Accounting in a Social Context

Accounting permeates all of society. Accounting information is not homogenous and varies not just from company to company but from user to user, meaning that the use of such accounting information is actually a social phenomenon within an organization. Accounting cannot therefore be understood simply in terms of its functional properties but more as a socially constructed set of actions taking place within the organization, the landscape of which is constantly transforming. Digital technologies in the form of big data and artificial intelligence (AI) are expanding the organization’s data eco-system forcing the accountant to develop their digital technology skillset and forge links with the data scientist, the incumbent custodian of these growing data streams. Meanwhile, a rapidly expanding sustainability agenda is broadening the organization’s biophysical landscape leading to even more data flows and creating the need for management accounting and control systems which will help organizations to behave in an environmentally sustainable and socially responsible manner. This chapter explores each of these issues and calls for a deeper understanding of the relationship between accounting and big data, AI and sustainability

Institutionalism and its effect on labour forecasting in Vietnamese firms

This study examines factors that influence firm forecasting regarding their labour expansion in Vietnam. Conventional wisdom has it that foreign-owned and large private firms make more accurate forecasts since they have more resources and experience than their smaller and state-owned counterparts. However, this study empirically shows that state-owned and small firms make more accurate forecasting values. There are two possibilities that can explain this counterintuitive result: (1) the institutional incompleteness in the post-communist economy and (2) systematic underestimation of their own performance by foreign and large private firms, which results from the institutional complexity in Vietnam. These unique findings provide valuable information for both academia and practitioners

Are Auditors\u27 Reliance on Conclusions from Data Analytics Impacted By Different Data Analytic Inputs?

Global stakeholders have expressed interest in increasing the use of data analytics throughout the audit process. While data analytics offer great promise in identifying audit-relevant information, auditors may not uniformly incorporate this information into their decision making. This study examines whether conclusions from two data analytic inputs, the type of data analytical model (anomaly vs. predictive) and type of data analyzed (financial vs. nonfinancial), result in different auditors\u27 decisions. Findings suggest that conclusions from data analytical models and data analyzed jointly impact budgeted audit hours. Specifically, when financial data is analyzed auditors increase budgeted audit hours more when predictive models are used than when anomaly models are used. The opposite occurs when nonfinancial data is analyzed, auditors increase budgeted audit hours more when anomaly models are used compared to predictive models. These findings provide initial evidence that data analytics with different inputs do not uniformly impact auditors\u27 judgments

Η τεχνολογία της ανάλυσης δεδομένων στη λογιστική και ελεγκτική

Διπλωματική εργασία--Πανεπιστήμιο Μακεδονίας, Θεσσαλονίκη, 2018.Η παρούσα εργασία έχει ως σκοπό την παρουσίαση των νέων τεχνολογιών στην Λογιστική και Ελεγκτική. Αρχικά, πραγματοποιείται μια ιστορική ανασκόπηση του επαγγέλματος του Ορκωτού Ελεγκτή Λογιστή στην παγκόσμια οικονομία από τα αρχαία χρόνια μέχρι και σήμερα. Επίσης, γίνεται αναφορά στο επάγγελμα Ορκωτού Ελεγκτή Λογιστή στην Ελλάδα και πραγματοποιείται μια προσπάθεια καταγραφής των αλλαγών από την παραδοσιακή μορφή του ελέγχου μέχρι τις μελλοντικές τεχνολογικές εξελίξεις στον έλεγχο των χρηματοοικονομικών καταστάσεων. Στη συνέχεια, παρουσιάζεται λεπτομερώς η τεχνολογία της ανάλυσης των δεδομένων (Data Analytics) στον έλεγχο των χρηματοοικονομικών καταστάσεων, οι εφαρμογές της και τις μελλοντικές ωφέλειες από την πλήρη υιοθέτησή της στα προγράμματα ελέγχου. Τέλος, γίνεται προσπάθεια περιεκτικής ανάλυση των κυριότερων τεχνολογιών που, σύμφωνα με τους αναλυτές, θα απασχολήσουν το επάγγελμα του Ορκωτού Ελεγκτή στο άμεσο μέλλον. Οι τεχνολογίες αυτές είναι η τεχνολογία Blockchain, η Τεχνητή Νοημοσύνη, η Αυτοματοποίηση Ρομποτικών Διαδικασιών και η τεχνολογία Βοηθού Τεχνητού Νευρωνικού Δικτύου

The Effect of Audit Procedure Extent and Precision on Auditors’ Skeptical Judgments

I investigate how the extent and precision of an audit procedure influence auditors’ responses to errors. The results suggest that while audit procedures with expanded extents are beneficial, this benefit is influenced by the presence of false positives. Specifically, I predict and find that as the extent of an audit procedure expands, auditors will be more likely to recommend audit adjustments. However, this effect is moderated by the presence of false positives. When false positives are absent, auditors are more likely to recommend an adjustment when they use a large extent procedure, however when false positives are present, there is no difference in the likelihood of recommending an adjustment for small and large extent audit procedures. The effect of extent on likelihood judgments is mediated by auditors’ reliability judgments

Big data analysis for financial audit

Magistritöö Majandusarvestuse ja finantsjuhtimise õppekavalUued suunad äri- ja poliitmaastikul, majanduses, teaduses, tehnoloogia valdkonnas ning ühiskonna ootustes on oluliselt muutnud ettevõtluskeskkonda ja auditi tööpõldu. Uueks trendiks on saamas suurandmete analüüs ja selle integreerimine äriprotsessidesse eesmärgiga saavutada suurem efektiivsus ja pakkuda klientidele suuremat lisaväärtust. Pakkumaks muutunud töökeskkonnas suuremat kindlustunnet on oluline, et muutustega läheks kaasa ka audit. Kuigi Big4 esindajad räägivad suurtest kulutustest suurandmete analüüsi arendusteks, puudub konkreetne ülevaade selle kasutamise kohta auditi praktikas. Magistritöö eesmärgiks on välja selgitada, millises ulatuses on suurandmete analüüsimeetodid leidnud kasutust Eesti audiitorbüroodes ning milles nähakse peamisi võimalusi ja väljakutseid. Selleks viidi läbi kvalitatiivne intervjuude põhine juhtumiuuring. Intervjueeritavateks on Big4 ja Grant Thornton audiitorbüroo esindaja ja valdkonnas praktiseerivad tehnoloogia ettevõtted. Suurandmete analüüs ei ole finantsauditi läbiviimisel kasutusel peamise tööriistana, kuid seda testitakse. Kõige suuremat efekti suurandmete analüüsist nähakse pettuste avastamises, auditi protsessi efektiivsemaks ja kiiremaks muutmises ja lisaväärtuse pakkumises auditeeritavale. Väljakutsetena nimetati andmete kätte saamine, nende töötlemine ja analüüsimine, ladustamine ja turvalisuse tagamine, metodoloogia puudumine, kriteeriumite seadmine ja arenduse kallidus.Emerging drivers and trends in business and politics, economy, science and technology and the wider society are reshaping the landscape for business and professional auditors. Big Data analysis are here to become new trend in decision making and has already integrated into business processes to achieve greater efficiency and to offer greater added value to the clients. To offer valuable assurance, auditors must response to the changes. Partners from leading audit firms, Big4, have made announcements about making efforts toward using Big Data in auditing. However the prevalence of Big Data techniques in audit practice remains largely unknown. The purpose of this paper is to find out the extent to which big data techniques have been used in auditing companies in Estonia and which set out the main opportunities and challenges. A qualitative, interview-based case study was conducted for this purpose. Interviews covered Big4, Grant Thornton and a technology companies practicing in big data analytics. Big Data analysis is not used as the main tool for financial audits but some of them are testing it. The largest effect from Big Data is seen in fraud detection, making the audit process more efficient and faster and providing and added value to the auditee. Challenges where data acquisition and warehousing, data cleansing and analyzing, privacy and security, methodology, setting criteria and resource costs

Інтеграція штучного інтелекту в системі комп’ютеризованих методів аудиту (СAATs)

Динамічний розвиток сучасних інформаційний і комп’ютерних технологій, зокрема, із використанням штучного інтелекту, обумовлює виникнення нових підходів організації аудиторської діяльності. Мета кваліфікаційної роботи полягає у дослідженні поняття штучного інтелекту, його інтеграції та ролі в системі комп’ютеризованих методів аудиту, а також розробка пропозицій щодо їх подальшого розвитку.Динамичное развитие современных информационный и компьютерных технологий, в частности, с использованием искусственного интеллекта, обуславливает возникновение новых подходов организации аудиторской деятельности. Цель квалификационной работы заключается в исследовании понятия искусственного интеллекта, его интеграции и роли в системе компьютеризированных методов аудита, а также разработка предложений по их дальнейшему развитию.The dynamic development of modern information and computer technologies, in particular, with the use of artificial intelligence, leads to the emergence of new approaches to the organization of auditing. The purpose of the qualification work is to study the concept of artificial intelligence, its integration and role in the system of computerized audit methods, as well as to develop proposals for their further development

Perceptions of Auditor Negligence: The Effects of Big Data Visualisations on Jurors’ Decisions

This study analyses the effects of Big Data visualisations on jurors’ decisions in audit litigation cases. Specifically, the study investigates the effects of different types of Big Data visualisations (word clouds or bar graphs) and different sources of Big Data (emails or social media posts) on jurors’ perceptions of auditors’ work and the size of the negligence awards that jurors recommend. The study theorises that the emotions elicited and the reliability of the data used to create visualisations such as word clouds will have dramatic effects on jury verdicts in audit negligence trials. There is considerable literature to support this assertion. However, after data collection, it was discovered that jurors are not influenced by the emotions elicited by visualisations. Rather, participants were very sceptical of more novel types of visualisations, such as word clouds, but could be persuaded by the inherent emotions elicited and the reliability of the data if they found the visualisation useful

Controlling Auditor Interactions to Improve the Quality of a Financial Statement Audit

Poor quality financial statement audits have a negative impact on the information provided to principals and stakeholders that can increase the risk of corporate fraud. The well-documented collapses of companies, such as Enron and WorldCom, brought the issue of audit quality to the headlines. Using agency theory as the conceptual framework, the purpose of this single case study was to determine what strategies client managers and boards can use to facilitate an engagement with an audit firm and effectively carry out their responsibility to provide effective relevant evidence and support for their management assertions as outlined in the engagement letter. The population comprised a census sample of 9 individuals with direct involvement in the audit process within a Connecticut-based organization and its audit firm. Data collection comprised of semistructured interviews and analysis of public and internal documents. Using methodological triangulation, 5 primary themes emerged including communication, documentation, knowledge and experience, character, and procedural. The findings of this study may promote social change by enhancing knowledge of what role management can play in ensuring a high-quality audit. Improved insight to the audit process may promote investor confidence in the financial statements and economic growth through capital spending

Balancing Internal Controls with Change Management in the Pacific Military Unit

Federal government managers were advised to strengthen internal controls; the law dictates attestation of effective management controls, and the internal control program is used to detect risks. However, managers lacked preparatory training, with training being overlooked given the increased responsibilities. Managers are assigned the programmatic role regardless of the lack of program standards in knowledge, skill, and ability. The research questions addressed change management components, concepts, and core qualifications relative to program readiness. The purpose of this single case study was to identify and explore change management components contributing to the effectiveness of internal controls. The conceptual framework was based on Lewin\u27s change concepts of unfreezing, moving or changing, and refreezing phases with the inverse principle in field theory. Thirteen professionals from the pacific military unit in Hawaii participated in semistructured interviews. Inductive coding was used to thematically analyze the data. The key results of the emerged themes illustrated how: organization skillset was used for linking change components to internal controls, assessment was a tool used for transforming a manager\u27s concept, and experience was essential in leading change core qualifications. Significance of the study was the promotion of stronger measures in preventing fraud, waste, and mismanagement of limited resources. The research results could inspire social change by increasing communication and collaboration to benefit senior leaders, and financial and program managers. The value-added training concepts and leadership innovation, and how managing change relates to internal control could lead to program success thus benefiting all primary stakeholders