Accounting

National influence on the application of IFRS: Interpretations and accounting estimates by German and British accountants
International comparability of financial statements under IFRS can only be achieved if standards are interpreted and applied consistently across countries. However, the different institutional and cultural environments of various countries in which companies operate and in which individuals make accounting decisions suggest that application of IFRS may differ. Building on previous studies that ...


Preventing corruption within government procurement: Constructing the disciplined and ethical subject
This paper examines the role of internal controls and monitoring practices in corrupt contexts and how these controls and practices shape the ethics and moral behaviors of organizational actors. Specifically focusing on corruption in government procurement and drawing on the insights of Michel Foucault and Gilles Deleuze, the paper proposes that effective anti-corruption practices depend upon a...
Foreign ownership and auditor choice
We take advantage of the unique institutional background of the B-share stock market in China to explore the impact of foreign investors on auditor choice. Our results show that the percentage of B-share firms audited by Big 4 auditors has decreased with both economic and statistical significance since the segmented B-share market was opened to domestic investors in 200We find that the negative...


Improving the Disclosure Basis of Pension Accounting
In response to criticisms of U. S. pension accounting standards, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards 158 in 2006. However, the authors say more needs to be done, and they propose a gross recognition approach in which gross pension assets and liabilities are reported and prior service costs and actuarial gains/losses are recognized a...
Enterprise Master Plan: Next-Generation Planning With Activity-Based Costing
Imagine relaxing the assumption of a fixed sales forecast to solve for the optimum level of sales and marketing spending that will provide the maximum profit and return on investment. This article and case study explains how.


The Auditor, the Entity, and Social Cost: How Will Auditing Change?
Auditors have always had to respond to changing conditions. If we look ahead, what might be on the horizon for the auditor of the future? The author suggests we look closely at two concepts: the entity and social cost. What threats and opportunities will emerge?
The Volcker Rule: What Should Auditors Do?
The Volcker Rule is aimed at eliminating proprietary trading by deposit-taking banks. The best hope for the rule is that their auditors will be able to assess and verify compliance with it. And auditors have an excellent toolkit that they can bring to the task. This article provides some preliminary steps auditors might consider in the first year of the Volcker Rule.

Using Audits to Improve Supply Chain Performance
A supply chain audit is one of the most simple and effective but overlooked tools for supply chain improvement.
Avoiding Auditor Bias and Making Better Decisions
Auditors make significant decisions of a subjective nature, and often have close relationships with their clients. So even the most honest and careful auditors can unintentionally allow bias to distort decisions. What common biases interfere with good decision making, and what techniques can minimize bias?

Obamacare Risks: How Auditors Can Identify and Measure Them
Although the employer mandate for the Affordable Care Act (ACA or “Obamacare”) doesn't go into effect until 2015, warning alarms are already sounding. A recent survey found that a large number of companies don't have the trained staff in place they will need to identify and quantify Obamacare risk exposures for their firms—and too many have little knowledge about the ACA. Auditors must he...
Raising Capital: 10 Pitching Mistakes Most Start-ups Make
A brilliant start-up business won't even lift off the ground if it can't convince investors that its product or service is worthwhile. But some entrepreneurs are reluctant to pitch their ideas, or pitch the wrong way. How can they avoid some common start-up mistakes?

COSO Embraces Enhanced Fraud Risk Management
COSO—the Committee of Sponsoring Organizations of the Treadway Commission—has updated its internal control guidelines. The problem of internal control is now seen as one of analysis and synthesis, rather than detecting covert perils from rogue employees or others. The new guidelines include operating risks, nonfinancial statements, and omissions in the external auditor's integrated audit.
The Battle Over Mandatory Audit Firm Rotation
We look at the battle over moves to impose mandatory audit firm rotation in a bid to improve auditor independence and audit quality. And the author asks: Is a game of musical chairs the real answer to the issues relating to auditor independence, objectivity, and professional skepticism?
CEO characteristics and corporate tax planning evidence from US companies
This study investigates whether CEO characteristics influence tax planning in US firms during the period 1996-2009. Inspired by the upper echelon theory, we develop a new tax context and postulate our hypothesis. The results of our study reveal that the educational level and specialty of the CEO influence significantly the tax strategy used by the firm. However, we do not find significant relat...
An empirical study of the drivers of management accounting innovation: a UAE perspective
This paper investigated management accounting innovation in the UAE to add to the current literature on external and contextual factors influencing management accounting sophistication in a developing country context. The paper conducted a survey of 138 practicing management accounts in the United Arab Emirates (UAE) to determine from their perspectives factors that drive innovation in manageme...