Joseph M. Mula

Antecedents and organisational performance implications of internal audit effectiveness: Some propositions and research agenda

– The purpose of this paper is to synthesize relevant theoretical and empirical literature to develop propositions and suggest a research agenda on the antecedents and organisational performance implications of internal audit effectiveness., – The paper employs institutional theory and Karl Marxs theory of the “circuit of industrial capital” to synthesize relevant internal audit literature to develop theoretically justifiable propositions and highlight an operational research agenda., – Propositions and a research agenda are provided on potential antecedents of internal audit effectiveness and its possible association with company performance measured as rate of return on capital employed. Also, key variables are identified and operationalisation issues discussed., – As the extant literature does not provide a canon of internal audit effectiveness, the papers originality is its argument that a positive association between compliance with standards for the professional practice of internal auditors and organisational goal achievement could serve as an approach to assess internal audit effectiveness. Furthermore, the use of the two theories in combination provides additional insights into identifying the antecedents of internal audit effectiveness and its measurement.

Accounting professionalization amidst alternating state ideology in Ethiopia

Purpose - This study aims to examine accounting professionalization in Ethiopia focusing on how the state, occupational group struggle and transnational accountancy bodies influence the realization of closure. Design/methodology/approach - A qualitative research approach is employed. Data were collected using document review and oral history approaches. Findings - Accounting professionalization in Ethiopia was initiated by the state to strengthen the countrys financial system. Owing to a change of state ideology to communism in 1974, a strategy of developing accounting professionals as government-employed experts was pursued. The return to a market-oriented economy in 1991 has seen a trend towards a more autonomous accountancy profession. Inflow of UK capital in the early twentieth century and activities of the UK-based Association of Chartered Certified Accountants (ACCA) in recent decades have influenced Ethiopias accountancy. Its professional and financial power has enabled ACCA to make arrangements with Ethiopian Professional Association of Accountants and Auditors (EPAAA) and consolidate its position in Ethiopias accountancy by controlling EPAAAs member training and certification. Originality/value - The literature on accounting professional projects in developing countries has focused on imperialistic influence in former British colonies. The present study extends this literature by illustrating how British influence has continued to extend beyond Britains former colonial possessions. This enables an understanding of the dynamics of accounting professional projects in the developing world with analytical dimensions building on the hitherto dominant lens of “formal” colonial connection.

The development of internal auditing in Ethiopia: the role of institutional norms

Purpose - The purpose of this paper is to examine the extent to which institutional norms determine attributes of internal audit practices and how institutional changes explain the development of these practices. Design/methodology/approach - The authors employed a qualitative research approach based on archival analysis and interview evidence. Findings - Findings indicate that regulation-based institutional norms explain the adoption of internal audit and the functions characteristics in Ethiopian organizations. Furthermore, innovative introduction of internal audit practices originate within individual organizations and eventually get institutionalized through diffusion. Such innovations are associated with organizational size, top management characteristics, internal audit advancement in technology, and exogenous input from the external environment. Widely accepted internal audit practices, as institutional norms, are not always taken-for-granted at the level of individual organizations. The institutional change perspective enables explaining how new internal audit approaches are introduced to supplant old ones. Originality/value - This study theorizes the development of internal audit practices from an institutional change perspective. Being the first study to do so, it contributes to the understanding of key drivers of institutional change that initiate new institutional norms that foster the development of internal audit through introduction and diffusion of new audit practices as old ones are deinstitutionalized.

Towards a conceptual design for environmental and social cost identification and measurement system

Purpose - The purpose of this paper is to identify an effective management accounting system using sustainability accounting concepts for environmental and social cost measurement to add shareholder value. Suggestions from literature show that there is a need for a conceptual framework for environmental management accounting (EMA) and social management accounting (SMA) practices to be developed. This study therefore designs a conceptual model for a sustainability management accounting system (SMAS) combining EMA and SMA practices to create more accurate cost information of environment and social impacts. A SMAS also expands on activity based costing (ABC) application to help in the cost analysis and allocation of environment and social impacts. By applying a SMAS, companies generate more accurate cost information thus fully costing products for internal management decision and reporting purposes. Design/methodology/approach - This study used mixed methods combining quantitative and qualitative research approaches to collect and analyse data to triangulate findings. Findings - The results of the study indicate that companies are intending to change to new management accounting practices while looking for ways to improve cost identification and measurement of environment and social impacts. Research limitations/implications - This study is limited to Australian non-service manufacturing companies. As a SMAS is a new holistic management accounting approach, it provides companies with a way to create economic, environmental, and social value both immediately and in the future. Originality/value - This study designs a SMAS conceptual model to contribute to the literature. By having a SMAS, companies could create more accurate cost information while fully costing products to effectively enhance management decisions on cost savings and greenhouse gas emission reductions.

Contextual Factors Associated with Information Systems in a Virtual Supply Chain

This paper discusses the differences between a traditional organization and a virtual organization. Different forms of virtual organizations are described to illustrate the nature of a virtual organization. The concept of a virtual supply chain is proposed and defined as a hybrid of the existing forms of virtual organizations. A virtual supply chain is then explored from an information systems viewpoint. This exploration reveals contextual factors associated with information systems in a virtual supply chain. These issues are further explored to determine how they might be addressed. Finally further research that could be conducted is proposed.

Identifying System Characteristics for Development of a Sustainability Management Accounting Information System: Towards a Conceptual Design for the Manufacturing Industry

Abstract—This research aims to identify effective management accounting information system’s characteristics to facilitate managing and measuring environmental and social costs while adding value to sustainable manufacturing organizations. This focus is motivated by current practice of activity based costing (ABC), which to date has not recognized environmental costs as appropriate costs of products. In addition, ABC has not covered measuring costs of social impacts which are becoming significant issues for stakeholders. As a result, this study will develop a conceptual model for a Sustainability Management Accounting System (SMAS) that applies the ABC approach but extended by the study. A SMAS employs environmental management accounting and social management accounting concepts and practices, to inform the development of the SMAS conceptual model using system characteristics identified to provide a holistic system for a company. Once full developed, SMAS will provide environmental and social costs information to support disclosures and internal decision making for management of these costs. This paper sets out the theoretical framework for the study that will lead to the development of the conceptual model for a SMAS.

Study to Investigate the Determinants for the Use of Wireless Technology in Healthcare Setting: A Case of Pakistan

Abstract-Among various technological developments, the use of wireless technologies is emerging rapidly in the developing and industrialized economies. Healthcare environment is no exception to this phenomenon, whereas the healthcare environments have unique characteristics and uptake of wireless handheld technologies in a healthcare environment is complex and exceptional. For example in healthcare environment, individuals are trying to save lives instead of making profit. Researchers in information systems domain agreed that use of wireless handheld technology in healthcare environment could improve quality of care, cost reduction, error reductions, and better quality of information. Awareness and use of information communication technologies (ICT) are on the rise in Pakistan and uptake of the wireless technology in healthcare environment is relatively slow. This paper presents the initial findings of the data collected from Pakistani healthcare professionals regarding their opinions and views about the use of wireless handheld technology in healthcare environment. A total of 300 surveys were distributed and 97 useable surveys were returned. Factor analysis clearly shows that Pakistani healthcare professionals are concerned about the usefulness and outcomes offered by the technology itself.