{"title":"Impact of board democracy on financial performance of firms listed in colombo stock exchange","authors":"M. Wanniarachchige, L. D. De Silva","doi":"10.4038/ijabf.v7i2.92","DOIUrl":"https://doi.org/10.4038/ijabf.v7i2.92","url":null,"abstract":"","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"302 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124318458","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Do board size and non-executive directors affect intellectual capital disclosure? Sri Lankan banking industry","authors":"A. Ajanthan, S. Ramesh","doi":"10.4038/ijabf.v7i2.98","DOIUrl":"https://doi.org/10.4038/ijabf.v7i2.98","url":null,"abstract":"","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"53 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128862429","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Indrani, Moonsamy Naidoo, Guneratne B Wickremasinghe
This study explores the way and the extent to which listed companies in Sri Lanka manage environmental costs through their management accounting (MA) systems. Applying Mixed Method Research approach; data were collected from 42 listed companies representing five industry sectors in Sri Lanka, through a survey followed by discussions with financial executives and environmental officers of companies. Further, it reviewed National Environmental Act of Sri Lanka for legislation enacted for sampled companies. The main tools of analysis were frequency tables for quantitative data, and qualitative data were analyzed linking them with quantitative analysis and, thus providing expressive detailed interpretations for the phenomena under investigations. Findings indicate that even though all companies are bounded by legislation to take environmental management (EM) initiatives to prevent and control pollution, the MA systems of most companies have not been improved accordingly to incorporate environmental costs and related performance measures. All companies used to take EM measures by making adjustments to existing financial accounting/MA systems which were initiated mainly to facilitate regular business activities. These practices thus, demonstrate lower potential for companies in managing EM costs. Competencies of MA techniques considered differ one to another in managing EM costs, showing greater importance for traditional MA techniques like budgeting, products costing than modern MA techniques like kaizen costing, balanced scorecards. Conversely, the Plantation sector shows greater ability in managing environmental costs through their activity based costing systems implemented by all in the sector. It suggests companies to establish appropriate accounting systems and performance measures which are capable of identifying and managing environmental costs precisely. It also suggests improving awareness among all personnel including accounting staff on how to manage environmental costs through such systems ensuring legal compliances, profitability and survival of the business.
{"title":"Competences of management accounting systems in managing environmental costs of listed companies in Sri Lanka","authors":"M. Indrani, Moonsamy Naidoo, Guneratne B Wickremasinghe","doi":"10.4038/ijabf.v6i2.75","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.75","url":null,"abstract":"This study explores the way and the extent to which listed companies in Sri Lanka manage environmental costs through their management accounting (MA) systems. Applying Mixed Method Research approach; data were collected from 42 listed companies representing five industry sectors in Sri Lanka, through a survey followed by discussions with financial executives and environmental officers of companies. Further, it reviewed National Environmental Act of Sri Lanka for legislation enacted for sampled companies. The main tools of analysis were frequency tables for quantitative data, and qualitative data were analyzed linking them with quantitative analysis and, thus providing expressive detailed interpretations for the phenomena under investigations. Findings indicate that even though all companies are bounded by legislation to take environmental management (EM) initiatives to prevent and control pollution, the MA systems of most companies have not been improved accordingly to incorporate environmental costs and related performance measures. All companies used to take EM measures by making adjustments to existing financial accounting/MA systems which were initiated mainly to facilitate regular business activities. These practices thus, demonstrate lower potential for companies in managing EM costs. Competencies of MA techniques considered differ one to another in managing EM costs, showing greater importance for traditional MA techniques like budgeting, products costing than modern MA techniques like kaizen costing, balanced scorecards. Conversely, the Plantation sector shows greater ability in managing environmental costs through their activity based costing systems implemented by all in the sector. It suggests companies to establish appropriate accounting systems and performance measures which are capable of identifying and managing environmental costs precisely. It also suggests improving awareness among all personnel including accounting staff on how to manage environmental costs through such systems ensuring legal compliances, profitability and survival of the business.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114222244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The objective of this study is to identify the factors that have an impact on research and development expenditures of manufacturing companies of Bangladesh. Data for the year 2013 to 2016 were used to accomplish the purpose. Total 32 companies have been selected from seven manufacturing industries. All of these companies are listed in DSE. Panel data analysis has been employed to examine the data. Dependent variable of this study is R&D expenditures intensity whereas independent variables are classified into two categories. They are firm specific factors and corporate governance factors. The results indicate that experienced firms are intended to spend more on R&D. Gross profit and firm size have significant negative association with R&D intensity. Leverage has significant impact on R&D of sample firms with positive coefficient. Number of independent directors in the board has significant negative correlation with firm’s R&D expenditures. Sample size is a key limitation of this study. So far most of the empirical study considers either firm specific factors or corporate governance factors. This study is an attempt that takes into account both kind of factors. It will provide a glimpse of what factors can determine the R&D expenditure except industry type.
{"title":"Factors influencing research & development expenditures of manufacturing companies of Bangladesh","authors":"M. Pal, S. Rana, Ruksana Parvin","doi":"10.4038/ijabf.v6i2.70","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.70","url":null,"abstract":"The objective of this study is to identify the factors that have an impact on research and development expenditures of manufacturing companies of Bangladesh. Data for the year 2013 to 2016 were used to accomplish the purpose. Total 32 companies have been selected from seven manufacturing industries. All of these companies are listed in DSE. Panel data analysis has been employed to examine the data. Dependent variable of this study is R&D expenditures intensity whereas independent variables are classified into two categories. They are firm specific factors and corporate governance factors. The results indicate that experienced firms are intended to spend more on R&D. Gross profit and firm size have significant negative association with R&D intensity. Leverage has significant impact on R&D of sample firms with positive coefficient. Number of independent directors in the board has significant negative correlation with firm’s R&D expenditures. Sample size is a key limitation of this study. So far most of the empirical study considers either firm specific factors or corporate governance factors. This study is an attempt that takes into account both kind of factors. It will provide a glimpse of what factors can determine the R&D expenditure except industry type.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132377366","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Indrani, Moonsamy Naidoo, Guneratne B Wickremasinghe
Businesses have become more and more widespread and diverse and, thus tend to apply strategies i.e. decentralization to improve the performance while securing long term growth. The main objective of this study is to provide with a comparative analysis of divisional vs. managerial performance evaluation (PE) practices of listed companies in Sri Lanka, focusing on common measures and owned KPIs, and allied purposes. This study applies Mixed Method Research (MMR) approach. Data were gathered through a questionnaire survey and discussions with financial executives of 42 listed companies representing five industry sectors. Facilitating with SPSS software, quantitative data were analyzed using frequency tables and Fisher’s exact test, and thematic analysis and content analysis were applied for qualitative data.The findings reveal that almost all companies evaluate both divisional and managerial performance to achieve multiple purposes, agreeing to controllability principle and mostly compared with budgeted outcome showing its soundness and popularity in this function. Determining separate units/ divisions for PE largely depends on specific situations, nature of businesses, operations and markets dealt with (i.e. Plantation sector), and attitudes of management. With regard to the importance of measures surveyed, no differences appear between divisional and managerial PE, and more concern goes to measures that reflect divisional contribution like sales volume, divisional net profit before taxes and contribution margin than EVA, ROI, and ROS. Given that the deficits of common measures, it suggests establishing owned KPIs for individual companies and modifying them as and when required to evaluate real performance effectively. Better performance would follow if this was complemented by rewards or penalties. The findings add to the understanding on the appropriateness of bases used for creating divisions and of applying common measures and owned KPIs for PE function of different companies /industry sectors and also on complications faced with specific business/industry settings on the above concern. It also provides motivations for employees particularly for divisional managers to achieve higher performance with job satisfaction and rewards, and hence uplifting living conditions and social status too. Overall, the findings would help organizations in both developing and developed economies to establish and improve PE systems to their divisions/ branches towards achieving intended purposes successfully.
{"title":"Exploring divisional vs. managerial performance evaluation practices in listed companies: evidence from Sri Lanka","authors":"M. Indrani, Moonsamy Naidoo, Guneratne B Wickremasinghe","doi":"10.4038/ijabf.v6i2.74","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.74","url":null,"abstract":"Businesses have become more and more widespread and diverse and, thus tend to apply strategies i.e. decentralization to improve the performance while securing long term growth. The main objective of this study is to provide with a comparative analysis of divisional vs. managerial performance evaluation (PE) practices of listed companies in Sri Lanka, focusing on common measures and owned KPIs, and allied purposes. This study applies Mixed Method Research (MMR) approach. Data were gathered through a questionnaire survey and discussions with financial executives of 42 listed companies representing five industry sectors. Facilitating with SPSS software, quantitative data were analyzed using frequency tables and Fisher’s exact test, and thematic analysis and content analysis were applied for qualitative data.The findings reveal that almost all companies evaluate both divisional and managerial performance to achieve multiple purposes, agreeing to controllability principle and mostly compared with budgeted outcome showing its soundness and popularity in this function. Determining separate units/ divisions for PE largely depends on specific situations, nature of businesses, operations and markets dealt with (i.e. Plantation sector), and attitudes of management. With regard to the importance of measures surveyed, no differences appear between divisional and managerial PE, and more concern goes to measures that reflect divisional contribution like sales volume, divisional net profit before taxes and contribution margin than EVA, ROI, and ROS. Given that the deficits of common measures, it suggests establishing owned KPIs for individual companies and modifying them as and when required to evaluate real performance effectively. Better performance would follow if this was complemented by rewards or penalties. The findings add to the understanding on the appropriateness of bases used for creating divisions and of applying common measures and owned KPIs for PE function of different companies /industry sectors and also on complications faced with specific business/industry settings on the above concern. It also provides motivations for employees particularly for divisional managers to achieve higher performance with job satisfaction and rewards, and hence uplifting living conditions and social status too. Overall, the findings would help organizations in both developing and developed economies to establish and improve PE systems to their divisions/ branches towards achieving intended purposes successfully.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114207248","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Financial statement fraud is one of the major concerns in the modern business world. Detecting financial statement fraud is very challenging task and requires thorough knowledge about the nature of fraud, how it can be committed and concealed. The purpose of the study is to identify the red flags of financial statement frauds applying Benish M Score model. It is found that, in each year (2013-2019) considered for the study, there are companies with a Beneish M Score of greater than -2.22, which can be gauged for possible manipulations on those financial statements. Paired sample t-test analysis is showen that, DSRI (Days’ Sales in Receivables Index), GMI (Gross Margin Index), SGI (Sales Growth Index) LVGI (Leverage Index), TATA (Total Accruals to Total Assets) out of eight ratios occupied in the Beniesh model are significantly different between manipulated and non-manipulated firms. Therefore, it is recommended that Benish M Score model can be used as a risk assessment tool to recognize the red flags of possible fiancial statemet frauds in business entities in Sri Lanka. This paper aims at broadening knowledge of External Auditors, Forensic Accountants, Accountants, Senior Managers, Regulators and other stakeholders in detecting red flags of financial statement frauds in Sri Lanka.
财务报表舞弊是现代商业世界的主要问题之一。发现财务报表欺诈是一项非常具有挑战性的任务，需要对欺诈的性质、如何实施和隐瞒欺诈有透彻的了解。本研究的目的是应用Benish M Score模型识别财务报表舞弊的危险信号。研究发现，在研究中考虑的每一年(2013-2019年)，都有公司的贝尼什M分数大于-2.22，可以衡量这些财务报表可能存在的操纵。配对样本t检验分析表明，在Beniesh模型中占据的8个比率中，DSRI (Days’Sales in receivable Index)、GMI (Gross Margin Index)、SGI (Sales Growth Index)、LVGI (Leverage Index)、TATA (Total accrual to Total Assets)在被操纵和未被操纵的企业之间存在显著差异。因此，建议使用Benish M Score模型作为风险评估工具，以识别斯里兰卡商业实体可能存在的财务报表欺诈的危险信号。本文旨在扩大外部审计师、法务会计师、会计师、高级管理人员、监管机构和其他利益相关者在斯里兰卡发现财务报表欺诈危险信号的知识。
{"title":"Detecting red flags of corporate financial statement frauds using Beneish m score model in Sri Lanka","authors":"G. Sujeewa, M. Kawshalya","doi":"10.4038/ijabf.v6i2.72","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.72","url":null,"abstract":"Financial statement fraud is one of the major concerns in the modern business world. Detecting financial statement fraud is very challenging task and requires thorough knowledge about the nature of fraud, how it can be committed and concealed. The purpose of the study is to identify the red flags of financial statement frauds applying Benish M Score model. It is found that, in each year (2013-2019) considered for the study, there are companies with a Beneish M Score of greater than -2.22, which can be gauged for possible manipulations on those financial statements. Paired sample t-test analysis is showen that, DSRI (Days’ Sales in Receivables Index), GMI (Gross Margin Index), SGI (Sales Growth Index) LVGI (Leverage Index), TATA (Total Accruals to Total Assets) out of eight ratios occupied in the Beniesh model are significantly different between manipulated and non-manipulated firms. Therefore, it is recommended that Benish M Score model can be used as a risk assessment tool to recognize the red flags of possible fiancial statemet frauds in business entities in Sri Lanka. This paper aims at broadening knowledge of External Auditors, Forensic Accountants, Accountants, Senior Managers, Regulators and other stakeholders in detecting red flags of financial statement frauds in Sri Lanka.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"82 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131606275","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper investigates the nexus between foreign direct investment (FDI) and macroeconomic variables namely trade openness, oil prices, stock index returns, GDP, exchange rate in India. FDI is considered as the dependent variable whereas macroeconomic variables are considered as independent variables. Using the Vector error correction model (VECM), we examine both the short-run and long-run relationship between FDI and macroeconomic variables over the period 2007-2019. Based on the existing literature, interest rate and inflation are considered as the controlled variables in the study. Co-integration is found in the time series variables using the Johansen Co-integration test and hence, restricted VAR (VECM) is applied to examine the nexus. Empirical evidence indicates that neither there is long term nor short term relationship between FDI inflows and underlying macroeconomic variables of the study. Although, the results highlight that FDI is significantly and positively influenced by its own lags. Therefore within the specified scope, the study suggests that liberal and flexible government policies on foreign investment may not only mark a surge in FDI inflows but will also encourage further investments by foreign individuals and companies in India.
{"title":"The determinants of foreign direct investment: a VECM approach","authors":"S. Kushwah, Manan Garg","doi":"10.4038/ijabf.v6i2.71","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.71","url":null,"abstract":"The paper investigates the nexus between foreign direct investment (FDI) and macroeconomic variables namely trade openness, oil prices, stock index returns, GDP, exchange rate in India. FDI is considered as the dependent variable whereas macroeconomic variables are considered as independent variables. Using the Vector error correction model (VECM), we examine both the short-run and long-run relationship between FDI and macroeconomic variables over the period 2007-2019. Based on the existing literature, interest rate and inflation are considered as the controlled variables in the study. Co-integration is found in the time series variables using the Johansen Co-integration test and hence, restricted VAR (VECM) is applied to examine the nexus. Empirical evidence indicates that neither there is long term nor short term relationship between FDI inflows and underlying macroeconomic variables of the study. Although, the results highlight that FDI is significantly and positively influenced by its own lags. Therefore within the specified scope, the study suggests that liberal and flexible government policies on foreign investment may not only mark a surge in FDI inflows but will also encourage further investments by foreign individuals and companies in India.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"128 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132337636","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
D. Dissanayake, D.B.P.H. Hareendra Dissabandara, A. Ajward
The objective of this paper is to systematically review the extant literature, and establish a conceptual relationship between the concept of corporate governance (by using the multi-dimensional index) and corporate performance. Ample research analyses have been presented during the recent years on the relationship between corporate governance and corporate performance in various countries and for number of periods. The present study explores, to be precise, the relationship between the corporate governance measured in terms of an index and the firm performance in the extant literature through a systematic literature review by adopting the PRISMA (Preferred news things for Systematic Reviews and Meta-Analysis) framework. The systematic review is particularly important, as it curtails any biases by adopting a scientific and transparent method that is replicable. Accordingly, a sample of fifty research papers, published from 1980 to 2020, have been utilized that are on corporate governance and corporate performance. The findings of this paper propose that superior governance in companies results in a positive relationship with corporate performance. governance in companies The findings of this paper also highlights the most cited papers that examines this relationship and the most cited journals with observed trends, which enables research scholars for their further studies. Moreover, this study supports practitioners and policymakers to understand a crucial standing point of the existing literature supported by evidence.
本文的目的是系统地回顾现有文献，并建立公司治理概念(通过使用多维指标)与公司绩效之间的概念关系。近年来，在不同国家和不同时期，对公司治理与公司绩效之间的关系进行了大量的研究分析。本研究通过采用PRISMA (Preferred news things for systematic Reviews and Meta-Analysis)框架对现有文献进行系统的文献回顾，准确地探讨了以指数衡量的公司治理与公司绩效之间的关系。系统评价尤其重要，因为它通过采用可复制的科学、透明的方法来减少任何偏见。因此，从1980年到2020年发表的50篇关于公司治理和公司绩效的研究论文的样本被利用。本文的研究结果表明，公司的卓越治理与公司绩效呈正相关。本文的研究结果还突出了研究这种关系的被引用次数最多的论文和被引用次数最多的期刊，这些期刊具有观察到的趋势，为研究学者的进一步研究提供了基础。此外，本研究支持实践者和政策制定者理解现有文献证据支持的一个关键立场。
{"title":"Conceptualization between corporate governance and firm financial performance","authors":"D. Dissanayake, D.B.P.H. Hareendra Dissabandara, A. Ajward","doi":"10.4038/ijabf.v6i2.73","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.73","url":null,"abstract":"The objective of this paper is to systematically review the extant literature, and establish a conceptual relationship between the concept of corporate governance (by using the multi-dimensional index) and corporate performance. Ample research analyses have been presented during the recent years on the relationship between corporate governance and corporate performance in various countries and for number of periods. The present study explores, to be precise, the relationship between the corporate governance measured in terms of an index and the firm performance in the extant literature through a systematic literature review by adopting the PRISMA (Preferred news things for Systematic Reviews and Meta-Analysis) framework. The systematic review is particularly important, as it curtails any biases by adopting a scientific and transparent method that is replicable. Accordingly, a sample of fifty research papers, published from 1980 to 2020, have been utilized that are on corporate governance and corporate performance. The findings of this paper propose that superior governance in companies results in a positive relationship with corporate performance. governance in companies The findings of this paper also highlights the most cited papers that examines this relationship and the most cited journals with observed trends, which enables research scholars for their further studies. Moreover, this study supports practitioners and policymakers to understand a crucial standing point of the existing literature supported by evidence.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"41 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115578819","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The 2016 Global Fraud Survey steered by the Association of Certified Fraud Examiners (ACFE) illustrates that the organisations established worldwide lose approximately 5% of their annual revenue due to fraud. With the increase in fraudulent accounting practices all around the world, the need for forensic accountants has increased to look for indicators of suspicious financial activities and fraudulent activities. Regulators continue to increase the responsibility for auditors to detect fraudulent financial statements, however, there is a mismatch between the supply of and demand for auditors with forensic accounting skills. The main objective of the study is to determine whether forensic accountant needs any special skills and competencies in their profession as forensic accountants and to identify the same. The study is conducted based on a sample of professionally qualified accountants in forensic practice and auditing. Data was collected through questionnaire and analysed using Statistical Package of Social Studies (SPSS). The research identified that fraud risk assessment, deductive analysis and diagnostic skills as the highest ranked skills, whereas, the least ranked skill was marketing. It is suggested that the use of forensic accounting procedures or services to detect financial reporting frauds and corruption practices should be increased in organisations by having or recruiting more forensic accountants with required skills and competencies.
{"title":"Skills and competencies required by a forensic accountant: Anexploratory study conducted in Sri Lanka","authors":"K. Perera, J. K. Undugoda","doi":"10.4038/ijabf.v6i2.68","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.68","url":null,"abstract":"The 2016 Global Fraud Survey steered by the Association of Certified Fraud Examiners (ACFE) illustrates that the organisations established worldwide lose approximately 5% of their annual revenue due to fraud. With the increase in fraudulent accounting practices all around the world, the need for forensic accountants has increased to look for indicators of suspicious financial activities and fraudulent activities. Regulators continue to increase the responsibility for auditors to detect fraudulent financial statements, however, there is a mismatch between the supply of and demand for auditors with forensic accounting skills. The main objective of the study is to determine whether forensic accountant needs any special skills and competencies in their profession as forensic accountants and to identify the same. The study is conducted based on a sample of professionally qualified accountants in forensic practice and auditing. Data was collected through questionnaire and analysed using Statistical Package of Social Studies (SPSS). The research identified that fraud risk assessment, deductive analysis and diagnostic skills as the highest ranked skills, whereas, the least ranked skill was marketing. It is suggested that the use of forensic accounting procedures or services to detect financial reporting frauds and corruption practices should be increased in organisations by having or recruiting more forensic accountants with required skills and competencies.","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"69 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129129845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Factors determining the growth of SMEs: evidence from registered SMEs in Northern Province, Sri Lanka","authors":"L. Kengatharan","doi":"10.4038/ijabf.v6i2.69","DOIUrl":"https://doi.org/10.4038/ijabf.v6i2.69","url":null,"abstract":"","PeriodicalId":198654,"journal":{"name":"International Journal of Accounting and Business Finance","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123557314","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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