Product quality as a condition for maximisation of profit: accounting and control aspects

Author(s): Uliana Marchuk,Victoria Fabiianska / Language(s): English Issue: 01+02/2017

The article considers approaches to the interpretation of the essence of the concept of quality according to both scientific and international quality standards ISO 9000. The authors have presented an analytical assessment of the commodity structure of import and export of agricultural and food products in Ukraine and its impact on the improvement of product quality. It has been emphasised on the need to attract investments and to strengthen the capacity of the State related to the manufacture products with the involvement of the newest technologies in compliance with all the required standards of product quality. The author of the article has considered the system and components of quality management as a tool for meeting stakeholders’ needs and implementing management to reduce risks and timely respond to them in terms of a crisis. The factors influencing the improvement of product quality, as well as financial results of the company, have been determined. A survey of 61 agricultural enterprises of Vinnytsia region of Ukraine was conducted by the authors in 2016 to identify the level of awareness and control of product quality management system and efficiency of accounting and control functions at agricultural enterprises. The survey questionair consists of nine questions, namely: Do the farm management carry out product quality management? Is the agricultural enterprise an ISO certificate holder and does it meet its requirements? Does the agricultural enterprise make financial investments in the improvement of product quality? Does the company monitor the agricultural product quality of rival companies? Which staff member is responsible for quality conformance control of the agricultural production? Who is responsible for the product quality in the company? How does the company assess the quality of agricultural products? What share (%) of the agricultural products sales is spent on the improvement of product quality? Is it expected that quality improvement should affect the financial performance of agricultural enterprises? Following the answers, a positive trend can be seen, since more than a half of the enterprises manage and invest in the improvement of product quality. The findings allow concluding that the product quality management at agricultural enterprises is of a relative character, as it is done by introducing more productive crop varieties and animal breeds, as well as advanced production technologies, etc. into production. It has a character rather of one-time actions than a strategy. The efficacy of control functions as multidimensional phenomena of management functions and functions of accounting has been investigated. The article deals with the approaches to accounting and control to ensure product quality and its impact on profitability.The authors of the article have substantiated a need for the Product Control Counsil for business entities in order to improve product quality, which affects the maximisation of profits.

A New Perspective for Marketing: The Impact of Social Media on Customer Experience

Author(s): Asad Ayoub,Ayman Balawi / Language(s): English Issue: 1/2022

The Nexus between Uncertainty Avoidance Culture and Risk-taking Behaviour in Entrepreneurial Firms’ Decision Making

Author(s): Adisu Fanta Bate / Language(s): English Issue: 1/2022

AUDIT QUALITY

Author(s): Cătălin-Paul Păcuraru-Ionescu / Language(s): Romanian Issue: 44-45/2020

Defining the concept of “audit quality” is an important undertaking, as it allows all stakeholders to determine whether the quality of an audit is improving over time or, conversely, is on the decline. Moreover, the unitary definition of this concept allows all stakeholders to refer to the same methodology for determining the audit quality and, consequently, allows different people interested in the quality level of an audit to use the same language when referring to such audit. An important conclusion that emerges from the analysis of the perspectives presented in this paper is that the audit quality level has two main components. That means that in order for an audit to be considered “of good quality”, two conditions need to be cumulatively met: the audit work must be performed in a manner that allows the identification of any malfunctions in the preparation of the client’s financial statements, on the one hand, and the audit firm needs to have the capacity to report any malfunctions that might be identified. Fulfillment of only one of the two conditions is therefore not sufficient for a quality audit; as a matter of consequence, it can be said that the two conditions are interdependent. Therefore, future research directions in the field of audit quality must focus on the parallel analysis of both quality conditions, given that narrowing the studies to the analysis of a single condition can provide information that does not truly reflect the quality of an audit approach.

Rachunkowość kreatwna i rachunkowość agresywna a fałszerstwo księgowe – percepcja biegłego rewidenta

Author(s): Justyna Dobroszek,Adrianna Wnuk / Language(s): English Issue: 2/2022

Creative accounting and aggressive accounting are perceived differently among researchers. On the one hand, they are treated as the same concepts, while on the other as independent, or are presented as similar points. In Polish publications, one can find an approach that aggressive accounting is convergent with accounting fraud, and is a negative part of creative accounting which also has a positive dimension. This paper aimed to reveal statutory auditors’ perceptions of creative accounting, in particular, as well as aggressive accounting and accounting fraud. A survey was conducted in November-December 2021 among 52 chartered accountants in Poland. The results indicate that the most recognised term among financial auditors is creative accounting, which they perceive mainly as manipulation, fraud or accounting falsification, and therefore negatively. In contrast, aggressive accounting is not known or identified by the respondents.

Holizm w controllingowym zarządzaniu organizacjami

Author(s): Dorota Janus / Language(s): Polish Issue: 2/2022

Sustainable development, building a competitive advantage and a conscious approach to the future requires the organisation to take a holistic view of management and its goals. In controlling management, thinking from the perspective of the goal is fundamental and all decisions made in the organisation are aimed at achieving it. Rational, economically justified and error-free decisions require continuous acquisition, collection, processing and analysis of data on all areas of the organisation’s operation. Controllers, as business partners of the management staff, are responsible for ensuring high quality data and are the guardians of a reliable source of information The aim of the article is to present controlling management as a system that, thanks to the proper combination and interaction of resources, allows to increase the efficiency of the organisation’s functioning. The collected research material allowed to identify the main theories, concepts, sources and gaps in the subject of controlling management.

The goals and presumptions of balancing intangible assets

Author(s): Vladimir Stanimirović,Dragan Janjić,Mladen Gajić / Language(s): English,Serbian Issue: 4/2019

Modern economic theorists argue that there will be a new phase in the development of economic system of highly developed countries in which, along with production and trade of tangible assets and classic services, the most significant growth will occur in the trade of intangible assest, ideas and patents, provided that there is a reliable legal system that will enable it. Balancing and accounting treatment rely on dependable international acccountancy standards and international standards of financial reporting that regulate accounting treatment of intangible assests. The International Accountancy Standard 38 – Intangible AssetsTInaANNestablishes the accounting treatment of intangible assets that has not been dealt with other accounting standards. The standard requires recognition of intangible assets if, and only if certain criteria are met. The standard also specifies how to measure the carrying amount of an intangible asset and requires certain disclosures. Apart from this standard, there are also some other laws and bylaws that regulate accounting treatment of intangible assets, which have been thoroughly discussed in this admission paper.

Faktury ustrukturyzowane w obrocie gospodarczym. Korzyści i wyzwania dla przedsiębiorców

Author(s): Renata Burchart / Language(s): Polish Issue: 3/2022

The next stage in the process of digitization of the economy and tightening the tax system in Poland is the introduction by the Ministry of Finance of structured invoices (e-Invoices) via the KSeF portal. Using the new system from January 1, 2022 is voluntary, but from January 1, 2024, e-Invoices will be an obligatory solution. This means eliminating both paper and electronic invoices from the market. The aim of the research is to analyze the legal status and to identify benefits and obstacles to the use of e-Invoices in business transactions in Poland. The basic benefits of implementing the new system include: automation of invoicing and accounting processes, reduced waiting time for VAT refunds, and exemption of taxpayers from the obligation to archive invoices. In addition to the benefits, taxpayers also point to a number of challenges related to the new obligation, such as: developing new procedures related to issuing and receiving e-invoices, the inability to correct and simplify the invoicing process, or additional accounting costs in small companies related to switching invoicing to accounting offices. According to taxpayers, adjusting the organization to the requirements of the National System of e-Invoices is one of the biggest digital challenges in the Polish tax system.

Ocena wdrażania standardu rachunku kosztów w szpitalach

Author(s): Ryszard Orliński / Language(s): Polish Issue: 3/2022

Attempts to introduce regulations on cost accounting in hospitals have been made several times. The recently introduced regulation (of October 26, 2020, Journal of Laws of 2020, item 2045) contains recommendations regarding the cost accounting standard (CAS) for service providers. The hastily prepared and introduced regulation was aimed at enabling comparability of data on the costs of services provided between hospitals and the assessment of their quality. It was also about the possibility of comparing the effects of applied therapeutic procedures and increasing the quality of management in medical entities. The conducted studies on the advancement of the implementation of KDS in hospitals indicate that hospitals are poorly prepared for implementation and contain many critical opinions about the functionality and possibilities of using KDS in hospital management.

The Use of Accounting Policy Options under IFRS in Europe: Do Country, Industry, and Topic Factors Matter?

Author(s): Karsten Eisenschmidt,Joanna Krasodomska / Language(s): English Issue: 3/2021

Since the formation of the International Accounting Standards Board (IASB), the use of In-ternational Financial Reporting Standards (IFRS) has spread and they have become global standards for financial reporting. However, they are not used unanimously all over the world. This paper focuses on differences in countries’ approaches to IFRS. Our study aims to investi-gate the use of accounting policy choice for selected options in Europe with a particular focus on countries, industry and topic-specific firm factors. We analyze financial statements of 416 companies of the STOXX Europe 600 operating in 17 European countries. We use content analysis to identify the companies’ decisions to choose a particular option allowed under IFRS and run a logistic regression to identify potential factors that influence them. Our findings suggest that the factors under investigation do not always have a significant influence on the accounting option choice. However, the country variables seem to have a stronger influence than industry or topic variables. The study contributes to the body of literature mainly because it investigates a uniform European setting with the use of the 2017 data and it covers coun-tries not included in previous studies. Its results also provide a basis for discussion on the fi-nancial statements quality and the impact of IFRS across countries.

Accounting for Holdings of Cryptocurrencies in the Slovak Republic: Comparative Analysis

Author(s): Miriama Blahušiaková / Language(s): English Issue: 1/2022

Cryptocurrency has attracted more attention recently. With the rapid increase in popularity of cryptocurrencies´ transactions it is necessary to adopt a unified approach to this novel, 21st century phenomenon. Since 2009, when the first cryptocurrency Bitcoin was created, thousands of other cryptocurrencies have appeared. As the transactions with cryptocurrencies have increased, national and multinational jurisdictions started to deal with issues concerning taxation and accounting for the cryptocurrency. Multinational jurisdictions and professional institutions differ in their opinions about cryptocurrencies. There are opinions considering cryptocurrency a financial asset, a financial instrument, cash, cash equivalents, inventories or intangible asset. As there is no accounting standard within IFRS specifically addressing cryptocurrency, it is necessary to look at the existing IFRS and apply a principles-based approach. The aim of the paper is to compare the accounting of cryptocurrencies in Slovakia with the requirements and/or recommendations by other standards setters and authorities. Slovakia is selected as it is one of the first countries launching accounting regulation for cryptocurrency. The analysis and comparison are used as the main scientific methods in this study. The IFRS IC in June 2019 concluded that IAS 2 applies to cryptocurrencies when they are held for sale in the ordinary course of business. If IAS 2 is not applicable, holdings of cryptocurrencies should be accounted for under IAS 38. The Slovak Republic is applying different approach to holdings of cryptocurrency, the cryptocurrency is considered the short-term financial asset. Difference between Slovak and multinational solution is even in questions of cryptocurrency´s measurement.

Audit Committee Characteristics and Timeliness of Financial Reporting: Social Enterprises Evidence

Author(s): Yusri Huzaimi Mat Jusoh,Siti Noor Azmawaty Abd Razak,Wan Nurul Basirah Wan Mohamad Noor,Ataina Hudayati,Abriyani Puspaningsih,Farah Aida Ahmad Nadzri / Language(s): English Issue: 2/2022

There was vast research on the effectiveness of audit committees as part of the mechanisms in safeguarding shareholders’ interest and also ensuring effective financial reporting by companies. However, studies on the efficacy of audit committees as governance tools in a niche area relating to social enterprises namely cooperative societies in Malaysia is still scarce. Hence, this study intends to investigate the association between audit committee attributes namely audit committee expertise and experience, audit committee meeting frequency and audit committee size to the timeliness reporting compliance among Malaysian cooperative societies. Using qualitative research methods, 158 usable questionnaires from 59 cooperative societies were successfully gathered and analysed using SmartPLS 3 Version 3.2.8. The results obtained provided support to the notion that there is a significant positive relationship between the frequency of meetings on the timeliness reporting compliance and a significant positive relationship between audit committee size on the timeliness reporting compliance. However, the notion expecting a significant positive relationship between the expertise of the audit committee on the timeliness reporting compliance proved to be insignificant. Conclusively, the study provides theoretical and practical support to both literature and practitioners on the importance of having optimum audit committee size and high frequency of meeting in ensuring the timeliness compliance of financial reporting of cooperative societies.

Cognitive Artificial Intelligence and Predictive Modeling Algorithms, Virtual Navigation and Geospatial Mapping Tools, and Remote Sensing Data Fusion Techniques in the Immersive Metaverse Environment

Author(s): Kimberly Hancock / Language(s): English Issue: 3/2022

In this article, I cumulate previous research findings indicating that shopper engagement technologies and data visualization tools enable immersive 3D experiences across user-generated digital virtual environments. I contribute to the literature on metaverse purchase experiences achieved through augmented reality shopping tools and predictive and retail analytics by showing that customer experience analytics leverages deep learning artificial intelligence tools and metaverse technologies across virtual economy. Throughout April 2022, I performed a quantitative literature review of the Web of Science, Scopus, and ProQuest databases, with search terms including “metaverse” + “cognitive artificial intelligence and predictive modeling algorithms,” “virtual navigation and geospatial mapping tools,” and “remote sensing data fusion techniques.” As I inspected research published between 2021 and 2022, only 194 articles satisfied the eligibility criteria. By eliminating controversial findings, outcomes unsubstantiated by replication, too imprecise material, or having similar titles, I decided upon 38, generally empirical, sources. Data visualization tools: Dimensions (bibliometric mapping) and VOSviewer (layout algorithms). Reporting quality assessment tool: PRISMA. Methodological quality assessment tools include: AXIS, Dedoose, ROBIS, and SRDR.

Managerial discretions and loan loss provisions in Nigerian banks: empirical IFRS and risk evidence

Author(s): Abdulai Agbaje Salami,Bukola Ahmad Uthman,Ruth Oluwayemisi OWOADE / Language(s): English Issue: 2/2022

Aim: The high level of non-performing exposures and the existing crisis in the Nigerian banking sector is a source of concern. To create a basis for solving the troubles caused by the loan loss crisis, this study investigated the managerial discretionary use of loan loss provisions (LLPs) by Nigerian deposit money banks (DMBs). This is considered in the context of solvency risk and reforms embedded in the adoption of International Financial Reporting Standards (IFRSs).Design/research methods: Datasets related to the variables of the study were hand-collected from annual reports of a sample of 16 Nigerian deposit money banks over the period of 2007-2017. The analyses were performed using principal components analysis to derive the managerial discretions index (MDI), Prais-Winsten ordinary least square regression to segregate LLP into reported LLPs (TLLP) and discretionary LLPs (DLLP) and appropriate panel data regression models to test the study’s hypotheses subsequent to series of diagnostic tests.Conclusions/findings: The results revealed that managerial discretions negatively influence TLLP and DLLP represented by absolute value of DLLP (ADLLP). This represents an increase in profitability without manipulating loan loss provisions. However, the reforms embedded in IFRSs revealed the use of LLPs for managerial discretions despite reduction in provisioning level noticeable during IFRS. The situation of Nigerian banks threatened by solvency risk use of LLPs for managerial discretions while attempting to increase profit was exemplified in the increase in ADLLP rather than TLLP. However, improvement was noticeable for risky Nigerian banks during IFRS. The managerial discretionary use of LLPs especially during IFRS was engendered by use of LLPs for capital management and earnings smoothing rather than earnings signalling as further revealed. This shows that adoption of International Financial Reporting Standards reduces reporting quality of Nigerian banks in their loan loss decisions.Originality/value of the article: The derivation of MDI from measures of earnings smoothing, capital management and earnings signalling is the study’s contribution to accounting for loan losses literature. The adjustments to LLPs to reduce variability of earnings, meet up with minimum regulatory bank capital adequacy ratio and signal strength to absorb future losses encapsulate earnings smoothing, capital management and earnings signalling respectively.Implications of the research: The discretionary use of LLPs found in this study beckons an increased level of surveillance, oversights and reforms on the part of the regulators for compliance level devoid of managerial opportunistic behaviour to be identifiable with Nigerian banks.

On the Use of Quantitative Methods in Accounting Research in Poland

Author(s): Marek Gruszczyński / Language(s): English Issue: 2/2022

This paper presents a review of published accounting research based on quantitative methods originating in Poland between 2010 and 2021. Twenty-one international and national journals were examined, all having “accounting” in their title, as well as the leading Polish journal on accounting research – Zeszyty Teoretyczne Rachunkowości (ZTR, Theoretical Journal of Accounting). The principal finding is that Polish authors – especially those using quantitative methods – rarely publish in top accounting journals outside of Poland. They most frequently publish quantitative papers in ZTR, although those papers account for just 5% of the total number of papers published there. The corresponding percentage of quantitative papers is much higher in leading international accounting journals. This paper is presented as a voice in the debate within Polish academia on the development of the accounting discipline.

The impact of task interruptions on audit quality: Experimental design in the Tunisian audit context

Author(s): Ahmed Sallemi,Feten Arfaoui,Salma Damak Ayadi / Language(s): English Issue: 1/2023

Research Question: This study explores the impact of task interruptions on audit quality in Tunisia. Our research aimed to find out how Tunisian auditors felt about task interruptions and how they affected the quality of their assessment. Motivation: Our research question aims to clarify the perception of Tunisian auditors about interruptions and their impact on their judgments. This research highlights the position of Tunisian auditors on task interruptions and their impact on their quality of judgment. Idea: Its goal is to present several solutions for the auditors by creating a system where the bad interruptions are blocked to limit their impacts. Data: A triangulated study design was incorporated. Experimental and qualitative methods were used. Tools: We choose experimentation as a method of data collection to undertake hypothesis testing causal relationships. Findings: The results revealed that the interruptions of tasks do not affect the quality of judgment of the auditors in the Tunisian context. Furthermore, just the gender and length of work experience were included when evaluating the influence of various conditions. Contribution: Thus, this paper contributes to Tunisian audit research. Indeed, this study examines auditors' perceptions of task interruptions and their impact on their judgment quality. In addition, to attain the research's goal, this study relies on an experimental investigation and a qualitative confirmatory survey.

Tax compliance jako element systemu zarządzania zgodnością w przedsiębiorstwie

Author(s): Aleksandra Sulik-Górecka / Language(s): English Issue: 1/2022

The aim of the paper was to identify areas of the compliance management system and assess the advisability of including tax compliance within the compliance management system. The methodology involved an analysis of relevant literature, legal acts and compliance standards. The empirical part presents the results obtained, having analysed areas of compliance management systems in a sample of ten entities listed on the WSE and included in the WIG20 index. The studied entities were found to present a variety of information on compliance management systems without taking into account the area of tax compliance. According to the author, the implementation of a coherent overall compliance management system would bring many benefits regarding the fulfillment of tax obligations – e.g. in the field of Mandatory Disclosure Rules (MDR) or transfer pricing – and also facilitate the conclusion of the so-called cooperation agreements in the area of taxes and the Advanced Pricing Agreements (APA).

Wybrane aspekty stosowania przez przedsiębiorstwa outsourcingu finansowo-księgowego

Author(s): Wioletta Molenda,Dorota Burzyńska / Language(s): Polish Issue: 1/2023

The subject of outsourcing is important and relevant while its scale (and – consequently – the importance not only for the functioning of individual companies but also whole economies) is systematically growing. A particular attention has been paid to present the factors motivating companies to apply the mechanism of financial and accounting outsourcing (with the acknowledgment of variability and, at the same time, complex nature of the Polish legal, accounting and tax system). The article contains a research part the contents of which comprise of an analysis of results of conducted own research realized with the use of the diagnostic survey method – questionnaire technique which used an original questionnaire as the research tool. The survey involved 38 persons – presidents of large companies operating in Poland that employ financial and accounting outsourcing. The last part of the article presents a holistic overview of the discussion being a part of the elaboration. Thus, it holds certain application values – both with regard to companies that consider using services of financial and accounting outsourcing as well as entities specializing in providing financial and accounting services for companies – for example due to the distinct indications of respondents in the area of factors deciding on the choice of a specific provider of financial and accounting services.

Rewizja finansowa a podwyższone ryzyko oszustwa w czasie pandemii COVID-19

Author(s): Agnieszka Lew / Language(s): English Issue: 2/2022

The article discusses the issues related to the increased risk of fraud in business units during the COVID-19 pandemic. The aim of the article was to point out the impact of the pandemic on areas that may be exposed to the embellishment of the presented financial data, as well as to show the increased risk during the audit of the financial statement, which must be taken into account by the statutory auditor when performing the financial audit. Possible solutions were identified, also recommended by the Polish regulator, that may help to sensitise the financial and accounting services to the emergence of fraud in enterprises, and in which areas increased caution should be exercised in the analysis of the presented financial data. It was also pointed out how important a role auditors have in building public trust as ethical leaders. The research methods used in the article were a review of source documents and materials issued by international organizations.

Rachunkowość ukierunkowana na społeczną odpowiedzialność biznesu: analiza polskiego sektora ubezpieczeń

Author(s): Patryk Obora / Language(s): English Issue: 2/2022

The aim of the study was to present the way in which non-financial information associated with Corporate Social Responsibility (CSR) is reported in the Polish insurance sector. Moreover was intended to check the engagement of Polish insurance companies in non-financial reporting and to determine in which areas they are socially responsible. Non-financial reporting is facing many problems which derive from the lack of uniform standards and regulations. The research was carried out by compiling the existing data on the official websites of insurance companies and elaborating a case study of Ergo Hestia. A role model of transparent CSR reporting is the social report of the Ergo Hestia Group from 2020, which was prepared in accordance with GRI (Global Reporting Initiative) standards, the UN “2030 Agenda for Sustainable Development” goals and the principles of “Good Practice”. The study shows that the insurance market is insufficiently involved in sustainable development issues and focuses primarily on building a good reputation. The social commitment of companies outweighs other areas of CSR, which makes the comparison process difficult to realise.