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21 – 30 of over 4000Luca Ferri, Rosanna Spanò, Gianluca Ginesti and Grigorios Theodosopoulos
This study aims to provide an empirically informed view on the auditing profession’s readiness to embrace “disruptive” technologies. Relying on evidence from Big 4 employees in…
Abstract
Purpose
This study aims to provide an empirically informed view on the auditing profession’s readiness to embrace “disruptive” technologies. Relying on evidence from Big 4 employees in Italy, this study examines the factors that motivate auditors to use blockchain technology (BT).
Design/methodology/approach
To this aim, this study uses an integrated theoretical frame merging the third version of the technology acceptance model (TAM3) and the unified theory of acceptance and use of technology (UTAUT). The analytical model is based on an application of the structural equation modelling with partial least square estimation on data gathered through a Likert-based questionnaire.
Findings
The findings reveal that the main predictors of auditors’ intention to use blockchain are performance expectancy and social influence. Moreover, auditors’ effort expectancy in relation to this technology implementation and use appears to be a reasonably reliable predictor.
Originality/value
This paper contributes an evidence-based view to the discussion on the impact of automation and disruptive information and communication technologies, on the roles of accounting and auditing professionals. It uses a novel approach to analysis by integrating TAM3 and UTAUT within its theoretical model. It complements and extends the field of studies on technology acceptance by offering fresh insights into auditors’ perceptions. Finally, the paper highlights practical implications for business leaders aiming to use the advantages of BT in audit firms.
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The purpose here is to show how the “shadow” economy has grown in scale and impetus in recent years, though even before modern times it has been present (e.g. the City of London…
Abstract
Purpose
The purpose here is to show how the “shadow” economy has grown in scale and impetus in recent years, though even before modern times it has been present (e.g. the City of London, Shaxson, 2011) since at least the middle ages. The reasons for this have become complicated, but we can identify some “deep structures” that are common. Firstly, “globalisation” made it easier for multinationals to escape national regulatory regimes. Secondly, one of the ways neoliberal trading regulations allowed such actors to augment their assets was by means of what they initially called “transfer-pricing” but which now is officially known as “profit shifting” through tax havens. Thirdly, the growth in international trade in legal and illegal ways caused money laundering – even by otherwise respectable banks – to grow across borders. Conversely, from the supply-side, tax haven status was increasingly accessed by jurisdictions that sought to achieve economic growth by supplying tax haven services, both Delaware and Ireland as exemplars of a “developmental” fiscal policy.
Design/methodology/approach
This paper adopts a “pattern recognition” design, an approach that is abductive, meaning interpretive, as shown in the observation that explanation can be valid or reliable without direct observation. This is shown in the indirect observation that “rain fell because the terrace has puddles” or “ancient glaciers once carved this valley”.
Findings
Reviewing the European Union’s (EU) list of non-co-operating jurisdictions in support of the OECD’s review of base erosion and profit-shifting activity, Collin concluded the EU’s listing “moved the needle” somewhat but was only a modest success. This is because of its reluctance to sanction its own members or large economies like the USA. Data on foreign direct investment and offshore banking assets suggest listed jurisdictions did not suffer notably from being named and shamed. In all cases studied, this contribution found legally damaging, fraudulent, conflict of interest and corrupt practice activities everywhere.
Originality/value
The originality is found in three spheres. Firstly, the pattern recognition method was vindicated in yielding hard to research results. Secondly, the “assemblage-thirdspace” theory was found advantageous in demonstrating the uneven geography of tax haven clusters and their common history in turbocharging economic development. Finally, the empirics showed the ruses executed by cluster members in tax havens to circumvent the law from global management consultancies to micro-firms consisting of tax lawyers and other experts interacting in knowledge supply chains of dubious morality.
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This paper applies Bhabha’s concept of the third space to frame an understanding of Prem Sikka’s use of digital media to bridge the academic–activist binary. In doing this, the…
Abstract
Purpose
This paper applies Bhabha’s concept of the third space to frame an understanding of Prem Sikka’s use of digital media to bridge the academic–activist binary. In doing this, the paper makes two contributions. First, it conceptualises Sikka’s engagement, and second, through the lens of the third space, it analyses it to establish whether, in the era of the neoliberal corporatised university, public intervention has the potential to generate new perspectives and new knowledge.
Design/methodology/approach
Sikka’s articles and blogs for the period 20 February 2002 to 15 April 2020 were analysed using Leximancer, a textual analysis software programme that displays the output visually. A discriminant analysis was used to identify where each year of the study is situated in the overall semantic analysis. Netnography, the examination of archived published texts, was then used to analyse the responses by members of the public, academics, accountants and auditors, tax experts, policy makers and regulators to Sikka’s digital media engagement.
Findings
As a third space practitioner, Sikka has overcome some of the shortcomings associated with academic research to challenge the activities of professional accounting firms, regulatory bodies and multinational corporations. Through extending the boundaries of accounting and accountability, he has facilitated new radical alliances aiming to create a just and equitable society. The paper also finds that by opening up a third space of engagement, academic activists’ work can play an essential part in social transformation and emancipatory change framed in terms of social justice and equity.
Originality/value
This is one of the few papers to provide an in-depth examination of the activities of an accounting activist over twenty years.
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Marziana Madah Marzuki and Muhammad Syukur Muhammad Al-Amin
The purpose of this study is to investigate the effect of audit fees, auditors' quality and board ownership on tax aggressiveness in Thailand.
Abstract
Purpose
The purpose of this study is to investigate the effect of audit fees, auditors' quality and board ownership on tax aggressiveness in Thailand.
Design/methodology/approach
The sample of this study is based on 215 firm-year observations of SET-100 listed companies in Thailand during the 2010–2018 periods. This study employs a panel least square regression with period fixed effects. The study retrieved the corporate governance variables from the downloaded annual reports, whilst the remaining data were collected from the EMIS database.
Findings
This study provides evidence that audit fees reduce tax aggressiveness and board ownership enhance tax aggressiveness among the firms. Nonaudit services provided by auditors impair auditors' independence and lead to higher tax aggressiveness. The result supports the agency theory, which explains that managers and blockholders may enjoy private benefits of control at the expense of other shareholders in the absence of market control. Thus, firms need good governance practices such as incentives paid for the effort of auditors and nonaudit services monitoring to curb such exploitation.
Research limitations/implications
The results provide implications to the firms and regulators that incentives to the monitoring parties such as auditors can reduce tax aggressiveness among the firms. Nevertheless, higher ownership given to boards as incentives may lead to concentrated ownership and thus lead to the type 2 agency problem, which is between majority and minority shareholders. The result also provides caution to the regulators to monitor the nonaudit services provided by the auditors as it might impair their independence and compromise the tax paid to IRB.
Originality/value
This study is pioneer research discussing tax avoidance in Thailand. The Thai Government has been noticing that tax avoidance is being performed in the country, but academic discussion on this topic had never been elaborated.
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Harina Ndaba, Michael Harber and Warren Maroun
This paper explores how technical constructions of audit practice are influenced by mandatory audit firm rotation (MAFR) regulations. The paper responds to calls for additional…
Abstract
Purpose
This paper explores how technical constructions of audit practice are influenced by mandatory audit firm rotation (MAFR) regulations. The paper responds to calls for additional research on how external regulation influences audit quality and supplements the predominately quantitative research dealing specifically with firm rotation and its relevance for audit quality.
Design/methodology/approach
Data are collected from South Africa which is the latest jurisdiction to adopt MAFR (from 2017). Detailed interviews with 49 participants comprising 24 audit partners and 25 non-auditors are conducted to explore how MAFR can impact audit quality. For this purpose, audit quality is defined according to a schematic developed interpretively and based on professional auditing standards and the prior research on audit quality.
Findings
There is no guarantee that MAFR will bolster auditors' independence or contribute to a more thorough audit approach. On the contrary, the effort required by incoming audit firms to gain an understanding of new clients coupled with material tendering costs is expected to decrease the profitability of audit engagements with adverse implications for audit quality. A loss of client experience and staff retention challenges may contribute further to a decline in audit quality. There may be some improvements to audit practice when an incumbent firm's work is going to be scrutinised by a new auditor but audit methodologies, including the nature and extent of testing performed, are not expected to change significantly because of MAFR. In this way, the regulation may be a symbolic response to a perceived decline in audit quality and auditor independence rather than part of an effective strategy to encourage more rigorous audit practice for the benefit of the users of financial statements.
Originality/value
The current paper provides one of the first exploratory accountants of how MAFR is expected to impact audit practice and, in turn, audit quality. The research responds to the call for more field-work studies on the mechanics of the audit process by engaging directly with practitioners instead of relying on inferential testing of broad audit quality surrogates. The study also makes an important empirical contribution by providing primary evidence on how external regulation influences audit practice from a seldom studied African perspective.
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Zamzulaila Zakaria, Zarina Zakaria, Noor Adwa Sulaiman and Norizah Mustamil
Undergraduate courses: Auditing, Leadership, Management accounting. Postgraduate courses: Leadership, Management accounting.
Abstract
Study level/applicability
Undergraduate courses: Auditing, Leadership, Management accounting. Postgraduate courses: Leadership, Management accounting.
Subject area
Auditing, Leadership, Management accounting
Case overview
This case documents the journey of a professional accountancy organisation, namely, the Malaysian Institute of Accountants (MIA) and document the MIA’s journey on the establishment of digital blueprint for the accounting profession in Malaysia including some major milestone in innovating audit evidence-gathering technique by introducing e-confirm for auditing bank confirmation in Malaysia. This case highlights the significant role played by a lady chief executive officer (CEO) in embarking into the digitalisation of the accountancy profession and practice in Malaysia. While the ultimate objective of digital blueprint is to transform the accounting and auditing practices in Malaysia, the CEO has led by example by embedding digitalisation within MIA’s practices itself.
Expected learning outcomes
The learning outcome of this paper are as follows: to develop students’ understanding on the right attitudes, skills and characters that a successful leader should possess in contemporary business environment by focusing on dilemma and stereo-typing faced by women leaders; to develop the students’ understanding on the changes in business environment particularly the rise of digital technology that affecting the ways in which accounting functions in organisations; to encourage students to be aware that technical accounting knowledge is just one of the key success factors in the career of a professional accountant. The case offer insight into accountants’ role in digital environment and the development needed for accounting profession; to demonstrate how auditing process can benefit from the advancement in technology; and to encourage critical discussion on the development of accounting profession in Malaysia. The case aims to develop students’ critical discussion on the roles of MIA as a regulator of accounting profession and to appreciate historical development of accounting profession in Malaysia. The case also aims to encourage students to realise the existence of other professional accounting bodies, accounting practitioners and academic accountants, and together with MIA, they play significant role in shaping the accounting profession in Malaysia.
Supplementary materials
Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Social implications
The case has a strong implication on the role of effective leaders in ensuring that significant efforts involved in digitalisation journal, a vital need for the accountancy professional to continue to be a relevant profession, is a success.
Subject code
CSS 1: Accounting and Finance.
Keywords
Women leadership, Digitalisation, Professional accountancy organisation, Electronic bank confirmation, Malaysia
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This section contains a range of topics from diverse, international, primary journals, including: an evaluation of PR effectiveness; a look at total quality management at…
Abstract
This section contains a range of topics from diverse, international, primary journals, including: an evaluation of PR effectiveness; a look at total quality management at Girobank, which was the first bank to win a British Quality Award; an examination of the principles of competitive marketing based on a case study; a discussion of how companies can sustain competitive advantage; and a report on retail‐oriented risk for bank branch operations.
David Collins, Ian Dewing and Peter Russell
The paper aims to offer an exploration of the Banking Act 1987 which was passed following the failure of Johnson Matthey Bankers (JMB) in 1984. This Act extended the role of…
Abstract
Purpose
The paper aims to offer an exploration of the Banking Act 1987 which was passed following the failure of Johnson Matthey Bankers (JMB) in 1984. This Act extended the role of auditors in banking supervision by removing traditional confidentiality constraints and created a new role of “reporting accountant”. The paper seeks to examine the origin and development of these new reporting roles. In addition, the paper considers the extent to which the findings of this historical investigation might contribute to current debates on the role of auditors in banking supervision.
Design/methodology/approach
The paper draws on official documents, personal accounts of individuals responsible for dealing with the JMB crisis, and semi‐structured interviews conducted with audit partners and banking supervisors who had direct experience of implementing the supervisory reforms instituted under the Banking Act 1987. Power's explanatory schema of controversy, closure and credibility is adopted as a framework for the analysis of documentary sources and interview data.
Findings
The failure of JMB generated sufficient controversy so as to require reform of the system of banking supervision. The paper shows that JMB was a controversy since it disturbed what went before and carried with it sufficient allies for change. To achieve closure of the controversy, agreement by key actors about changes to the nature of the role of auditors was required to ensure legitimacy for the reforms. Backstage work undertaken by the auditing profession and the Bank of England provided the necessary credibility to renormalise practice around the new supervisory arrangements.
Originality/value
The paper develops Power's schema which is then employed to analyse the emergence of the new role of reporting accountant and extended role for auditors in UK banking supervision. The paper provides empirical evidence on the processes of controversy, closure and credibility that help to ensure the legitimacy of accounting and auditing change.
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Among the top management issues covered in this section are: leadership to promote change; issues of corporate culture; effective international strategy; environmental leadership;…
Abstract
Among the top management issues covered in this section are: leadership to promote change; issues of corporate culture; effective international strategy; environmental leadership; investment in Eastern Europe; and developing “world‐class” manufacturing strategy.