1,720,982 research outputs found
An evaluation of an integrated case study and business simulation to develop professional skills In South African accountancy students
Get PDFOne of the most debated topics in extant accounting education literature is that of professional skills. It appears that many universities are failing to sufficiently equip their graduates with the generic professional skills required for the workplace. The case study method and business simulations are two complementary teaching and learning tools that have proven successful in promoting the development and assessment of professional skills in accounting; however, very few existing cases or simulations appear to be integrated across the discipline areas within accountancy. This study aims to contribute to the field in three ways: 1) in aiding to fill the apparent gap in the literature on the usage of inter-disciplinary integrated case studies or simulations, 2) by producing a (hypothetical) case study and business simulation that can be used or adapted by accounting educators to develop and assess professional skills, and 3) by providing some evidence of students’ experiences (using a questionnaire adapted from a previous study) of such an assignment that can inform the development of future assignments. The findings show that the most obvious benefits of the assignment relate to the perceived level of learning that takes place and the exposure to real-life accountancy practice, as well as the perceived contribution to the development of various professional skills. A significant percentage of students did, however, experience high levels of stress and reported serious time constraints in completing the assignment.http://www.cluteinstitute.com/ojs/index.php/IBER/article/view/8127http://www.cluteinstitute.com/journals/international-business-economics-research-journal-iber
The Effect of a Motor Development Programme on the Gross Motor Skills of Four- to Six-Year-Old Learners who Are Directly Affected By HIV/AIDS
No full textA pilot study to identify skills shortages that exist in first-year trainee accountants in South Africa
No full textThis study aims to determine the skills shortages in first-year
trainee accountants entering practice in South Africa and to recommend
ways to address and overcome those shortages. Questionnaires were
administered to registered audit firms in Gauteng Province to gather the
perceptions of senior trainees, managers and partners on the skills
shortages in first-year trainee accountants. The overall view was that
universities did not equip first-year trainees sufficiently with the skills
to be successful in practice, especially with regard to professional
communication and exposure to computer accounting software packages.
It is argued that professional bodies and universities should work together
to overcome these skills shortages
The message conveyed by IFRS-compliant information: a South African perspective
Get PDFSouth African companies must prepare financial statements in accordance with InternationalFinancial Reporting Standards (IFRS) or other reporting standards modelled on IFRS. Literature suggests that the complexity of IFRS, which stems from detailed rules-based principles in these standards, may harm the ability of users of financial statements to understand financial information in a meaningful way. The primary objective of this study was to evaluate whether selected users and preparers of financial statements in South Africa interpret selected IFRScompliant information prepared in accordance with rules-based principles in the manner intended by the standard-setters. The results of the study, which are based on data gathered by administering a questionnaire that contained selected IFRS-compliant note disclosures to accounting practitioners, accountancy students, and non-accountants in business, suggest that the participants of the study did not understand such IFRS-compliant information as intended by the standard-setters. Additional disclosure, the adoption of a simplified accounting framework for Small and Medium-sized Entities (SMEs) and the use of an output-based continuing professional education (CPE) system are identified as areas that warrant further research to overcome the threats posed by rules-based principles in IFRS.http://www.cluteinstitute.com/journals/international-business-economics-research-journal-iber/http://www.cluteinstitute.com/ojs/index.php/IBER/article/view/805
Balancing academic and professional pedagogies: a comparative study of two accounting departments in South Africa and the UK
No full textThe paper adds to extant professional education literature by reflecting on apparent differences in pedagogy of similar professional programmes of study, allowing deeper insight into the unique strand of higher education influenced by the professions. A comparative international case study approach is adopted of an interpretive qualitative nature regarding curricular, teaching and learning and assessment strategies of an accounting department in South Africa (SA) and one in the UK. Findings point to significant differences in curriculum and assessment but less so in teaching and learning approaches. One department endeavoured to find a balance between vocational and academic activities, whilst the other favoured the former being inconsistent with both its governmental and institutional governing bodies. Explanations offered include differing strengths of coercive, competitive, mimetic and normative influenc
Earnings quality of the successful efforts and full cost accounting methods in the oil and gas industry
Get PDFPhD (Accountancy), North-West University, Potchefstroom Campus, 2018From time to time over the last decades, the issue of accounting for exploration and production activities has been politically charged and hotly debated in the US and internationally. While there have been numerous empirical studies on this issue, the question related to which accounting method – successful efforts (SE) or full cost (FC) – provides investors and other users with more informative numbers or superior earnings quality and thus should be recommended for use by all upstream oil and gas firms, is still unresolved. The main difference between the FC and SE historical cost accounting methods lies in the treatment of costs of unsuccessful exploration activities, where such costs are capitalised under the FC method and expensed under the SE method. The International Accounting Standards Board (IASB), Financial Accounting Standards Board (FASB) and the Securities Exchange Commission (SEC), are still undecided on which accounting method to mandate for use by all upstream oil and gas companies so that the global investment community can be served better.
This thesis examines the earnings quality of two alternative accounting methods, SE and FC, used by upstream oil and gas firms in the US, with an aim of ascertaining which, if any, of the two methods provides superior earnings quality. Since there are different definitions of earnings quality, various measures of earnings quality have been used commonly in accounting research. However, in this study, seven measures of earnings quality are used to estimate the quality of earnings for SE and FC firms and form the hypotheses for the study. These include accruals quality, persistence, predictability, smoothness, value relevance, timeliness and conservatism. The study relied upon a longitudinal design to evaluate the issue of earnings quality of SE and FC firms, with the unit of analysis being at firm level, and the sample consisting of 84 US upstream oil and gas firms (43 SE firms and 41 FC firms), with data for the years 2007-2015. The required data for the empirical study were extracted from the firms’ financial statements, which were downloaded from the Osiris Financial Database. A comparative analysis approach was adapted in the data analysis and interpretation of the results, since this research sought to compare two alternative accounting methods. Microsoft Excel was used to compute the relevant research variables required for each earnings-quality measure and to generate graphs and tables, while the Statistical Package for the Social Sciences (SPSS) was used to generate the descriptive statistics, regression and correlation analysis, and performing hypothesis and significance tests, among others.
The results of this thesis indicate that SE firms have higher earnings quality than FC firms, based on earnings predictability, persistence, smoothness, accruals quality and timeliness. In all these cases except for smoothness, the difference between the earnings quality for SE and FC firms was statistically significant. However, based on value relevance and conservatism, FC firms have superior earnings quality than SE firms, although the difference in the earnings quality was not statistically significant for most years studied. Overall, since the results are significant for four out of the seven hypotheses tested, this study concludes that the SE method of accounting provides earnings quality superior to the FC method.
The contributions of this thesis are various, including, but not limited to addressing the ongoing debate about whether the SE or FC accounting method provides investors with numbers that are more informative or higher earnings quality. This thesis is extensive, as it looked at nine years of data of 84 firms and considered seven different measures of earnings quality that have been widely used in accounting research. Based on the literature consulted, it is also a much more recent study compared to previous research on this topic. Although this study was conducted on upstream oil and gas companies in the US, the results of the research are very relevant internationally, since most upstream oil and gas companies globally have adopted the accounting methods and practices used in the US. This study also provides an international comparison of the US GAAP with the UK GAAP and IFRS, specifically in accounting for extractive activities. Lastly, this study recommends that the IASB and the FASB undertake a joint project with the objective of the team coming up with a single method of accounting for the extractives industry.Doctora
Applying a framework-based approach to teach complex problem-solving to Accounting students
Get PDFMCom (Accountancy), North-West University, Potchefstroom Campus, 2015Accounting transactions are becoming more complex, and more extensive accounting guidance is provided on a continuous basis in the accounting standards. In addition, accounting guidance changes often and additional guidance is added to the standards regularly. In view of this immense
amount of accounting knowledge that an accountant can be expected to have, exacerbated by often multifaceted structures in accounting problems, it can be challenging and onerous to solve certain accounting problems. The premise of this study is that accounting problems can also be solved in a less complex manner with reference to the foundational accounting concepts included in the Conceptual Framework for
Financial Reporting (CF). The solution to the accounting problem using the CF should result in a similar answer had the detailed, complex accounting guidance been consulted. This is based on the
understanding that the detailed guidance is consistent with the CF and that the CF is not underdeveloped. In the experience of the author of this dissertation, however, the CF is rarely used to consider the accounting treatment of specific transactions and the first point of reference is usually the detailed, specific guidance. In order to impart a practice of incorporating the CF in problem-solving, the study in this dissertation is underpinned by educational philosophies rooted mainly in constructivism, and specifically in Ausubel’s subsumption theory. Applied to accounting education, this theory suggests a frameworkbased
approach whereby educators first instill a detailed knowledge of the CF in an Accounting course and thereafter present details of specific accounting transactions by building and crossreferencing to the foundational concepts in the CF. In addition, the paradigm in Accounting courses should also incorporate problems and experiments through which students can construct their own knowledge, rather than being passive recipients of an educator’s teaching style. Recent literature on framework-based teaching suggests that such an approach is beneficial as it enhances lifelong learning.
This study reported on a framework-based approach incorporated in an Accounting course and aimed to determine students’ ability to solve complex accounting problems by referring only to the CF, as well as to determine the factors that could influence their ability to solve the problems and
the preferred problem-solving approach of students in facing future accounting problems. In order to address the broad aim of this study, it was divided into two sections, each to identify and analyse a
different aspect of accounting problem-solving that incorporated the CF. The study in this dissertation focused mainly on an interpretive research paradigm. The first project had the primary objective of determining whether students have the ability to solve complex accounting problems by using only the CF and determining which factors could influence their ability. This was established by analysing the content and results of an assignment administered to third-year Accounting students at a South African university in which students were required to solve problems using only the CF. The second project had the objective of determining the preferred future approach students will take in solving
accounting problems after they have been exposed to a framework-based assignment. This was established through qualitative measures and augmented by a questionnaire to analyse the students’
perceptions. The contributions of this dissertation are manifold and include, but are not limited to, the realisation that a conceptual approach to accounting education is beneficial in Accounting courses. The results in this study indicate that the ability of students to solve complex accounting problems by referring only to the CF may depend on the complexity of the scenario and the students’ familiarity with the problem. In addition, after being exposed to a framework-based assignment, students may tend to prefer a mixed approach in solving accounting problems, which entails a combination of the concepts
in the CF and specific accounting guidance governing a particular transaction. The author also believes that this study makes a practical contribution by providing an actual framework-based
assignment which can be used or adapted by other Accounting educators to use in similar courses, or to help them develop similar assignments or case studies or to replicate the study. From an educational perspective, it is recommended that Accounting educators incorporate an emphasis on the CF in their teaching approach. As students are exposed to opportunities to exercise their judgement using the concepts included in the CF, they will gain experience in this and be able to exercise better judgement in future. Each time a student is exposed to a problem requiring to be solved using the CF, or is required to make necessary judgements with regard to the CF, it will lead to the creation of new knowledge which the student can constantly link and cross-reference to existing knowledge and experiences. It also appears that, when students are exposed to problem-solving using the CF, it may lead to accountants adopting a more balanced approach by considering more CF constructs in solving future accounting problems. Although the study in this dissertation was conducted at only one university, its implications are by no means limited to this institution. Extrapolation of results cannot be attempted due to the nature of the research design, but the results in this study are valuable and enhance accounting education literature in better understanding students’ problem-solving abilities and their preferred problemsolving approach. The research is therefore valuable to any Accounting educator, as well as the institutional bodies guiding accounting education and its syllabi. It is hoped also that some of the findings will inspire other educational institutions to promote a framework-based approach in an innovative manner.Master
Mandatory audit firm rotation in South Africa : suggested solutions to prospective problems
Get PDFMCom (Accountancy), North-West University, Potchefstroom CampusIn response to the increasing number of financial scandals, many jurisdictions introduced more prescriptive rules with the aim to enhance the independence of auditors. Similarly, the Independent Regulatory Board for Auditors (IRBA) issued a rule on mandatory audit firm rotation (MAFR) for South African public interest entities (PIEs) effective from 1 April 2023. This regulation forbids auditors of PIEs to be appointed as auditors for more than ten consecutive years. Contrasting views exist on the effectiveness of MAFR in South Africa. Proponents believe that this rule will increase audit quality due to improved auditor independence, however, opponents argue that MAFR will reduce audit quality due to the loss of client and industry-specific knowledge by the auditor.
This research study aims to contribute to auditing literature by examining the consequences MAFR had in other jurisdictions which implemented similar rules. Differences between South Africa and the identified countries are used to anticipate how specific problems could manifest in a South African context. The difficulties experienced by other countries are then combined with the expectations of affected parties in South Africa. Suggested solutions to prospective problems are explored with the aim to help audit firms and the IRBA set pro-active measures in place to ensure that MAFR has the desired effect on audit quality in South Africa. The primary research objective of this study is to determine what pro-active measures could reduce the potential negative effects of MAFR to such a degree to support the implementation of MAFR in South Africa.
This study consists of both a literature study and a qualitative empirical study. The literature study provided background for the implementation of MAFR in South Africa and includes a detailed comparison with eight other jurisdictions around the world that already implemented MAFR. The empirical study supplemented the findings of the literature study by exploring the views on auditor independence as well as on potential problems and possible solutions through semi-structured interviews with six registered auditors and six academics teaching auditing.
The study found that MAFR will likely improve auditors’ independence in appearance which would help restore the public’s opinion of the audit profession. Possible solutions proposed to mitigate the effect of client specific knowledge loss include the up-skilling of audit trainees and the management of audit clients with problem solving abilities and encouraging knowledge sharing between the predecessor and the successor audit firms. Furthermore, it is suggested that the IRBA should introduce an audit fee framework to assist auditors in determining and explaining audit fees to clients to prevent low-balling. Besides the possible contribution towards improved independence in
appearance, it is believed that MAFR will have a limited effect on the audit market concentration and the transformation in the audit profession.
This dissertation contributes to the gap in literature on MAFR in South Africa by anticipating possible problems based on experiences in other jurisdictions. Furthermore, the suggested solutions which were gathered provides the IRBA as well as audit firms with measures that can be put in place to help limit likely negative consequences that will be caused by MAFR. The empirical evidence of this study could also assist countries which are still deliberating on introducing MAFR by providing an understanding of how knowledgeable parties would react to the implementation of such a regulation; and which problems should be addressed from the start.Master
Developing an engagement performance framework in enhancing government sector audit report quality in Uganda
Get PDFPhD (Accounting), North-West University, Potchefstroom CampusAudit quality has been a major debate within the financial reporting and auditing fraternity for decades as a result of major corporate collapses and scandals such as that of Enron (Neri & Russo, 2014:25; Deis Jr & Giroux, 1992:463) and Wells Fargo (Corkery, 2017) in the private sector, but also the OPM and Irish Aid 2012 scams in the government sector in Uganda (Kasigwa et al., 2013:26-27). This has sparked growing interest in the necessity and importance of producing high quality audit reports (Francis, 2004:35), although Deis Jr and Giroux (1992:462) reported that there are limited audit quality studies focusing on the government sector, a shortcoming this study partially addresses. The study seeks to establish, evaluate, and propose improvements to the key OAG engagement performance QC measures (deployment, review, supervision, documentation and pre-engagement discussions) and audit quality indicators (AQIs), in order to develop a new OAG engagement performance QC framework for use at engagement level for public universities’ audits.
The study utilises a cross-sectional design involving the adoption of a qualitative research strategy; the multiple case studies being those at four public universities, OAG Uganda and five private audit firms (two ‘Big 4’ and three local Ugandan firms); used semi-structured open-ended interviews administered to 51 respondents while data was coded a priori and analysed using the Atlas.TI software and the engagement performance QC framework developed was discussed and refined by a panel of six experts using the Delphi technique towards meeting the unique OAG QC needs.
The study shows that the OAG faces several challenges in ensuring consistent QC at engagement level such as high workload, partial or no documentation using Teammate audit software which limits compliance with the auditing framework and methodology, poor work assignment and resource deployment style, undefined audit supervision and review responsibilities leading to an overlap of roles by senior managers, poor QC for outsourced universities’ audits, client audit stress from analogous audit activities by accountability institutions and poor attitude of staff and management towards quality management.
Study findings further revealed that audit impact assessment, monitoring and reporting is not the OAG’s mandate which stops at issuing an opinion and/or assurance, the need for the OAG to adopt the pooling deployment system to eliminate slack time and deficiencies associated with the current directorate system, introduce a three-year rotation policy for OAG in-house audit entities to complement non-rotation of teams, auditees’ desire that the OAG provides actionable or implementable audit recommendations and adopts total or positive reporting of key auditee achievements, adoption of the Management Information System (MIS) to improve audit processes and quality management in the OAG and significant debates on whether or not to disclose the OAG AQIs to the public.
This study contributes significantly to the theoretical and empirical understanding of audit quality and QC in the government sector, with its most significant results being the development of a new ‘OAG DRSDPA engagement performance QC framework’ to improve QC for in-house and outsourced universities’ audits at engagement level, and major recommendations like the need for regular SAI inspections by professional organisations like the Institute of Certified Public Accountants of Uganda (ICPAU) and African Organisation of English-speaking Supreme Audit Institutions (AFROSAI-E); the need for parliament to develop a local board or commission responsible for guiding the OAG regulatory activities to avoid regulation capture and set the maximum delay period allowed to the Public Accounts Committee (PAC) for discussion of audit reports; the need for standard setters like International Organisation of Supreme Audit Institutions (INTOSAI) to revise International Standards for Supreme Audit Institutions (ISSAIs) to provide guidance on quality management for in-house and outsourced government audits and allowed practices to audit institutions in disastrous periods; while researchers need to assess the
impact of government audit outsourcing on the OAG’s workload and audit quality and the effectiveness of ISSAIs and ISAs (International Standards on Auditing) triangulation in conducting and reporting on government audits of public universities. The results are therefore relevant to the OAG, key stakeholders like parliament and CSOs and international jurisdictions like standard setters, academics and the research community.Doctora
Technical uncertainties in and practical implications of the capitalisation of borrowing costs in South Africa
Get PDFThesis (M.Com. (Accountancy))--North-West University, Potchefstroom Campus, 2011.The International Accounting Standards Board (IASB) and the United States Financial Accounting Standards Board (FASB) have reaffirmed their commitment to accomplishing the convergence of International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Practice (US GAAP), following their March 2010 progress report. Among the standards subject to this convergence project, is IAS 23 - Borrowing Costs. Taken at face value, the convergence of IAS 23 (IFRS) and SFAS 34 (US GAAP), and looking at convergence in general, the idea is productive and beneficial. It will lead to more comparative information as it eliminates the differences. The downside, however, could very easily be that convergence might just be taking place for the sake of convergence, and that the end result might not necessarily lead to more comparative and cost effective information. When specifically considering the convergence of the two borrowing costs standards (SFAS 34 and IAS 23), it is clear that differences remain even after their convergence, and therefore it does not promote comparability. The revision of IAS 23 might actually have been more costly and less beneficial, rather than the other way around. The first article in this dissertation claims that the mandatory capitalisation of borrowing costs is more costly than not, and that the IASB did not adequately consider the cost implications in their decision to change IAS 23, as well as that the benefits obtained from the capitalisation of borrowing costs are not that noticeable in practice. Participants in this study also seemed to agree that the application of IAS 23 is fairly difficult. Delving deeper into the technical aspects of IAS 23, a number of questions also arise relating to its application. This appears to be substantiated by the findings in the second article where instances were identified where the opinions of the participants relating to, for instance, what would be regarded as a 'substantial period of time', were divided. Differences relating to the above above may lead to one person capitalising borrowing costs, while another in the same situation would not. On the upside, a few instances were identified where participants were not as divided in their views. Therefore, although there appear to be some uncertainties within IAS 23, there are fewer than one would have expected. In summary, the revised IAS 23, in other words, the mandatory capitalisation of borrowing costs on qualifying assets, was viewed by participants as being more costly and difficult to apply than not and they felt that some technical uncertainties do exist within IAS 23. Recommendations have been made in this dissertation based on the useful information obtained.Master
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