Management Control Systems and Contextual Variables in the Hospitality Industry

Purpose – The paper examined management control systems (MCS) in Indonesian hospitality sector. This study examines the impact of six contextual factors at one time to determine the importance of each factor on the design of MCS. Design/methodology/approach – The paper is based upon data collected through a survey sent to “star” hotels in Central Java, Indonesia. Using Chenhall (2003) design, a regression equation is run to examine the relationship between MCS and the contextual variables of environment, technology, structure, size, strategy and culture. Findings – The paper finds that higher levels of the contextual variables of technology, structure, and culture are related to more sophisticated MCS while size is related to more traditional MCS. Research limitations/implications –These findings are related to the hospitality industry in Indonesia. Future research could examine different settings (i.e. country, industry, etc) and investigate the effect of each contextual variable on the relationships between MCS and firm performance. Originality/value – The present study extends the scope of MCS system in accounting literature by testing Chenhall (2003) works on the relationship between contextual variables and MCS. It attempts to fill the gap in contingency-based studies that have previously focused on one aspect of contingency by considering six contextual factors. Furthermore, this paper also contributes to a fuller understanding of MCS practices in Indonesia and the hospitality industry and helps management in determining its most effective design. Keywords Hospitality management, Management Control Systems, Indonesia, Contextual Variable

Can Audit Prevent Fraudulent Financial Reporting Practices? Study of Some Motivational Factors in Two Atlantic Canadian Entities

Much as has been written and done to prevent Fraudulent Financial Reporting (FFR) practicesbut FFR is still exists in the corporate world. It is common to think about FFR practices in largecompanies for its greater amount of consequences, though such practises have negative consequencesin small companies as well. FFR practices raise questions about the legitimacy of contemporaryfinancial reporting process, roles of auditors, regulators, and analysts in financialreporting. This empirical study attempts to investigate the motivational factors of the preventionand detection of FFR through the auditing process. The interviewees were carried outwithin the entity and proprietary theoretical framework with some accounting related managementin two medium-sized organizations in Atlantic Canada in winter 2008. The findings ofthis research demonstrate that an audit is not enough to prevent and detect FFR. The auditstructure needs to be revised and employees need to be educated in order for them to betterunderstand their internal control process, and their own role. Companies need to evaluate theircontrols and internal audit process instead of relying on the yearly audit. This study found thatthe most common methods used for FFR are improper revenue recognition, understatement ofexpenses/liabilities, and overstated and misappropriation of assets. Copyright © www.iiste.or

Managing Competency in Non-Profit Organization: Experience with a European University

Competence Management (CM) has been discussed in contemporary academic and practitioner literature as a managing tool of Core Competences. Most of the studies of CM deal with manufacturing sector and profit organizations. Very little is known about CM in services and almost nothing in not-for profit organization. No research report has yet been found in educational institutions. Although, CM is not only important in manufacturing and profit organizations but also important in non-profit, like educational institutions, in order to meet the required quality and competitiveness of 21st century's education. Thus, an attempt has been made in this research to study CM in the administration of one the top ranking University in a Nordic country. The result results reveal that competencies had been defined in individual, network and unit level, but lack of integration of a comprehensive CM framework unable the higher educational institution to achieve the benefits of core competence. Based on the empirical findings, some policy and research directions are given at the end of the research

Can Audit Prevent Fraudulent Financial Reporting Practices? Study of Some Motivational Factors in Two Atlantic Canadian Entities

Much as has been written and done to prevent Fraudulent Financial Reporting (FFR) practices but FFR is still exists in the corporate world. It is common to think about FFR practices in large companies for its greater amount of consequences, though such practises have negative consequences in small companies as well. FFR practices raise questions about the legitimacy of contemporary financial reporting process, roles of auditors, regulators, and analysts in financial reporting. This empirical study attempts to investigate the motivational factors of the prevention and detection of FFR through the auditing process. The interviewees were carried out within the entity and proprietary theoretical framework with some accounting related management in two medium-sized organizations in Atlantic Canada in winter 2008. The findings of this research demonstrate that an audit is not enough to prevent and detect FFR. The audit structure needs to be revised and employees need to be educated in order for them to better understand their internal control process, and their own role. Companies need to evaluate their controls and internal audit process instead of relying on the yearly audit. This study found that the most common methods used for FFR are improper revenue recognition, understatement of expenses/liabilities, and overstated and misappropriation of assets