Search

Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility plays in shaping their performance. In one direction, behavior consistency theory implies that individual auditors exhibiting more social commitment in their off-the-job activities behave similarly during engagements, enhancing the quality of their audits. In the other direction, accounting firms' internal structures along with external disciplinary forces mute the impact of heterogeneous auditor characteristics on their performance. In a staggered difference-in-differences design, we report a significant fall in the magnitude of companies' discretionary accruals and the incidence of financial reporting irregularities after their auditors begin contributing to social welfare, relative to companies whose auditors refrain from contributing during the same timeframe. Additional evidence implies that the higher audit quality stems from auditors better protecting their independence and improving their competence in the post-contribution period. Collectively, our results provide insights into the importance of auditors' prosocial attitudes to their external monitoring. [ABSTRACT FROM AUTHOR]

Recent corporate governance scandals have been attributed to a lack of board independence because of the influence CEOs have over their boards. However, CEOs can also affect board efficacy without compromising its independence by strategically choosing directors. We offer a theoretical framework to examine how CEOs can strategically choose director characteristics (such as expertise and skill set) to influence the inner workings of the board. We examine how director expertise affects the board's equilibrium voting strategies and show that some "passivity" on the part of directors can in fact be desirable equilibrium behavior. More importantly, we show that managers can strategically appoint independent outside directors to influence board voting in their favor. Surprisingly, contrary to what we might expect, we find that opportunistic (principled) managers may not always appoint the least (most) able directors to the board. We also examine whether CEOs would prefer a "captured" board (i.e., an insider‐dominated board) and show that the value of director input (i.e., the board's advising role) and the financial markets can discourage CEOs from pursuing such appointments. [ABSTRACT FROM AUTHOR]

This paper synthesises the research related to managing conflict of interests in professional accounting firms. The main purpose is to provide information about the current state of knowledge on this topic and to highlight the areas requiring further research. The extant research has been reviewed by developing a framework through the integration of Risk Management Framework by ISO 31000:2009 and the International Code of Ethics for Professional Accountants. Specifically, literature has been classified across the establishment of context, assessment, treatment, control and monitoring of conflict of interests. The literature reveals that there is a lack of understanding about how the conflict of interests operates at the level of an individual accounting professional. Addressing this gap will help to develop behavioural interventions for strengthening the professionals' independence in fact and, thereby, facilitating the management of conflict of interests. The key message this synthesised research provides for professional accounting firms and the regulators is that, for effective management of conflict of interests, behavioural interventions should be informed by the professionals' unconscious (automatic) as well as their conscious (controlled) cognitive processes. This study is the first one to view the conflict of interests in a professional accounting environment through the lens of behavioural risk management. Moreover, the framework adopted for reviewing the extant literature provides a comprehensive view of the issues surrounding the ineffective management of the conflict of interests. [ABSTRACT FROM AUTHOR]

In this paper, we study a broad sample of Arthur Andersen clients and investigate whether the decline in Andersen's reputation, due to its criminal indictment on March 14, 2002, adversely affected the stock market's perception of its audit quality. Because these reputational concerns are more of an issue if an auditor's independence is impaired, we investigate the relationship between the abnormal market returns for Andersen clients around the time of the indictment announcement and several fee-based measures of auditor independence. Our results suggest that when news about Andersen's indictment was released, the market reacted negatively to Andersen clients. More importantly, we find that the indictment period abnormal return is significantly more negative when the market perceived the auditor's independence to be threatened. We also examine the abnormal returns when firms announced the dismissal of Andersen as an auditor. Consistent with the audit quality explanation, we document that when firms quickly dismissed Andersen, the announcement returns are significantly higher when firms switched to a Big 4 auditor than when they either switched to non-Big 4 auditors or did not announce the identity of the replacement auditor. Our empirical results support the notion that auditor reputation and independence have a material impact on perceived audit quality and the credibility of audited financial statements, and that the market prices this. [ABSTRACT FROM AUTHOR]

This study examines the effect of independence threats and litigation risk on auditors' evaluation of information and subsequent reporting choices. Using a Web-based experiment, I tracked auditors' information gathering and evaluation leading to a going-concern reporting decision. Specifically, 48 audit managers assessed client survival likelihood, gathered additional information, and suggested audit report choices. I found that auditors facing high independence threats (fear of losing the client) evaluated information as more indicative of a surviving client and were more likely to suggest an unmodified audit report, consistent with client preferences. In contrast, auditors facing high litigation risk evaluated information as more indicative of a failing client and were more likely to suggest a modified audit report. In addition, the association between risk and report choice was fully mediated by final information evaluation. This suggests that it is unlikely that different reporting choices resulted from a conscious choice bias, but rather that motivated reasoning during evidence evaluation plays a key role in the effect of risk in auditor decision making. [ABSTRACT FROM AUTHOR]

This paper empirically tests a model that links economic, cultural and information/monitoring variables to corruption in 61 countries. The results offer significant evidence to suggest that higher GNP per capita, moderate economic growth, effective legal and financial accounting systems, collectivist values and low power distance are associated with countries that have low corruption. Countries that have better laws, more effective judiciary, good financial reporting standards, and a higher concentration of accountants are found to be less corrupt. [ABSTRACT FROM AUTHOR]

Equity analysts are often hired by firms they cover. I document the extent to which this revolving door phenomenon impairs analysts' independence. I do this by examining the presence of biased research reports issued during the year before analysts are employed by a firm they cover. I find that during their final year, revolving door analysts bias their EPS forecasts, their target prices, and their recommendations in a direction that suggests that they are attempting to gain favor from their prospective employers. Specifically, relative to other analysts, revolving door analysts issue more optimistic reports on the firms that hire them, and they issue more pessimistic reports on firms that do not hire them. These results suggest the presence of strategic bias, although more innocuous interpretations cannot be completely ruled out. JEL Classifications: G14; G17; G24; G28; M41. Data Availability: Data are available from public sources identified in the text. [ABSTRACT FROM AUTHOR]

This paper reports the findings of a study that replicates and extends the Libby study. One extension was made possible by the use of Canadian rather than U.S. subjects. Since 1980, Canadian bankers have been operating in a system where subject-to opinions have been eliminated. Other extensions involved the use of various segmentations of information, different sequences of the flow of information and judgments, multiple loan applicants (borrowers), and a one-to-one interviewing scheme which converted the bankers' offices into individual laboratories. [ABSTRACT FROM AUTHOR]

The article addresses the issue of auditor independence and seeks to provide a workable definition and whether or not audit firms should provide their clients with nonaudit services. It is noted that the crux of the matter of independence lies in the relationship between the manager and auditor and the amount of cooperation between the two. The author presents a model that uses agency theory and takes into account moral hazard as forces that direct agents' actions. An equilibrium concept is presented that is based on game theory and can be considered as either cooperative or noncooperative.

CPAs are frequently called on to provide advice to investors in specified real properties. Projections of cash flows and anticipated rates of return are an important element in the analysis. CPAs are constrained in their ability to make statements on certain aspects of projections by professional guidelines. The author presents arguments for and against greater involvement of the CPA, along with a comprehensive survey of CPAs, attorneys, broker-dealers, and syndicators as to their perceptions of the role of the CPA. [ABSTRACT FROM AUTHOR]

This paper describes a psychological framework that examines auditors' conceptions of independence in the context of ethical cognition. An experimental study of independence judgments of 119 partners and managers in two national public accounting firms is reported. Using a well-known measure of ethical cognition, this study examines auditors' implicit reasoning in the resolution of an independence paradigm. The most significant are that (1) a systematic relationship between auditors' measured ethical cognition and their resolution of an independence conflict exists, (2) the penalty attribute is a much stronger influence than the affiliation attribute on the auditors' ethical resolve, and (3) the cognitive measure used in this study can be used efficiently to explain priority rankings of a majority of independence attributes developed in earlier research. [ABSTRACT FROM AUTHOR]

The Metcalf staff's report in 1976 arrived at several conclusions concerning alleged dominance of the Big 8 accounting firms in the standards-setting process, alleged lack of independence from clients, and alleged virtual control over all aspects of accounting and auditing. The author finds no supporting evidence was used by the Metcalf staff and, accordingly, undertakes to study empirically the charges. The study indicates no empirical support for the allegations. These findings are relevant in view of impending congressional hearings. [ABSTRACT FROM AUTHOR]

The article discusses the need for the creators of accounting principles to consider the substance of transactions as conceived by the outside world. Accountants are indirectly involved in all the economic trends that emerge, including the newest catchphrase in the 1970s, rational expectations. The concept suggests that people make important decisions according to their perceptions of past and future conditions. Accounting seems to depart from reality when recording transactions involving rational expectations. This departure stems from accountants' desire to separate the results of a transaction into its components in contrast to the desire of management to determine how the whole project came out.

The article discusses SAS No. 30, or the clarification and extension of the accountant's involvement with reporting on internal accounting control. It also modified responsibilities of independent accountants engaged to report on systems of internal accounting control. The article also tried to briefly summarize several changes in concepts and procedures related to internal accounting control that result from SAS No.30. It provided a summary of the manner in which responsibilities and procedured differ depending on the type of report on internal accounting control that the accountant is requested to issue. SAS No. 30 provides an extremely important modification of existing guidance to accountants by redefining a "material weakness" in internal accounting control.

This article presents comments of the author on the paper "The Auditing Standard of Consistency," by Fred Neumann. The author states that in his paper Neumann is concerned with whether or not there is a standard of materiality and that it is interesting to note that Neumann does not distinguish between principles and practices. He explains that this lack of distinction is not unique to this research because it has been with us throughout the development of accounting practice. He says that it is just as well that no distinction has been attempted in this paper because it seems that the central issue is not whether a principle or practice has been changed but rather has the effect of the change been greater than some lower level.

The article reports on professional ethics in the accounting profession and discusses the paper, "Professional Responsibilities - An Empirical Suggestion," by Carl Devine. The author analyzes the validity and specificity of Devine's hypotheses in his paper as well as his use of background variables in researching the attitudes of professional accountants. Devine states that the longer an accountant is serving with a particular firm than the stronger that accountant's identity with the firm and firm associates should be. However, he claims that dissatisfaction becomes a problem with long association at a firm in a low level with no advancement.

A conference paper about auditing and accounting is presented. It discusses the definition of critical synthesis which is an antonym for analysis and how the author will analyze research done on auditing practices and accounting. It examines other papers concerning auditing procedures and accounting methods including the one by Neil Churchill.

The purpose of this study is to investigate and analyse how the internal audit process as well as the outcome of that process is used for politically reasons. This will be accomplished by applying the political theory of politicisation to the analysis of the internal audit process within Swedish local authorities. By applying the theory of politicisation, this study contributes to our understanding of how the internal audit process is open for the use of (de‐)politicisation as strategies to influence stakeholders' perception of the audit process as well as the identity and legitimacy of the auditee. Especially interesting is perhaps how politicisation in combination with de‐politicisation can be used to either put emphasis on issues of political relevance or avoid addressing issues that are politically sensitive. Previous research on auditing in public sector organisations has predominately focussed on audit independence and the role of auditors. By applying a new perspective to the role of auditing in public sector organisations and by focussing on the process and the outcome instead of function, this study increases our understanding of auditing in politically governed organisations. [ABSTRACT FROM AUTHOR]

This study examines practitioners' perspectives on audit firm rotation and alternative solutions to enhance independence in the audit industry as solicited by the PCAOB's ''Concept Release on Audit Firm Rotation and Auditor Independence.'' Accordingly, we synthesize the opinions found in comment letters of 15 American public accounting firms--eight of which are annually inspected by the PCAOB and seven of which are inspected tri-annually. Altogether, we find the firms generally offer homogenous rationale for opposition to audit firm rotation. However, most importantly, we note that the overwhelming majority of the alternative solutions offered by the firms to enhance the independence relationship between auditor and client lies with fortifying the audit committee. To that end, while regulators have generally attempted to strengthen independence by introducing regulation at the auditor level, our review indicates that perhaps a shift in regulatory philosophy is warranted--one that suggests progressing regulation at the client level. [ABSTRACT FROM AUTHOR]

We study the association between auditor reappointment (initial relationship stage), including recurring auditor appointment over several consecutive years (close relationship stage) and company engagement in related-party transactions (RPTs) for selected listed companies from Hong Kong, Malaysia, Singapore and Thailand. The results show that auditor reappointment has significant and negative associations with company engagement in RPTs. By contrast, the close ACR relationship increases company engagement in RPTs. The evidence also suggests that Big 4 audit firms can reduce company engagement in RPTs, even when they have a close relationship. However, the findings derived from a sub-sample of RPT companies suggest that the close relationship between Big 4 audit firms and their clients substantially encourages companies to engage in RPTs. Overall, these findings are consistent with theories in which higher audit quality is effective at monitoring RPTs, but the established relationship looks likely to create conflicting opinions that impair auditors' independent judgment. Nevertheless, the likelihood of conflict disappears when clients operate in countries that more effectively implement and enforce regulations and protect minority shareholders. [ABSTRACT FROM AUTHOR]

China has adopted an executive-dominated government audit system (GAS), which is frequently criticized for lacking independence. Through a questionnaire survey and interviews, we investigate whether and how the reporting/control requirements of the GAS (hereafter, the institutional arrangements) result in a lack of government audit independence in China and how this affects budget supervision by the People's Congress. We contribute field evidence to support the prediction that an executive-dominated GAS lacks independence and transparency, which in turn is detrimental to the wider accountability regime. However, the specific level of independence varies according to the types and levels of government audit. Our findings enrich the government audit literature, enhance our understanding of the relationship between institutional arrangements and audit independence in a transition economy, and serve as a call for institutional reform relating to the Chinese GAS. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the author discusses various reports within the issue that focus on issues and controversies relevant to accounting in China, such as institutional arrangements and government audit independence, monitoring role of financial analysts, and pay gap.

Purpose: The purpose of this research is to examine whether framing can influence the cognitive perceptions of accountants making financial investment decisions resulting a violation of the rational decision-making model. Design/Method/Approach: A survey of accounting practitioners was undertaken involving random distribution of four versions of a single reinvestment decision task to investigate the influence of framing on the cognitive processing of accounting professionals. The framing was also manipulated using verbal and numerical probabilities. Statistical testing of the hypotheses involved the application of t tests, chi-square tests, ANOVAs and MANOVAs. Findings The results did not follow the direction of risk behaviour predicted by Prospect Theory. That is, in the negative frame, greater risk-avoidance was evident. While in the positive frame greater risk-taking was evident. These findings also failed to demonstrate the predicted outcomes of Image Theory in regards to perception of problem space as the respondent accountants exhibited a tendency toward a controlled mode within their decisionmaking process regardless of framing. [ABSTRACT FROM AUTHOR]

ABSTRACT In light of the growing importance of internal audit functions (IAF) and the limited archival evidence on internal audit quality, we examine an interactive model of IAF quality (comprised of competence and independence) to better understand the determinants of IAF effectiveness as a financial reporting monitor. Our tests support the hypothesis that the joint presence of competence and independence is a necessary antecedent to effective IAF financial reporting monitoring. In sum, our results show that, the answer to 'what is the effect of internal audit competence (independence) on financial reporting quality?' is 'it depends on the independence (competence) of the internal auditor.' Our study extends the understanding of IAF quality determinants in the realm of financial reporting as it relates to ongoing discussions by researchers, standard setters, regulators, and practitioners. [ABSTRACT FROM AUTHOR]

This study examines the effects of guanxi and audit independence on the corporate tax aggressiveness of Chinese firms. Based on a survey completed by 174 respondents in 2013, we find that two types of guanxi: favour-seeking guanxi and rentseeking guanxi are significantly associated with ethical judgments of corporate tax aggressiveness. Perceptions of audit independence in-fact are significantly negatively associated with these ethical judgments, whereas audit independence inappearance is positively associated with them. Further, significantly positive associations exist between perceptions that taxaggressive activities are good for the firm and its shareholders and favour-seeking guanxi and between these perceptions and stronger client-auditor relations. This study provides insights into the association between types of guanxi and the propensity of firm management to engage in corporate tax aggressiveness. [ABSTRACT FROM AUTHOR]

This research challenges the longstanding view that all auditor independence violations impair independence by considering Taylor et al.'s (2003) reliability framework, which proposes that service-related independence violations improve financial reporting reliability. This assertion is investigated by examining commercial lending officers' perceptions of local and regional non-Big 4 CPA firms' ability to improve financial reporting reliability when performing review, bookkeeping, and payroll services for the same nonpublic client. One-hundred and one participants who completed a between-subjects experiment indicate that auditor objectivity and the financial reporting reliability resulting from the independent review engagement are superior to a review engagement in which firms' independence is violated by service-related impairments. Additional tests indicate that participants perceive regional non-Big 4 firms as being more objective and providing more reliable financial reporting than local non-Big 4 firms when performing an independent review engagement. However, this significant difference does not persist when local and regional CPA firms' independence is violated by service-related impairments. These results have implications for research regarding the paradigm shift from independence to financial reporting reliability, and implications for future public policy which builds on accounting regulators' recent attempt to allow service-related independence impairments. [ABSTRACT FROM AUTHOR]

Copyright of Accounting Perspectives is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

An understanding of the standards for attest engagements is an important component of the body of knowledge that certified public accountants are expected to possess, and attestation standards became a more important portion of the CPA exam in 2011. However, few instructional case studies are available that deal specifically with the attestation function outside of the financial statement audit. This case is based on real events and addresses some of the key aspects of the attestation standards. The CPA firm of Altschuler, Melvoin, and Glasser, LLP provided an attestation report regarding the assertion of Sentinel Management Group (a registered investment adviser) that it had complied with regulations regarding recordkeeping and custody of assets held for its investment clients. The accounting firm failed to follow the applicable attestation standards and, as a result, did not detect material non-compliance with the recordkeeping and custody regulations for investment advisers. [ABSTRACT FROM AUTHOR]

In the audit field, independence is a difficult concept to define. It is necessary to insert such concept in its involving context, and because of that, it becomes historically mutable. Objectivity and neutrality integrate the concept of independence in audit and, therefore, the joint supply audit, even though being corroborated by its pure economic theory, has considerable costs to the auditor and to the market. Moreover, the joint supply audit also represents a threat to all stakeholders. By being a multidimensional concept, it is permanently at sight of regulators, given its importance to the efficient functioning of financial markets. Society demands independence in order to be inserted in a fundamental standard in the audit practice. [ABSTRACT FROM AUTHOR]

The article focuses on the accountancy practices by accountants in China. It discusses the reference of job of accountant in China as a gatekeeper by referring to the quality of their auditing work for detecting corporate wrongdoing in corporate documents such as fraudulent misrepresentation in annual account. It includes information on several factors that affects the independence and effciency of accountants including industrial management and legal liability regime.

Professional accountants have an important role in society, moreover that they can be distinguished from other professions by assuming responsibility to the public. Policies and accounting estimates require the call for professional judgment to identify the moment of their change, of broad implications and transmission of induced effects on users. This paper deals with aspects related to the importance of professional judgment, its need in accounting, including the case of policies and accounting estimates changes, the provisions of national and international regulatory framework and, in this regard, possibilities for implementing changes and presenting information. [ABSTRACT FROM AUTHOR]

The goal of this paper is to determine the factors that explain voluntary improvements in audit committee activity, independence and financial expertise, both individually and jointly, within a corporate governance environment other than those used in previous works. These audit committee characteristics have been selected because previous authors have found that these attributes improve the effectiveness of this monitoring committee. The findings included a relatively high level of the proxies of audit committee effectiveness for those companies which display the best practices in terms of their board of directors' independence and activities. At the same time, we observed a non-linear relationship of substitution among internal control mechanisms, management ownership and audit committee characteristics. [ABSTRACT FROM AUTHOR]

Copyright of Business Consultant / Poslovni Konsultant is the property of FINconsult Ltd. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose – The purpose of this paper is to provide comment on the contribution of the Environmental performance accountability special issue of Accounting, Auditing & Accountability Journal published in 1997 towards the innovation through a personal reflection developed from the perceived need to move academics and practitioners into the same space on environmental improvement by organisations. In addition, the paper will offer future directions for environmental performance accountability research, including the potential for tools such as integrated reporting, the need for theoretical pragmatism and importance of a transdisciplinary approach to research. Design/methodology/approach – The diegetic method used for this article allowed for the provision of a narrative about actions, characters and events of interest to an audience. This method facilitated the intersection between the biographical and the historical content and context, and a hypodiegesis provided the ability for an embedded story within the larger history. The approach allowed for a hypodiegetic as the story within the story of developing the relationships between academic accountants and practitioners. Findings – Contained in the special issue is a set of articles marking the extremes of academic and practitioner perspectives on what is broadly termed environmental performance and accountability. Review of the content of the special issue reveals that the bias is towards academic rather than practitioner appreciation. Review of the context providing the setting for the special issue shows the need for publishers to engage in the social media mechanisms needed to commence dialogue and convey the messages of academics to practitioners. Research limitations/implications – Subjective assessment is overtly recognized rather than subsumed in the research methods adopted. Practical implications – The embedding of articles in special issues within a broader communications portfolio for practitioner understanding is suggested. Originality/value – The nature of the personal reflection means that thoughts recorded are novel and unique. [ABSTRACT FROM AUTHOR]

Copyright of Science & Studies of Accounting & Finance: Problems & Perspectives / Apskaitos ir Finansu Mokslas ir Studijos: Problemos ir Perspectyvos is the property of Vytautas Magnus University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study reports the results of a behavioral experiment examining whether financial analysts from Australia, the United States, and the United Kingdom perceive a difference in the credibility of stand-alone corporate social responsibility (CSR) reports depending on whether they are assured, and the type of assurance provider (professional accountants versus sustainability consultants). We further examine whether the perceived credibility differs for financial analysts from the different countries and whether results hold for companies from different industries. The overall results show the credibility of a CSR report is greater when it is assured and when the assurer is a professional accountant. While assurance increases the credibility of the information in each of the three countries included, the relative impact is context-specific. Information is perceived to be more credible when a company is from an industry where assurance is more commonplace, and by financial analysts from the United States when the assurer is a professional accountant. Financial analysts from Australia and the United Kingdom perceive little difference in the enhanced credibility provided by the different assurance providers. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Auditing Perspective Magazine / Muhasebe ve Denetime Bakış is the property of Union of Chambers of Certified Public Accountants of Turkey (TURMOB) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The accounting/auditing profession in Ireland has maintained a form of self-regulation since the era of professional formation in the late-nineteenth century. In general, the view taken was that the public interest was best served by allowing the profession to monitor and regulate its own members. This reflected a general confidence in the workings of the market, with regulation being considered necessary only to address specific shortcomings. In recent years, a combination of factors ranging from corporate collapses in which the independence of the auditing profession was questioned, to a variety of political pressures arising from globalisation and the exigencies of international financial markets, have created an environment in which increased state involvement has been seen as critical to securing the public interest. In Ireland, these international developments conjoined with political and media disquiet at revelations regarding the conduct of prominent accountants and auditing firms to create an environment in which modifications to this regime could be considered. The result was a state initiative to introduce an independent authority, the Irish Auditing and Accounting Supervisory Authority, to regulate the profession. Using public interest theories as the dominant paradigm, this paper investigates this development. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to show different Iranian accountants' as well shareholders' ideas on Non-audit services and their effects on audit independence in Iran. In other words, in this paper the authors have attempted to deal with this question: does providing non-audit services by an Iranian auditor impair audit independence? And in order to gather usable data a suitable questionnaire was designed and developed. The results of this study show that the participants strongly believe that non-audit services may impair audit independence. It is interesting to note that, although the auditors offer to clients non-audit services, they believe that offering such services leads to audit independence being questionable. Further, the result reveals that literate participants moderately agree that NAS has a negative effect on audit independence, however illiterate participants strongly agree that NAS has a negative affect on audit independence. This paper is the first paper which includes two groups of participants: the first group is auditors in general, or we can call them academiciana with pretensions to having auditing literacy and the second group is non- academician, including stakeholders who may not have auditing literacy skills. This may useful for future studies regarding the non-audit service and its effect on audit independence. [ABSTRACT FROM AUTHOR]

In this paper we discuss the importance of management accounting information for the owner-managers of small and medium enterprises (SMEs). We firstly, trace developments in management accounting thoughts and theories, and this is followed by the nature of SMEs and their demand for management accounting information. We then discuss the pressures on small accounting practitioners (SAPs) and their ability to meet SMEs' management accounting needs. The paper ends with opportunities, challenges and future directions for SMEs, SAPs, and researchers in management accounting and control systems (MACS). [ABSTRACT FROM AUTHOR]

Accounting education has come under criticism over the past two decades for failing to meet the demands of the changing business environment. This paper presents the results of a survey of accounting graduates and employers from Ghana on the accounting knowledge and skills required by graduates. We examined both the professional and information technology (IT) skill requirements of the graduates. These skills are relevant to preparing the graduates for careers as professional accountants. Analytical/critical thinking was rated as the most important professional skill by both the employers and the graduates. In terms of IT skills, the use of spreadsheet packages was rated by both groups as the most important skill. The only significant differences between the two groups were the IT skills in word-processing and Windows. The findings of the paper have implications for accounting education in Ghana and in other developing countries. [ABSTRACT FROM AUTHOR]

Copyright of Social Sciences (1392-0758) is the property of Kaunas University of Technology and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this study is to provide evidence for the accountants and financial analyst' perceptions on qualitative characteristics of financial statements prepared by the publicly held companies under IAS / IFRS. In accordance with this aim, a questionnaire was sent by electronic mail to 230 accountants and 90 financial analysts. The total number of completed questionnaires is 37 with response percentage, %10 for accountants and %15,6 for financial analysts. As a result of this study, it is found that by the 5 point likert scale, the arithmetic means of answers given for qualitative characteristics of financial statements range from 3,09 to 3,87 for accountants and from 2.64 to 3,71 for financial analysts. The accountants and financial analysts both give great importance on reliability of financial statements. They consider that balance sheet and income statement are the most important financial statements. [ABSTRACT FROM AUTHOR]

This study focuses on accounting education in the Syrian transition context and in the international context of globalization. It offers insights into accounting education and into the interrelationship in this respect between the accountancy profession and academia in this context. We elaborate an historical and contextual analysis of the Syrian context in relation to accounting education. We report on a series of interviews (conducted in 2002 and 2005) of professional accountants and accounting academics in Syria that elaborates the views of these key parties on a number of interrelated matters: the current limitations of tertiary accounting education in Syria; the role of the accountancy profession in providing education and training; and the developing interrelationship between the profession and academia. In concluding, we summarize some key insights and elaborate on the relevance of the study and the future research it suggests. [ABSTRACT FROM AUTHOR]

The author offers opinions on accounting. A series of generally recognized problems in accounting are discussed to support the contention that a significant part of accounting standards and methods involvement measurements of financial data that are inherently subjective and arbitrary. The tendency of accountants and accounting organizations to make changes to standards and rules in response to outside criticism rather than to acknowledge accounting's limitations as inevitable is criticized.

The article presents information on a study related to financial management which included investigation of difference in the characteristics of an audit committee between financially distressed and non-distressed companies listed on Bursa Malaysia Bhd. It includes information on distress among big companies as a sign of weak corporate governance along with the information on the study which involved examination of characteristics of audit committee including size, independence and accounting knowledge. It further states that the results of the study depict that financial literacy of an audit committee is a vital necessity for enhancing the financial performance of a company.