The Hype of Big Data Analytics and Auditors

In the era of fast-tracking digitization and unconventional big data analytics, business models are being reshaped and they impact auditing amongst auditors. This viewpoint paper takes into account the procedures underlying on big data and its analytics in driving the evolution of business and identifies some of the unresolved issues and concerns on auditors, especially in the context of cognitive tasks. The paper continues to focus on the current spate of discussions on big data and auditing profession. It explains the nature of big data and its characteristics as well as the output types. This paper also tries to find answers for what is new in it, how it assists the auditors along with some unresolved  issues and concerns. Since big data analytics is the future, auditors need to reshape themselves in terms of skills and competencies to meet the emerging technological challenges.

A survey of the influence of skill sets on the performance of professional accountants

PURPOSE: This study has two purposes: i) to determine which skill sets are considered the most important and necessary for today's accountants, and ii) to investigate the impact of major categories such as business skills, soft skills, technical and digital skills, and ethical skills on the performance of accountants in the workplace.METHODOLOGY: Under the assumption that there is an infinite population, a sample of 315 accountants was randomly chosen from the contacts on LinkedIn. In order to categorise 22 skills into four groups—business, soft, technical, digital, and ethical skills—data was collected from 91 respondents (28.3% response rate) during the course of the month of February 2023.FINDINGS: According to the study's results, today's accountants place a higher value on time management, problem-solving, critical thinking, knowledge of and ability to interpret accounting standards, leadership (SS), business knowledge (BS), professional behaviour, adherence to the code of conduct (ES), financial statement preparation, interpretation, and analysis (TDS), as well as other skills. The independent variables "business skills" (BS), "technical and digital skills" (TDS), and the control variable "continental location" (CL) all significantly improve the employment performance of accountants, according to the findings of the regression analysis.ORIGINALITY/VALUE: This study advances both theory and application. It places a strong emphasis on educating professional accountants about the need to arm themselves with the newest skill sets in light of a changing environment in order to improve their performance at work. It also looks at the most important skills that affect how well professional accountants perform. The study recommends that colleges and institutions provide accounting students enough time to acquire each of the four skill sets. To enhance these skills, particularly business, technological, and digital capabilities, professional accountants should take part in CPD with their employers.peer-reviewe

Accountants Perceptions Of Internal Control Problems Associated With The Use Of Computerized Accounting Systems: Evidence From Bahrain

The objective of this study is to investigate Bahraini accountants perceptions of internal control problems associated with their use of computerised accounting systems and how such problems may be resolved. A three-section questionnaire was developed to collect the data. A sample of (100) firms was selected for the study. Sixty-two questionnaires were returned duly completed (a response rate of 62%). Descriptive statistics and ANOVA were used to analyse the data. The results indicate that Bahraini accountants perceive that there exist some internal control problems associated with the use of computer-based accounting systems. The most important problem is that information can be changed without physical traces. However, they perceive that certain control procedures can be undertaken to overcome them (e.g., ensure that only authorised people have access to computers and records; use of backup copies; effective testing of programs for problems noted and separation of duties within data processing). Significant differences were found in some of the problems faced by the firms according to the nature of business operations

Re-examining Firm Size and Corporate Social Responsibility: The Visibility Approach

 In a previous study on the firm size and corporate social responsibility (CSR) participation conducted by Golrida, et al (2017), different result is reported with Udayasankar’s hypothesis (2008) which states a U-shape relationship of firm size and CSR participation.  However, it is arqued that Udayasankar hyppothesis is better applicable in developed countries, while in developing countries an inverted - U shape relationship is found. But, Golrida et al (2017) can only prove the form of relationship using two perspectives stated by Udayasankar, which are operating scale and resourcess access.  The proxy of visibility could not capture the inverted U shape relationship due to measurement problem in the previous study. This study aims at re-examining the relationship between firm size and CSR participation from the visibility perpective by employing two proxies of visibility, which are analyst coverage and news coverage respectively.  Indonesian companies are chosen to capture the context of developing country. Content analysis is done in obtaining CSR data of 433 companies listed on Indonesian Stock Exchange on 2012, while the data of visibility proxies are  extracted from Thomson Reuters and selected news portal namely, Detik.com. The result of study shows that both visibility proxies, which are Analysts Coverage and Media Coverage form inverted U- shape relationship with CSR participation. The findings in this study contribute to the literature that, the form of firm size and CSR participation relationship in the context of developing countries is different than those in developed countries

Determinants Affecting Internal Audit Effectiveness

This study tries to identify the determinants that affect the effectiveness of internal auditing for listed firms in India. A sample of 300 listed companies was drawn. Questionnaires were mailed to the head of audit department, internal audit managers, internal auditor and head of accounts of each company. The overall response rate was 28.3%. The results were derived by applying multiple regression method and the three determinants turned out to be significant. The three determinants are risk-based planning, usage of Big Data and Analytics, and frequency of meetings of internal auditor (IA) with audit committee (AC) respectively. The model explains 42.8% of variations in the dependent variable (IA effectiveness). The study indeed encourages internal auditors to develop their core skills and competencies in the area of risk assessment and Big Data and Analytics for delivering better services to the auditees, the board of directors and the AC members. The implications of these findings may be of importance to internal audit professionals, accounting professional bodies and the regulators. Direction for future research is also provided

An empirical study of non-financial measures emphasis for the compensation schemes on different categories of strategic orientation in Malaysia

Performance management has been a contemporary topic for research. Extensive studies have concentrated on this area and claimed that non financial measures besides financial measures are the essence for today's business environment. The literature review also asserted that the business performance measurement is highly concentrated on the non-financial indicators and is worthless if not linked to a reward system. Moreover, the measures linked to a reward system, but not as per the strategic direction of the firms, will also flunk the performance measurement system. Thus, this empirical research explored the emphasis of performance measures in relation to the reward system among different categories of Malaysian firms' strategic orientation. The study was conducted during 2011, and the findings revealed that the emphasis differed among the three categories of Miles and Snow strategic orientations. The firms which adopted a prospector strategy orientation placed a greater emphasis on non-financial performance measures tied to the compensation schemes, and differed from the other two Miles and Snow strategy orientations - analyzers and defenders. On the whole, the findings concluded that when Malaysian firms adopted different categories of strategic orientations, it did have an impact on measures in relation to the compensation schemes

An Investigation into the Leadership Traits of Prime Minister Narendra Modi: A Conceptual Framework

The purpose of this research is i) to find out what unique traits make PM Modi an inspiring leader, ii) to assess if respondents' perceptions differ significantly, and iii) to create a conceptual framework of leadership  traits so that we can better comprehend PM Modi's leadership styles. The study includes 19 leadership traits relevant to PM Modi's leadership styles, extracted from previous articles and expert discussions. This  study collected quantitative data from LinkedIn connections using a random sampling procedure. A self-designed questionnaire was sent to 700 people from various backgrounds to rate their agreement or disagreement with 19 leadership traits. The study was conducted in March and February 2024, with 29% of the responses (203) available for analysis. The study reveals that the top ten leadership traits in ranking order include strong 'network building, ''self-motivation,’ ‘global perspective,’ ‘visionary leadership,’ ‘determination and result-orientation,’ ‘public direction communication skills,’ ‘proactive approach,’ ‘being organized (detailed-oriented),’ ‘integrity in the workplace,’ and ‘creative thoughts and thinking.’ The results of the Mann-Whitney test revealed differences in respondents' assessments of PM Modi's leadership abilities in India and other countries. There are significant differences in the perceptions of educators and other groups regarding the five leadership traits that may be linked to the lack of trust in Indian society and culture. Additionally, the factor analysis produced a five-factor model: visionary and transformative; humanistic and value-driven; decisive and result-oriented; social influencer and opinion leader; and flexibility, adaptability, and dynamic. It appears that PM Modi's personality and leadership style are a perfect fit for the extended version of the Greatman hypothesis, which is the trait theory

The Effects of Internal Audit, Audit Committee and Firm Characteristics on Audit Fees in a Multi-Country and Industry Setting

This paper examines the association between audit fees and attributes of internal audit (IA), audit committee (AC), as measured by independence and financial expertise, as well as characteristics of the firm. The determinants of audit fees have been extensively investigated in the prior literature, but the results are conflicting. We develop a comprehensive model from a multi-country and multi-industry perspective. A total of 3,136 companies covering a period of 10 years (2011-2020) with 15,247 observations from 55 countries were included in this study. We found that the most critical variables that have a significant positive effect on the audit fees are client size, leverage (risk), profitability, complexity, losses, AC independence, AC expertise and auditor size. The study also shows that audit pricing is significantly negatively related to foreign operations, auditor tenure, and internal audit independence. The results highlight variables that affect audit fees across a range of countries/industries

Continuous internal auditing: can big data analytics help

This paper considers the underlying procedures in big data and its various analytical tools which accountants and auditors may have to use in internal and continuous auditing. It describes the nature and characteristics of big data, distinguishes between traditional, continuous auditing and continuous monitoring, importance of data analytics for internal auditors, applications of big data and audit data analytics. It further discusses benefits of big data analytics (BDA), concerns and challenges which are likely to affect the auditors deeply but do not yet have perfect solutions. As there has been a big hype about BDA and auditors claim that BDA is the future, auditors need to reshape their talent, professional qualifications, skills, and competencies in order to meet the emerging technological challenges. At the end, the paper suggests the need for updating the accounting curriculum at the university and professional accounting bodies levels and also gives direction for future research

Influencing factors for internal audit effectiveness in the Indian context

This research is to assess the empirical evidence on the critical determinants of internal audit (IA) effectiveness in Indian Nifty500 companies. IA effectiveness is arguably a result of the interplay among different factors that may have an immense effect but have not been thoroughly investigated in the Indian environment. Using the proportionate stratified sampling technique, 64 usable questionnaires were received and the response rate was 28.2%. Non-response bias and common method bias were tested. From the factor analysis and multiple regression models, the following critical determinants were established: 1) 'interaction between internal auditor and audit committee'; 2) 'risk-based planning and guidelines'; 3) 'moderating role of management support with Big Data Analytics' for IA effectiveness in Indian context. The implications are the critical determinants that potentially influence this effectiveness in the changing business and technological environment which are important for policy decision purposes