.

The Impact of Romanian Internal Auditors in ESG Reporting and Sustainable Development Goals

The purpose of this study is to determine the impact of an internal auditor’s activities in Romania, through their specific activities, on ESG reporting and sustainable development goals (SDGs). Environmental, social, and governance (ESG) are three criteria by which an organization’s operations are characterized as sustainable, responsible, or ethical. Even though, for business, the SDGs have been called “a 2030 purchase order for business and government action today”, the alignment between environmental, social, and governance performance and sustainable development goals helps practitioners in observing corporate contributions to sustainable growth. This research aims to identify whether internal auditors in Romania are able to contribute to ESG reporting and the achievement of the sustainable development goals through specific objective assurance and advisory activities. Using the questionnaire, the data were collected from professional accountants who carry out internal audit missions. The main findings confirm a strong and directly significant connection between the internal audit’s perception of the management’s view of the SDGs and how the entity can contribute to achieving the SDG objectives. The results also showed a direct and medium-intensity impact of the variables, capturing the important role of internal audits in ESG reporting. Our study showed that internal audits can help with reporting ESG and sustainable development objectives through their activity. However, according to our statistical results, the internal auditors do not offer at all (or rarely offer) objective assurance and counseling related to these subjects. Moreover, it is observed that, in these situations, the management does not have a clear vision and has not taken measures to achieve the sustainable development goals and ESG factors.

The Impact of Forensic Accountant Characteristics on Reducing Tax Evasion from the Perspective of External Auditors Working in Audit Firms and Companies in the Republic of Yemen: A Field Study

The study aimed to identify and measure the impact of forensic accountant characteristics on reducing tax evasion from the perspective of external auditors working in audit firms and companies in the Republic of Yemen. To achieve the study's objectives, an electronic questionnaire was used as a data collection tool from a population of 384 external auditors in audit firms and companies using a complete enumeration method. The number of retrieved questionnaires was 329, and the number of questionnaires valid for analysis was 260. The data were analyzed using the SPSS, where multiple regression analysis was used to test the hypotheses. The results of the field study showed a positive impact of forensic accountant characteristics (skills and qualifications) on reducing tax evasion. Skills had a high positive impact on reducing tax evasion, followed by qualifications, especially those holding a CFA certificate. The results also showed no impact of forensic accountant characteristics (experience and behaviors) on reducing tax evasion according to the study population's opinion. The study revealed that the most related dimensions to reducing tax evasion, according to the study population's perspective, are the justifications for tax evasion, followed by tax evasion opportunities, tax evasion capabilities, and then tax evasion pressures. The study recommends the need to establish a specialized professional association concerned with organizing the forensic accounting profession in the Republic of Yemen, adopting the forensic accounting subject within accounting curricula, and activating field training for those performing the duties of forensic accountants.

Public accounting’s gender ledger: Where should audit firms target their gender initiatives to better balance representation?

Although men and women enter the public accounting profession at similar rates, women are not equally represented at the highest leadership levels. One possible contributor to the gender gap is that women and men enter the profession with differing levels of fit with the profession, which is the congruence between what an employee values and what an organization values. Using survey evidence from future public accounting professionals, we find that, on average, women experience lower fit with the public accounting profession, as compared to men, in three distinct areas: Women desire the public accounting profession to be more people-oriented, less demanding, and less competitive than they perceive it to be. Based on these results, we provide suggestions for firms to implement to improve fit for women in these areas. Our findings and suggestions will allow firms to develop improved gender initiatives that can assist in reducing gender disparity in the public accounting industry.

Moderating Effect of IFRS Compliance on the Relationship between Ownership Structure and Financial Reporting Quality

This study investigates the moderating effect of International Financial Reporting Standards (IFRS) on the relationship between corporate governance, specifically ownership structure, and financial reporting quality in listed non-finance firms in Nigeria. Utilizing an ex-post facto research design, the study drew its data from 67 non-finance firms listed on the Nigerian Exchange Group over a ten-year period (2012-2021). The study employs purposive sampling and hierarchical regression analysis to explore the complex connection between IFRS adoption and ownership structures, revealing that IFRS plays a significant role in enhancing the quality of financial reporting. The findings indicate that while ownership concentration may weaken financial reporting quality in the absence of IFRS, the adoption of IFRS significantly moderates this effect, leading to improved transparency and reduced earnings manipulation. This study contributes to the existing literature by providing empirical evidence from a less developed market context, emphasizing the critical interaction between global accounting standards and corporate governance mechanisms. The study concludes that robust enforcement of IFRS compliance, combined with targeted capacity building for financial professionals, is essential to ensure high-quality financial reporting in Nigeria. Key implications include the need for enhanced regulatory oversight and collaboration between regulatory bodies and professional accounting organizations to foster consistent adherence to IFRS, thereby improving the reliability of financial statements and boosting investor confidence.

The Effect of Conflict Management Strategies on Job Satisfaction: A Study in the Accounting Sector

The aim of this study is to examine the effect of conflict management on job satisfaction for the accounting sectorand to examine the effect between the conflict management strategies used by employees and their job satisfaction. Also, demographic characteristics are to contribute to the related literature by examining the effect of job satisfaction, conflict management, and conflict management strategies. In this study, survey research method and relational screening model were used. Then, e-survey was applied to 451 accounting professionals through convenience sampling among approximately 200.000 accounting sector employees operating in Turkey and 403 questionnaires were analysed. The factor loadings of the scales were examined, followed by reliability and normal distribution analyses of the relevant scales and then parametric tests were performed. Pearson correlation analysis and regression analysis were performed to examine the relationship between constructive, adaptive, coercive, avoidant and compromising subscales of job satisfaction scale and conflict management strategy scale. According to the results, conflict management has a positive effect on job satisfaction. Also, constructive, accommodative, compromise, avoidant and coercive conflict management strategies were also found to have a positive effect on job satisfaction. When demographic characteristics were analysed, it was found that there was no significant difference between gender, marital status, age, education level variables and job satisfaction, conflict management, adaptive, constructive, coercive, avoidant and accommodative conflict management strategies. It was observed that there was a significant difference between the professional experience variable and compatible conflict management strategy, also between the occupation variable and coercive conflict management strategy.

Enhancing cybersecurity protocols in tax accounting practices: Strategies for protecting taxpayer information

This paper highlights the importance of enhancing cybersecurity measures in tax accounting to protect taxpayer data. It proposes strategies to ensure compliance and enhance data security in the context of evolving cyber threats. This study investigated the cybersecurity landscape within the tax accounting sector, focusing on prevalent threats, the effectiveness of existing security measures, and areas for improvement. Utilizing a mixed-methods approach, the research combined qualitative interviews with cybersecurity experts and tax accounting professionals, quantitative surveys of 200 tax accounting firms, and detailed case studies of firms that experienced significant cyberattacks. The findings reveal that phishing attacks, ransomware, data breaches, malware, and insider threats are the most common cybersecurity challenges faced by tax accounting practices. While measures such as encryption, multi-factor authentication (MFA), firewalls, intrusion detection systems (IDS), regular security audits, and comprehensive employee training prove effective, their inconsistent implementation across the industry highlighted the need for standardized protocols. The study identified significant gaps in resource allocation, particularly for smaller firms and non-profits, and underscores the necessity for formal incident response plans. Recommendations include enhanced training programs, development of standardized security protocols, resource support for smaller firms, regular security audits, comprehensive incident response plans, and adoption of advanced technologies. The study calls for further exploration of emerging threats, cost-effective solutions for smaller firms, the impact of artificial intelligence (AI) and machine learning (ML), longitudinal studies on cybersecurity practices, and analysis of policy and regulatory impacts. These insights aim to enhance the cybersecurity posture of tax accounting practices, ensuring the protection of sensitive taxpayer information and overall industry resilience.

Analysis of Sharia Accounting Students' Perceptions of the Public Accounting Profession

The main task of the public accounting profession is to examine financial reports. Students in the general accounting and sharia study program are at a linear level of education with the public accounting profession. This research aims to examine and analyze perceptions of the work environment, financial rewards, social values, market considerations, professional recognition, and personality towards the public accounting profession. The research sample was Sharia Accounting students at the Syarifudin Lumajang Islamic Institute using a purposive sampling method. The results of research using the partial test (t test) show that the variables of perception of the work environment and market considerations influence the public accounting profession. The variables financial rewards, social values, professional recognition and personality have no effect on the public accounting profession. The results of the simultaneous test (f test) show that together, the independent variables have a significant influence on the dependent variable.

The Impact of Organizational Factors and Environmental Factors on the Adoption of Computer Assisted Audit Tools and Techniques (CAATTs) by SME in Sri Lanka

The study investigates the low adoption of Computer-Assisted Audit Tools and Techniques (CAATTs) in developing countries, focusing on environmental and organizational factors that influence technology adoption in firms, particularly small audit firms in Sri Lanka. Key variables identified include Clients’ AIS complexity firm size as organizational factors and, perceived support from professional accounting bodies firm size, and top management commitment as environmental factors to CAATT adoption. The objective is to assess the impact of organizational and environmental factors on CAAT adoption by SME in Sri Lanka. The population comprises 71,126 small audit firms listed as Small and Medium-Sized Enterprises (SMEs) as of December 31, 2021, according to the Accounting Auditing Standards Monitoring Board in Sri Lanka. A sample size of 40 small audit firms was selected from this population. Data collection involved distributing questionnaires among auditors, with analysis conducted using the SPSS version 23. Correlation analysis reveals a positive correlation between all variables and CAATT adoption, while regression analysis demonstrates the impact of AIS complexity, perceived support from professional accounting bodies has a high impact on CAAT adoption by SME. The findings suggest that organizational factors such as AIS complexity and Perceived Support from professionals play a significant role in CAATT adoption among small audit firms. In conclusion, the study highlights the importance of considering organizational factors, such as in promoting CAATT adoption. These findings provide valuable insights for enhancing audit productivity and reducing costs in developing countries like Sri Lanka.

Does psychological capital alleviate work overload-induced work exhaustion and burnout among teleworkers? A moderated-mediation approach

Purpose This study aims to investigate how work overload, resulting from full-time telecommuting, aggravates telecommuting accounting professionals’ burnout via the mediation of work exhaustion. Further, the study also tests the conditional moderation effect of psychological capital on the association between work exhaustion and burnout, proposing that it becomes least severe for employees who perceive a high level of psychological capital. Design/methodology/approach The research was conducted using a sample of 322 employees from Big Four accounting firms, and the measurement model was established using confirmatory factor analysis. Hypotheses were tested using structural equation modeling and model-14 in the PROCESS Macro for SPSS. Findings The results confirmed that work overload directly and indirectly (via the mediation of work exhaustion) aggravates employees’ burnout. However, psychological capital negatively conditions the mediating effect of work exhaustion on burnout such that the aggravating effect of work overload on burnout, via the mediation of work exhaustion, gets least severe (insignificant) for those employees who perceive a high level of psychological capital. Originality/value The study contributes to the literature on work overload-induced “work exhaustion burnout” association and offers suggestions for implications.

Internal and external contexts influencing future accountants: The lens of experienced auditors

This study examines the factors influencing future accountants from the lens of experienced auditors. This study employs a qualitative case study design, focusing on the challenges and issues faced by future accountants, with the aim of enhancing career opportunities that align with employer needs. Interviews with eight experienced auditors, along with the analysis of public documents from the respective accounting regulatory authority and the Ministry of Higher Education, provided the data for this case study. Based on the insights of the experienced auditors, this study developed two contexts, namely an internal and an external context, which could benefit employers and future accountants. The internal context includes attitude and behaviour, continuous learning and adaptability, technical skills, technical knowledge, and career development. The external context includes university standards, the needed IT skills, lack of soft skills, and inability to acquire technical knowledge. The specific factors for both the internal and external contexts could be employer expectations, university requirements, and graduate interest in this area of accounting, which tailor the HalaTuju 4 and MIA competency frameworks. The findings of this study provide new insights in accounting education that can contribute to future research. Furthermore, this study can provide insights into skills, knowledge, and potential factors that are important for future accounting professionals, which could also be included in the university curriculum to accommodate Hala Tuju 4.

Teaching Zen and educational challenges in accounting in the context of the vision of Society 5

Purpose: The article presents the potential advantages of using Zen philosophy teaching techniques, specifically kōans, in the education of people professionally related to accounting in the context of educational challenges related to Era 5.0 (the vision of Society 5.0).Methodology/approach: A descriptive and critical analysis of the literature, followed by interpretation and explanation.Findings: The challenges facing accounting professionals in Era 5.0 necessitate a shift in their education. In addition to knowledge and technological skills, soft skills, especially cognitive ones, are crucial for accountants to serve as strategic and valuable human resources in organizations and society, thus contributing to the humanization of society and increasing the chances for sustainable employment. The article discusses the potential advantages of using kōans, practised by followers of Zen philosophy, to develop these cognitive skills.Research limitations/implications: The findings are based on a literature review and require verification through further research. Originality/value: The article presents a holistic approach to accounting education, presenting the possibility of using unusual educational techniques based on Zen meditation and studying koans instead of commonly used case studies and citing evidence of the effectiveness of such education. It demonstrates that accounting as a social science developed in a cultural environment and can benefit from diverse perspectives on reality.

Adapting accounting education to evolving business paradigm-an Indian perspective

PurposeThis study examines the need for an accounting curriculum to evolve in response to the changing business landscape. Specifically, this study aims to explore the relationship between various market forces, the shifting dynamics of business, and the importance of adapting accounting education to these changes.Design/methodology/approachThis study is a combination of both quantitative and qualitative research. A structured questionnaire was administered to 320 professionals to gather data, and the study employed descriptive analysis, one-sample t-tests, and structured equation modeling to analyze the relationship between the variables.FindingsThe findings reveal a strong correlation between business transformation and the imperative to adapt accounting education. This study emphasizes the significance of modifying accounting curricula to align with the current market trends. Furthermore, this study addresses the pressing concern of sustainability and the triple bottom line (TBL), advocating specialized education in sustainability accounting programs.Research limitations/implicationsDespite its contributions, this study acknowledges a limitation in its focus solely on the perceptions of professionals and academicians regarding the impact of business transformation on accounting education, without directly examining the prevailing accounting education system. Future research should address this limitation by undertaking a qualitative exploration of the actual accounting education landscape and market requirements.Practical implicationsThe implications of the study span the theoretical, regulatory, environmental, and social domains, stressing the need for educational institutions, regulatory bodies, and industry to collaborate in shaping competent and future-ready accounting professionals. A systematic approach would validate and extend the findings of this study, providing deeper insights into the transformative processes necessary to enhance accounting education in response to evolving business landscapes and environmental dynamics.Originality/valueThe outcome of the study assists educational institutions and regulatory bodies in framing policies to adapt accounting education to the evolving business landscape by updating the accounting curriculum as per the changes in the market forces to make graduates relevant and competent.