This paper seeks to investigate the influence of stakeholders on accountability relationships and the development of accounting practices and processes within two…
This paper seeks to investigate the influence of stakeholders on accountability relationships and the development of accounting practices and processes within two Tanzanian non‐governmental organisations (NGOs).
Stakeholder analysis is employed to evaluate the positions of stakeholder groups in terms of Mitchell et al.'s attributes of power, legitimacy and urgency. Data analysis was undertaken using a grounded theory approach.
The research found that overseas donors were the stakeholders with the highest salience as a result of which they significantly influenced accountability relationships and accounting processes and practices within NGOs. Despite the often proclaimed NGOs' objective of improving welfare of beneficiary groups there appeared to be little accountability by NGOs to beneficiaries. Differences in the accounting functions in the NGOs were explained by the influence of dominant stakeholders, the credibility of the organisation and its managers and the varied ways through which the organisations negotiated and accounted for funding. Moreover, accounting was virtually unemployed in internal decision‐making processes indicating that it was largely a tool for satisfying claims of the highly salient stakeholders.
This paper makes a contribution to the literatures of both stakeholder theory and NGO accounting. From the grounded theory analysis it is suggested that the stakeholder framework of Mitchell et al. could be usefully extended in the three areas of power asymmetries of definitive stakeholders, stakeholder salience asymmetries across organisational phenomena and asymmetries across time.
The paper contributes to the empirical accounting literature by seeking a deeper understanding of how and why accounting and accountability relationships develop within NGOs. It sheds light on a type of organisation that has not been extensively studied in the public sector management literature.
Audit committees have become more important and prevalent in recent years but there is a relative paucity of empirical research concerning their value. This paper…
Audit committees have become more important and prevalent in recent years but there is a relative paucity of empirical research concerning their value. This paper contributes to this research by reporting an analysis of the relationship between the size of the audit fee and the existence of an audit committee. The analysis builds on previous research in this area in several ways. First, it uses more recent data than previous research which may have been influenced by transitional problems. The data in this paper were collected from financial reports for the years ending in 1994 and 1995. Second, it investigates the effect on audit fees of audit committee adherence to the Cadbury Committee Report recommendations of 1992. Finally, the analysis is set within a theoretical framework developed from agency theory. The results suggest that audit committees have been through a transitional phase comprising changes to the general audit environment and a learning phase for the establishment and operation of committees. By 1995 there is no evidence that audit committees, whether adhering to the Cadbury Code or not, have any overall effect on audit fees. The only effect found was a reduction in fees due to improved internal controls in the presence of auditee complexity. There was evidence that size was the main determinant of the presence of an audit committee.
Addresses the Accounting, Auditing & Accountability Journal's actions and issues of concern to the accounting academic community and describes some interdisplinary…
Addresses the Accounting, Auditing & Accountability Journal's actions and issues of concern to the accounting academic community and describes some interdisplinary perspectives on accounting, auditing and accountability (IPAAA). Concludes that the IPAAA movement has clearly arrived in the accounting discipline and has firmly established its place in the international scholarly community.