Accounting Commons^™

An Exploratory Study On The Impact Of Covid-19 On U.S. State Boards Of Accountancy, J Gregory Jenkins, Velina Popova, Mark D. Sheldon

2022 Faculty Bibliography

In the United States (U.S.) individual state boards of accountancy govern the accounting profession within each state. When COVID-19 struck the U.S., state boards worked to maintain normal operations. This study examines how COVID-19 affected the regulatory and oversight activities of the state boards of accountancy and the ways in which boards adapted to the pandemic. We interview executive directors from 21 state boards to determine the pandemic’s impact on board operations and continuing professional education requirements. We also evaluate whether state boards implemented guidance from parties such as theNational Association of State Boards of Accountancy (NASBA), and the resources …

Exploring A Digital Service Tax Policy In The United States, Mallory Gifford

Senior Honors Projects

As technological and global environments continue to evolve, the tax environment attempts to keep pace by implementing digital service taxes (DSTs). This paper covers a literature review of the DSTs that have been enacted across the globe, the complaints surrounding them, how data is valued, and how DSTs are being implemented in the United States. Also discussed is research regarding the consumers’ perceptions surrounding data collection. The purpose of this paper is to better understand the current global situation of DSTs.

Real-Life Skills Accounting Students Need, Kate Mcneil

Sabbatical Projects

Kate McNeil, CPA, CMA, CFM, Associate Professor of Accounting, worked with one of her former firms, MarksNelson, to be a part of on-campus recruiting during the of Fall 2022. She talked to many recruiters and former students to see what the process was like and what students were doing well and where they could improve to set themselves apart. She then interviewed the new hires at MarksNelson, across all departments, about what skills they felt they were well prepared with and what they needed more of. She also interviewed some former students that were new to the profession. Finally, she …

Prison Break From Financialization: The Case Of The Pri Reporting And Assessment Framework, Diane-Laure Arjaliès, Daniela Laurel, Nicolas Mottis

Business Publications

Purpose

This article seeks to unravel the mechanisms through which financial actors agreed upon a sustainability accounting standard without financializing social and environmental issues, i.e., assigning a monetary value to sustainability.

Design/Methodology/Approach

The article examines the Reporting and Assessment Framework created by the United Nations Principles for Responsible Investment (UN-PRI), the leading reporting sustainability framework in the asset management industry. It relies on a longitudinal case study that draws upon interviews, participant observation, and archival data.

Findings

The article demonstrates that the conception of the framework was a funnelling process of sustainability valuation comprising two co-constituted mechanisms: a process of …

2022-2023 Operating Budget, Morehead State University. Budget & Financial Planning Office.

Morehead State University Operating Budgets Archive

2022-2023 Operating Budget of Morehead State University.

Effective Internal Control Strategies For An Enterprise Resource Planning System, Tatara Ratliff

Walden Dissertations and Doctoral Studies

The lack of effective internal control over enterprise resource planning (ERP) increases risks associated with financial reporting and erroneous transactions. Business leaders who develop effective enterprise resource planning internal controls reduce the risk of fraud and improve the quality of financial reporting. Grounded in the COSO internal control framework, the purpose of this qualitative single case study was to explore strategies business leaders use for adequate internal controls. The participants were seven business leaders from a single business in Mississippi, the USA, who successfully employed enterprise resource planning and internal control strategies. Data were collected using semistructured interviews, observations, and …

Strategies That Financial Managers Use To Effectively Conduct Corporate-Responsible Financial Reporting, Wendelin Parker

Walden Dissertations and Doctoral Studies

The primary role of financial managers is to produce accurate financial reporting that shows financial health. Financial managers may experience negative effects on the financial stability of their business organizations if they do not conduct corporate-responsible financial reporting effectively. Grounded in the international accounting standards board’s framework, the purpose of this qualitative multiple case study was to explore strategies financial managers use to conduct corporate-responsible financial reporting to achieve financial stability. The participants comprised three financial managers in Georgia, US, with strategies to conduct corporate-responsible financial reporting to achieve financial stability. Data were collected from semistructured interviews, organizational documents, and …

Relationship Between Assets, Liabilities, Earnings Before Interest And Taxes, And Financial Distress, Joseph A. Baker

Walden Dissertations and Doctoral Studies

Retail sector investors who do not interpret Altman's Z´´-score accurately can underestimate a company's economic viability and ability to secure debt and equity financing. Grounded in agency theory, the purpose of this quantitative correlational study was to examine the relationship between assets, liabilities, earnings before interest and taxes (EBIT), and financial distress. The data were based on financial statements from 101 U.S. public retail sector companies (U.S. Securities and Exchange Commission Standard Industrial Codes 5200 through 5990). Multiple linear regression (MLR) analysis indicated a statistically significant relationship between assets, liabilities, EBIT, and Altman's Z´´-score for financial statements prepared under ASC …

Fool Me Once, Shame On You; Fool Me Twice, Shame On Me: The Long-Term Impact Of Arthur Andersen’S Demise On Partners’ Audit Quality*, Feng Guo, Ling Lei Lisic, Jeffrey Pittman, Timothy Seidel, Mi Zhou, Ying Zhou

Faculty Publications

Although recent evidence suggests that individual audit partners explain a substantial portion of the variation in audit quality proxies, much less is known about what determines an audit partner’s quality. Psychology and behavioral economics theories hold that an individual’s experiences can have enduring impacts on subsequent behavior. We examine whether auditors’ direct exposure to Arthur Andersen’s collapse has a long-term impact on the quality of their audits. Our evidence implies that audit partners who directly experienced Andersen’s demise impose stricter monitoring evident in their clients exhibiting a lower propensity for misstatements and small profits, and paying higher audit fees. Importantly, …

Fairness And Luck: Contract Away Or Come What May?, H. Scott Asay, Jace Garrett, William B. Tayler

Faculty Publications

In practice, managers and employees often enter into risky, uncertain contracts. Prior works shows that managers use ex post discretion to reduce the effect of uncontrollable “bad luck” on employees’ performance-based compensation, but do not use ex post discretion to reduce the effect of uncontrollable “good luck,” due to fairness concerns. We investigate whether ex ante, objective compensation plans can help address the fairness concerns that lead to this asymmetric treatment of uncontrollable events. We provide evidence that compensation plans that account for uncontrollable factors can reduce differences between individuals’ fairness perceptions in good and bad luck settings. However, controlling …

An Fmri Investigation Of The Neurocognitive Processing Of Measures And Strategic Objectives, Paul Black, C. Brock Kirwan, Thomas Meservy, William B. Tayler, Jeffrey O. Williams

Faculty Publications

A central feature of most organizations is the use of measures to represent key elements of performance across multiple strategic objectives. Prior research has demonstrated a tendency for individuals to treat these measures as though they are the higher-order strategic objectives the measures were intended to represent, as opposed to imperfect representations of those strategic objectives—a phenomenon labeled surrogation. We employ an experiment to further understand this phenomenon. In this study, we capture neural activation when processing measures and when processing strategic objectives. We find that differences in brain activity when processing measures and strategic objectives are similar to the …

The Ethicality And Political Skill Of Leaders And Subordinate Job Satisfaction: A Study Of Accounting Faculty, Donald L. Ariail

College of Graduate Studies: Theses & Dissertations

Using a sample of 539 accounting faculty teaching in the United States, this study explored perceptions of the ethicality and political skill of their direct supervisors and self-reported levels of job satisfaction. Ethicality was measured with the Ethical Leadership Scale (ELS) and the Behavioral Integrity (BI) Scale. These measures, which were highly correlated, were proxy measures for accounting faculty perceptions of the tone-at-the-top (TATT)—the ethical leadership under which faculty teach and research. The results indicated that while the majority of accounting faculty perceived their direct supervisor as being ethical, about a third (28% BI, 34.8% ELS) of them did not …

Mathematical Modeling For A Multiproduct Manufacturing System Featuring Postponement, External Suppliers, Overtime, And Scrap, Yuan Shyi P. Chiu, Jian Hua Lian, Victoria Chiu, Yunsen Wang, Hsiao Chun Wu

Department of Accounting and Finance Faculty Scholarship and Creative Works

Manufacturing firms operating in today’s competitive global markets must continuously find the appropriate manufacturing scheme and strategies to effectively meet customer needs for various types of quality of merchandise under the constraints of short order lead-time and limited in-house capacity. Inspired by the offering of a decision-making model to aid smooth manufacturers’ operations, this study builds an analytical model to expose the influence of the outsourcing of common parts, postponement policies, overtime options, and random scrapped items on the optimal replenishment decision and various crucial system performance indices of the multiproduct problem. A two-stage fabrication scheme is presented to handle …

Minimization Of Multiproduct Fabrication Cost Featuring Rework, Commonality, External Provider, And Postponement, Peng Cheng Sung, Chia Ming Lai, Yunsen Wang, Yuan Shyi P. Chiu

Department of Accounting and Finance Faculty Scholarship and Creative Works

This study presents a multiproduct fabrication cost-minimization model featuring external providers, commonality, rework, and postponement in the supply chain environment. Customers’ requirements simultaneously emphasize quality, variety, and fast response time in current markets. To satisfy customer needs, most manufacturers in various industries (e.g., clothing, household goods, automotive, etc.) plan their multiproduct fabrication by incorporating a postponement strategy, rework process, and an outsourcing option. Motivated by the viewpoints above, this study offers a decision support system to address customers’ external expectations while optimizing internal operating expenses and machine utilization. We propose a single-machine, two-stage delayed differentiation system under a rotation cycle …

Early Evidence On Critical Audit Matters In Expanded Audit Reports, Maria Koch

Honors Theses and Capstones

No abstract provided.

The Technical Skills Valued By Public Accounting Firms, Nicholas P. Mokas

Honors Theses and Capstones

Accounting firms are continually working to improve the efficiency and effectiveness of their work. As part of these efforts, firms adopt new technologies like bots, analytics, and specialized software. As accounting firms become increasingly reliant on newer technologies, colleges need to continually reevaluate their required curricula to ensure that their students are adequately prepared for their future careers in accounting. To fill a gap in the extant literature, the objective of this study is to examine the technologies and skills accounting firms value and the proficiency of new hires with these technologies and skills. To complete this objective, a survey …

U.S. Gaap Financial Statements Best Practices In Presentation And Disclosure, 76th Edition, 2022; Accounting Trends & Techniques, American Institute Of Certified Public Accountants (Aicpa)

Accounting Trends and Techniques

No abstract provided.

Open Education Exploration Grant: Leigh Moon, Leigh Moon

Ames Library Awards

No abstract provided.

Capital Market Penalties And Corporate Violations Of The Three Pillars (Operations, Reporting, And Compliance) After Coso 2013 Internal Controls: Integrated Framework, Jesus R. Jimenez-Andrade

Accounting Faculty Publications (Archived)

Current literature is somewhat unclear on how corporate violations under the new set of governance environments versed in the Internal Controls Integrated Framework issued by COSO (acronym of Committee of Sponsoring Organizations of the Treadway Commission) influence shareholders’ activism. Initially published in 1992, these guidelines faced a significant revision with proactive improvements in 2013. Since the first emission, this guidance has focused on providing safe-keeping basic standards for organizations to follow regarding the integrity of corporate governance and enterprise risk management by designing and implementing stable internal controls. The handbooks’ primary approach builds upon an environment of permanent improvement of …

Audit Firm Culture: An Evolution Of The Audit Profession In Response To External Forces, Christina T. Alberti

2022

The COVID-19 pandemic is disrupting business operations throughout the world, including the working procedures of audit professionals. Yet, to date, research on COVID-19’s impact on auditing is limited. This is despite its potential long-term implications. Thus, my dissertation uses a mix of research methods to examine auditors’ response to, and regulators’ evaluation of auditors’ response to, COVID-19.

The first paper (co-authored) synthesizes research on audit firm culture (AFC) over the past decade, reviewing recent developments in research on AFC and its influence on audit quality and auditors’ work attitudes. Using a three-phase model based on prior research and professional guidance, …

Health And Healthcare In The Financial Reporting And Audit Environments, Landi Morris

2022

This dissertation is comprised of three papers that integrate analyses of health, health crises, and healthcare entities in the financial reporting and audit processes. The first paper considers how physical health influences audit outcomes via auditors’ cognitive processing. The second paper considers a global health disruption that impacts the audit process. In the third paper, I examine financial and tax reporting of hospital entities. I describe each paper in further detail below.

The first paper, co-authored with Rani Hoitash, examines whether influenza (flu), a potential threat to the conduct of public company audits, is associated with audit outcomes. Because the …

Three Papers On Sell-Side Financial Analysts, Zheng Liu

2022

This first paper (co-authored) tests the effect of Markets in Financial Instruments Directive II (MiFID II), which entered into force on 3 January 2018, on European-based sell-side financial analysts. We find that MiFID II, in part, unbundles brokers’ execution and research services. We assess the effectiveness of MiFID II in unbundling and find that the trading volume generated by the brokers that issued recommendation revisions declined significantly after the enactment of MiFID II. Further, in addition to a smaller price reaction to EU broker analysts’ recommendation revisions in the post period than in the pre period, these broker analysts appear …

Retirement Lost: Enhancing The Durability Of The 401(K) Account, Anna-Marie Tabor

Dickinson Law Review (2017-Present)

American workers have left billions of dollars in 401(k) accounts that they may never be able to find. The problem affects low-wage workers the most, aggravating income-based retirement inequality. Workers who are laid off or change jobs often leave their 401(k) savings in a former employer’s plan. As time passes, communication breaks down between departed employees and their plans, and changes to the employer, plan provider, or individual accounts may prevent the worker from finding the account. Once participants and plans have lost contact with each other, many plans force transfer balances under $5000 into Individual Retirement Accounts, without the …

Eagle Accountant, Parker College Of Business

College of Business: News & Publications

No abstract provided.

An Experimental Study: Audit Quality Importance On Selecting A Public Accountant Firm (Paf), Ruth Samantha Hamzah, Efva Octavina Donata Gozali, -- Patmawati

DLSU Business & Economics Review

The study aims to emphasize the importance of knowledge of audit quality on Public Accountant Firm (PAF) selection for a company by employing a 2x1 factorial design between-subject. To achieve this goal, we identified differences between the experimental and control groups. The experimental group was given knowledge of audit quality, whereas the control group had no treatment during the process selection of PAF. There were 10 indicators used in term of audit quality, namely audit workload, business expertise, audit turnover, audit hours, result of employee satisfaction surveys, partner compensation, result of client satisfaction surveys, PCAOB inspection results, restatements on audit …

Impact Of Cooperative Membership On Technical Efficiency And Marketing Efficiency: The Case Of Dairy Buffalo Farmers In The Philippines, Ceptryl S. Mina, Agham C. Cuevas

DLSU Business & Economics Review

Collective action by smallholder farmers through cooperative membership is regarded as one of the approaches to overcome production and marketing inefficiencies. This study investigates the impact of cooperative membership on the technical efficiency (TE) and marketing efficiency (ME) of dairy buffalo farmers in the Philippines. A total of 351 (249 cooperative members and 102 non-cooperative members) randomly selected farmers from Regions II, III, IV-A, and VII were interviewed. Using cross-sectional farm household data of dairy buffalo farmers, technical and marketing efficiencies were estimated. Linear regression with endogenous treatment was performed to determine the impact of cooperative membership on the TE …

The New Accounting For Operating Leases: Unintended Consequences In The Airline Industry, Renata Bandeira, Bridget M. Lyons, Carolyn Trabuco

WCBT Faculty Publications

By 2020, new accounting rules for operating leases were applicable to publicly traded companies reporting under either the US Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). The accounting authorities under both standards noted that the new rules were developed to increase the transparency of lease transactions to provide more relevant and comparable information. We compare two Brazilian airlines reporting under IFRS, Azul and Gol, with an operationally similar US airline reporting under US GAAP, JetBlue, to determine whether the new standards improve the ability to understand, evaluate, and compare performance, managerial decision making and credit metrics. …

Valuation Challenges Arising From The New Leasing Standard Asc 842: A Teaching Note, Bridget M. Lyons

WCBT Faculty Publications

Accounting Standards Codification (ASC) Topic 842, the new accounting standard on leasing, aims to improve transparency related to leasing and to enable users of financial statements to more readily compare firms that lease with firms that borrow to buy assets. The standard is effective for 2020 and has had a significant impact on the balance sheets of many firms. This note provides an overview of the accounting changes and highlights key issues related to financial analysis and valuation with guidance on how to avoid common errors and accurately calculate and compare enterprise value, EBIT, EBITDA, valuation multiples and key valuation …

The Impact Of The Covid-19 Pandemic On Corporate Financial Fragility In The Vietnamese Manufacturing Industry, Trang Nguyen

Honors Theses

In the past decades, under the government’s export-led growth strategy, the Vietnamese manufacturing sector – the backbone of the whole Vietnamese economy – has established a deep tie with the international market and the reliance on foreign buyers has fueled the growth of this sector before COVID-19. However, during the pandemic, when the global market contracted at -3.5 percent and demand slumped globally, this existing growth model and the manufacturing sector’s reliance on foreign buyers induced significant risks to this sector from both the demand and supply side. Using the firm-level data on 41 manufacturing exporting companies from the Vietstock …

Balance Sheet Strength: A Retrospective Analysis Of Corporate Liquidity And Solvency And Firm Stock Returns, Andrew Wraith

CMC Senior Theses

The onset COVID-19 Pandemic caused rippling effects throughout the global economy. Social distancing and stay at home orders shifted consumer demand, as the firmwide impact of these same policies led to supply chain shortages. The COVID-19 Pandemic induced a recession in 2020 that was unique from all others in US history. Throughout the beginning months of the Pandemic, firms rushed to raise debt, equity, and lines of credit, as public financing markets experienced increased volatility. How did the markets adapt to this sudden change? I examine the effect on stock returns of firmwide Balance Sheet strength as it changed throughout …