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Notes that despite moves towards the international harmonization of accounting standards, some important differences remain between UK and US generally accepted accounting principles which affect the comparability of their financial statements. Outlines the development of the UK accounting profession, accounting standards and the regulatory environment, including company law, before discussing the specific differences between UK and US accounting treatment of assets, liabilities, foreign currency translations etc. and in reporting and disclosure requirements. Briefly considers the underlying reasons for them and stresses the importance of understanding them for accountants, investors, security analysts etc.

Explores the impact that recent fraudulent financial reporting has had on the capital markets. Attempts to examine the stock market reaction, both to return and risk, to fraudulent financial reporting that has occurred in major corporations during the decade 1990‐1999. Finds that capital market impact is significant in dollar terms with strong negative announcement effects the day before and on the day of a news event. Concludes that auditor and regulator vigilance needs to be strongly maintained in monitoring firms’ financial reporting.

Establishing an audit committee presumably strengthens the external auditor’s independence. Several studies have examined how audit committees affect the selection of the company’s external auditor, negotiate audit fees and enhance the auditor’s independence. But what of the independence of the audit committee members themselves? Do audit committee members exhibit biases when they select their company’s auditors? The relationship between the entity’s external auditor and the audit committee member’s affiliated company’s auditors has not been examined. For example, are audit committee members prone to select or remain with audit firms with which they have developed a formal relationship within their own company? This study of 247 New York Stock Exchange firms finds significant relationships (at the 0.05 level of significance) between CPA firms selected by audit committees and by the CPA firm which audits the audit committee member’s own organization. Results indicate that audit committee members exhibit conscious or unconscious biases in their selection or retention of their companies’ auditors.

In response to many authoritative and honorary bodies, the accounting profession has recognized the importance of accounting curricula emphasizing written and oral communications skills. Accounting practitioners expect accounting students to master communications skills as accounting curricula become more responsive to changes in the accounting environment. Discusses key provisions of the US Securities and Exchange Commission’s (SEC) recent Rule #33‐7380 that requires registrants to use “plain English” to prepare a prospectus’s cover page, summary and risk factor sections in filing with the SEC. The rule specifies six principles of clear writing and provides a handbook for use in preparing prospectuses. Accounting professors should consider adopting the suggestions of this SEC rule as a basis for improving their students’ writing skills.

With the passage of the Sarbanes‐Oxley Act of 2002, corporate legal counsel has an increasing responsibility related to fraud. The purpose of this paper is to focus on financial reporting fraud resulting in the false presentation of operating results and financial position to the public, lenders, taxing authorities or other corporate stakeholders.

The paper reviews cases with a focus on financial reporting fraud as identified by corporate counsel.

The ways in which corporations can utilise corporate counsel to protect themselves from financial statement and other reporting frauds.

This paper provides guidance to corporate counsel as to some of the common forms of financial statement fraud and the risk factors (red flags) that may indicate the presence of fraud.

Corporate counsel, by virtue of their natural involvement in the negotiation of contracts and customer/vendor disputes, as well as their consulting role to top management in many types of business transactions and problems, are uniquely positioned to identify financial statement fraud issues and other financial disclosure problems.

The international business researcher in the United States faces considerable barriers to obtaining and understanding firm‐level data about foreign companies. Although the Internal Revenue Service, the Bureau of Economic Analysis, the Bureau of the Census, the Securities and Exchange Commission, and other government agencies collect detailed data on foreign companies doing business in the U.S., most of these data are readily obtainable only as aggregate figures. The SEC alone releases company‐specific reports for public companies trading on U.S. stock exchanges. International bodies like the United Nations Centre on Transnational Corporations (UNCTC), the Organization for Economic Co‐operation and Development (OECD), the International Monetary Fund, and the World Bank follow the practice of individual governments in suppressing and protecting any firm‐level data, publishing only aggregate figures where those figures will not reveal the workings of individual firms. Therefore, most of the sources of data on the company level truly available to U.S. researchers are published by private information companies.

There is increasing academic pressure on Departments of Accounting in South Africa whose academic programmes are accredited with the South African Institute of Chartered Accountants (SAICA). The reason for this that the academic training of potential chartered accountants has long been their main academic focus, and they often fail to do justice to their real academic mission of scholarly activity in accounting (the pursuit of science as an endeavour), which is central to the essence of a university. The quality of such departments’ research is not yet an important criterion for their prestige. However, only Departments of Accounting that develop Accounting as a social science in scholarly activity in accounting deserve international recognition. This empirical study attempts to convince Departments of Accounting, particularly those whose academic programmes are accredited by SAICA, to embark on scholarly activity in accounting as soon as possible.

The present study seeks to shed further light on the effectiveness of Basu (1997) and Khan and Watts' (2009) differential timeliness metrics in detecting predictable differences in conservatism following corrections of restated earnings.

Using cross-sectional and time-series analyses for companies listed on the Tehran Stock Exchange during 2009–2013, the results indicate lower conservatism for restating firms as compared to their counterparts during prerestatement period.

Using cross-sectional and time-series analyses for companies listed on the Tehran Stock Exchange during 2009–2013, the results indicate lower conservatism for restating firms as compared to their counterparts during prerestatement period. In contrast, our findings are indicative of higher conservatism among these restating firms during the years of restatements. Moreover, the time-series approach captures a higher conservatism for the restating firms during restatement years than prerestatement periods. Overall, these results provide insight into the usefulness of the metrics used in the restatement setting.

Similar to recent papers, the present study seeks to shed further light on the ability of Basu-based coupled with Khan–Watts-based measures of conservatism to detect situations in which companies' earnings are known to be significantly restated.

The purpose of this paper is to discuss the most relevant issues related to the impact of financial restatements in the dynamics of financial markets and identify several research gaps to be investigated in future research.

The methodology is based on a systematic review of the literature described by Tranfield et al. (2003). The final sample includes 47 academic papers published from 1996 to 2019.

Papers in this domain discuss three main topics: how the market prices the announcement of a financial restatement; how financial restatements affect the announcing firm’s cost of capital and how financial restatements affect firms’ reputation. There are several issues to explore in future research, including whether financial restatements affect the dynamics of financial markets in Europe, whether the market fully and promptly assimilates the information content of a restatement, the role of financial analysts’ information disclosures in this process or how regulators may improve the way they provide investors with timely information about firms’ restating problems.

There is always some degree of subjectivity in the definition of the keywords, search strings and selection criteria in a systematic review. These are all important aspects, as they delimitate the scope of the study and define the sample of papers to be reviewed.

The answers to the research questions identified in this paper may provide regulators with information to improve financial accounting and reporting standards and strengthen investors’ confidence in accounting information and the dynamics of financial markets.

This paper systematically reviews the relevant literature exploring the connection between financial restatements and the dynamics of financial markets. It contributes to the academic community by identifying several research questions that may impact the theory and practice related to accounting quality and capital markets.

Congruence of personal values to organizational (the profession) values affects job performance, job satisfaction and ethical behavior. The purpose of this paper is to answer two research questions: (1) what are the personal ethical values of today's leaders in the US accounting profession and (2) are these personal ethical values congruent with the profession's ethical code?

This study uses a survey approach to determine the personal values of US-certified public accounting leaders. The personal values of the Certified Public Accountants (CPA) leaders were measured using the Rokeach Value Survey instrument.

Findings show that for each highly prioritized personal value, there is one or more parallel with the profession's values, as represented by the US American Institute of CPAs ethics code.

This study was limited by the time period used. Future studies could include other time periods. This study could be used as a starting point for longitudinal studies to determine if personal values of professional accountants change over time.

This paper offers a fresh understanding of the relationship of accountants' personal values to professional values.

This paper provides insights into the person–organization (P–O) fit of US accountants within their profession.

This paper examines the P–O fit of accounting leaders, that is, the congruence of personal values and organizational values. The P–O fit contributes to job performance and job satisfaction.