2024-03-28T18:58:47Z
https://researchonline.jcu.edu.au/cgi/oai2
oai:researchonline.jcu.edu.au:75522
2024-03-01T15:02:17Z
7374617475733D707562
74797065733D61727469636C65
Evaluating the Implementation of a Mandatory Dual Reporting System: The Case of Indonesian Local Government
Mir, Monir
Harun, Harun
Sutiyono, Wahyu
Informative and transparent financial information in the public sector is crucial for improving public sector management and eradicating corruption. Given this, Indonesia has reformed its public sector accounting, reporting and accountability systems by implementing a dual reporting system known as ‘cash towards accrual’, following similar reforms in developed countries. Drawing on the experience of five local governments (districts) in Indonesia, this study finds that the implementation of the dual reporting system has helped local governments to produce transparent and informative reports. However, the accrual-based contents of the dual reports produced by the new reporting system are underused for decision making. In addition, there has been a significant increase in costs associated with the implementation of the new accounting regime in the jurisdictions studied. The study also finds that the ability of the users to use information generated by the new accounting system is more important than just a legal and mandatory requirement to use the new system.
John Wiley & Sons Ltd
2019
Article
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/75522/7/75522.pdf
https://doi.org/10.1111/auar.12232
Mir, Monir, Harun, Harun, and Sutiyono, Wahyu (2019) Evaluating the Implementation of a Mandatory Dual Reporting System: The Case of Indonesian Local Government. Australian Accounting Review, 29 (1). pp. 80-94.
https://researchonline.jcu.edu.au/75522/
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oai:researchonline.jcu.edu.au:75677
2023-06-21T02:35:07Z
7374617475733D707562
74797065733D61727469636C65
Indonesian public sector accounting reforms: dialogic aspirations a step too far?
Harun, Harun
Van-Peursem, Karen
Eggleton, Ian R.C.
Drawing from an interest in the changing Indonesian political and regulatory history, the purpose of this paper is to provide an understanding of the role that accounting reform can play in nurturing, or failing to nurture, a more dialogic form of accounting in a local Indonesian municipality. To collect the data, the authors undertook a case study of a local municipality and drew from patterns found in Indonesia’s long colonial history. Data were acquired from official and publicly available documents and interviews with 29 key figures, including those involved in formulating and disseminating laws and also those affected by the accounting reforms from 1998 to 2009. Document collection and interviews were conducted at national and local levels.
This study shows that Indonesia has undertaken significant economic and political reforms for the intended purposes of fostering democracy, strengthening accountability, and creating transparency in relation to public sector practices. As part of these reforms, accrual accounting is now mandatory, independent audit is conducted, and disclosure is required by Government offices at central and local levels. Nonetheless, drawing from dialogic accounting principles, this study demonstrates the limitations of legislation and regulation in countering patterns that have long been laid down in history. Essentially, there is limited opportunity to question the elements of these reforms, and the study has also found that centralizing forces remain to serve vested interests. The root of the problem may lie in traditions of central control which have played out in how a dialogic form of accounting has failed to emerge from these important accounting reforms.
Emerald Group Publishing
2015
Article
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/75677/1/75677.pdf
https://doi.org/10.1108/AAAJ-12-2012-1182
Harun, Harun, Van-Peursem, Karen, and Eggleton, Ian R.C. (2015) Indonesian public sector accounting reforms: dialogic aspirations a step too far? Accounting, Auditing & Accountability Journal, 28 (5). pp. 706-738.
https://researchonline.jcu.edu.au/75677/
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oai:researchonline.jcu.edu.au:75695
2022-08-09T04:53:13Z
7374617475733D707562
74797065733D61727469636C65
Characteristics of Real Backdaters
Tee, Kienpin
Wiley, Marilyn
Purpose:
Recent findings show that CEOs tend to backdate their stock option grants so that a past date on which the stock price was particularly low is picked to be the grant date. Using cases now settled concerning a group of firms that were caught backdating, this paper aims to examine further whether backdating firms have higher levels of operating efficiency and corporate governance, lower levels of bankruptcy risk, more ability to increase shareholder wealth, and lower levels of market price risk. This paper also compares the characteristics of backdating firms during the pre-Sarbanes-Oxley Act of 2002 (SOX) and post-SOX periods.
Design/methodology/approach:
This sample of backdater firms comprises those caught backdating who have settled their cases, according to data provided by Risk Metrics Group, a non-profit organization that keeps track of most securities class actions. A matched sample of 28 non-backdating, comparison-group firms was constructed to perform univariate and multivariate comparisons.
Findings:
This study found that backdating firms on average have a higher price risk than non-backdating firms, and that increasing the percentage of shares owned by the major shareholders reduces the possibility of management conducting backdating activities.
Originality/value:
No previous studies have used a sample of real backdating culprits. Previous studies have usually used likely backdating traits to identify a group of suspected backdaters. In contrast, the current study, by using a group of firms whose deliberate backdating behavior had led to lawsuits that have been settled in court, investigated the characteristics of known backdaters.
Emerald Group Publishing
2017
Article
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/75695/1/75695.pdf
https://doi.org/10.1108/JFC-05-2016-0034
Tee, Kienpin, and Wiley, Marilyn (2017) Characteristics of Real Backdaters. Journal of Financial Crime, 24 (4). pp. 541-551.
https://researchonline.jcu.edu.au/75695/
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oai:researchonline.jcu.edu.au:75722
2024-03-22T06:10:51Z
7374617475733D707562
74797065733D61727469636C65
Obstacles to public sector accounting reform in Indonesia
Harun,
This paper draws attention to the importance of improving the quality of public sector accounting in Indonesia, in line with the aims of reformasi (reform) and demokratisasi (democratisation), and in the context of decentralisation. It highlights a continuing lack of progress in reform of government accounting. This is attributable partly to a lack of interest in and understanding of the issues among newly empowered electors. Successive governments have been reluctant to push hard for accounting reform, not least because improved accountability poses a significant threat to politicians’ and bureaucrats’ overall income levels. In addition, current human resource management practices in the public sector have resulted in a shortage of accounting skills, and without these there is little prospect of successful reform in this area. A possible solution may be to establish a parallel civil service specifically to undertake the accounting functions of government.
Routledge
2008
Article
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/75722/1/75722.pdf
https://doi.org/10.1080/00074910701727613
Harun, (2008) Obstacles to public sector accounting reform in Indonesia. Bulletin of Indonesian Economic Studies, 43 (3). pp. 365-376.
https://researchonline.jcu.edu.au/75722/
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oai:researchonline.jcu.edu.au:79163
2023-11-20T23:29:03Z
7374617475733D707562
74797065733D61727469636C65
Nigerian professional investors' sensemaking of the impact of shareholder activism on corporate accountability
Ashiru, F.
Adegbite, E.
Nakpodia, F.
This study investigates the perceptions of professional investors (PIs) on the impact of three groups of shareholder activists (i.e., reputable, sophisticated, or institutional) on corporate accountability in a weak institutional context and how this shapes the PIs’ investment recommendations. Relying on a sense-making theoretical perspective of the power and competence of shareholder activists obtained through semi-structured interviews with 27 Nigerian PIs, we reveal that the impact of shareholder activism occurs in three activism-accountability dimensions: dominant, insignificant, and emerging. Subsequently, we unpack factors that explain the power and influence of the dominant activism of reputable activists, the insignificant activism of sophisticated activists and the emerging activism of institutional activists. By advocating a contextual understanding of shareholder activism, this article sheds much-needed insights into the concept of ‘activism-accountability’ in a weak institutional environment.
Elsevier
2023
Article
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/79163/9/79163.pdf
https://doi.org/10.1016/j.jaccpubpol.2023.107114
Ashiru, F., Adegbite, E., and Nakpodia, F. (2023) Nigerian professional investors' sensemaking of the impact of shareholder activism on corporate accountability. Journal of Accounting and Public Policy, 42 (4). 107114.
https://researchonline.jcu.edu.au/79163/
open
oai:researchonline.jcu.edu.au:79648
2023-08-07T23:29:59Z
7374617475733D707562
74797065733D636F6E666572656E63655F6974656D
Audit Research in Australian Charitable Organisations: A Review of Literature
Gilchrist, David
Agrawal, Prerana
Das, Abhijit
Wen, Han
In the last 5 years, discussions on research opportunities in the audit service area for the large, medium, and small Australian charitable organisations have garnered a lot of interest among academics, practitioners, standard-setters, and regulators in Australia. Principally, this has been the result of increased focus on accounting standards and reporting concerning to charitable organisations. However, up until recently, research in the audit of charitable organisations is still in the stage of infancy and therefore, the development of a research program is crucial to narrow the knowledge gap.
In this paper, we review prior literature that investigates auditing-related issues for the not-for-profit sector (i.e., charitable and other types of not-for-profit organisations). We classify extant auditing literature in two broad categories: (1) effectiveness of governance in financial reporting quality in not-for-profit organisations and (2) audit quality in not-for-profit organisations. We will use this categorisation to assess the cumulative knowledge generated in the past 5 years, as well as to identify knowledge gaps and opportunities for future research.
Based on the literature review, we aim to develop exemplars of audit research mainly for medium and large Australian charitable organisations with a view of the terrain over which research can be progressed, in particular, we aim to address the following research questions:
Category 1: Effectiveness of Governance in Financial Reporting Quality in not-for-profit organisations
(i) To what extent governance mechanisms (e.g., audit committee, internal audit) are effective in producing quality financial reports in large Australian charities?
(ii) How are audit committees of charities in Australia related to each other? What is the issue if they are related?
Category 2: Audit Quality in non-for-profit organisations
(iii) Are audit-related factors (e.g., auditor size, auditor specialisation, auditor tenure and audit fees) associated with audit quality in large and medium charities in Australia?
(iv) Is there any evidence of earnings management in large and medium charities in Australia?
(v) Do sophisticated donors discount accounting information more than mum-dad donors if audited by “Non-Big 4” auditors rather than “Big 4” auditors?
(vi) Is there any difference in audit quality between pro-bono, low pro-bono and non-pro-bono audits of large and medium charities in Australia?
Australian and New Zealand Third Sector Research
2022
Conference Item
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/79648/1/79648.pdf
Gilchrist, David, Agrawal, Prerana, Das, Abhijit, and Wen, Han (2022) Audit Research in Australian Charitable Organisations: A Review of Literature. In: [Presented at the 15th Biennial Australian and New Zealand Third Sector Research Conference]. From: 15th Biennial Australian and New Zealand Third Sector Research Conference: The Voice and Contribution of the Third Sector in Australia and New Zealand: Contemporary Achievements and Challenges in Creating Public Good, 17-19 November 2022, Perth, WA, Austraia.
https://researchonline.jcu.edu.au/79648/
open
oai:researchonline.jcu.edu.au:80552
2024-03-04T14:16:26Z
7374617475733D696E7072657373
74797065733D61727469636C65
Content characteristics of key audit matters reported by auditors in Bangladesh and their implications for audit quality
Bepari, Md Khokan
Nahar, Shamsun
Mollik, Abu Taher
Azim, Mohammad Istiaq
Purpose: In this study the authors examine the nature and contents of key audit matters (KAMs), and the consequences of KAMs reporting on audit quality in the context of a developing country, Bangladesh. The authors’ proxies of audit qualities are discretionary accruals, small positive earnings surprise, audit report lag, earnings management via below the line items and audit fees.
Design/methodology/approach: The authors use content analysis of the KAMs for the period 2018–2021 to understand the nature and extent of KAMs reported by auditors in Bangladesh. The authors then use multivariate regression analysis to examine the effect of the number and content characteristics of KAMs on audit quality by using multivariate regression analysis.
Findings: Auditors in Bangladesh disclose a higher number of KAMs compared to other countries, disclose short descriptions of KAMs and industry generic KAMs. The authors document significant cross-sectional variations in the number and content characteristics of KAMs reported by auditors in Bangladesh. The authors’ pre-post analysis suggest that audit quality has improved after the adoption of KAMs. Cross-sectional analysis suggests that KAMs number and content characteristics are related to audit quality.
Practical implications: The authors’ findings imply that the KAMs reporting has the potential to play significant monitoring role in reducing the opportunistic behavior of managers. Hence, KAMs reporting can play a significant role in reducing the agency problem. For regulators, shareholders and corporate managers, the authors’ findings imply that if the audit quality is to be increased, the audit effort should be supported by an appropriate amount of audit fee.
Social implications: The content characteristics of KAMs significantly influence managerial reporting behavior and affect the level of audit efforts.
Originality/value: Unlike developed countries (Gutierrez et al., 2018; Lennox et al. 2022), this study supports that KAMs reporting improves audit quality and control opportunistic behavior of managers in developing countries. The authors show that even though the KAMs disclosure quality is poor, it has the potential to improve financial reporting quality.
Emerald
2023
Article
PeerReviewed
application/pdf
https://researchonline.jcu.edu.au/80552/1/80552.pdf
https://doi.org/10.1108/JAEE-12-2022-0344
Bepari, Md Khokan, Nahar, Shamsun, Mollik, Abu Taher, and Azim, Mohammad Istiaq (2023) Content characteristics of key audit matters reported by auditors in Bangladesh and their implications for audit quality. Journal of Accounting in Emerging Economies. (In Press)
https://researchonline.jcu.edu.au/80552/
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