This study examines the governance of how external auditors (EAs) rely on internal audit function (IAF) from a new perspective. We use Signaling Theory embedded in a Throughput Model to trace the sub-processes of different stages of the reliance decision. We consider the last revision made to the International...

Automotive industry in the Czech Republic is important and highly monitored. The reason for this is mainly the fact that the automotive industry contributes significantly to the formation of GDP, according to Ministry of Industry and Trade (MIT, 2015) 15% long-term profit is made in the automotive sector....

This paper reviews the possibility of using the methods of formal logic in the professional judgements taken by accountants, and in accounting regulations as a special type of professional judgements made on behalf of the entire accounting community. It contemplates the possibility and the process of...

The main purpose of this paper is to evaluate and compare a financial performance of Czech sugar refineries within a period 2010-2013. Due to the availability of financial statements for the requested periods were analysed following public limited companies - Cukrovar Vrb tky, Tereos TTD, Litovelsk ...

This study addresses the case of Toshiba's fraudulent accounting in 2015 and examines its implications for setting accounting standards while considering the linkage between theory and practice. If this case is not an isolated case, then what is the problem with the existing accounting standards? The...

Accounting addressed to support the management has been developed in enterprises in Poland on a wider scale since the 1990s, i.e. since the restoration of the market-based economic system after a half-a-century break. The paper aims to identify the perception of the nature and scope of management accounting...

External auditors' ability to detect profit manipulations in the financial statements is limited. Non conformity with Benford's law gives indication of the risk that a data set contains fraud, but it does not give information which items are manipulated. Knowing profit and other financial targets set...

The issue of fraud is topical in every country and for every type of organization, regardless of the continent or the part of the world. Getting involved into a fraud scandal, the future reputation becomes doubtful from the potential investors' and customers' point of view. Many authors have discussed...

This paper investigates if accounting evolved as a result of the interaction of special economic, cultural and political institutions which prevailed in Medieval Italy. A two-step approach is implemented by the Historical and Comparative Institutional Analysis. First we investigate the features of above...

It is known that the financial statements are the subject of falsification. Risk assessment of possible falsification is a complex and urgent problem, which concerns a large number of scientific studies that use in modeling a variety of information contained in the financial statements. This paper presents...

The paper is methodologically based on measurement matrices by E.O. Edwards - F.V. Bell and Y. V. Sokolov - V. Y. Sokolov. The authors carry out a comparative analysis of time-factor measurement matrices of American and Russian researchers. The analysis shows that the major difference lays in use of...

The paper considers whether and how Estonian companies use and analyze the profitability measures. On the one hand, profitability measures should be a central component of the management control systems, but on the other hand, they should be linked to the wealth measurement objective. In this context,...

Topicality of the problem under discussion is related to a complicated situation arising between a taxpayer and State Revenue Service (SRS) of Latvia in connection with application of law, when settling disputes arising in the process of tax administration. There are topical problems of tax audit in...

The paper reflects on how different reporting frameworks developed over time as accountability adapted to changing needs of stakeholders which arguably contributed to the development of Integrated Reporting. A conceptual approach and a structured literature review are the methods employed in the paper....

The needs of companies in capital cheapening lead to the emergence of new financing patterns. One of such patterns based on the substitution of equity capital by the debt capital is hidden or thin capitalization. When used within a framework of a group of companies the cheapening of financing takes place...

In all countries of the world, small business units form the core of the local economy, and key players in generating value added. In this paper, part of our work is devoted to a theory of State control over private entities and on the behavior of Cameroonian businessmen to constraints imposed by OHADA...

It is within the field of the accountant's professional substantial judgment application to determine whether the investor controls an investee. The research based on 237 consolidated financial statements in accordance with IFRS of Russian and European companies was aimed at revealing and comparing the...

The research is based on the hypothesis that different special tax regimes have non-identical impact on the level of entrepreneurial activity. Special tax regimes, combined with the actual conditions of individual entrepreneurs, as well as a variety of contributing factors can form a special business...

The supermarket industry in Estonia plays a significant role in gross domestic product (GDP) growth, as it constituted approximately 43% of total retail trade in 2015 and growth amounted to 36% during the period of 2010-2015. At the same time, the growth of shopping gross leasable area (GLA) in Estonia...

Historical aspects of depreciation and impairment of assets have been the subject of a number of scientific studies. A lot of works have been considering this issue from the time of the Roman architect Marcus Vitruvius Pollio. But, unfortunately, the practice of depreciation and impairment of assets...

This paper discusses the history and future of auditing in Russia. Through the application of this method, four stages in the recent history of auditing in Russia were identified: pre-history (the birth of the Russian auditing, the "wild" auditing); establishment of auditing in Russia; government regulation...

The main purpose of this paper is to examine the performance information disclosure, its objectives and used performance measures at Estonian public universities. The present study focuses, using the PDCA (Plan-Do-Check-Act) cycle model on the linkages between disclosed performance information in various...

Some of the South African school governing bodies (SGBs) are faced with various challenges including a lack of skills, corruption and the mismanagement of funds. These challenges make it difficult for the SGBs to discharge their duties. Section 43 of the South African Schools Act (SASA) requires the...

Previous studies suggest that the customer size and range have implications for the company's performance. In this paper, we investigate the impact of customer concentration on a firm's performance in the framework of healthcare companies. The base of this paper is the questionnaire data of the private...

The article focuses on the nature and factors that define tax potential of a state. Tax potential is unlocked during the process of forming tax liabilities according to an existing procedure and rules of tax assessment. The article also shows relation among the actual, latent and prospective tax base...

The article briefly describes historical milestones within the process of public sector Accounting Reformation in Russia, which has proceeded since the period of reconstruction of 1990-ies. The authors provide reasons and purposes, stages, basic tools and remaining challenges of the accounting reformation,...

Investments are one of the most essential drivers of economic growth; without the investments no economic processes are possible. In this respect, not only investments in development projects of national significance, entrepreneurship and infrastructure but also in promoting the wellbeing of every individual...

On a global level, the high net worth population is expanding, and the wealth of high net worth individuals (HNWI) is increasing rapidly. For various reasons, high net worth families and individuals are searching for vehicles to assist them in safeguarding and conveniently managing their wealth. Private...

This paper focuses on the levels of formality of performance management systems (PMSs). The objective of the paper is to investigate the impact of the formality of PMS 1) on the key success factors (KFs) of PMS and 2) on the achievement of performance. The formality of PMS is investigated on three different...

An analysis of the background of Professional Accountants' movement in Russia is necessary not only to understand the current state of Accounting Profession in this country in the environment of a free market albeit still developing market. It is also useful for studying the global regulation of our...

The article focuses on professional ethics in accounting in the Lifewide Lifelong Learning (LLL) educational programmes. It is aimed at the presentation of the experience in introducing case studies on ethical dilemmas to professional accounting training. It presents the own experience of the author,...

Cost information forms the basis for a range of business decision-making and is also needed for financial reporting. The requirements to such information are differentiated, which leads to the need for application of costing methods and procedures, with their variants established in internal company...

Since development in 1968, Altman's Z-score has been widely used to judge the risk of financial failure by companies in various countries, industries, and time-periods. The purpose of this paper is to apply Altman's Z-score model for bankruptcy prediction on the three listed Lithuanian agricultural companies....

The subject taken up in the article is the reporting obligations of companies trading their shares in the alternative trading system operated by the Warsaw Stock Exchange. The objective of the study, the results of which have been presented in this article, was the identification of the type of reporting...

In recent decades, the organization, administration and functioning of the methodology of accounting systems and analysis are under significant changes. In particular, the introduction of the American model of administrative and methodological management in the area of accounting is becoming a worldwide...

The issue of depreciation accounting in the era of double-entry bookkeeping origin is one of the least studied. The main aim of the carrying out research is to determine the existence of the algorithm and method for depreciation calculating in the medieval companies, based on the archival data, particularly,...

The purpose of the paper is to research into the characteristic features of the evolution of accounting education in Russia, to identify the main stages of this historical process and their time limits. The formation of accounting education is considered as a purposeful process being the integral part...

In the last thirty years set of financial and non-financial indicators to measure the companies' health and prospects of grow rapidly. Reporting expands and changes in the direction of the introduction of non-financial information. Integrated reporting is seen as a necessary form of presentation of information...

Accounting harmonization is aimed enhance accounting and information disclosure comparability across and within the countries and by decreasing de jure and de facto variations of such practices and disclosures. Non-listed companies comprising more than 90% of all the companies in Lithuania and the EU...

The objective of the study is to determine the financial and non-financial indicators which describe the financial difficulties encountered by Estonian municipalities and to prepare a model to predict the risk of encountering financial difficulties. In order to achieve the objective, the study employs...

Accounting profession in Russia has been taking shape since the late nineteenth century. That period is marked by discussions about the subject matter of the profession and establishment of the Institute of Accountants. Reflections arising from these discussions are an interesting topic of modern research....

This article focuses on the prospects of adapting unconventional tax mechanisms to tax management of a secular multicultural nation. The purpose of the study was to evaluate tolerance factors to socially oriented taxation as viewed by those not well aware about religious taxation policy. Research methods...

This paper finds that the firms involved in the Luxembourg Leaks ('LuxLeaks') scandal are less transparent measured by the engagement in earnings management, analyst coverage, analyst accuracy, accounting standards and auditor choice. The analysis is based on the LuxLeaks sample and compared to a control...

Currently, the issues of insolvency and optimal financial situation of companies become increasingly topical. Simultaneously the company's crisis management with all its elements, including crisis diagnostics, have not been sufficiently studied yet. The object of the research is company's financial crisis...

The article focuses on presenting instruments of taxation system in Poland and its main problem - tax gap. The current tax system in Poland is presented, by definition, on four planes: set of taxes, tax administration, tax law and the principles according to which it should operate. The study discusses...

For a long time, the public organizations kept the records using the cameral accounting. Then the evolution of public sector accounting methodology passed several stages in the search for new possibilities of the accounting information systems. From the 18th century the scientists developed the idea...

Major events and changes in the economic world during last decades have generated a growing public interest towards accounting in general and accountants in particular, which goes in line with the increasing role of professions in the society. The aim of the research is to reveal students' opinion on...

In accordance with Para 14 in the Estonian Accounting Act (AA) all accounting entities are compelled to prepare the annual report for the year ended, which consists of the financial statements and the management report. To ensure that the prepared annual report would meet its purpose the legislative...

Aim of the article is to discuss arguments for and against recognition of internally created brands in the company's financial statements. The author discusses definitions and functions of brand as well as valuation approaches in order to assess possibilities of reliable measurement of a brand's carrying...