Purpose: This study aims to analyze the role of the government’s budget supervision on financial accountability to reduce fraud against the local government budgets.
Theoretical framework: The ...theoretical framework from Gabrini (2013) highlights the importance for organizations to design and manage financial reports and audits to maintain legitimacy, along with the increasing demands for transparency and accountability of public organizations today.
Design/methodology/approach: To achieve this goal, the data used in this study is secondary data sourced from the central and regional government’s auditing board between 2016 to 2019.
Findings: The results showed that budget supervision negatively affects the accountability of local government financial reports. Moreover, a follow-up audit has a negative effect on the fraud against the local government budget and has a positive effect on financial accountability. The results also demonstrated a negative effect of financial accountability on the fraud against local government budget.
Research, Practical & Social implications: As the implication, the government is expected to draft an implementing regulation as a technical guideline to avoid fraud against the government budget. In order to encourage an increase in the target of unqualified opinions, it is expected that the central government can provide incentive funds to regional governments that get unqualified opinions to maximize their capacity to increase financial accountability.
Originality/value: This research is among the first in empirically examinating the full mediating effect of financial accountability in the relationship between budget supervision and the fraud against local government budget in Indonesia.
In the article ways of information visibility provision concerning tax relations of the enterprise in the system of accounting and financial report are investigated. It is substantiated that ...necessity of information disclosure about tax relations of the enterprise is a result of such qualitative characteristic of financial reports as relevance and two principles of its preparation: principle of full presentation and principle of going concern. Contents of separate paragraph in the notes to Annual Financial Reports dedicated to information disclosure about the enterprise as a subject of tax relations is proposed.
Abstrak Perkembangan era revolusi industri 4.0 berdampak pada berbagai hal, salah satunya adalah pada Usaha Mikro Kecil dan Menengah (UMKM). UMKM adalah salah satu sektor usaha di Indonesia yang ...dikenal tangguh karena terbukti dapat bertahan meskipun dalam kondisi krisis ekonomi. Meskipun demikian, para pelaku usaha tetap harus mengantisipasi perubahan yang sangat cepat terjadi pada era revolusi industry 4.0. Selama ini, salah satu masalah UMKM adalah kesulitan dalam menyusun laporan keuangan. Aplikasi akuntansi adalah salah satu wujud perkembangan teknologi di bidang akuntansi. Saat ini terdapat beberapa aplikasi akuntansi berbasis android yang bertujuan untuk memudahkan pelaku usaha dalam menyusun laporan keuangan, salah satunya adalah aplikasi akuntansi “UKM-ID”. Penelitian ini merupakan penelitian deskriptif dengan menggunakan pendekatan kualitatif dan kuantitatif untuk memberikan ulasan yang diperoleh. Pendekatan penelitian deskriptif dalam penelitian ini hanya sebatas membuat deskripsi tentang fenomena di lapangan sedangkan pendekatan kuantitatif dalam penelitian ini digunakan untuk membuat deskripsi tentang penggunaan aplikasi akuntansi berbasis android untuk menyusun laporan keuangan pada usaha “Very Convection”. Hasil penelitian menunjukkan bahwa aplikasi akuntansi berbasis android “Akuntansi UKM” dapat diterapkan dan membantu usaha “Very Convection” dalam menyusun laporan keuangan sesuai dengan standar akuntansi yang ditetapkan.
Purpose: The study aims to identify the role of forensic accounting in reducing financial corruption practices and improving the quality of financial reports by applying it to Saudi joint stock ...companies. Methodology: the study used descriptive approach, conducted a questionnaire to collect data and distributed it to the study’s population consisting of shareholders, investors, and workers in joint-stock companies in the Kingdom of Saudi Arabia. Results and conclusion: The most important results of the study were that forensic accounting played a major role in combating financial corruption and business sustainability, and that academic and practical qualifications have a very important impact in discovering financial corruption, and the effectiveness of forensic accounting also led to improving the quality of financial reports. The researcher also recommends the necessity of adopting the subject of forensic accounting within the educational curriculum as a basic subject, as a preliminary step toward advancing the profession of forensic accounting, cooperating with educational institutions and investing in appropriate technology. Originality/value:The study is distinguished that it addresses the role of forensic accounting in improving the suitability and credibility of financial reports and business sustainability in the Kingdom of Saudi Arabia through cooperation with educational institutions in establishing the concept of Forensic accounting and the best use of technology.
Propósito: El estudio tiene como objetivo identificar el papel de la contabilidad forense en la reducción de las prácticas de corrupción financiera y la mejora de la calidad de los informes financieros aplicándola a las sociedades anónimas sauditas.Metodología: el estudio utilizó un enfoque descriptivo, realizó un cuestionario para recopilar datos y los distribuyó a la población del estudio compuesta por accionistas, inversores y trabajadores de sociedades anónimas en el Reino de Arabia Saudita.Resultados y conclusión: Los resultados más importantes del estudio fueron que la contabilidad forense jugó un papel importante en la lucha contra la corrupción financiera y la sostenibilidad empresarial, y que las calificaciones académicas y prácticas tienen un impacto muy importante en el descubrimiento de la corrupción financiera, y la eficacia de la contabilidad forense también. llevó a mejorar la calidad de los informes financieros. El investigador también recomienda la necesidad de adoptar la materia de contabilidad forense dentro del currículo educativo como una materia básica, como paso preliminar para avanzar en la profesión de contabilidad forense, cooperando con instituciones educativas e invirtiendo en tecnología adecuada.Originalidad/valor:El estudio se distingue porque aborda el papel de la contabilidad forense en la mejora de la idoneidad y credibilidad de los informes financieros y la sostenibilidad empresarial en el Reino de Arabia Saudita a través de la cooperación con instituciones educativas para establecer el concepto de contabilidad forense y el mejor uso de la tecnología.
•ESG disclosures have become an important consideration for investors.•Investors and policy makers are promoting mandatory ESG reporting.•A higher ESG rating is associated with a higher quality of ...financial reporting.•Firms do not exploit high ESG ratings to divert attention from poor financial data.•Mandating ESG disclosures is likely to improve financial reporting quality.
The growing focus on ESG policies has sparked discussions about whether companies should be required to make ESG disclosures. A major concern is that companies use high ESG ratings to divert attention from poor performance, which is hidden by their low financial reporting quality (FRQ). Looking at U.S.-listed companies from 2012 to 2022, we find that high ESG ratings do not come at the expense of FRQ. Furthermore, the heightened focus on ESG performance following the 2019 Business Roundtable statement had a positive impact on FRQ. Our findings suggest that regulation mandating ESG disclosures is likely to improve FRQ.
Regulatory harmonisation stands as a central issue in the European Union (EU), playing a key role in achieving the single market. Accounting harmonisation, in particular, has been the subject of ...different regulatory frameworks, mainly directives. However, the literature suggests that the implementation of these directives within the EU does not consistently meet its harmonisation goals due to diverse legal, cultural, and business interpretations among the Member States. In the realm of social and environmental accounting, Directive 2014/95/EU (NFRD) compels specific companies to prepare and present Sustainability Reports (SRs), with the primary goal of enhancing the availability of sustainability information while also fostering greater consistency and comparability. Nevertheless, the flexibility afforded by this Directive may give rise to divergences among the national regulations of the EU Member States, as has been the case previously. Therefore, this study aims to analyse the success of the NFRD in harmonising sustainability disclosure by examining the quantity and homogeneity of such information disclosed in the SRs of 100 large agri-food companies in Italy, the Netherlands, Germany, and Spain. To do so, a content analysis and non-parametric tests were applied. The findings show a limited performance and high heterogeneity in disclosure across countries, suggesting that the NFRD has fallen short of harmonising national regulations on disclosing sustainability information.
This paper examines the impact of media communication on the stock market in the context of the digital age, particularly its role in stock price volatility. With the significant increase in the ...speed, breadth and depth of media communication, the efficiency of stock market information transmission has been dramatically improved, significantly impacting stock price volatility. The article first explores the specific impact of media coverage characteristics and methods on stock price volatility by quantitatively analyzing media coverage’s breadth, manner and content. Then, the article utilizes multiple linear regression models to deeply explore the impact of various news texts on stock price volatility in different reporting modes (e.g., live reporting, television, and text reporting) in the Shanghai and Shenzhen stock markets. The findings show a significant association between the breadth of media coverage and stock prices at the 1% significance level. In addition, the regression coefficients of content and manner of coverage on stock price changes are 0.096 and 0.229, respectively, which are both significant at the 5% significance level. The research results of this paper not only reveal the close relationship between media communication and stock market volatility and provide theoretical support for predicting dramatic stock market volatility, which helps to promote the construction of a healthy and orderly capital market order.
The development of accounting for public sector entities and its convergence with public sector IFRS pose new methodical and methodological problems. Inventory is essential to ensure faithful ...representation of financial reports provided to users. This confirms the relevance of the study. The article contains a theoretical study of inventory in the context of implementation of federal standards for accounting in public finance. The paper studies the relationship of inventory with other elements of the accounting method as well as accounting procedures: recognition, classification, evaluation, adjustment of estimates, presentation and disclosure of information in financial reports, and confirmation of reporting reliability made by an independent entity. In addition, the study has established the effect of inventory on the achievement of qualitative characteristics of financial reports to increase its usefulness to users. Since information requests by users change under the influence of external and internal environmental conditions, an inventory should confirm not only the recognition and classification of the object, but also its estimate. It is concluded that it is advisable to disclose information on the valuation of objects in financial statements at both actual and fair values. This would ensure the control function of accounting and strengthen its information function. The results obtained by the author can be used for further development of regulation of accounting in public finance.
Managing business operations of a company is performed by making decisions in different organizational positions and on a different level of responsibility. Decision in a company means hiring ...available resources and expecting results. In order for a decision to be effective and efficient, it needs to be based on timely, relevant and reliable information. The most common source of information for decision makers is from the accounting information system. Accounting information system is in charge of gathering data, processing, managing a database and generating reports for different purposes. Information from the accounting information system needs to be relevant, timely and reliable because of the character of bookkeeping as a highly formalized record based on complete and permanent gathering and systematic, chronological and real-time data processing in relation to resulting individual business events, which can be shown in value.
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