Luckmika Perera

Accountability structures and management relationships of internal audit : an Australian study

Purpose - The purpose of this study is to examine the accountability structures and the management relationships of internal audit. In particular, related issues such as the predominant internal audit objectives and the related functions, the extent to which internal audit addresses any financial reporting risks and the manner in which internal auditors in Australia perform their tasks, are identified. The study also looks at the extent of compliance with the Institute of Internal Auditors (IIA) Standards. Design/methodology/approach - Based on a survey of the chief audit executives in Australia, the study identifies the reporting mechanisms, functions and relationships of internal audit, including the contributions made towards good corporate governance. There is, however, some misalignment between the aspirations of internal auditors and their relationships with management. Findings - While internal audit objectives have been established with a focus on controls, risks and governance, the study has highlighted the fact that there is a lack of correlation between the tasks performed by internal auditors and the important internal audit objectives, with the exception of internal control and risks. The results also suggest that internal auditors have been providing an internal consulting and advisory role in matters concerning IT systems, strategic risks and financial issues. If internal auditors are to proactively contribute to good corporate governance, they need to define how, and in what way, this can be done. In regard to corporate governance processes, the results of the research indicate that issues surrounding internal control, risk assessment and management processes are regarded as the key factors for internal audit to contribute to good corporate governance. Originality/value - This study complements and contributes to the existing literature in providing insights into the evolving role of the internal audit function in terms of accountabilities and relationships with management. It also provides a valuable insight into how the internal audit profession can build upon its inherent strengths and address any apparent areas of concern. This will assist both the profession and policy makers alike, in better understanding and improving the role of the internal audit process.

Students’ perceptions on using iPods in accounting education: a mobile‐learning experience

Purpose - The purpose of this study is to assess the benefits derived from the application of mobile devices as part of the students’ online learning experience and the extent to which the perceived benefits are linked to student learning styles. Design/methodology/approach - A small group of students enrolled in an exclusively online graduate accounting program were issued with iPods as part of their learning materials. Two data collection instruments were issued: a questionnaire to elicit students’ opinions on the usefulness of the iPod as a tool for learning; and a questionnaire to establish their learning styles (using a VARK Findings - The findings indicate that the primary advantage of iPods lies in its portability, which, in turn, facilitated efficient and effective use of time and study planning. The portability attached to iPods allowed students to take advantage of what otherwise have been down-time, such as commuting. Students with a preference for visual learning rated the iPod as being important to their learning. Research limitations/implications - The generalizability of the findings is limited due to the low sample size (23) that constrains the robustness of the results. Originality/value - The exploratory nature of this study provides preliminary evidence on the perceived usefulness of handheld devices as a learning tool.

Developing a global model of accounting education and examining IES compliance in Australia, Japan, and Sri Lanka

The introduction of International Education Standards (IES) signals a clear move by the International Accounting Education Standards Board (IAESB) to ensure high quality standards in professional accounting education at a global level. This study investigated how IES are perceived and valued by member bodies and academics in three counties: Australia, Japan, and Sri Lanka. It examined: (1) levels of awareness of IES; (2) drivers of compliance and convergence and non-compliance and non-convergence with IES; and (3) key factors influencing IES adoption. Both quantitative and qualitative data have been collected from interviews and questionnaire surveys to report on these findings. Further, as part of the study, comprehensive case studies of the accounting education systems of Australia, Japan, and Sri Lanka were developed. These case studies not only provided an insight into issues of diversity, culture, and language as they relate to IES, but also preceded the development of a global model of accounting education.1 This model is proposed as a way to assist interested parties in any country to readily identify their own unique system of professional accounting education.

Formative Feedback through Summative Tutorial-Based Assessments: The Relationship to Student Performance.

Abstract This paper investigates the effectiveness (measured using assignment and examination performance) of an assessment design incorporating formative feedback through summative tutorial-based assessments to improve student performance, in a second-year Finance course at an Australian university. Data was collected for students who were enrolled in an undergraduate Finance course and analyzed to ascertain performance improvements. The results indicate that there is a relationship between formative feedback through the use of summative tutorial-based assessments and student performance. Our empirical evidence enriches the extant literature surrounding the effectiveness of formative feedback through summative tutorial-based assessments and fosters an interest in assessment designs that provide formative feedback.

Using business intelligence to support the process of organizational sensemaking

Making sense of an organization overwhelmed with data becomes a problem for decision makers at all levels of business planning and operation. Although scholars have suggested several technological solutions such as business intelligence as being useful in helping busy executives to make decisions, we still know little about assisting business stakeholders in the process of understanding their organizational complexity before such decisions could even be formulated. In this paper, we investigate the opportunities in using BI technologies to make sense of a business environment. We analyze the views and opinions of developers, analysts, consultants, and users of business intelligence, who are experienced in using the technology beyond decision making to support organizational sensemaking. Our results highlight the need for creating and maintaining individual; and organizational identity and enacting this identity on the business and its environment.

Towards aGlobal Model of Accounting Education

Purpose - – The purpose of this paper is to examine the accounting education systems in three countries – Australia, Japan and Sri Lanka – to inform the development and testing (by application) of a Design/methodology/approach - – An action research methodology is applied with a case study and model development approach. Findings - – The case studies reveal variations in accounting education systems, which exist across the three countries examined in this research. Key differences (some significant and others nuanced) were found between accounting education systems and include: entry requirements to professional programs; accreditation processes; and benchmark discipline standards. These differences are provided for in the questions that underpin the model developed and applied as a key part of the research. Practical implications - – This model is presented as a tool to assist interested parties in any country to take initial steps to identify their own unique system of accounting education. It may also be of particular use in those countries in the early stages of developing an accounting education system. This understanding of accounting education systems enhances the opportunity for global convergence of accounting education. Originality/value - – The model, informed by the case studies, is an original contribution to the literature and discussions around global convergence in accounting education. The model is designed for practical application and the value is that it provides an important starting point for considering issues of importance in the development of a system of accounting education, and/or, better understanding the similarities and differences across existing systems.

A comparison of different study load classifications and their association to student performance: an exploratory study

Purpose – The purpose of this paper is to investigate the alternative study load measures (dichotomous full-time/part-time classification and the number of units enrolled) and their association to student performance by using student data from a final year accounting unit in a large Australian university. Design/methodology/approach – Using regression analysis, the authors compare the two measures to ascertain the explanatory power of the two approaches in explaining student performance. Findings – A positive association is found between study loads and student performance when using the “number of units enrolled” measure. This relationship was not found when the dichotomous measure (full-time vs part-time) was used. The results suggest that a scaled measure of study loads is a better measure compared to a binary (dichotomous) measure. Research limitations/implications – The study will assist future researchers to better control for study loads, and also to gain a better understanding of the association b...

Implications of a Fragile Professional Identity on Role Behavior: An Exploratory Case of an Accountant Fraudster

Abstract This study explores identity-related issues ensuing from the behavioral choices of a professional accountant who was convicted for defrauding clients of money entrusted to him. It is grounded in data collected from semi-structured interviews with the offender and his companion (partner in life), supplemented with transcripts derived from court hearings. Our findings suggest that the offender was an accidental fraudster whose crime was committed because of his personal traits and because he abandoned an apparently fragile professional identity for a dominant alternative identity. This led the offender to violate professional norms and self-rationalise illegal activity as both temporary and beneficial to his client. Our data illustrate the perils of the professional accountant identity not being firmly established, maintained or regarded as dominant; it enables behavior inconsistent with the professional ‘accountant’ identity, including criminal activity. This study extends understanding of fraudulent accounting practice by illustrating the role of professional identity in preventing illegal practice in the context of a qualitative forensic case study. It highlights the centrality of professional identity formation, maintenance and reinforcement, particularly in the context of identity conflicts.

Regulatory Impact on Voluntary Climate-Change-Related Reporting by Australian Government-Owned Corporations

This paper concerns voluntary climate change–related reporting of government-owned corporations (GOCs). We investigate whether the Australian National Gresenhouse and Energy Reporting Scheme (NGERS), a regulation stipulating the disclosure of greenhouse gas emissions to government, subsequently made publicly available on a Website, has a positive impact on the voluntary disclosure of climate change–related information not required by the regulation. We find that implementation of NGERS has a positive effect on voluntary climate change-related disclosures by GOCs. Hence, mandating disclosure of organisations’ negative environmental performance, such as greenhouse gas emissions, can influence voluntary disclosures of a broad range of related information particularly in organisations that are not subject to capital markets incentives. However, upon later but concurrent implementation of a Carbon Tax after a highly partisan and divisive political debate, climate change–related disclosures by GOCs reduce, consistent with the de Villiers and van Staden (2006) argument that when disclosures might increase awareness of sensitive issues, avoidance of attention to the issue might be the best strategy to retain legitimacy.