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Purpose: Development of an approach, methods to the internal audit of tax differences, analysis of the peculiarities of the application of internal audit procedures of tax differences and their reflection in the software in Ukraine.

Need for the Study: One of the most important general economic and accounting problems both in practical and scientific terms is the problem of determining the financial results of the enterprise, the methodology of its calculation and methods of taxation.

Questions of consistency of indicators of tax and financial accounting arise constantly as the results revealed according to tax accounting data, considerably deviate from real financial results of activity of the enterprise according to financial accounting data. This leads to tax differences. Moreover, significant deviations can be both in one direction and in the other. These indicators are important for study and analysis.

Methodology: The method of a systematic approach was used to reveal the content of tax differences and build the methodology of internal audit. Selective research, grouping, generalisation are used to study the state of the methodology and organisation of accounting for tax differences and their internal audit.

Findings: The study of the organisation and methods of internal audit allowed the authors to develop their methods of internal audit of tax differences. The chapter highlights such elements of internal audit as sources of information, audit directions, objects of audit and possible typical errors that may be identified during the internal audit. Sources of information for internal audit of tax differences are divided into groups: primary documents, accounting records, reporting and legislation. The authors systematised tax differences and analysed their impact on the pre-tax financial result. Possible errors in accounting for tax differences and ways to correct them are considered. The authors present options for displaying tax differences in software products used in Ukraine.

Practical Implications: This chapter examines the key components of the methodology of auditing the financial statements of the enterprise in terms of indicators of tax differences, the use of which ensures the reliability of reporting, avoids penalties from the tax authorities and ensures the prospects for the organisation. The possibility of digitalisation of accounting for tax differences on the example of software that is popular in Ukraine is considered. The pre-tax financial result is a consolidated, aggregate indicator that is determined by comparing income and expenses from different activities recognised per accounting rules and in most cases cannot be used to calculate income tax without appropriate adjustments.

Purpose: This chapter discusses how pandemics affect the nature of financial reporting especially for financial and non-financial institutions that were deeply affected by the 2020 coronavirus (COVID-19) outbreak.

Method: This chapter presents a reflective discussion of the accounting practices and financial reporting options for firms during a pandemic, ­focusing on the interface between financial reporting and pandemics.

Findings: Accounting practices or techniques such as fair value accounting, big-bath accounting, loss avoidance, and income smoothing t­echniques can help to dampen the effect of a pandemic on firm performance.

Practical Implications and Significance: Some implications about the merits and risks of accounting during pandemics are highlighted and discussed.

Originality: Although the coronavirus COVID-19 crisis is, to some extent, still unfolding, there is limited empirical evidence on the implication for accounting.

The data expected from the governmental accounting, in which all the budget operations are recorded, and the reports based on these data couldn’t be achieved until recently. To meet the necessities of society, the most important instrument of the modern state aiming to maximize the level of welfare is the taxes collected from the citizens, and the state has responsibilities in front of the society playing a funding source role. Moreover, in order to successfully manage the public administrations, which nowadays have more duties and authorities, it is a necessity to make use of the management information and methods. Thus, the development of public accounting, which refers to the determining, recording, and reporting all the financial operations performed by the state, has become inevitable. Many international regulations, modern accounting systems, and modern approaches have been developed for the public sector. In the present study, it was aimed to emphasize the development and importance of public accounting for the management and administration of the state.

The purpose of this paper is to describe management control systems (MCS) as a package within a festival, as it examines managerial use of management controls over time. Moreover, this study discusses the relation of controls to flexibility and decentralization of organizations which have to deal with constraints such as short development periods, individualization of services/products and resource scarcity. The research thus introduces the elements of time and intensity of use of controls in a time-dependent scenario.

This descriptive case study utilizes interviews, observations, document analysis and other tools of qualitative research.

This paper reveals that single management controls used by managers configure MCS as a package. These controls are utilized with different intensity throughout the year based on activities that are planned or expected to happen. Such use of controls provides needed flexibility for the organization in which the structure is changing over a short period (one year).

The single unit subjective analysis that was employed does not allow for generalized results and comparison.

This rich empirical study informs practitioners on how to tackle daily festival challenges. Moreover, it brings theoretical understanding of management controls as a package in real-life context.

The primary purpose of this study is to determine the impact of information ordering in Shariah Supervisory Board Report (SSBR) on investors’ behavior and perception about the performance of Islamic bank in terms of Shariah compliance and other conventional parameters.

The study used the belief adjustment model to evaluate the desired effects of ordering positive and negative information (if any) in SSBR of an Islamic bank. This study extends the previous literature on information ordering as a pioneer experimental study in emerging economies.

Evidence shows that investors and technical users of performance reports consider SSBR as significant for financial and investment decisions from the Islamic perspective. The results indicate that the primacy effect does exist and is statistically significant.

The SSBR provides the management with an excellent opportunity to communicate and convince the investors about Shariah compliance features of an Islamic bank. Additionally, it also highlights the functional use of impression management to manipulate the investor’ behavior and perception.

For the first time, this study specifically investigates the effect of conscious information ordering in SSBR of Islamic banks on investors perceptions and behaviors.

This paper aims to assess the influence of emotional intelligence (EI) on the perceived internal control performance in the Lebanese companies.

The goal of this study is to decide whether there is a connection between “emotional intelligence” and perceived efficacy of “internal control” in Lebanese organizations. For the benefit and purpose of this research, a quantitative methodology will be applied. The data was collected by the use of self-directed and pre-coded questionnaires to test hypotheses made, making it a deductive research.

The findings showed that the personality traits of the members of the audit team play a key role in cultivating a control climate that is more conducive to effective control. Moreover, personality traits were key in boosting trust and openness in communication that can be seen as antecedents to having a system where all key auditing professionals within the organization can cooperate to boost the effectiveness of the internal control framework. These personality traits amplified the impact of the EI of audit manager on the overall effectiveness of the COSO framework, thus leading to improved efficiency of internal controls.

The exploratory aspect of this study have shown results that are general but create a basis for future comprehensive researches. This study was limited to a relatively small sample, due to the small size of Lebanon and due to the Pandemic that has limited our access to more data. This research did not regulate other relevant variables such as gender, experience, educational level and age. Nevertheless, the importance of the findings is they ascertain that internal control is not a rigid technical function that is primarily concerned with accounting and financial disciplines, rather it extends to organizational psychology and behavior.

The practical implication of studying EM and personality in Lebanese organizations is to describe and understand how it affects the effectiveness of the internal control and thus the survival of the organization. When organizations are aware of such a strong impact, they will try to increase their maturity level in this regard and further seeks more efforts in tackling the EI aspect. As a summary, the practical implication of this paper is to understand how all those variables affect the effectiveness of the internal control and thus the survival of the organization.

The subject of this study consists of many human-related aspects such as personality and human behavior. Once these elements are combined with the internal control framework, it will have an added value at the social level by enhancing the behavior of people and their perception of others' emotions and oneself emotions, in addition to improving their performance which reflects on enhancing the overall organizational performance. Studying EI allows to understand and manage emotions in order to create positive social interactions. The benefits of EI are vast in terms of personal, academic and professional success.

Due to the lack of research on this topic, this research will contribute to explore the field. Future studies will benefit from this analysis while using a larger sample. Future work should aim to include not only auditors but all staff of the company. Further research is required to decide whether the results of this analysis are generalized across various positions and industries and to determine whether EI is the only influential aspect involving a significant number of social interactions. In addition, this article can be used as a basis for the implementation of internal control with a COSO framework that involves the EQ of everyone in the organization.

This paper aims to explore two factors that may moderate the relation between an individual’s ethical values and their evaluation of competing ethical and financial outcomes. It is argued that distance (i.e. low proximity) attenuates moral intensity, thereby inhibiting ethical decision-making (EDM). In contrast, it is argued that presenting outcomes in a separate social and environmental perspective in the balanced scorecard (BSC) increases EDM.

In an experiment, participants evaluated social outcomes presented in a BSC. Proximity and scorecard format were manipulated in a 2 × 2 factorial design.

The results indicate that physical and social proximity increase the extent to which performance evaluation is influenced by the ethical values of the evaluator. Contrary to expectations, BSC format did not influence the EDM of the evaluator.

Participants were undergraduate students which may limit the generalisability of the results. Further research should be conducted with practicing managers. The study focused on a particular ethical issue, hiring and training from the local community. Further research is necessary to consider the effect of personal ethical values on other aspects of corporate social responsibility (CSR).

This study indicates that ethical values will be less salient when the outcomes relate to distant locations. There are important implications for multinational corporations seeking to avoid the liability of foreignness in their distant operations.

Previous CSR research has focused on the institutional level. The focus of the authors on the individual’s decision-making process increases our understanding of the biases that can affect EDM.

The purpose of this paper is to provide a case study about the capacity utilization analysis in a small-sized manufacturing company through the application of time-driven activity-based costing (TDABC). After a brief overview of development of the TDABC system, a detailed application of TDABC and capacity utilization analysis in a bakery is given.

This paper is based on a case study about the application of TDABC in a small-sized Greek manufacturing firm. In the case study, time equations were developed for the supporting, operating and manufacturing departments and product costs determined based on the model. Capacity utilization analysis made through the application of TDABC system.

The study shows that TDABC is more applicable in small-sized manufacturing companies because of their labor-intensive nature. In contrast to previous studies, authors argue that even in small firms simple excel sheets are not enough to capture the complexity of the time equations and business intelligence software and programming coding is required.

Although the fundamental structure of TDABC is the same for all companies there is no strict form of application.

The practical implication of this paper is that each firm has unique characteristics that need to be reflected in the application of the TDABC model.

This paper contributes by providing insights into cost accounting in SMEs. More specifically, this paper contributes to the TDABC literature regarding the application of the system in small and medium sized manufacturing firms.

We examine the impact of sales order backlog (an important leading performance indicator) on corporate cash holdings and the role of corporate governance in the relation between sales order backlog and cash holdings.

We use the regression analysis to examine our research questions.

Consistent with the agency motive and the precautionary motive of cash holdings, we document a significant negative relation between order backlog and cash, suggesting that firms with higher order backlog hold less cash. We further examine and find that the relationship between order backlog and cash becomes stronger for firms with stronger corporate governance, highlighting the role of governance in determining the level of corporate cash holdings.

Our study contributes to the accounting literature on sales order backlog and the finance literature on corporate cash holdings. In particular, our study contributes to developing a more comprehensive understanding of the sales order backlog because it is still an under-researched area in accounting. To the best of our knowledge, this study is perhaps the first empirical study that examines the direct link between order backlog and cash.

Business advisory services are an emerging service category for external accountants in the small and medium-sized enterprise (SME) environment. The purpose of this study is to investigate determinants of SME demand for business advice, drawing on the agency theory, relational marketing and resource-based literatures.

The study empirically tested theoretical predictions based on an Australia-wide survey of SMEs, in which 485 firms responded to a questionnaire.

The results show that the purchase of business advice is significantly and positively associated with the perceived competence of the external accountant, but significantly and negatively associated with length of the relationship. However, the authors observe a significant positive interaction between tenure of the relationship and competence. A unique contribution of this study is the development of the understanding of the combined role of the external accountant’s competence and the tenure of the relationship. The findings indicate that SMEs require time to verify whether accountants have the competence to provide business advice, suggesting that information asymmetry and uncertainty is minimised only after SMEs have nurtured relationships with their external accountants, and after they have developed some confidence in the competence of their external accountants. At the same time, the negative association with tenure suggests that when accountants are not perceived as competent advisors, SMEs purchase less advice over time.

The paper has important theoretical implications by augmenting agency theory, the relational marketing and the resource-based literature, and it clarifies which antecedent factors are important in explaining demand for business advisory services provided by accountants to their SME clients. In particular, the paper highlights the importance of the combined roles that the external accountant’s competence and tenure play in the SME–accountant relationship, highlighting how these two factors can overcome credence issues and ex ante information problems.

The findings have practical implications for government initiatives targeting support to SMEs, as the findings identify small firms and firms planning to grow as likely to gain the greatest benefit from external advice and support.

This study adds to the limited literature and scant theoretical discussions on the emergence of business advisory services that accountants provide to their SME clients by drawing on several theories to explain the determinants of business advice.