Contrasting Information Systems and Financial Executive Perspective on Implementing Regulatory Controls

New corporate compliance regulations such as the Sarbanes Oxley (SOX) Act of 2002 contain requirements for the chief executive and financial officers to certify the effectiveness of internal controls and processes leading to financial reporting. An inevitable result of implementing compliance with these regulations is an increased focus on improving systems and greater interdependence between the financial and IS functions. In this paper, we analyse the data collected on implementation of regulatory compliance and present some new empirical insights on the regulatory control implementation process and consequential changes in the institutional properties of IS and the accounting functions within the organization

The New Age of Accounting Regulation Canada and the United States

This paper reviews major differences between the accounting regulatory systems in Canada and the United States. In the U.S., the Sarbanes-Oxley Act of 2002 governs responsibilities of management, auditors, and Boards of Directors related to internal control over financial reporting. In Canada, a series of Multilateral Instruments under provincial jurisdiction serves similar objectives. As compared to the U.S., the Canadian system is more decentralized and principles-based allowing a greater degree of responsibility to the accounting profession for standard setting and oversight. The Canadian approach has resulted in weaker regulation, slower implementation, and greater influence by the accounting profession. These findings imply that accounting regulations should be tailored to fit the political and institutional structures of the adopting country

Review of Management Control Systems in Their Organizational and Environmental Context : Managerial Perspective and Control Typology

This paper provides a critical review of literature on management controls and their context. The review indicates that more emphasis has been placed on organizational than environmental factors and that the effectiveness of different controls in different contexts remains practically unaddressed. In general, research has been ad hoc and focused on results-oriented financial controls, short-term efficiency, and individual level of analysis. Even for commonly studied topics (e.g., budget controls), evidence has often been inconsistent and limited to manufacturing organizations, w

Strategic planning and implementation success in public service organizations: evidence from Canada

n this article, we examine the role that formal strategic planning plays in determining the success of strategy implementation in a set of more than 150 public service organizations from Canada. We also analyse the mediating effects of managerial involvement in strategic planning and the moderating effects of stakeholder uncertainty on the planning-implementation relationship. A structured online questionnaire was used to collect the data. Our findings suggest that formal strategic planning has a strong positive relationship with implementation, which, though mediated by managerial involvement, becomes even more salient in the face of stakeholder uncertainty. Several implications of these findings are discussed

How are they used?

Consolidated, accruals-based government accounting has been promoted by many commentators as contributing to macroeconomic policymaking, enhancing parliamentary scrutiny and accountability, and facilitating a more holistic approach to government by integrating accounting information systems. In fact, such theoretical claims have not been tested against the reality of how these accounts are being used and who is using them. Nor is it known whether ideas that work in one country will readily transfer to another. This purpose of the study on which this report is based was to test those claims. The study was based on interviews with key stakeholders across a range of user groups and was supplemented with an academic literature review. Although there are notable variations in the use and users across the countries analysed there are a number of unifying themes and lessons learnt. The key findings and recommendations are outlined below

Accounting Reform in the Government of Canada: Exploratory Evidence on Accrual Accounting Adoption and Impact

This study investigates the adoption of accrual accounting in the Government of Canada. Data were collected through interviews of senior officials at central and implementing agencies. The political adoption decision was motivated by legitimacy and normative pressures by the accounting profession. The approach was primarily ‘top-down’, with government-wide accrual financial statements adopted, but many departments continued using cash accounting for decision making. It followed primarily the Anglo-Saxon model, but with some European undertones. Benefits were scarce and difficult to attribute to accrual accounting. The ongoing impasse regarding accrual departmental financial statements and budgets suggests self-interested behaviours by administrators and politicians

Budgetary criteria in performance evaluation: A critical appraisal using new evidence

Previous studies on the use of budgetary criteria in performance evaluation have used a wide range of variables, measures and models, but have concentrated upon extending rather than repeating previous work. This study includes replications of parts of five previous studies and obtains results that differ in many respects from previous findings. Because of the use of similar measures and models, it can be concluded that the different results stem primarily from the different sample of managers studied. More generally, it is suggested that control practices differ across organizations, cultures and time; universal findings should not be expected. Rather, a more coherent programme of work is required to explicate the varied ways in which budgetary techniques can be used in performance evaluation and management