• Grace Kek asked a question:
    Impact of Internal Audit on Corporate Governance Malaysian Accountant’s Perception?

    What is the impact of the internal audit on the corporate governance? 

  • Maha M Ali added an answer:
    How can you get financial information on Egyptian companies?
    Maha M Ali · Zagazig University

    if the company is listed in SEC, you can get its financial statements from SEC or Egypt for information dissemination. if not listed, you can get info from the central institute for statistics.

    Note: some companies put their financial statements on their websites.

  • Rui Pedro Marques asked a question:
    Call for Book Chapters - Global Perspectives on Risk Management and Accounting in the Public Sector


    The recent global financial and economic crisis has had surprising effects in several worldwide economies. This global event has promoted the discussion on how ethical, transparent and rigorous is the accountability of public sector institutions. However, the public manager’s accountability is translated into a vision that goes beyond its sphere of activity, demanding information on how public resources were managed based on the maximization of social welfare and sustainable development. The reforms that have been undertaken within the public sector were triggered by the new vision of the State’s role which has been designated by the New Public Management (NPM).

    In the context of these reforms, accountability has becoming increasingly important. Underpinned in NPM assumptions, it is common sense that these reforms shall be undertaken through a progressive introduction of management tools, performance evaluation, and reporting of financial/non-financial indicators suitable to public sector institutions. These reforms will permit public management oversight by the citizens and other regulatory entities, which would help improving citizens’ confidence levels.

    This book intends to gather several coherent chapters that allow on a scientific basis and discuss at an international level the future avenues of development in the field of Public Accounting and Control in Public Management. Some of the objectives which this book intends to achieve are described below:

    • Disseminate methodologies that would allow collaboration among public institutions, regulatory entities, and those that guide their behavior on consistent values of ethics, rigor, transparency and accountability;
    • Document the tools of management/control that can be used as enforcement mechanisms of accountability in the public sector;
    • Review the processes/models of governance that foster accountability;
    • Discuss the processes of controlling and risk management in terms of the present developments in the field of Enterprise Risk Management (ERM);
    • Analyze the financial reporting models and make a critical reflection on their suitability or adjustment regarding the present proposals of the international standard-setting regulators;
    • Reflection on the key performance indicators (KPI) that under a new paradigm would foster the democratization of information: the citizen as an active element in the accountability process of public institutions.

    Recommended Topics

    Recommended topics include, but are not limited to, the following:

    • Government and accountability in the public sector
    • Public sector accounting
    • IPSAS adoption process
    • Effects of IPSAS adoption in the public sector accountability
    • Public sector risk management
    • Management control systems in the public sector
    • Internal Control systems in the public sector
    • Public sector auditing
    • KPI in the public sector
    • Performance measurement in the public sector
    • Reporting in the public sector
    • Continuous assurance in the public sector

    Submission Procedure
    Researchers and practitioners are invited to submit on or before October 31, 2014, a chapter proposal of 1,000 to 2,000 words clearly explaining the mission and concerns of his or her proposed chapter. Authors will be notified by November 30, 2014 about the status of their proposals and sent chapter guidelines. Full chapters are expected to be submitted by February 28, 2015. All submitted chapters will be reviewed on a double-blind review basis. Contributors may also be requested to serve as reviewers for this project.

    Note: There are no submission or acceptance fees for manuscripts submitted to this book publication, Global Perspectives on Risk Management and Accounting in the Public Sector. All manuscripts are accepted based on a double-blind peer review editorial process.

    Important Dates

    • October 31, 2014: Proposal Submission Deadline
    • November 30, 2014: Notification of Acceptance
    • February 28, 2015: Full Chapter Submission
    • April 30, 2015: Review Results Returned
    • May 30, 2015: Revised Chapter Submission
    • June 15, 2015: Final Acceptance Notification
    • June 30, 2015: Final Chapter Submission


    Augusta Ferreira
    Higher Institute for Accountancy and Administration of Aveiro, University of Aveiro
    R. Associação Humanitária dos Bombeiros Voluntários de Aveiro
    3810-500 Aveiro, Portugal

  • Nelson Souza added an answer:
    COGNITIVE LOAD THEORY. Does anyone have any knowledge on the difference in use of course materials learnt for solving problems by novices and experts?

    I am especially interested in evidence relating to the accounting and auditing profession but any other cases would be interesting.

    Nelson Souza · Federal University of Pará


    you are going to find this:

    "Experts use a "working forward" strategy (working forward from given information toward the goal by choosing equations that contain the givens and
    solving the goal) while novices "work backward" (selecting equations that contain the
    goal and trying to plug in the givens)".

    Tomorrow I will send you another paper

  • Paul Louangrath added an answer:
    Does anyone has any information about the State-of-Art for Accounting Audit Automation? (Continuous Audit Paradigm)

    How is automation in Accounting Audit performed?

    Can it be fully automated and be replaced by a Continuous Audit Paradigm with BPMS technology?

    Paul Louangrath · Bangkok University

    ISSUE: Automated auditing

    ELECTRONIC DATA TRANSFER: Audit automation is accomplished through electronic data transfer (EDT) between the auditor and the firm or entity being audited. EDT may occur in two scenarios: (i) both parties have electronic data, and (ii) only one party has electronic data. Today’s business environment moves towards full automation, i.e. electronic data.

    PERFORMING E-AUDIT: In performing e-audit, the client 9one being audited) provides the auditor with electronic data, i.e. accounting data. These data may be categorized into two types: (i) chart of account serving as a guide, i.e. table of content to the accounting system, (ii) actual data on various accounts. Once received the auditor then examine the data beginning with the test of “data integrity.” If the data is trustworthy then the auditor commences the auditing. This is the first part of the automation.
    The second part of audit automation is on the auditor side. The auditor may employ special auditing software or just a run of the mill, such as MS excel would also suffice. If the auditor uses an auditing software, the program will load the data and perform the audit by (i) recalculate every item, or (ii) search for outstanding issues and alert the auditor to pursue that particular issue by identifying the particular account from the “identified issue” mapping it to the chart of account. At this point, a preliminary examination will be under taken, if there is a problem the entire account category may be pursued by (a) detailed examination or (b) sampling by period. If sampling is used, the client must be informed of the sampling method. Normally, the auditing software will regenerate the financial statements: profit and loss, balance sheet, and cash flow statement. These statements are then compared to the statements reported by the client in prior period. If there are discrepancies, then the “book” may be opened by the steps mentioned above.

    DATA MATCHING: Auditing software generally work by mapping data fields of the client to the data field coded by the auditor’s software. Under this approach, there are two possibilities: (i) matched data, and (ii) unmatched data. With the match data fields new financial statements are generated and compared to those reported by the client. If there are discrepancies, then the auditor will pursue according to account names in the chart of accounts. As for the unmatched data, the auditor will check if the data field had been miscoded or miscategorized by the client. This scenario will produce the most liability to client, i.e. miscategorized taxable item as non-taxable would mean the client owes back taxes.

    CLIENT WITHOUT ELECTRONIC DATA: If the client (business entity being audited) has no electronic data, the auditor may attempt to create electronic data from paper records and commences the audit through sampling, i.e. stratified sampling method may be used if the auditing period is long and the transactions are numerous making a detailed examination unfeasible.

    UNDERSTANDING CLIENT’S BUSINESS MODEL: Whether the audit is accomplished by hand or electronic method, it is important that the auditor studies and understands the client’s business model: how income/expense are categorized and treated? Generally, GAAP, IAS or IFRS may used as a guide. Double check the software which standard it follows.

    FULL AUTOMATION: No, because each time there is an "issue" in order pursue the issue, there must be manual work or communication between auditor and client. This is part of the audit that cannot be automated. Audit will always have the "human" element in it. For instance, the issue of ethics in audit cannot be resolved by automation.

  • Nikola Tasić asked a question:
    Accounting value of a bank's overhead costs

    Can someone provide the exact definition of "Accounting value of a bank's overhead costs" (from BankScope) or some idea what costs would this value include?

  • Shahid Latif asked a question:
    Research proposal topics

    what are the new areas for writing research proposal in finance, accounting, auditing, management sciences?

  • Neil L Fargher added an answer:
    Is there any example where an apparently valid theoritical argument may empirically prove invalid, especially in accounting?

    normative vs empirical arguments in accounting theory

    Neil L Fargher · Australian National University

    IF you go back to a seminal research paper such as Ball and Brown (Journal of Accounting Research 1968) you will see that the paper includes references to earlier theoretical, arguably normative assertions and papers by Patton and Littleton, Chambers and others. The empirical insights starting from Ball and Brown overturned much of the concerns in these earlier articles.

    Basically, if you look at any seminal, highly influential research paper it probably has some element that changed thinking from a prior logical but incorrect position. For a view on influential papers in accounting there are articles by Lawrence Brown and others with their views on what have been the influential articles in accounting. 

  • Suzan Abed added an answer:
    Can anyone suggest a good accounting research topic for my phd which is new and can be applicable in the Middle East?
    Suzan Abed · Applied Science Private University

    There are many nice research ideas.....but before go ahead in your research do small search about the applicability in the middle east

  • Praveen Hoogar added an answer:
    What points should we consider to calculate income?

    This is the problem which many of the researchers have been experiencing hurdles to calculate or mention the income of particular family or subject?   

    Praveen Hoogar · Karnatak University, Dharwad

    Thank you Warren

  • Khuong Nguyen Vinh added an answer:
    Do you think that fair value is an accounting estimate?
    I'm researching about accounting estimates and think about this - fair value often is subjective. Does that mean that fair value is an accounting estimate, as amortization and impairment?
    Khuong Nguyen Vinh · Nguyen Tat Thanh University

    Fair value is so good if have active market. But fair value is not market price!!!

    Fair value is an accounting estimate. (ISA 540)

  • Khuong Nguyen Vinh added an answer:
    On a 1 to 10 scale (10=very likely) how likely is the U.S. to accept IFRS for financial reporting by U.S.-based publicly traded corportions?
    IFRS (International Financial Reporting Standards) are now required or accepted in over 120 countries. The U.S. Securities and Exchange Commission revised its rules in December 2007 permitting non-U.S. companies to file financial statements prepared according to IFRS without reconciliation to U.S. generally accepted accounting principles (GAAP) if the financial statements are prepared in accordance with IFRS as issued by the International Accounting Standards Board (IASB). On a 1 to 10 scale (1=very unlikely, 5=neutral, 10=very likely) how likely is the U.S. to accept IFRS for financial reporting by U.S.-based publicly traded corporations?
    Khuong Nguyen Vinh · Nguyen Tat Thanh University

    Today, convergence is inevitable trend. I think so.

    I say an 8.

  • -- Bilal added an answer:
    Kindly suggest new topics for Research in Accounting and Auditing?
    Respected Professors, Assistant Professors and Other faculty members of Business Schools. Kindly share the new topics for Research in Accounting and Auditing. Also suggest the sources from where I will pick the topic as new learner.
    -- Bilal · Beijing Institute Of Technology

    Thanks a lot dear Athianos Stergios, Khuong Nguyen Vinh and Afaf Badawe for your guidance and interested topics for me.

  • Andre Wesendonck asked a question:
    Has anyone seen an as-is Accounting Audit Process map in BPMN?

    We have many guides and manuals to it. But has anyone mapped the Accounting Audit Process?

    I know it varies from country to country, but I am doing some research in the field and having this map would be very helpful.

  • Jerome Cheynel added an answer:
    Can budgets influence decision making?
    Can budgets influence decision making, for instance, risk taking and decision bias? If so, then how can managers prevent it? What tools do managers have to increase performance? In many countries, especially in emerging countries, the use of frugal innovation is widely used to solve problems. Can there be any benefits of frugal innovation to smaller budgets?
    Jerome Cheynel · Medaxial - a Covance company

    To bring an empirical perspective here, I could cite numerous cases where budget did take precedence over decision making – and any other consideration.

    One of the most striking examples I came across was the case of gastric surgery for weight reduction – relatively cheap as a procedure (keyhole surgery, as close as it gets to frugal innovation in healthcare), returns many years back to life expectancy, clears many comorbidities including in many cases diabetes, and ultimately would save millions (very possibly billions over time) to healthcare systems around the world in the long term: it is a very cost-effective treatment option. However, the number of patients who should receive it is so vast (and growing) that no healthcare system can afford it, even though it will cost even more not to act now.

    The sort of budget that would make this possible just doesn't exist, and unfortunately you cannot exclude this aspect from the decision process as it will eventually condition how many/much of the decisions will be transformed into reality.

  • Joshua Chesoli added an answer:
    What can be used to determine internal auditing accuracy of an Institution

    I am working on using internal audit efficiency as a way of improving universities performance. Hence, can anybody assist me with this?

    Joshua Chesoli · Mount Kenya University

    Auditing is an evidence gathering exercise.  It is an exercise carried out to conform the assertions made by the management in carrying out the management duties and in producing accounts meant to give a true and fair view.  The authoritative document to determine accuracy is the ISA500Audit Evidence.  I do hope this adds to others submitted earlier on.

  • Suzan Abed added an answer:
    What is your favorite module in financial accounting and why?
    Alternative modules in financial accounting ................principles, corporate, intermediate, IAS, International accounting, Accounting theory, Advanced accounting,
    Suzan Abed · Applied Science Private University

    Accounting principles my favorite, I do like to build in student knowledge

  • George Peters added an answer:
    What would be the justification for providing accounting information even if it lacks information content?
    Positive accounting theory
    George Peters · Rivers State University of Science and Technology

    It could be that such information will be useful for internal decision making which may not make any meaning to external users hence the information may lack the content that external users will be looking for. One can not really say that accounting information lacks information content because it will depend on the category which the individual or institution falls; probably the information content did not meet the expectation of the individual but it doesn't mean it may not have met the expectations of others because the statement is prepared using standards that are prescribe by law. This is one of the limitation of financial reporting as it may not be able to meet the expectation of all concern.

  • Joshua Chesoli added an answer:
    What is the difference between earning management and earning quality?
    Earning management and earning quality are different but this is not clear sometimes, so what do you think the difference between earning management and earning quality is?
    Joshua Chesoli · Mount Kenya University

    The terms “quality of earnings” and “earnings quality” have no single, agreed-upon meaning. Both terms are used when making accounting choices; considering the business cycle, including timing of transactions; and discussing earnings management.
    “Earnings management” is not a technical term in accounting or finance. However, it occurs when 1.) firm management has the opportunity to make accounting decisions that change reported income, and 2.) exploits those opportunities.

  • Hussin Jose Hejase added an answer:
    Do you think we have to teach accounting ethics in our curricula for undergraduate students?
    Shall we add new model to our curricula?
    Hussin Jose Hejase · American University of Science and Technology Lebanon
    During this summer, we are preparing the Forensic Accounting course which embodies much of the ethical conduct and will be offered as a seminar in business accounting at this stage. Hopefully, in the near future we may include it as a major course in our Accounting program. If any of my colleagues here has any advise on this respect, we are open for suggestions.

  • John M. Plumb added an answer:
    How do you test for a non-linear relationship between radio and binear variables?
    Currently I am investigating whether or not auditor tenure (AT) has a non-linear relationship with audit quality (AQ). I expected a non-linear or parabolic relationship.
    AT is measured in years, financial restatements (R) are used as a proxy for AQ.
    Currently I have a set of restatements. I want to determine AT for each R so I can see how many R's there are for each AT year and can plot this. However I don't know how to obtain statistical significance for this matter.
    I would be most grateful if you could help me out!
    John M. Plumb · United States Geological Survey
    As I read it, the response variable AT is measured in number of years? So, the response may be log-normal, normal or Poisson, etc. but not really binary. The 'whether or not' seems to refer to statistical significance, and not a 0 - 1 response? Either way, Boudewijn, the type of distribution for your response will determine which 'flavor' of regression you should use.

    I envision your model being structured something like:

    AT = B0 + B1*R + error

    where AT is the expected mean number of tenure years for a given R, and R is the number of restatements. If you assume the error is normally distributed about the line that is formed by B0+B1*R then you can use sum-of-squares in any standard stats software to obtain values for B0 and B1, as well as their p-values for 'significance' . If the error (aka residuals) are not homogeneous about the fitted line, then you can change either the model's structure (for example quadratic) to improve model fit (If this is the case, then this is evidence that a non-linear trend is more appropriate to describe your data), and if this doesn't work then I would suggest trying a different flavor of regression to accommodate a different error structure about the model.

    Other than that, we're going to need more information about your data.
  • Sood Ndimuligo added an answer:
    Analyzing longitudinal data: discriminating effects of "time" versus other covariates
    The context: we collected data on closing time for financial reports of firms over ten years to understand the trends and factors influencing closing time. Closing time is the difference between closing date (f.e. 31st of Dec of fiscal year) and press conference on annual report.
    The problem: in multiple regression the factor with the highest correlation is "time" in the sense that there is a more or less linear trend, so closing time of the previous year is highly correlated with closing time of the actual year. That leads to correlations of all other factors (like gearing ratio, size, index..) around zero.
    a) one could consider only differences of all covariates. i.e. dependent variable is closing time (t) - closing time (t-1), independent variables like size (t) - size (t-1); yet then we analyse in regression only the effect of the differences of independen variables not the original values of variables
    b) multilevel regression with time as level 1, firm as level 2; but its a bit complex and for readers not easy to understand

    I would appreciate any other solutions and suggestions (hopefully those which are possible in SPSS or MLWIN and not R)
    Thanks a lot.
    Sood Ndimuligo · University of Oslo
    Ideas are all good to lead the person to the solution. Assumptions in longitudinal data I hope are clear but note: since there is no pre-specified level of correlation then unstructured is the best as per the Book by...Vittinghoff, et al., 2005, and the extension towards understanding the factors that have significant association are done by gee library. The principle is based on the aspect that in such repeated data some assumptions of variance to be exactly equal to mean are violated in the data thus the estimates may not fit well. In checking for the correct estimates have to work on quasi and link=log, where you need to add the statement of var=mu then run the analysis with the estimates of the variance and mean scaled to be equal as the assumption of the longitudinal data states. In this way you may be able to examine and explain well the highly associated factors in the data.
  • Renard Siew added an answer:
    What are challenges in implementing IAS 18?
    Renard Siew · University of New South Wales
    'AS 18 Revenue outlines the accounting requirements for when to recognise revenue from the sale of goods, rendering of services, and for interest, royalties and dividends. Revenue is measured at the fair value of the consideration received or receivable and recognised when prescribed conditions are met, which depend on the nature of the revenue.'

    As always the challenges in implementing IAS is clarity. What is meant by the nature of the revenue? and how does one determine fair value?
  • Utkarsh Goel added an answer:
    Which financial ratios do these short names refer to?
    I am working with a bankruptcy dataset containing financial ratios of some companies. There are some short names and I do not know what they stand for. They are:
    - INC / Sales
    - UBCDEP / sales
    - INCDEP / sales
    - Sales/REC
    Utkarsh Goel · Indian Institute of Technology Roorkee
    inc = income
    INCDEP=income + depreciation
    REC= receivables
  • Shaker Melhem added an answer:
    How can I explain why I am using five likert scale for my questionnaires?
    I have done a presentation about innovation in service, and I have adopted questionnaires from previous studies ( 5-likert scale). However, one of the questions has been asked "why do you think five likert scale is the most suitable for your questions?" So any justifications for that?
    Shaker Melhem · Universiti Utara Malaysia
    Thx much Gary Bourque
  • Khairul Anuar Kamarudin added an answer:
    What is the meaning of sustainability financial reporting accounting?
    Social accounting.
    Khairul Anuar Kamarudin · Universiti Teknologi MARA
    I would like to suggest a book titled "Sustainability accounting and accountability" written by Unerman, Bebbington, O'Dwyer (2007). This is a good reference for this topic and and provide good discussion on this topic.
  • Renard Siew asked a question:
    Are there any substantial studies that have examined the impact of investing in green real estate investment trusts (REITs)?
    While there is currently a strong focus on corporate social responsibility and the impact of investing in socially responsible equities, to a certain extent, the discussion revolving investing in 'green' buildings/ REITs is neglected.
  • Fathi Abid added an answer:
    What is the most interesting part of financial accounting?
    e.g., accounting cycle, IFRS, consolidated financial statements.
    Fathi Abid · University of Sfax
    From my point of view auditing and derivatives' accounting are interesting research projects.
  • Marco Bisogno added an answer:
    Analysis of comment letters to an exposure draft?
    I'm studying the Exposure Draft no. 49 recently issued by the IPSASB, concerning consolidated financial statements of public sector entities; more specifically, my aim is to investigate the concept of "control". From a methodological point of view, what is the approach I can refer to in order to better investigate the comment letters to the ED? Content analysis or other approaches?
    Marco Bisogno · Università degli Studi di Salerno
    Hi Mark,
    many thanks for your good suggestion.
  • Cynthia Jeffrey added an answer:
    How does academic research increase the relevance and create value in businesses and education?
    Do we have the incentives to do so in our current system?
    Cynthia Jeffrey · Iowa State University
    I was an adjunct professor before I left to get my PhD. I felt i was a good teacher, and my students generally gave me good reviews. I believe, however, that my PhD and the research component that brought to my professional life has made me a better teacher. Now when I teach inventory, I also bring in the research on stock market reactions to companies that change to LIFO. Even though, in a period of rising prices, a change to LIFO reduces net income, it also increases share price because of the tax impact. I then relate this to the potential to switch to IFRS. I have done research in consolidations and accounting for goodwill and IPR&D. This also enhances my ability to teach these topics, both at the undergraduate and masters' levels. Rather than simply teaching how to account for goodwill, I can provide students with more insight into why it matters. I can also related stock market reactions, which tend to be positive, to both the write-off of IPR&D and the incurrence of higher than expected R&D and marketing costs. The market treats these charges "as if" they were assets, which is theoretically justified as they are thought to increase the company's ability to generate future cash inflows through higher future sales. By examining the literature on value relevance, one can even come up with average expected "lives" of such expenditures. My dissertation research was on the audit of bank loan portfolios and how aspects of the decision making process affect auditor judgments. I have used anecdotes from this research in my teaching ever since, especially how a bank loan officer responded to some of the information in the case when he helped me by reviewing the information that I was creating for my experiment.. I have just started doing research in corporate social responsibility and accountability, and this research stream led me to develop a new masters level course in accounting and CSR. These are just a few of the ways that research - both research I do and research others do - has had a strong positive influence on my teaching, and I believe I am a much stronger professor for the research experience.

    Coupled with that is the fact that teaching has made me a better researcher. Using research in class enhances my ability to understand implications and nuances of research studies. Further, more than one research idea has been either generated or enhanced by class discussions. As I delve into CSR, the class discussions are particularly relevant in my developing understanding of CSR disclosures, how they are evolving, and how they might be used. I also teach International Accounting, and a component of that course is how cultural differences (i.e., Hofstede's cultural constructs) potentially influenced financial accounting disclosure. We are taking that construct and testing to see how cultural constructs shape CSR disclosures. I have also done cross-cultural research that examines issues like professional commitment. There is research on potential differences in audit programs as a function of cultural differences; I believe these differences potentially impact audit risk.

    These are but a few examples of the synergies between research and teaching. From my experiences, I believe these synergies are very important, significantly enhancing both research and teaching, and creating a much richer teaching environment.

About Accounting

System of recording financial transactions.

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