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1 – 10 of over 8000Yiting Huang, Esinath Ndiweni and Yasser Barghathi
This paper aims to understand the impact of big data on the UAE audit profession. Mainly exploring whether the emergence of big data threatens the reliability of audit standards…
Abstract
Purpose
This paper aims to understand the impact of big data on the UAE audit profession. Mainly exploring whether the emergence of big data threatens the reliability of audit standards and whether audit standards need to be improved. Also, exploring the impact of big data on the collection of audit evidence.
Design/methodology/approach
Semistructured interviews were used to collect data, mainly targeting the audit-related workers of the Big Four and Non-Big Four audit firms in the UAE. Thematic analysis is adopted to analyze the original data, and the main factors affecting the audit standard and audit evidence collection.
Findings
This study found that the reliability of audit standards and the way audit evidence is collected can be affected by big data. It concludes that audit standards need to be improved and strengthened to include detailed essential elements associated with big data to ensure audit reliability, legitimacy and regularity. The results also identify the impact of big data on audit evidence in terms of adequacy, appropriateness, authenticity, consistency and reliability, as well as the impact on the validity and completeness of evidence collection. The research highlights the importance of big data skills and knowledge education, the contribution and challenges of big data to auditing, and the use of big data in future auditing.
Originality/value
This research provides specific empirical evidence from both Big Four and Non-Big Four audit firms in the UAE, which is lacking in the literature on the use of big data technology by auditors to assist audit works in UAE. It may serve as a reference for other researchers or those interested in relevant research.
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Maria Cristina Longo and Masanori Yasumoto
This research explores how firms manage the complex technologies standardization in action groups. It considers the strategic issues that technology producers face when involving…
Abstract
Purpose
This research explores how firms manage the complex technologies standardization in action groups. It considers the strategic issues that technology producers face when involving lead users in architecture design. Drawing on the multi-mode standardization literature, this study addresses two dilemmas regarding value creation and appropriation by technology producers within coalitions. The first dilemma is how to create value by developing solutions in compliance with industry standards. The second one is how to appropriate value while ensuring the technology sharing with action groups. The answers to these two dilemmas contribute to filling the research gap on value creation and appropriation in multi-mode standardization.
Design/methodology/approach
The research focuses on technology producers participating in action groups where lead users play a crucial role. We conducted a qualitative analysis based on the standardization experience of a Japanese company specializing in smart robotics. Data are collected through semi-structured interviews with key actors. Action groups are defined operationally as a set of stakeholders including competitors of the technology producers, component suppliers, end users, services providers, research centers and academia. The case study is suitable for highlighting specific aspects of the standardization process during its manifestation. It reveals how firms create and appropriate value, providing details about its standardization strategy.
Findings
Our findings show that smart robotics standardization is drivn by collaborative models, where the two dilemmas of value creation and appropriation are evident. Firstly, the case revealed that standardization is lead users oriented. Secondly, lead users’ involvement is crucial to customize technologies. Thirdly, the firm’s position is to share a part of the value with the members. The IPR policy is a matter of interest within action groups, since the collaboration is based on open innovation models to share patents and licenses related knowledge.
Research limitations/implications
This research has some limitations attributable to the limited generalizability of the results due to the qualitative analysis. In addition, this study considers the perspective of technology producers, but should also take into account the perspective of both collective actions itself and the lead users. Findings have some implications in the strategy negotiation. Participating in action groups is not enough to ensure a competitive advantage. Involving lead users is of strategic importance to acquire a competitive advantage. Lead users contribute to the producers’ technology design, helping firms to differentiate solutions from the industry standard and create value from customized technologies.
Practical implications
This study helps practitioners understand the competitive side of collective actions, clarifying the value capture and appropriability in standardization. The research provides insights to policymakers and standard development organizations committees when they are called to harmonize standards considering the fallouts on the sector’s competitiveness. Findings suggest appropriate property rights policies to manage the issues related to the value appropriability and technology sharing, recognizing action groups members for their contribution in value creation.
Originality/value
This study shows how firms deal within action groups with the two dilemmas of variety versus technology conformity and property rights versus technology sharing. It fills the research gap in collective actions, emphasizing the perspective of the individual firm in the group rather than the coalition strategy itself. This topic highlights the crucial role of lead users within action groups in managing the two dilemmas, offering a new perspective for understanding critical issues of multi-mode standardization. Reflecting on mechanisms and tools to manage the two dilemmas allows firms to protect their competitive advantage in coalitions.
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This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with…
Abstract
Purpose
This paper aims to compare the Islamic financial accounting standards (IFAS) prevailing in Pakistan declared by the Securities and Exchange Commission of Pakistan (SECP) with accounting standards of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
Design/methodology/approach
Both standards related to Islamic financial accounting have been thoroughly reviewed, compared and discussed to find out the differences and similarities, along with the depth needed to meet the needs of Islamic finance.
Findings
AAOIFI accounting standards provide a comprehensive view of complex transactions, whereas SECP standards have limitations. The proposed recommendations aim to bridge the gap by conducting periodic reviews and revisions of IFAS prevailing in Pakistan to keep up with the dynamic nature of the Islamic finance industry.
Practical implications
The regulators should establish institutional arrangements for adapting AAOIFI accounting standards, enabling efficient and effective upgrading of existing accounting standards for Islamic financial institutions and alignment with international best practices.
Originality/value
There is a dearth of studies related to Islamic financial accounting in the context of Pakistan; this is one that contributes to this area.
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Parmod Chand, Philomena Leung, Nonna Martinov-Bennie and Peter Carey
This paper aims to conduct an experiment that investigates the effect of the ambiguity present in international financial reporting standards (IFRS) on the judgments of auditors…
Abstract
Purpose
This paper aims to conduct an experiment that investigates the effect of the ambiguity present in international financial reporting standards (IFRS) on the judgments of auditors. This paper also examine the effects of the personality trait of ambiguity tolerance on judgments of auditors.
Design/methodology/approach
This paper conduct an experiment in which experienced Australian-based auditors are placed in hypothetical revenue recognition and lease classification decision contexts. The participants are members of the Australian accounting profession who are familiar with applying IFRS.
Findings
This paper find support for the perception that when the relevant IFRS are more ambiguous, auditors make less aggressive reporting judgments compared to when the IFRS are less ambiguous. The results also unveil a novel finding that auditors who are more tolerant of ambiguity are likely to choose the accounting treatment that best reflects the economic substance of a transaction when interpreting IFRS compared to those who are less tolerant of ambiguity.
Practical implications
These results would be of interest to policymakers and accounting researchers as they continue to contemplate a shift to more principles-based IFRS.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the influence of an individual’s ambiguity tolerance on financial reporting quality in jurisdictions that have adopted IFRS.
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Gustavo Anríquez, José Tomás Gajardo and Bruno Henry de Frahan
The purpose of this paper is to describe and analyze the impacts that the recent proliferation of private and overlapping standards is having in the trade of agricultural products…
Abstract
Purpose
The purpose of this paper is to describe and analyze the impacts that the recent proliferation of private and overlapping standards is having in the trade of agricultural products from developing countries.
Design/methodology/approach
In a first stage industry experts in the Chilean fresh fruit trading industry were interviewed to understand the perceived impact that private standards are imposing in the industry. These interviews allowed to identify the market case study, table grapes, the landscape of private standards and their prevalence in different countries. In a second stage, a gravity trade model for trade in table grapes was estimated, with a focus on the more stringent countries identified by experts in the first stage.
Findings
We show evidence that the proliferation of private standards required by large European retailers has diverted trade away from more stringent countries that require more certifications (and into less stringent European markets). We also show that the costs of these additional certifications have been shared by trading partners, via an increase in direct sales, as opposed to consignment (the traditional marketing mode), which is associated with higher prices.
Research limitations/implications
The impacts of the recent proliferation of private and overlapping standards in international trade needs to be better understood both by the legal and economic literature. While the use of private standards has been growing since the 1990s, there is a recent trend of large European retailers imposing their own and overlapping standards that needs to be better understood to inform policy.
Originality/value
While there is a thin literature on the impact of private standards on trade, most of this has studied the effects of the now de facto mandatory GlobalGAP certification. However, there is a recent trend by large European retailers of demanding their own private certifications, together with other already existing overlapping private standards. This study describes and analyzes the impacts of this rather new trend.
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This study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple…
Abstract
Purpose
This study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple accounting standards in Islamic banking, examine the need for private accounting standards and assess international financial reporting standards (IFRS) compatibility with Islamic banking and analyse financial leasing accounting in Islamic banking compared to IFRS 16.
Design/methodology/approach
A combination of comparative theoretical analysis, physical examination, and semi-structured interviews has been used as a research methodology. These methods are interconnected and complement each other to provide a comprehensive approach to address the research questions.
Findings
Islamic banks in various countries show varying compliance with AAOIFI accounting standards. Some fully comply, while others adopt a hybrid approach combining AAOIFI and IFRS. Differences in accounting treatments can result in conflicts, asset inflation and financial statement discrepancies. Challenges and criticisms faced by AAOIFI standards include violating the matching principle and lacking faithful representation. Collaboration among academics, standards-setting bodies and organisers is crucial for guiding the reporting of Islamic financial statements.
Practical implications
The research identifies gaps in implementing Islamic accounting standards and proposes strategies to enhance compliance, improve performance and increase transparency in Islamic financial institutions. It highlights the importance of a harmonised and universally accepted accounting framework for Islamic banking, considering the compatibility between IFRS and Islamic principles.
Social implications
Social implications have arisen regarding the global acceptance of Islamic finance, which leads to an increase in socially Islamic finance exchange.
Originality/value
This research examines the consequences of using multiple accounting standards in the Islamic banking industry and discusses the need for private accounting standards and compatibility with IFRS.
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Qinyuan Shen, Zhifeng Gao and Zhanguo Zhu
A meat quality grading system is essential to meet consumers' increasingly diversified demand for food quality in the global market. This study aims to determine the effectiveness…
Abstract
Purpose
A meat quality grading system is essential to meet consumers' increasingly diversified demand for food quality in the global market. This study aims to determine the effectiveness of the upcoming Chinese quality grading labels and examine the information effect of labeling standards on pork consumption choices.
Design/methodology/approach
Using an online survey with choice experiments, this study estimates consumer valuation for the fat thickness of different pork primal cuts by simulating three scenarios. Generalized mixed logit models in WTP space are used to analyze the choice experiment data.
Findings
Chinese consumers prefer lean pork to fatty pork and this preference does not vary significantly between primal cuts. Consumer valuation for ungraded high-quality (lean) pork increases after the implementation of the quality grading. Meanwhile, they are willing to pay high premiums for labeled pork (including level 1, 2, 3), and there are higher premiums for pork with higher levels. Besides, incomplete information on labeling standards could achieve more premiums for pork than relatively complete information.
Originality/value
This study pays attention to essential but few-noticed pork quality grading. The findings provide references for pork industry practices and policy-making of the meat quality grading system in China and globally by examining incomplete and relatively complete information effects on consumer choices.
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Michael Sony, Mariam Ali Ramadan, Jiju Antony, Maha Khalifa Al Dhaheri, Olivia McDermott and Elizabeth A. Cudney
This research aims to establish the applicability of the International Organisation for Standardisation (ISO) 18404 standard to the service sector, identify any required…
Abstract
Purpose
This research aims to establish the applicability of the International Organisation for Standardisation (ISO) 18404 standard to the service sector, identify any required amendments and identify the critical success factors and barriers to deploying the standard within the service sector.
Design/methodology/approach
The study used a qualitative approach by interviewing operational excellence (OPEX) professionals who work in the service sector.
Findings
The findings indicate a significant lack of knowledge about the existence of the standard and a general scepticism regarding the applicability of the current ISO 18404 standard to the service sector.
Research limitations/implications
Limited examples of the application of ISO 18404 in organisations exist, as only a few organisations have adopted the standard. Therefore, the research focussed on the challenges and obstacles that experienced OPEX professionals perceived could be an issue.
Originality/value
The study will aid service sector organisations in understanding the standard and, subsequently, determine whether to pursue it as part of an OPEX programme. This research is the first study on the application of ISO 18404 to the service sector.
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Elina Elisabet Haapamäki and Juha Mäki
The purpose of this paper is to investigate the comment letters (CLs) in the standard-setting process of audits of less complex entities (LCEs). The objective is to gain insight…
Abstract
Purpose
The purpose of this paper is to investigate the comment letters (CLs) in the standard-setting process of audits of less complex entities (LCEs). The objective is to gain insight into the overall picture of the CLs and to report on areas where comment providers agree or disagree with IAASB's Part 10.
Design/methodology/approach
A content analysis of 60 comment letter (CLs) was conducted to investigate the suggested additional Part 10 on audits of groups' financial statements in the proposed ISA for LCEs. Hence, this study examines three specific topics: (1) the views related to the use of the International Standard on Auditing (ISA) for LCEs for group audits in which component auditors are involved, (2) the proposed group-specific qualitative characteristics to describe the scope of group audits and, finally, (3) insights into the content of the proposed Part 10 and related conforming amendments. The Gioia method is used to provide a holistic approach to concept development of the arguments about the new Part 10.
Findings
The CLs stated that, while the proposed Part 10 has some weak points, it still provides a solid and practical structure within which to undertake an LCE group audit and a promising basis for further development. For instance, when discussing the improvements, the CLs stated that Part 10 should allow for more auditor judgment when determining when the involvement of component auditors renders a group audit complex. In addition, the CLs asserted that professional judgment should be engaged when considering the qualitative characteristics and the complexity of the group.
Originality/value
This study contributes to the very scarce research about the ISA for LCEs and the role of lobbying in shaping the audit standard-setting process.
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Ersa Tri Wahyuni, Zubir Azhar and Novy Fajriati
The global insurance industry has implemented International Financial Reporting Standards (IFRS) 17 insurance contracts effective from January 1, 2023. The Islamic insurance…
Abstract
Purpose
The global insurance industry has implemented International Financial Reporting Standards (IFRS) 17 insurance contracts effective from January 1, 2023. The Islamic insurance (Takaful) industry would find itself at a crossroads if IFRS 17 should also be adopted for Takaful contracts. This paper aims to explore the process of IFRS 17 adoption for Takaful contracts in Malaysia and the implementation of the standard in the early adoption year.
Design/methodology/approach
Applying a qualitative approach, this study uses a literature review search and interviews to analyze deeper into the adoption process in Malaysia. Using institutional work, this paper analyses the process timeline, the actors and their roles and actions in the adoption process. The authors interviewed 12 informants from different backgrounds comprising the national standard setters, preparers and the IFRS 17 consultants.
Findings
The adoption process of IFRS 17 in Malaysia is an interplay between the accounting standard setter, the government and the industry associations who are the major actors in the process. These actors have different roles and contributions, but they work together to accomplish a single vision, adopting IFRS 17 for all. There is an interplay between actors to disrupt the accounting practice and involved in creating various institutional work to ensure the concerns of Takaful practitioners are well addressed. This research also found that the companies faced significant challenges in applying the standard in the early months of implementation.
Research limitations/implications
This paper contributes to the literature by providing an explanation and examples of the IFRS adoption for Shariah transactions. The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry.
Practical implications
The story of Malaysia can become a case study for other countries that are still deciding on adopting IFRS 17, especially for the Islamic insurance industry.
Originality/value
This paper contributes to the literature on the debate of the application of IFRS to Shariah transactions by using institutional work theory as a framework.
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