The auditing profession and the key audit matter reporting requirement

Purpose This study aims to examine the setting of International Standards on Auditing (ISA) 701 on disclosing key audit matters (KAMs) to explore the role of standard setting in maintaining or reconstituting the relationship of the auditing profession with preparers and users of financial reports. Design/methodology/approach This study draws on concepts from the sociology of the professions literature and the regulatory space metaphor. Data comprises comment letters and other documents pertaining to the setting of ISA 701. Findings The study shows that the KAM reporting requirement is part of the ongoing re-calibration of the regulatory arrangements governing auditing, which started in the early 2000s. This study interprets standard setting as a site for negotiating the relationships between linked ecologies in the audit regulatory space, namely, the auditing profession, preparers of financial statements and users of audited reports. This study identifies three processes involved in setting ISA 701, namely, reconstitution of the rules governing auditors’ reports as a link between the three ecologies, preserving boundaries between the auditing profession and preparers and negotiation aimed at balancing competing interests of the interrelated ecologies. Originality/value The study offers insights into the role of regulatory rule setting as a central medium through which the adaptive relationship of the profession with its environment is negotiated.

BAGAIMANA PENGATURAN KEPEMILIKAN CRYPTOCURRENCY OLEH PERUSAHAAN BERDASARKAN STANDAR AKUNTANSI KEUANGAN?

This study investigates the application and recognition of accounting policies for ownership of Cryptocurrency assets by companies in Indonesia based on Financial Accounting Standards. This study uses a qualitative method with a scoping review approach to map the literature related to the concept of cryptocurrency and accounting arrangements for cryptocurrency ownership by companies. The scoping review carried out several stages, namely problem identification, identifying literature sources, literature selection, mapping and collecting literature, and discussion analysis. This study concludes that ownership of cryptocurrency by companies can be classified as assets based on IFRS and PSAK. The most relevant type of asset classification for Cryptocurrencies is inventory or intangible assets, depending on the purpose of ownership of the company. This research indicates that with the significant increase in the use of cryptocurrencies, standard-setting bodies need to set clear and specific accounting standards to help reduce uncertainty and provide relevant and useful guidance to both preparers and users of financial statements.

Standard-relevant publications: evidence, processes and influencing factors

This paper introduces the concept of standard-relevant publications, complementary to standard-essential patents and framed by the concept of knowledge utilization. By analyzing the reference lists of the around 20,000 standards released by ISO, authors of scientific papers cited in standards who are working at German institutions were identified. The institutions include universities, independent research societies, ministerial research institutes and companies. Almost thirty interviews were conducted with the most-cited of these authors. The interviews addressed the processes by which scientific publications come to be referenced in standards, and the motivations, the barriers and the effects of this. The findings demonstrate opportunities for and challenges to establishing standard-relevant publications as a new performance indicator for researchers, funding agencies, standard-setting organizations and ultimately regulators.

Setting a standard for low reading proficiency: A comparison of the bookmark procedure and constrained mixture Rasch model

In order to draw pertinent conclusions about persons with low reading skills, it is essential to use validated standard-setting procedures by which they can be assigned to their appropriate level of proficiency. Since there is no standard-setting procedure without weaknesses, external validity studies are essential. Traditionally, studies have assessed validity by comparing different judgement-based standard-setting procedures. Only a few studies have used model-based approaches for validating judgement-based procedures. The present study addressed this shortcoming and compared agreement of the cut score placement between a judgement-based approach (i.e., Bookmark procedure) and a model-based one (i.e., constrained mixture Rasch model). This was performed by differentiating between individuals with low reading proficiency and those with a functional level of reading proficiency in three independent samples of the German National Educational Panel Study that included students from the ninth grade (N = 13,897) as well as adults (Ns = 5,335 and 3,145). The analyses showed quite similar mean cut scores for the two standard-setting procedures in two of the samples, whereas the third sample showed more pronounced differences. Importantly, these findings demonstrate that model-based approaches provide a valid and resource-efficient alternative for external validation, although they can be sensitive to the ability distribution within a sample.

Creating Legitimacy in the ISO/CEN Standard for Sustainable and Traceable Cocoa: An Exploratory Case Study Integrating Normative and Empirical Legitimacy

The paper assesses the legitimacy of the ISO/CEN standard for sustainable and traceable cocoa during the standard-setting process and thereby to establish the degree of legitimacy achieved and to explore new sources of legitimacy in the development of sustainability standards for agricultural commodities. The paper examines the normative and empirical legitimacy concerns involved in the development of the ISO/CEN standard for sustainable and traceable cocoa (ISO 34101 series). The findings suggest that while the standard-setting organisation is establishing normative legitimacy, empirical legitimacy is lacking. Absence of empirical legitimacy is a serious concern for a successful and just implementation.

The Politics of Regulating Foods for Infants and Young Children: A Case Study on the Framing and Contestation of Codex Standard-Setting Processes on Breast-Milk Substitutes

Background: Breastfeeding is important for the health and development of the child, and for maternal health, in all country contexts. However, global sales of breast-milk substitutes (BMS), including infant, follow-up and toddler formulas, have ‘boomed’ in recent decades. This raises the importance of international food standards established by the Codex Alimentarius Commission (Codex) on the safety, composition and labelling of BMS. Such standards appear to be strongly contested by governments, industry and civil society groups, yet few studies have investigated the politics of Codex standard-setting processes. The aim of this paper is to understand who participates in decision-making, and how actors frame and contest proposals to revise the Codex Standard on Follow-up Formula (FUF). Methods: We adopted a case study design involving two steps. First, we enumerated government, industry, civil society, and international organization stakeholders participating in standard-setting processes of the Codex Committee on Nutrition and Foods for Special Dietary Uses (CCNFSDU). Second, we conducted a framing analysis of stakeholder inputs during the FUF standard revision in CCNFSDU meetings. Publicly available online meeting reports (2015-2019) were retrieved, analyzed using a theoretical framework, and organized thematically. Results: High-income country (HIC) delegates greatly outnumbered those from other country income categories. Industry representation was higher compared with other observer categories Member state delegations included more industry representation than civil society representation, and were occasionally the only member state delegates. Industry stakeholders framed arguments in terms of trade implications, science, and flexible standards. Civil society groups used public health, science, and pro-breastfeeding frames. Conclusion: Codex BMS standard-setting procedures are dominated by HICs and industry groups. Limited representation of civil society, and of middle- and low-income countries, suggest actions are needed to substantially increase support for their involvement at Codex. Such representation may help to counteract power asymmetries and commercial influences on food standards for infants and young children.

Structures and phase transitions in barium sodium niobate tungsten bronze (BNN)

The room-temperature structure of the filled tetragonal tungsten bronze, Ba2NaNb5O15 (BNN), has been the subject of a number of studies, and these studies have given an almost corresponding number of different results. From a group theoretical examination of the different possibilities and a review of the published experimental results we conclude that the room-temperature structure is that proposed by Labbé et al. [J. Phys. Condens. Matter (1989), 2, 25–43] in the space group Bbm2 (Ama2 in standard setting) on a 2\sqrt{2}a × \sqrt{2}a × 2c cell. Upon heating, the structure remains ferroelectric but becomes tetragonal (space group P4bm) at 550 K, then paraelectric (space group P4/mbm) at and above 860 K.