Pub Date : 2023-06-24DOI: 10.2308/horizons-2020-192
S. Walton, Patrick R. Wheeler, Yiyang Zhang
We provide evidence that enterprise resource planning (ERP) systems are potentially beneficial to firm decision-making but can also have unintended effects. The tax function is one of the largest consumers of data within a firm, with over 50 percent of time spent gathering tax data and less than 30 percent of time spent on strategic data analysis (PricewaterhouseCoopers (PwC) 2015). Difficulties in getting high-quality, timely tax information could negatively impact a firm’s tax compliance activities and leave few resources for tax planning. Following the absorptive capacity theory, we predict and find that ERP systems are associated with a greater degree of tax planning post-adoption, resulting in lower tax burdens. However, we also note increased firm discretion in tax planning, resulting in a larger amount of aggressive tax positions. Practically, our findings have important implications for the use of ERP systems both within the tax function and across other decision-making areas. JEL Classifications: O33; H26; D83.
{"title":"Intended and Unintended Consequences of ERP System Implementation","authors":"S. Walton, Patrick R. Wheeler, Yiyang Zhang","doi":"10.2308/horizons-2020-192","DOIUrl":"https://doi.org/10.2308/horizons-2020-192","url":null,"abstract":"\u0000 We provide evidence that enterprise resource planning (ERP) systems are potentially beneficial to firm decision-making but can also have unintended effects. The tax function is one of the largest consumers of data within a firm, with over 50 percent of time spent gathering tax data and less than 30 percent of time spent on strategic data analysis (PricewaterhouseCoopers (PwC) 2015). Difficulties in getting high-quality, timely tax information could negatively impact a firm’s tax compliance activities and leave few resources for tax planning. Following the absorptive capacity theory, we predict and find that ERP systems are associated with a greater degree of tax planning post-adoption, resulting in lower tax burdens. However, we also note increased firm discretion in tax planning, resulting in a larger amount of aggressive tax positions. Practically, our findings have important implications for the use of ERP systems both within the tax function and across other decision-making areas.\u0000 JEL Classifications: O33; H26; D83.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45103498","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-23DOI: 10.2308/horizons-2022-153
S. Hawkins, Jeffrey S. Pickerd, S. Summers, David A. Wood
Process mining is an emerging technology that allows users to visualize all potential variations of business processes within an organization. It holds significant potential for impacting the field of accounting. However, training professionals and students in its use is challenging due to a lack of event data applicable to accounting and auditing scenarios. To address this issue, we developed an easy-to-use tool called the Process Mining Event Log Generator (PMELG) for generating process mining data files for the order-to-cash process. With the PMELG tool, users can create realistic datasets that incorporate key accounting and auditing concepts, such as segregation of duties issues, internal control violations, operational inefficiencies, and fraudulent behavior. We validate this tool with professionals and academics. Both groups believe the tool will be beneficial for both practitioners and academic audiences.
{"title":"The Development of the Process Mining Event Log Generator (PMELG) Tool","authors":"S. Hawkins, Jeffrey S. Pickerd, S. Summers, David A. Wood","doi":"10.2308/horizons-2022-153","DOIUrl":"https://doi.org/10.2308/horizons-2022-153","url":null,"abstract":"\u0000 Process mining is an emerging technology that allows users to visualize all potential variations of business processes within an organization. It holds significant potential for impacting the field of accounting. However, training professionals and students in its use is challenging due to a lack of event data applicable to accounting and auditing scenarios. To address this issue, we developed an easy-to-use tool called the Process Mining Event Log Generator (PMELG) for generating process mining data files for the order-to-cash process. With the PMELG tool, users can create realistic datasets that incorporate key accounting and auditing concepts, such as segregation of duties issues, internal control violations, operational inefficiencies, and fraudulent behavior. We validate this tool with professionals and academics. Both groups believe the tool will be beneficial for both practitioners and academic audiences.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43114370","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-23DOI: 10.2308/horizons-2022-019
Marc Eulerich, Nathan Waddoups, Martin Wagener, David A. Wood
Auditors and corporate accountants are rapidly adopting robotic process automation (RPA) to assist with accounting tasks. The purpose of this paper is to increase understanding of the risks and challenges associated with RPA. This is particularly important given most existing reports focus on the benefits of using RPA. We interview multiple professionals to ascertain challenges, drawbacks, or pitfalls of using RPA. We identify five key challenges related to RPA usage: (1) RPA is often used as a quick-fix Band-Aid instead of fixing core system issues, (2) RPA can cause serious control and security issues, (3) the true cost of RPA is often misunderstood and understated, (4) RPA governance is complicated and challenging, and (5) RPA usage can lead to a loss of process knowledge. Raising these issues should allow practitioners to make more informed decisions regarding RPA implementations and help inform them regarding the problematic areas that require better governance.
{"title":"The Dark Side of Robotic Process Automation (RPA): Understanding Risks and Challenges with RPA","authors":"Marc Eulerich, Nathan Waddoups, Martin Wagener, David A. Wood","doi":"10.2308/horizons-2022-019","DOIUrl":"https://doi.org/10.2308/horizons-2022-019","url":null,"abstract":"\u0000 Auditors and corporate accountants are rapidly adopting robotic process automation (RPA) to assist with accounting tasks. The purpose of this paper is to increase understanding of the risks and challenges associated with RPA. This is particularly important given most existing reports focus on the benefits of using RPA. We interview multiple professionals to ascertain challenges, drawbacks, or pitfalls of using RPA. We identify five key challenges related to RPA usage: (1) RPA is often used as a quick-fix Band-Aid instead of fixing core system issues, (2) RPA can cause serious control and security issues, (3) the true cost of RPA is often misunderstood and understated, (4) RPA governance is complicated and challenging, and (5) RPA usage can lead to a loss of process knowledge. Raising these issues should allow practitioners to make more informed decisions regarding RPA implementations and help inform them regarding the problematic areas that require better governance.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45783226","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-01DOI: 10.2308/0888-7993-37.2.i
{"title":"Covers and Front Matter","authors":"","doi":"10.2308/0888-7993-37.2.i","DOIUrl":"https://doi.org/10.2308/0888-7993-37.2.i","url":null,"abstract":"","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134967967","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Joshua J. Filzen, Garrett A. McBrayer, Kyle Shannon
SYNOPSIS Prior research documents market responses to quarterly updates to annual risk factor disclosures, suggesting quarterly risk factor updates are informative. In this study, we explore whether future equity returns are associated with quarterly risk factor updates and whether updates containing more focused and specific language affect this relationship. We find that firms with quarterly risk factor updates experience lower future abnormal returns, relative to firms without updates, suggesting that, on average, the market reaction to quarterly risk factor updates is incomplete at the time the 10-Q is filed. This incomplete market reaction is driven primarily by the group of updates that is important yet is less specific about the effects of the risk on firm fundamentals. We also find that analysts underreact to the same group of risk factor updates associated with the market underreaction. JEL Classifications: D8; G14; M41; M48.
{"title":"Risk Factor Disclosures: Do Managers and Markets Speak the Same Language?","authors":"Joshua J. Filzen, Garrett A. McBrayer, Kyle Shannon","doi":"10.2308/horizons-17-086","DOIUrl":"https://doi.org/10.2308/horizons-17-086","url":null,"abstract":"SYNOPSIS Prior research documents market responses to quarterly updates to annual risk factor disclosures, suggesting quarterly risk factor updates are informative. In this study, we explore whether future equity returns are associated with quarterly risk factor updates and whether updates containing more focused and specific language affect this relationship. We find that firms with quarterly risk factor updates experience lower future abnormal returns, relative to firms without updates, suggesting that, on average, the market reaction to quarterly risk factor updates is incomplete at the time the 10-Q is filed. This incomplete market reaction is driven primarily by the group of updates that is important yet is less specific about the effects of the risk on firm fundamentals. We also find that analysts underreact to the same group of risk factor updates associated with the market underreaction. JEL Classifications: D8; G14; M41; M48.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"467 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"136370983","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-06-01DOI: 10.2308/horizons-2020-120
Yangmei Wang, Kirsten A. Cook
SYNOPSIS We examine whether suspect firms (that precisely meet or narrowly beat earnings benchmarks) decrease investments in tax planning to manage earnings; we refer to this strategy as the direct method of modifying discretionary tax fees to increase net income. We analyze investments in tax planning by suspect firms and find that most suspect firms increase earnings by curtailing these investments. Thus, suspect firms appear to prefer this direct method to the indirect method that prior studies have examined, in which firms increase investments in tax planning to reduce tax expense and, in turn, increase net income. We next examine the association between investments in tax planning by suspect firms and tax avoidance. Our findings suggest that suspect firms that increase investments in tax planning experience reductions in ETRs during the same period. In contrast, suspect firms that decrease investments in tax planning do not experience symmetric increases in ETRs.
{"title":"Do Firms Modify Investments in Tax Planning to Manage Earnings?","authors":"Yangmei Wang, Kirsten A. Cook","doi":"10.2308/horizons-2020-120","DOIUrl":"https://doi.org/10.2308/horizons-2020-120","url":null,"abstract":"SYNOPSIS We examine whether suspect firms (that precisely meet or narrowly beat earnings benchmarks) decrease investments in tax planning to manage earnings; we refer to this strategy as the direct method of modifying discretionary tax fees to increase net income. We analyze investments in tax planning by suspect firms and find that most suspect firms increase earnings by curtailing these investments. Thus, suspect firms appear to prefer this direct method to the indirect method that prior studies have examined, in which firms increase investments in tax planning to reduce tax expense and, in turn, increase net income. We next examine the association between investments in tax planning by suspect firms and tax avoidance. Our findings suggest that suspect firms that increase investments in tax planning experience reductions in ETRs during the same period. In contrast, suspect firms that decrease investments in tax planning do not experience symmetric increases in ETRs.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135275263","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-11DOI: 10.2308/horizons-2020-180
Emily Etgen, Tom Downen, Lorraine Lee
SYNOPSIS Mentoring has been recognized as critically important to the success of young professionals in accounting. Because members of senior management in the accounting profession are most often male (AICPA 2019b), improving opportunities for junior female professionals is especially worthwhile. In the current #MeToo environment, there is a potential concern that male superiors may be reluctant to mentor females. Using an experimental study, we do not find a greater reluctance to mentor when the gender of the participant and the gender of the prospective mentee are mismatched, as compared to when the genders match, even when the mentor/mentee dyad is male/female. However, we do find a greater reluctance to meet at potentially risky times and locations when the genders are mismatched; the lowest willingness was associated with the male/female dyad. Our findings have implications for practice, as firms consider formal mentoring assignments and structured mentoring times and locations. Data Availability: From the authors, upon request. JEL Classifications: M12; M40; M53.
{"title":"Accounting Profession Mentoring in the #MeToo Era","authors":"Emily Etgen, Tom Downen, Lorraine Lee","doi":"10.2308/horizons-2020-180","DOIUrl":"https://doi.org/10.2308/horizons-2020-180","url":null,"abstract":"SYNOPSIS Mentoring has been recognized as critically important to the success of young professionals in accounting. Because members of senior management in the accounting profession are most often male (AICPA 2019b), improving opportunities for junior female professionals is especially worthwhile. In the current #MeToo environment, there is a potential concern that male superiors may be reluctant to mentor females. Using an experimental study, we do not find a greater reluctance to mentor when the gender of the participant and the gender of the prospective mentee are mismatched, as compared to when the genders match, even when the mentor/mentee dyad is male/female. However, we do find a greater reluctance to meet at potentially risky times and locations when the genders are mismatched; the lowest willingness was associated with the male/female dyad. Our findings have implications for practice, as firms consider formal mentoring assignments and structured mentoring times and locations. Data Availability: From the authors, upon request. JEL Classifications: M12; M40; M53.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135473278","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-05-11DOI: 10.2308/horizons-2021-156
G. Gamble, Cynthia D. Tollerson
This paper proposes a new framework for financial statement presentation that provides users with a more detailed understanding of the relationship between cash and accrual information and earning power. To accomplish these objectives, we provide new classifications for assets, liabilities, equity, statement of income, and statement of cash flow. Assets are classified as either operating or nonoperating, economic or financial, monetary or nonmonetary. Liabilities and equity are initially classified under the title “means of financing assets.” Next, they are either classified as monetary or nonmonetary and further classified as either: (1) expected cash requirements during next reporting period, (2) expected cash requirements in future periods, or (3) no expected cash requirements. The statement of income utilizes current period, prior period, and future period for cash flow categories. The statement of cash flows is developed along the lines of primary economic operations and nonoperating economic/financial activities.
{"title":"The Formulation of Financial Statements: A Proposal for Change","authors":"G. Gamble, Cynthia D. Tollerson","doi":"10.2308/horizons-2021-156","DOIUrl":"https://doi.org/10.2308/horizons-2021-156","url":null,"abstract":"\u0000 This paper proposes a new framework for financial statement presentation that provides users with a more detailed understanding of the relationship between cash and accrual information and earning power. To accomplish these objectives, we provide new classifications for assets, liabilities, equity, statement of income, and statement of cash flow. Assets are classified as either operating or nonoperating, economic or financial, monetary or nonmonetary. Liabilities and equity are initially classified under the title “means of financing assets.” Next, they are either classified as monetary or nonmonetary and further classified as either: (1) expected cash requirements during next reporting period, (2) expected cash requirements in future periods, or (3) no expected cash requirements. The statement of income utilizes current period, prior period, and future period for cash flow categories. The statement of cash flows is developed along the lines of primary economic operations and nonoperating economic/financial activities.","PeriodicalId":51419,"journal":{"name":"Accounting Horizons","volume":" ","pages":""},"PeriodicalIF":2.5,"publicationDate":"2023-05-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46224960","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：