Asian Journal of Accounting Perspectives

Editorial Note Vol. 16, No. 1 (2023)

Mazni Abdullah — 2023-12-31

Editorial Note Vol. 16, No. 1 (2023)

The Influence of Personal and Professional Ethics of Tax Agents on Their Perception of Tax Evasion

Magdalene Christie Anak Johnes Abit — 2023-12-31

Research aim: This study seeks to identify the relationship between the personal and professional ethics of tax agents and their perception of tax evasion.
Design/ Methodology/ Approach: A four-section survey questionnaire was used to collect data from primary sources. A total of 349 questionnaires were collected via online distribution.
Research finding: The results suggest a strong positive significant relationship (p < 0.001) between personal ethics and tax agents’ perception of tax evasion. As for professional ethics, the findings show a moderate positive significant relationship (p < 0.001) between professional ethics and tax agents’ perception of tax evasion.
Theoretical contribution/ Originality: Considering that this study focuses on tax agents’ perception of tax evasion, the theory pinned to this study is utilitarianism. The theory is used to predict and understand tax agents’ behaviours based on two factors: their perception of tax evasion with the influence of personal and professional ethics.
Practitioner/ Policy implication: In the context of this study, government and tax authorities should provide a clear framework to guide the ethical conduct of the tax agents because of the complex nature of the tax planning environment. The framework is important to ensure that tax agents are not trapped between tax minimisation arrangements, aggressive tax planning, and tax evasion. Additionally, tax authorities, the Malaysian Association of Tax Accountants, and the Chartered Tax Institute of Malaysia can continuously organise professional development programmes addressing ethical issues and tax planning arrangements covering different jurisdictions.
Research limitation: This study focuses only on tax agents’ perception of tax evasion. Future studies should include accountants, auditors, and company secretaries to gauge their perception of tax evasion because they are also actively involved with taxpayer activities.

Quality Management System and Audit Quality: The Moderating Effect of Independent Audit Inspection in China

Yuqing Zheng — 2023-12-31

Research aim: This study examines the effect of quality management systems (QMS), in terms of leadership responsibility, relevant ethical requirements, human resource, engagement performance, and monitoring, on audit quality (AQ). Also, this study examines whether independent audit inspection moderates the relationship between QMS and AQ.
Design/ Methodology/ Approach: A total of 414 external auditors working in Chinese accounting firms responded to the online survey questionnaires.
Research finding: By using SmartPLS as a tool for data analysis, the results showed that all elements of the quality QMS have positive effect on AQ. However, it failed to establish the moderating effect of an independent audit inspection on QMS and AQ.
Theoretical contribution/ Originality: This study contributes to elucidating the significance of QMS in promoting AQ, as well as shedding light on the ongoing debate regarding the impact of independent audit inspection on AQ.
Practitioner/ Policy Implication: Public accounting firms and regulators should focus on improving QMS to ensure high audit quality.

The Impact of Covid-19 on The Execution of Audits in Malaysia

Muhammad Iqmal Hisham Kamaruddin — 2023-12-31

Research aim: This study aims to investigate the impact of the Covid-19 pandemic on the execution of audits in Malaysia. This study also will examine the readiness of Malaysian auditors to work from home (WFH).
Design/ Methodology/ Approach: A questionnaire survey was employed with 171 Malaysian external auditors participating.
Research finding: This study found that all three audit areas – audit planning and fieldwork, group audit engagement and auditors' reports – were highly impacted due to Covid-19. As for readiness to WFH, results show that Malaysian auditors are not ready to implement the approach. Conversely, Malaysian audit firms were ready to implement WFH.
Theoretical contribution/ Originality: This study is among the few identifying the impact of Covid-19 on the execution of audits. It also contributes by identifying auditors’ and audit firms’ readiness to implement a WFH approach.
Practitioner/ Policy implication: This study will benefit audit firms especially in implementing a WFH approach.

Analysing Cost Accounting Standards, Practices and Implementations: A Study on Some Selective Manufacturing Companies of Bangladesh

Sohana Sultana — 2023-12-31

Research aim: This report aims to illustrate a true picture of cost accounting standard practices in different manufacturing organisations in Bangladesh. This article tries to analyse the views of diversified personnel engaged with the cost accounting standards directly or indirectly.
Design/Methodology/Approach: The researchers use different statistical tests for this study. It is a quantitative study with a structured questionnaire used to conduct the survey. For analysing the statistical tests, the authors use Microsoft Excel and SPSS 26 along with a three-point Likert scale.
Research finding: The results of this study show that most manufacturing organisations operating in Bangladesh practise the Bangladesh Cost Accounting Standards (BCAS). Most of the employees working in manufacturing organisations are familiar with BCAS. This study also finds that BCAS helps in determining costs more accurately and appropriately. This paper further identifies the factors responsible for not implementing BCAS in manufacturing organisations, and lists these firms’ future plans regarding BCAS. The role of Institute of Cost and Management Accountants of Bangladesh (ICMAB) in implementing the standards is also identified here.
Theoretical contribution/Originality: This paper will assist researchers and policymakers as well as concerned authorities in getting an overview on the practice and implementation of BCAS in relevant manufacturing organisations.
Practitioner/Policy implication: This paper will help manufacturing organisations recognise the significance of practising and implementing BCAS.
Research limitation: The small sample size is a substantial limitation of this study. However, future research can be done with a larger data set from different sources.

The Dynamics of Individual Investment Decisions: Evidence From The Dhaka and Chittagong Stock Exchange, Bangladesh

Awlad Hosen Sagar — 2023-12-31

Research aim: Behavioural finance plays an analogous role to fundamental and technical analyses for investment decisions in the stock market. It deals with various factors that manipulate investment decisions. This study explores the factors influencing individual investment decisions in the Dhaka and Chittagong Stock Exchange (DSE and CSE) of Bangladesh. Design/Methodology/Approach: Based on existing finance theories and literature, several factors were included in the self-developed questionnaire, with data collected using random sampling. We used SPSS (Version 26) to analyse the primary data collected. In the questionnaire, there were 24 variables, and statistical analysis (multiple regression) was carried out.
Research finding: There were 24 variables, five of which (i.e., investor experience, impact of P/E ratio, impact of fundamental analysis, impact of securities and brokerage firm, and impact of investor psychology) had significant impact on individual investment decisions in the CSE and DSE.
Theoretical contribution/ Originality: Theories pertaining to individual investment decisions are based on individual judgment, sentiment, risk perception, and risk attitude. These mechanisms are associated with behavioural finance. Various behavioural finance studies have been conducted in developed countries, but not in developing countries like Bangladesh. As such, the dynamics of the investment decision are the main focus of the present study. Practitioner/ Policy implication: This article can serve as input to investment decisions that have an impact on economic value at the firm, industry, and macroeconomic level. Moreover, it highlights the role of related stakeholders and extent to which they influence investment decisions.
Research limitation: This study is country-specific, and the number of respondents is limited to 125 only. We could not consider the impact of technological advancement during this period.

The Impact of Digital Banking Adoption, Risk Management and Balanced Scorecard on Indonesian Banking Performance – A Conceptual Paper

Tedhi Irawan — 2023-12-31

Research aim: This research explores the impact of three independent variables, namely digital banking adoption, risk management and balanced scorecard implementation, on bank performance as the dependent variable.
Design/ Methodology/ Approach: This paper is a conceptual paper. Previous studies have been extensively focused on ascertaining the determinants of bank performance. Despite the large body of literature in this respect, this article focuses on the role of balanced scorecard implementation in the banking industry. The balanced scorecard’s mediating role is deemed crucial, especially in the banking industry, which is more exposed to the digital and technological revolution. Accordingly, the paper proposes a performance model for banks and financial institutions which combines these determinants.
Research finding: The current debate prevalent among researchers and practitioners, as denoted in the literature, is centred on the central argument of how banks can maximise their full potential. This research suggests that the banks’ management employs the following three measures: digital banking adoption, risk management and balanced scorecard implementation as the performance model. In the quest to further improve organisational performance, previous literature lauded balanced scores as a useful management tool. Specifically, the balanced scorecard serves as a strategic planning and performance management tool that utilises financial and non-financial assessments in determining an organisation’s administration, management and operational effectiveness.
Practitioner/Policy implication: This study enriches the current state of knowledge in the literature by extending the current understanding of bank performance, especially in relation to digital banking adoption, where the issue of technological and digital matters play a profound role in the banking industry globally due to the rapid advancement in technology. With respect to practical implications, the findings in this study are relatable to the practitioners in the banking industry, whereby the performance model in the study is proposed to offer the ways in which the performance of their respective financial institutions can be improved.
Research limitation: In this regard, it is hoped that the paper will shed light on understanding this matter further, especially the role of the balanced scorecard. Specifically, the paper suggests that the balanced scorecard implementation acts as the mediating role that fosters the relationship between digital banking implementation and bank performance. In addition, the balanced scorecard implementation also acts as the factor that mediates the relationship between risk management and bank performance.