Blockchain and its implications for accounting and auditing

2019 ◽  
Vol 27 (5) ◽  
pp. 725-740 ◽  
Author(s):  
Enrique Bonsón ◽  
Michaela Bednárová
Keyword(s):  
Information Quality ◽  
Full Potential ◽  
Accounting System ◽  
Business And Society ◽  
Accounting Quality ◽  
Content Type ◽  
General Overview ◽  
Blockchain Technology ◽  
Digital Era ◽  
Technological Developments

Purpose Technological developments such as blockchain seem to be the next step in a digital era and might reshape the way we do business. They are expected to have an impact on both business and society in the next few decades. This paper aims to provide general insights into blockchain technology and the extent to which it might transform the accounting system. Design/methodology/approach Analysing the previous literature, the paper provides a general overview of this phenomenon, identifying pending technical as well as non-technical issues that will have to be addressed for the full potential of blockchain technology to be embraced. The paper also proposes ways in which the information quality dimension might be improved. Findings The paper identifies the pending challenges for blockchain, such as scalability, flexibility, a suitable architecture and cybersecurity. Additionally, to integrate blockchain technology fully into a real accounting ecosystem, a consensus between regulators, auditors and other parties is needed. Originality/value A general overview of this new phenomenon, as well as a summary of how the quality of accounting information might be improved, is provided. Given that it features elements such as decentralization and transparency, blockchain certainly has the potential to improve information and accounting quality.

Blockchain technology design in accounting: Game changer to tackle fraud or technological fairy tale?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Piera Centobelli ◽  
Roberto Cerchione ◽  
Pasquale Del Vecchio ◽  
Eugenio Oropallo ◽  
Giustina Secundo
Keyword(s):  
Conceptual Framework ◽  
Fairy Tale ◽  
Design Science ◽  
Distributed Database ◽  
Full Potential ◽  
Content Type ◽  
Technological Infrastructure ◽  
Strategic Issues ◽  
Blockchain Technology ◽  
Private Network

PurposeThis paper aims to design, build and evaluate a blockchain platform in the accounting domain, taking an ecosystem perspective. To achieve this aim, the research provides evidence for developing a decentralised architecture rooted on blockchain technology, designing a proof of concept and modelling an accounting blockchain-based system.Design/methodology/approachMoving from the analysis of previous literature and leveraging on the design science approach, this paper provides a framework grounded on the main pillars of blockchain and accounting functions, identifying technical and non-technical issues that must be addressed embrace blockchain technology's full potential.FindingsWe propose and discuss a conceptual framework for a blockchain-based accounting context, moving from the identification of a typical accounting scenario. The framework is organised around three scalable levels: the first level is a technological infrastructure based on a distributed database with peer-to-peer storage; second, in the intermediate level, increasing control levels are assured through permissions and validation and third, in the higher level, the system provides the integration of business and security applications. The deployment of this system relies on a private network of nodes that validates transactions.Practical implicationsThe proposed conceptual framework about blockchain development in accounting allows closing the knowledge gap between blockchain developers and accounting experts by suggesting technological and strategic issues for practitioners.Originality/valueWe provide practical guidelines to design and adopt blockchain in the accounting domain.

International accounting standards and accounting quality in code-law countries

2016 ◽  
Vol 24 (1) ◽  
pp. 41-59 ◽  
Author(s):  
Ibrahim El-Sayed Ebaid
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Management Practice ◽  
Accounting Standards ◽  
Accounting System ◽  
Accounting Quality ◽  
Regulatory Requirement ◽  
Content Type ◽  
Set Up ◽  
Egyptian Government

Purpose – This study aims to examine whether the adoption of International Financial Reporting Standards (IFRS) leads to accounting quality improvements in Egypt as a code-law country. In particular, the study examines earnings management, the construct often used to assess accounting quality. Design/methodology/approach – The study compares earnings management practice for Egyptian listed companies before (2000-2006) and after (2007-2009) the adoption of IFRS. Findings – The findings of the study reveal that accounting quality, as measured by earnings management, has decreased in post-adoption period compared to pre-adoption period. IFRS are set up to provide high-quality financial reporting. However, this cannot be achieved solely by a regulatory requirement to follow. The accounting system is a complementary component of the country’s overall institutional system. Institutional improvements did not simultaneously take place by the Egyptian government around the adoption of IFRS. The Egyptian government did not introduce a more effective enforcement system, mandatory corporate governance regulations, investor protection mechanisms and sufficient institutional knowledge of IFRS during that period. Thus, even if IFRS are higher quality standards, the institutional features of Egyptian market could eliminate any improvement in accounting quality arising from adopting IFRS. Research/limitations/implications – The results of the study are consistent with prior research suggesting that the adoption of IFRS, which are generally perceived to be of higher quality than domestic standards, does not necessarily lead to higher accounting quality in code-law countries like Egypt. The overall results indicate that incentives dominate accounting standards in determining accounting quality in Egypt. Originality/value – The main reason why countries adopt IFRS invariably is to improve accounting quality. It is, therefore, of interest to ascertain if this goal has been met, especially, in code-law countries such as Egypt.

Do audit efforts increase the future equity value of client firm?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sang Ho Lee ◽  
Seung Uk Choi ◽  
Ji Yeon Ryu
Keyword(s):  
Value Creation ◽  
Stock Return ◽  
Information Quality ◽  
Positive Association ◽  
Accounting Quality ◽  
Content Type ◽  
Mediation Analyses ◽  
Audit Failure ◽  
Equity Value ◽  
Portfolio Return

Purpose The purpose of this study is to examine the association between additional audit efforts and clients’ future equity value. The study hypothesizes that auditors’ additional audit efforts directly increase clients’ stock return performance. Additionally, this study expects that the additional audit effort lowers the likelihood of audit failure and improves accounting information quality, thereby indirectly increasing clients’ future equity return performance. Design/methodology/approach The regression and portfolio return tests are conducted using observations from 2003 to 2016. This study uses the abnormal audit hours as a proxy for additional audit effort using mandatorily disclosed audit hour data from Korean listed firms. The study also conducts mediation analyses to examine the causal intermediate steps that link audit effort to client equity return performance. Findings The paper documents a significant and positive association between abnormal audit hours and clients’ subsequent years’ stock return performance and Tobin’s Q. This finding is accentuated for clients audited by Big N auditors or with greater demand for superior audit service. This finding is robust after controlling for various proxies of accounting quality. The portfolio return tests also find evidence that investors cannot fully perceive the value of audit efforts. A battery of additional tests does not alter the main findings. Practical implications The results provide implications for investors and policymakers by emphasizing the importance of audit efforts in value-creation. Moreover, this study’s findings suggest that auditors’ assurance, insurance and information roles are all the important drivers of this value-creation. Originality/value This study highlights a prominent feature of audit effort that enhances the value of auditees.

Publishing and accessibility: past, present, and future

2013 ◽  
Vol 114 (11/12) ◽  
pp. 554-556
Author(s):  
Margaret Spires
Keyword(s):  
Design Methodology ◽  
Publishing Industry ◽  
Electronic Publishing ◽  
Content Type ◽  
General Overview ◽  
Digital Era ◽  
The Future

Purpose – The purpose of this paper is to provide an overview of the Future Publishing and Accessibility Conference held in Copenhagen, Denmark on June 13-14, 2013. Design/methodology/approach – This report provides a general overview of events at the conference as well as its main topics and outcomes Findings – The report reveals the current challenges facing all involved in providing accessible materials to persons with print disabilities. Not only is the number of titles currently fully accessible an issue, but the digital era and electronic publishing bring their own issues. Speakers each offered their own views on potential solutions Originality/value – This report provides librarians and researchers with a general summary of the issues surrounding accessibility and the current publishing industry as they were discussed at the conference.

scholarly journals Blockchain based financial case analysis and its implications

2017 ◽  
Vol 11 (3) ◽  
pp. 312-321 ◽  
Author(s):  
Soonduck Yoo
Keyword(s):  
Financial Institutions ◽  
Design Methodology ◽  
Case Analysis ◽  
Financial Sector ◽  
Smart Contracts ◽  
Related Services ◽  
Content Type ◽  
Blockchain Technology ◽  
Distributed Ledger ◽  
Technological Developments

Purpose In Korea and abroad, this paper investigates the use of blockchains in the financial sector. This study aims to examine how blockchains are applied to the financial sector and how to respond to the Korean conditions. Design/methodology/approach This paper investigates the movements of the financial sector and related services using the blockchain in the current market. Findings First, as a result of examining domestic and foreign cases, it can be seen that the areas where blockchains are most actively applied in the financial sector are expanding into settlement, remittance, securities and smart contracts. Also, in Korea, many of the authentication procedures based on the equipment possessed by the consumers are used so that introduction of the blockchain in the authentication part is prominent. Second, the move to introduce a closed (private) distributed ledger that does not go through the central bank is accelerating in payments between banks. Third, domestic financial institutions also need joint action by financial institutions through a blockchain consortium to apply blockchain technology to the financial sector. Fourth, consumer needs and technological developments are changing. At the same time, as the opportunity to infringe on the information held by individuals has expanded, the need for blockchain technology is strongly emerging because of the efforts of the organizations to defend it. Originality/value This paper contributes to understanding the changes in the financial sector using the blockchain.

Accruals quality and leverage adjustments

2020 ◽  
Vol 21 (4) ◽  
pp. 799-817
Author(s):  
Dominique Dufour ◽  
Philippe Luu ◽  
Pierre Teller
Keyword(s):  
Financial Management ◽  
Information Quality ◽  
Accounting Information ◽  
Accounting Standards ◽  
Accounting Quality ◽  
Step Method ◽  
Content Type ◽  
Speed Of Adjustment ◽  
Accruals Quality

PurposeThis paper analyses the role of accounting information quality on leverage adjustments. More specifically, the authors investigate whether a better accounting information leads to a higher speed of adjustment to the target financial leverage.Design/methodology/approachThe authors use a two-step method. They first estimate the target financial structure and then the influence of accruals quality on the speed of adjustment to this target. The study sample consists of French listed companies in the CAC All-Tradable index. The sample contains 210 companies and 1,713 observations.FindingsAccounting literature showed the positive influence of accounting quality on financial management. The study findings are in line with these results. The authors give evidence of that a better quality of accruals is associated with a greater speed of adjustment.Research limitations/implicationsA common limitation in this field is the use of proxies. This makes results harder to generalize. For this reason, the authors implemented several models to improve the robustness of their results.Practical implicationsThe authors give evidence that firms have an incentive to disclose a good-quality accounting information. A weak accounting quality prevents firms from adjusting their leverage to their financial target and therefore reduce their value.Social implicationsThis work shows the need for accounting standardization bodies to strive to produce accounting standards allowing the production of high-quality accounting information. In a teaching dimension, these results highlight the importance in corporate finance of acquiring expertise in quality accounting information analysis.Originality/valueThis work is original because the authors study the influence of accounting quality on speed of adjustments of firms operating in the same legal environment and using the same accounting standards, when previous work compared different accounting frameworks. The French context is characterized by the weakness of market mechanisms and the important role of banks. These characteristics are known to reduce the role of accounting information in financing process. This result is interesting because the authors demonstrate that firms operating in this context still have an incentive in producing high accounting quality information.

International Financial Reporting Standards, board governance, and accounting quality

2016 ◽  
Vol 24 (4) ◽  
pp. 474-497 ◽  
Author(s):  
Krismiaji ◽  
Y. Anni Aryani ◽  
Djoko Suhardjanto
Keyword(s):  
Financial Reporting ◽  
Information Quality ◽  
Accounting Information ◽  
Positive Association ◽  
Faithful Representation ◽  
Board Governance ◽  
Accounting Quality ◽  
Content Type ◽  
Ifrs Adoption ◽  
Accounting Information Quality

Purpose The purpose of this paper is to discuss empirical research examining the impact of International Financial Reporting Standard (IFRS) adoption and board governance on the accounting quality, in terms of relevance and faithful representation. Design/methodology/approach The research uses a sample of 454 observations of publicly listed companies on the Indonesian Stock Exchange for the fiscal year that ends on December 31, 2008 through 2011. Relevance is measured by predictive value, whereas faithful representation is measured by absolute discretionary accrual as an inverse measure. Board governance is measured by the board of commissioner score whereas IFRS adoption is measured by the percentage of IFRS adopted. The data used in this study are obtained both from Indonesian Capital Market Directory, Indonesian Stock Exchange database, and from company annual reports. Findings This research found evidence of a positive association of IFRS adoption on the relevance of accounting information quality. With respect to faithful representation, this study proves a positive association after IFRS adoption. This research also found that board governance has a positive impact on accounting information quality after IFRS adoption both in relevance and faithful representation. This result is in line with investor’s expectations that fair value IFRS adoption enhances the relevance of accounting information. Originality/value This study provides further evidence on the effect of IFRS adoption and board of governance on accounting information quality using data from Indonesia. Moreover, this study measures and tests both dimensions of earnings quality which are relevance and faithful representation and portrays a complete story about the quality of earnings. This study uses the qualitative characteristics of accounting information as proxies for accounting quality, so that it enriches the accounting literature about the role of accounting standards in financial reporting quality.

PERAN DIGITAL MARKETING DALAM EKSISTENSI BISNIS KULINER SEBLAK JELETET MURNI

2016 ◽  
Vol 1 (2) ◽  
pp. 133-144
Author(s):  
Nadya Nadya
Keyword(s):  
Social Media ◽  
Consumer Behavior ◽  
Marketing Strategy ◽  
Marketing Strategies ◽  
Digital Marketing ◽  
Social Media Marketing ◽  
Digital Era ◽  
Marketing Social ◽  
Technological Developments ◽  
Product Sales

Technological developments have significantly changed the way how a business works, especially the culinary business named Seblak Jeletet Murni, that has located in Jakarta. This business is still relatively new, but consumers continue moldy and this spicy culinary product sales have been continue to increase. This phenomenon is a result of business which has entered the digital era in social media. Marketing of this product is not done intensively by the owner of this business, but consumers who moved to market virally in social media, especially social media video youtube. In this article the author analyzed descriptively about consumer behavior in digital marketing that has affected the sales of the culinary products. The analyzes were performed with case studies and associated in the literature on consumer behavior and digital marketing strategies. This article aims to describe the behavior of consumers in the digital age so that it can be input in determining the marketing strategy culinary efforts forward and be used for thought on the future of consumer research. Keywords: Digital Marketing, Social Media, Consumer Behavior

Do globalisation and adoption of IFRS by banks in Africa lead to less earnings management?

2019 ◽  
Vol 17 (2) ◽  
pp. 222-248 ◽  
Author(s):  
Mohammed Amidu ◽  
Haruna Issahaku
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Information Quality ◽  
Accounting Information ◽  
Financial Statements ◽  
International Standards ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Accounting Information Quality ◽  
National Economies

Purpose This paper aims to analyse the implications of globalisation and the adoption of international standards (International Financial Reporting Standards [IFRS]) for accounting information quality. Design/methodology/approach This paper uses a sample of 329 banks across 29 countries leading up to and beyond the implementation of IFRS to test for related hypotheses. Findings First, banks’ financial statements are prepared on the basis of international standards as national economies are integrated when social norms are diffused. Building on these results, the second test suggests that the relatively high-quality earnings among banks in Africa during the period is attributable to the adoption of and interaction of IFRS with globalisation and the strategy of banks to diversify within and across interest and non-interest income. Originality/value The authors investigate how globalisation and the adoption of IFRS affect accounting information quality.

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