Esinath Ndiweni

The impotence of auditing practices in a corrupt environment: some evidence from Zimbabwe

This paper reveals how institutionalised corruption undermines national integrity systems such as the Parliamentary Committees (PC); National Economic Conduct Inspectorate (NECI) to name just two; the auditing profession and overall corporate governance in Zimbabwe. It cites nepotism, cronyism, and political patronage as some of the contributory factors that fuel corruption tendencies in Zimbabwe. It argues that corruption has been institutionalised making it more difficult to eradicate. Recently, political interference has eroded the basis for good corporate governance. Such a development undermined the credibility of accounting and audit practices. The main contribution of the paper includes the use of political science theories to illuminate an auditing problem, drawing from ubuntu philosophy to help inculcate honesty, integrity and accountability in leaders; and finally challenging the accountancy profession and academics to revamp the auditing curriculum to take into account the social, local and global contexts in order to prepare learners for the fight against corruption.

A trail of unintended consequences: Management accounting information in a volatile environment

Purpose – This article highlights the unintended consequences that resulted from the (abuse/use) use of management accounting information in a large automobile corporation in Zimbabwe. Methodology – The article uses a case study and draws on Giddens’ structuration theory to help us understand how management accounting practices are produced and reproduced through interactions in organizations. Findings – It reveals how the use of management accounting information can lead to the domination of other employees in organizations and result in unintended consequences such as redundancies. Originality – The article lays emphasis on the unintended consequences resulting from actions of different players in the motor industry and their impact on workers and wider society. It also brings to the fore the dialectic of control which allows subordinates to mobilize resources and act otherwise. It concludes that management accounting practices are “situated practices” which reflect the dominant discourses and can be harnessed to liberate or enslave other players in organizations. The article suggests that adopting structuration theory helps us analyze the role(s) of accounting information and illuminate possible unintended consequences associated with accounting-based decisions. Practical implications – Accountants should guard against misuse of accounting information, to justify political decisions made by managers. Research limitations – The political and economic volatility of the environment obscured the interactions between engineers and accountants because the central focus shifted to survival beyond the crisis.

Transforming or re-branding: whither management accounting?

This paper critically reviews the accountancy professions strategies of managing the debate on the transformation of management accounting to management. It examines professionally generated literature on the new role of management accountants as enablers, creators of value, value-adding and business partners. It utilises insights from discourse theory, alliance networks and social closure to analyse how the accountancy profession is managing the transformation process, and particularly, illuminates the role of specialist recruitment agencies in perpetuating social closure. It finds that job specifications as stated in advertisements indicate that the roles of management accountants at lower levels have not changed, however at senior level a few companies demand the new roles. The paper concludes that literature from professional accountancy bodies, and the role of the specialist recruitment agents both foster closure thereby enabling the profession to manage the transition while at the same time reproducing itself.

The rise of informal entrepreneurs in Zimbabwe: evidence of economic growth or failure of economic policies?

This paper investigates whether the rise in the number of informal entrepreneurs in Zimbabwe is linked to economic growth or failed government policies. It argues that for the past 30 years informal economic activities have proliferated at an unprecedented rate as a response to socio-political and economic challenges and thus became a default position, for many to escape debilitating poverty. It draws from the literature, the experiences of one of the authors who is a Zimbabwean and views of interviewees. The major finding is that the contribution of informal traders in Zimbabwe cannot result in sustainable development nor can it significantly increase economic growth. The paper concludes that the rise in informal sector business is rather indicative of a lack of accountability for the plunder of resources and its attended consequences and failure of government economic policies. Finally, it proposes the adoption of social entrepreneurship approaches to address social problems.