Accounting Profession Research Articles

The role of ESG reporting, artificial intelligence, stakeholders and innovation performance in fostering sustainability culture and climate resilience

Purpose This study aims to investigate the causal relationships among environmental, social and governance reporting (ESGR), stakeholder sustainability awareness, use of artificial intelligence (AI), sustainability culture, innovation performance and climate resilience of organizations across diverse sectors in Sri Lanka. Design/methodology/approach A survey was conducted among 327 respondents, including senior accounting professionals, operations managers and functional heads to gather company-level data in various industries in Sri Lanka. A disjoint two-stage approach validated the measurement model, and the partial least squares structural equation model (SEM) was used to test the proposed hypotheses. Findings The analysis evidences the mediating role of stakeholders' sustainability awareness on the relationship between ESGR and sustainability culture. Furthermore, it emphasizes the role of sustainability culture in driving climate resilience. Innovation performance acts as a moderator, strengthening the relationship between the use of AI and sustainability culture. Practical implications The study suggests that organizations should strategically use ESGR, integrate AI and prioritize stakeholder engagement to strengthen their commitment to sustainability. These provide insight for decision-making in organizations seeking to align with sustainable business practices. Originality/value It explores the use of AI to enhance ESGR and sustainability culture, providing a broader understanding of how organizations manage AI and stakeholders in sustainability issues.

Dissatisfaction with professional accountant training: the role of learning styles

PurposePrior research finds that early-career professional accountants (early PAs) are generally dissatisfied with the learning and training opportunities offered during their early employment years, which impacts their career progression. This paper aims to examine whether different learning styles between these early PAs and their qualified accounting employers and trainers diverge.Design/methodology/approachUsing Kolb’s learning styles inventory and interviews, this study explores the learning styles of early PAs and their employers, examining changes in these learning styles over time.FindingsThis research shows the necessity for different learning styles to be integrated into early PA training and learning, as research participants’ learning styles tend to prefer active experimentation requiring practical examples and self-learning opportunities. In contrast, their senior, qualified accounting employers prefer conceptualisation-based learning styles. As early PAs’ career progression requires them to succeed in employer-supported training, some early PAs change their learning style preferences to progress, whereas others with incompatible learning styles either moved to different employers or reassessed their choice of profession.Practical implicationsTo reduce career dissatisfaction, develop and retain competent accountants, early PAs must be supported to learn effectively. By reducing early PAs’ dissatisfaction early PA educators and employers will potentially increase the attractiveness of accounting as a profession.Originality/valueFew studies interrogate how accounting professionals utilise learning and training post-graduation nor do they examine the learning styles of workplace trainers and learners. This exploratory study uniquely analyses the learning styles of both early PAs and their employers.

Auditing Accounting Practices: A Critical Review of Current Practices and Emerging Issues

Accounting and auditing are two distinct yet interdependent fields. Accounting and auditing complement each other in terms of the way audit legitimizes accounting while accounting also makes firms auditable. Organization effective financial management relies on the relationship between accounting and auditing, two vital disciplines that collaborate to ensure the integrity, reliability and compliance of an organizations financial operations. The study examined auditing accounting practices: a critical review of current practices and emerging issues. The review summarizes the current practices and emerging issues in the field of audit and accounting profession and also provides ways these issues can be overcome.

Formulating A Competency Framework for Accountants On Environment, Social and Governance (ESG) Standards and Finance Digitalization

Accountants are one of the most important professions nowadays because, with their education and experience, they can assist the government in building the nation. However, the recent trend shows that the demand for competent accountants is increasing due to the importance of Environment, Social, and Governance (ESG) standards, coupled with the explosion of financial technology. Unfortunately, current working accountants and recent accounting graduates are struggling to meet these international demands, as employers are finding it difficult to find competent accountants who are knowledgeable about ESG and experts in financial technology. Thus, this paper intends to discuss and propose an accounting competencies framework that meets the needs of industries, supports government aspirations to develop via technological advancement, and balances social and economic development based on ESG principles. It is expected that this competency framework related to ESG and financial technology will benefit the accounting profession and higher learning institutions by allowing them to design more industrial-relevant training and educational qualifications. This paper is significant because it ensures there is no shortage of accountants with ESG skills and knowledge, and it can support a government plan to achieve net zero by 2050.

Delving into the Happiness of Professional Accountants: Examining the Interplay Between Personality Traits and Job and Life Satisfaction

This study aimed to determine accountants' personality profiles and test which personality traits make accountants happier at work and in social life. In this context, the relationships between the personality traits of professional accountants (within the scope of the Dark Triad and Big Five) and their job satisfaction, life satisfaction, and personality-profession fit were examined. In this direction, quantitative research was designed, and professional accountants participated (N = 202). According to the findings, it has been determined that the Dark Triad traits (narcissism, Machiavellianism, and psychopathy) of the accountants are at a low level. Levels of dark personality traits were negatively associated with life satisfaction, while job satisfaction and personality-occupation fit were not significantly associated. The highest score regarding Big Five personality traits (i.e., openness to experience, conscientiousness, extraversion, agreeableness, and neuroticism) was obtained in agreeableness among the accountants. A positive relationship was found between the openness to experience, conscientiousness, extraversion, and agreeableness characteristics of accountants and their job satisfaction, life satisfaction, and personality-profession fit, and a negative relationship with neuroticism. As a result, it has been concluded that accounting professionals with high levels of openness to experience, conscientiousness, extraversion, and agreeableness are happier in their work and lives.

Pengaruh Persepsi Profesi dan Kesadaran Etis Terhadap Komitmen Profesi Akuntan Publik

A number of codes of ethics regulate how members of the public accounting profession are expected to behave. The problem of ethical violations that occur in the auditor environment is one of the things that needs to be considered, because it causes public trust in the public accounting profession to decline. The purpose of the written research is to find out: (1) how professional perception influences the level of commitment of the public accounting profession. (2) How ethical awareness influences the dedication of the public accounting profession. The written research is a survey research by distributing questionnaires to the sample directly. Participants in the written research were all auditors working at the Surabaya Public Accounting Office. The sample selected was 40 auditors with a simple sampling technique. Multiple regression analysis was used in the data analysis technique. The conclusion of the written research shows: (1) The commitment of the public accounting profession is significantly and positively influenced by public perception. The auditor's ethical awareness and dedication to the public accounting profession are positively correlated. The implications of the written research are in improving the skills, dedication, and professionalism of auditors working in public accounting offices so that they can provide services expected by the general public. This can be achieved by increasing knowledge in this field, which will influence the perception of the auditor profession. This can be done through training and discussions on the field of auditing.

CYBERATTACKS ON THE ACCOUNTING PROFESSION :A LITERATUR REVIEW

This research reviews the literature on cyberattacks against accounting information systems, focusing on their causes, impacts and mitigation strategies. The results of the systematic mapping show that cyberattacks are caused by various internal and external factors, including system vulnerabilities, human error, and technological evolution. The impact of cyberattacks can be significant, including financial loss, reputational damage, compromise of financial data, erosion of trust, and operational disruption. Addressing these challenges requires a proactive approach that combines technology, policy and education. Investment in cybersecurity, awareness training, and a strong security culture are essential to mitigate cyber risks. Further research is needed to evaluate the effectiveness of cybersecurity strategies, the role of cybersecurity culture, rapid detection and response methods, integration of new technologies, and the impact of regulations. By raising awareness and implementing proactive measures, the accounting profession can improve its cybersecurity posture and protect critical financial information from cyber threats.

Sosialisasi Profesi Akuntansi untuk Meningkatkan Minat dan Motivasi Pelajar SMK Muhammadiyah 9 Jakarta dalam Menghadapi Persaingan Dunia Kerja

e lack of public knowledge of the accounting profession. Even though as long as the business world and offices still exist, the ability and skills in accounting are still needed. The accountant profession is a problem not only because of technological developments but also because of the lack of socialization and promotion related to the output of accounting majors, so that students experience confusion in determining their interests and expected profession. In the digital era, there are concerns that the accounting profession may no longer be needed in the business world. This opinion is based on the perception that more affordable, fast, and accurate accounting software can replace the role of accountants, causing challenges for this profession. Therefore, the socialization of the accounting profession can be used as an opportunity from the threats that will be faced in the future. Socialization is given in the form of lectures, questions and answers and discussions from discussions that are carried out one day considering the busy learning of XII grade vocational students. The results of this socialization were that the participants were very enthusiastic about the material presented because the speakers delivered the material with light language adapted to today's gen Z children, participants could listen to the material well and followed by a question and answer session. The final evaluation was a positive response and good enthusiasm from the students of SMK Muhammadiyah 9 Jakarta along with the teachers of the socialization.

Ambiguity in international financial reporting standards (IFRS) and its impact on judgments of auditors

PurposeThis paper aims to conduct an experiment that investigates the effect of the ambiguity present in international financial reporting standards (IFRS) on the judgments of auditors. This paper also examine the effects of the personality trait of ambiguity tolerance on judgments of auditors.Design/methodology/approachThis paper conduct an experiment in which experienced Australian-based auditors are placed in hypothetical revenue recognition and lease classification decision contexts. The participants are members of the Australian accounting profession who are familiar with applying IFRS.FindingsThis paper find support for the perception that when the relevant IFRS are more ambiguous, auditors make less aggressive reporting judgments compared to when the IFRS are less ambiguous. The results also unveil a novel finding that auditors who are more tolerant of ambiguity are likely to choose the accounting treatment that best reflects the economic substance of a transaction when interpreting IFRS compared to those who are less tolerant of ambiguity.Practical implicationsThese results would be of interest to policymakers and accounting researchers as they continue to contemplate a shift to more principles-based IFRS.Originality/valueTo the best of the authors’ knowledge, this study is the first to examine the influence of an individual’s ambiguity tolerance on financial reporting quality in jurisdictions that have adopted IFRS.

Strategies, requirements, and challenges of transformation of accounting courses to digital teaching via electronic applications: Insights from KKU accounting faculty

The study examined how accounting education has changed from traditional to digital, emphasizing using electronic applications. It aimed to address potential challenges, provide cutting-edge teaching methodologies, and identify transitional requirements. The findings were based on a survey administered to KKU accounting professors, with an 85.7% response rate. A clear strategic vision, adequate funding, a solid digital infrastructure, faculty training in electronic applications, cooperation with technology professionals, and broad support systems are all critical components of the digital transition. Challenges include a lack of accounting software experience among professors, many students, and the high cost of electronic lab equipment. Digital technologies can achieve a smooth transition, planned electronic education, self-study, virtual enterprise applications, and follow-ups on practical applications to ensure proficiency. The study encourages resource allocation, strategic planning, overcoming transitory challenges (mainly through faculty development), and implementing digital teaching methodologies tailored to the specific needs of accounting education. The study underlines the importance of a strategic approach to digital education in accounting to improve student learning and meet modern educational needs. It accomplishes this by emphasizing the importance of faculty training, resource commitment, clear visions, and digital tactics.

The determinants of IT audit usage in Saudi Arabia with specific reference to computer audit assisted tools

Purpose The purpose of this study is to investigate the determinants and the intention to use information technology (IT) audit technologies. Design/methodology/approach The research model explores the external and internal factors that influence IT audit usage in Saudi Arabia. The external factors include IT audit education, professional support provided by professional accounting and auditing bodies, external pressure and social factors. The internal factors include the firm’s organizational support, complexity of accounting information systems, IT audit competency, adoption risk, ease of use and readiness. These factors affect the intention to use IT audits, represented by the perceived benefits and intention to use IT audits, which in turn affect IT audit usage. The study uses structural equation modelling to estimate a sample size of 261 respondents. Findings The findings suggest that internal factors significantly influence both IT audit usage and intention to use IT audits. However, the external factors exhibit insignificant associations with IT audit usage. The findings also indicate that IT auditors in Saudi Arabia heavily rely on Microsoft Excel, Microsoft Word and email/Outlook as essential IT audit tools. However, the findings reveal that there is still a role for specialized IT audit tools such as generalized audit software and Audit Command Language but this usage is marginal. Practical implications The present study provides significant insights for auditors, companies’ boards, professional bodies and policymakers to enhance the development and usage of IT audits. The study revealed the absence of supportive external factors that policymakers and professional bodies should exercise in this regard. The findings also indicate that IT audit education and capacity programmes are required to promote competency and adoption of IT audit technologies. Originality/value The study contributes to IT auditing by identifying significant factors influencing IT audit adoption. It underlines the relevance of internal and external determinants and perceived benefits as drivers of IT audit adoption. The current study provides an original piece of research that highlights a comprehensive investigation of the determinates of IT audit usage in a developing country that is shifting towards artificial intelligence and IT advancements.

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 where normal audit activities became 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 COVID-19 needed both cognitive and technical factors to deliver high-quality audits. Despite the challenges, research into how auditors dealt with these issues is limited, presenting an intriguing area of study. Methods This dataset provides insights into the Saudi auditor’s experience and beliefs regarding audit activities during COVID-19. Through an online survey, researchers collected data from 193 out of 417 registered auditors with the Saudi Organization for Chartered and Professional Accountants (SOCPA). The survey assessed the auditors’ self-efficacy in conducting audits during the pandemic, exploring its sources and potential moderating factors. Specifically, the dataset includes responses on eight items related to self-efficacy, 19 items covering the 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 valuable for researchers analysing the relationship between auditor self-efficacy, its sources, and other influencing factors. Conclusions Overall, the dataset included in this article 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 the COVID-19 consequences. This research 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.

Carbon management accounting an evolving approach to enhance transparency and accountability in accounting and reporting practices

Purpose This study aims to examine the factors driving the adoption of carbon management accounting (CMA) and various considerations that mediate its effectiveness in accounting and disclosure practices. Design/methodology/approach This study used an exploratory, cross-sectional, quantitative design. Academics, managements/executives, professional accountants, professional auditors and researchers served as the primary units of analysis. This study used a survey method to gather data through a structured online questionnaire. The data were analyzed using descriptive statistics and partial least squares structural equation modeling (PLS-SEM). Findings The results revealed that the factors driving the adoption of CMA directly influence the effectiveness of CMA practices, with a significant mediating effect of regulatory and ethical aspects. Furthermore, this study revealed the difficulty of accounting, quantifying and reporting carbon emissions and revenue generation from the trading of carbon credits. This highlights the critical role of standard-setters and academics in deciding the concrete methodology to promote uniformity in carbon disclosures. Research limitations/implications The major limitations of this study are that it considered only the perception of experts and did not study the actual practices of CMA by considering companies that have already implemented CMA. Further studies should consider this aspect to validate the results of this study. Furthermore, the findings highlight the insignificant effect of economic, environmental and social aspects in enhancing the overall effectiveness of CMA. This is because of the limited number of factors considered in the study of such metrics. To overcome this limitation, future studies should consider wider aspects to validate the outcomes of this study. Practical implications The major contribution of this study is that it serves as a base input for business organizations, academics, researchers and regulatory authorities who are working to implement CMA strategies to reduce carbon emissions and promote net-zero business practices. Originality/value The outcome of this study is unique and new, as the subject matter of this study is in the nascent stage. The outcome of this study may become a significant valid input for regulators and policymaking companies to gain knowledge about CMA practices and motivate them to integrate CMA practices as part of their sustainability initiatives.

Moral intensity and ethical decision-making: a combined importance-performance map analysis for professional accountants

Purpose The purpose of this study is to examine the influence of moral intensity on the ethical decision-making process of professional accountants based on a combined importance-performance map analysis (cIPMA). Design/methodology/approach Using partial least squares structural equation modeling (PLS-SEM) on data from 309 accountants, the study examined the relationships between four moral intensity dimensions: magnitude of consequences, social consensus, probability of effect and concentration of effect, and the ethical decision-making process. The study also methodologically complemented by a combined importance-performance map analysis and necessary condition analysis. Findings The findings reveal that moral recognition and moral judgment are necessary conditions for predicting accountants’ moral intent. However, in terms of importance and performance, moral recognition plays a less significant role compared to moral judgment. Furthermore, the influence of moral intensity dimensions is pronounced on moral recognition, while their influence on moral judgment and moral intent is more context dependent. This is also exhibited in the combined importance-performance map analysis results. Research limitations/implications The study highlights the importance of considering specific ethical dilemmas and the differential influence of moral intensity when developing strategies to strengthen ethical decision-making in the accounting profession. Future research is encouraged to explore how cultural backgrounds and diverse settings influence accountants’ ethical decision-making with tailored measurement tools for a more comprehensive understanding. Originality/value To the best of the authors’ knowledge, the study is among the first to complement the results of PLS-SEM with importance-performance map analysis and necessary condition analysis to examine the relationship between moral intensity and ethical decision-making of accountants.

Key Strategies for Enhancing Professional Accounting Value through Effective Talent Development

Key Strategies for Enhancing Professional Accounting Value through Effective Talent Development

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.

Sustainability accounting education: challenges and outlook

PurposeThis viewpoint aims to discuss the transformative role, the current challenges and the outlook of sustainability accounting education (SAE).Design/methodology/approachHigher education institutions (HEIs) have a “social responsibility” to foster competencies and skills for sustainable development within their student bodies and communities. Previous literature has explored the interplay between HEIs and sustainable development goals (SDGs) by exploring the need to incorporate the SDGs within an institution’s learning and teaching objectives. We conduct a review of previous studies, together with an informative understanding of the role of sustainability accounting education in HEIs.FindingsBased on this review, we argue that universities can enhance the SDGs by training skilled young people in sustainability accounting, thus fostering a “transformative role” in society. The authors highlight two directions for expanding SAE: (1) there is an urgent need to improve the accounting curriculum, thus including greater attention to ecological systems, business ethics and values; and (2) new inclusive and constructionist pedagogies should be offered to radically transform the education of future accounting professionals.Practical implicationsAccounting and business educators in HEIs need to consider updating and upgrading systematically the existing curricula with pertinent learning outcomes and competency development relevant to SDGs and sustainability accounting. This transformative opportunity also requires engagement with the professional bodies to determine the professional curriculum. Engagement with professional accounting bodies could be challenging to transform the accountancy professions in two directions – employability and lifelong learning. New accounting professions will emerge in the future and the interplay with the current HEI model and program is crucial.Originality/valueThis paper fulfils an identified need to discuss, support and move sustainability accounting education forward.

Digitalization and management accountants’ role conflict and ambiguity: A double-edged sword for the profession

This study investigates the relationship between the anticipated digitalization of the finance and control function and management accountants' (MAs') role conflict and ambiguity. Drawing on role theory, we argue that digitalization is associated with increases in MAs' role conflict and ambiguity because digitalization leads to adaptations in the established role templates of MAs and also introduces new templates for the digital age. We further argue that digitalization is associated with a stronger (weaker) increase in role conflict and ambiguity the more MAs have a watchdog (business partner) orientation. The reason is that the role templates for the digital age are less coherent and clear for watchdog-oriented MAs than for their business partner counterparts. We test our predictions using survey data from 242 MAs in Dutch for-profit firms. While we do not find that digitalization is associated with MAs’ role conflict and ambiguity per se, it is associated with more (less) role ambiguity and conflict for MAs with a relatively stronger watchdog (business partner) orientation. Digitalization may thus act as a double-edged sword for the management accounting profession. MAs focusing on the watchdog role may struggle in the digital age, while their business partner counterparts are set to benefit from digitalization.

Digitalization tensions in the management accounting profession: Boundary work responses and their consequences

This study examines senior finance professionals' experiences and responses to digitalization tensions by applying a boundary-work theoretical lens. Based on interview data, we find that individuals use six boundary work strategies to respond to digitalization, namely, 1. Expansion into business partner roles; 2. Expansion into other specialisms; 3. Defensive boundary work; 4. Cross-functional collaborative boundary work; 5. Boundary spanning/bridging work; and 6. Organizational restructuring work. We also examine finance professionals’ different perceptions regarding the permeability of accounting boundaries and the effects of digitalization, which underpin the use of different strategies. Finally, we shed light on the unintended consequences of these boundary work activities for inter-professional competition, for the nature and scope of accounting roles, and for the future of the management accounting profession, more broadly.

Exploring Multi-level Drivers of Accountants’ Opinions on the Changes Introduced by the Corporate Sustainability Reporting Directive

This study aims to identify drivers influencing Poland-based accountants’ opinions towards stricter sustainability reporting regulations in the Corporate Sustainability Reporting Directive (CSRD). Employing a multilevel model of social change as the theoretical framework, we analysed responses from 1,076 accountants in 2021. We used logit regression, to assess accountants’ perspectives on the expansion of sustainability reporting to a greater number of companies and its mandatory assurance. Our findings reveal that drivers at transnational (international regulations and standards), organisational (benefits tied to sustainability reporting), and individual (knowledge of reporting regulations) levels positively influence support for these measures. Conversely, drivers at the national level, captured by membership in the professional accountants’ association, were irrelevant. Our findings suggest that regulatory bodies should educate accountants on the benefits of sustainability reporting to improve their receptivity to new requirements. Countries adopting sustainability reporting later may need to invest more in developing accountants’ knowledge and skills.