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The rapid advancement of Artificial Intelligence (AI) has transformed various industries, including financial auditing, by improving efficiency, accuracy, and fraud detection. This study investigates the extent of AI adoption in financial audits in Indonesia, with a focus on both Big 4 audit firms and smaller, local firms. Through a literature review and interviews with auditors from eight firms, the research explores the current state of AI utilization and the barriers to its implementation. The results indicate that while Big 4 firms are in the developmental phase of integrating AI into their auditing processes, smaller firms face significant obstacles, such as financial limitations, lack of expertise, and regulatory uncertainties, which hinder AI adoption. Despite the challenges, auditors from larger firms anticipate that AI will play a crucial role in future audits. The study concludes that AI adoption in Indonesian financial audits is uneven, and further efforts are required to support smaller firms through accessible AI tools, clearer regulations, and targeted training. These measures are essential for closing the gap in audit quality between large and small firms, ensuring broader AI implementation in the auditing sector. [ABSTRACT FROM AUTHOR]

Transparency is the goal of e-government in Indonesia, but many local governments still do not publicly disclose their financial reports. Thus, transparency in Indonesia is still low, especially as corruption cases are increasingly prevalent in government. This study aims to analyze the factors that affect the transparency of local government financial reports in Indonesia. The research population comprises all provincial governments in Indonesia. Sampling was conducted using a purposive sampling method based on the criteria of provincial governments in Indonesia that have official websites and provide access to local government financial reports for the fiscal years 2019-2022, so 84 research samples were obtained. The collected data for the analysis were secondary data obtained from financial reports published by local self-government bodies and the Central Statistical Agency (BPS) for 2019-2022. The data includes information on local government size, audit opinion, debt, gender, education level of the regional head, commitment of the regional head, regional wealth and intergovernmental transfers. This study uses the logistic regression analysis method to determine the effect of various variables on the transparency of local government financial reports. The results showed that the size of the local government and the commitment of the regional head positively affected the transparency of financial statements. However, the variables of audit opinion, debt and gender did not show a significant effect. In contrast, the education level of the regional head, regional wealth and intergovernmental transfers negatively influence the transparency of local government financial statements. This study provides important insights for policymakers in improving financial statement transparency at the local government level.

The introduction of the obligation to prepare ESG reports taking into account EU Taxonomy is a challenge for enterprises, but at the same time opens up the possibility of using disclosures in this area to assess entities in the context of environmentally sustainable activities. Legal changes in the field of the Green Deal have been introduced in the last three years, and in the area of EU taxonomy this process is still ongoing, resulting in a deficit of research on the effects of implementing the new legal regulations. The main goal of our study is to assess the importance of the newly applicable ESG reporting and environmental disclosure requirements under EU Taxonomy in improving the quality and comparability of sustainability reporting and the creation of ESG ratings. A qualitative research method was applied based on multiple case studies using content analysis on the basis of ESG reports for 2021-2022 for entities listed on the Warsaw Stock Exchange. The research results indicate a very low level of activities classified as environmentally sustainable and taxonomy-aligned. Additionally, the results may also indicate problems with implementing the new solutions in reporting practice. At the same time, a positive impact is noted of the implementation of taxonomic reports on improving the comparability and detail of disclosures.

The article offers a critical assessment of both international and national methodologies for determining direct and indirect damage to agricultural enterprises caused by war. It proposes laying the groundwork for a fair and corruption-free compensation policy by enhancing information support for loss assessment, based on the financial and statistical reporting of economic entities. Methodological approaches to damage assessment and the results of such assessments, as outlined in the «Ukraine Rapid Damage and Needs Assessment: February 2022 - February 2023» report, conducted by the World Bank in collaboration with the European Union, the United Nations, and the Government of Ukraine. The influence of various factors on the formation of indirect losses of enterprises was evaluated. Specifically, the factors affecting the reduction of selling prices for agricultural products, decrease in production volumes, and increase in production costs were analyzed. The impact of these factors was assessed based on relevant statistical data from 2019 to 2021 and 2022. The influence of the factor of increased production costs on the formation of enterprise losses due to war was demonstrated using the example of an agricultural enterprise’s activities in both pre-war and war periods. In-depth studies of indirect damage of enterprises that did not suffer direct damage from military operations was conducted, with the aim of using such information in the compensation policy of the state. In particular, the Appraisal Methodology, developed by the Ministry of Economy and the State Property Fund of Ukraine and required for use by appraisers and forensic experts when assessing damages and lost profits, was approved. Based on the results of its implementation, it was determined that for an average successful agricultural enterprise, the lost profit could amount to up to 1.4 million USD annually. This confirms the hypothesis that, irrespective of direct damage, all businesses incur indirect losses due to the war. Thus, the findings demonstrate that the current normative approach, which dictates that indirect losses of enterprises are compensated only if direct damage is caused by military actions, is unjustified. The widespread neglect of these losses poses a threat to the implementation of a fair compensation policy. The article substantiates the necessity of implementing a mandatory assessment of such losses for all business entities independently, along with the introduction of separate reporting to establish an information base for future compensation policies. The research is based on the use of methods of analysis, synthesis, modeling, analogy and comparison. Calculation methods and forecasting methods were applied during the approbation of the appraisal Methodology.

Copyright of Arab Journal for Scientific Publishing is the property of Research & Development of Human Recourses Center (REMAH) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This research aims to analyze the differences in financial performance of PT Bali Bintang Sejahtera Tbk at the time before and after the Initial Public Offering in 2017 to 2022. The sample of this study is the financial statement data of PT Bali Bintang Sejahtera Tbk from before and after the company conducted an Initial Public Offering (2017-2022). The research method used in testing differences before and after the company conducted an Initial Public Offering is the Paired Sample t-Test and Wilcoxon Sign Test test methods. Then to determine the increase or decrease in the company's financial performance, the average financial ratio test method is used. The results of this study indicate a significant difference in three of the four financial ratios used. The three financial ratios that experienced significant differences after the company conducted an Initial Public Offering included debt to equity ratio, net profit margin, and total assets turnover. Debt to equity ratio and net profit margin increased after the company did an Initial Public Offering, while the total assets turnover ratio decreased. Then only one financial ratio does not experience a significant difference after the company does an Initial Public Offering, namely the current ratio. But the ratio increased after the company did the Initial Public Offering. [ABSTRACT FROM AUTHOR]

The article offers a critical assessment of both international and national methodologies for determining direct and indirect damage to agricultural enterprises caused by war. It proposes laying the groundwork for a fair and corruption-free compensation policy by enhancing information support for loss assessment, based on the financial and statistical reporting of economic entities. Methodological approaches to damage assessment and the results of such assessments, as outlined in the «Ukraine Rapid Damage and Needs Assessment: February 2022 - February 2023» report, conducted by the World Bank in collaboration with the European Union, the United Nations, and the Government of Ukraine. The influence of various factors on the formation of indirect losses of enterprises was evaluated. Specifically, the factors affecting the reduction of selling prices for agricultural products, decrease in production volumes, and increase in production costs were analyzed. The impact of these factors was assessed based on relevant statistical data from 2019 to 2021 and 2022. The influence of the factor of increased production costs on the formation of enterprise losses due to war was demonstrated using the example of an agricultural enterprise’s activities in both pre-war and war periods. In-depth studies of indirect damage of enterprises that did not suffer direct damage from military operations was conducted, with the aim of using such information in the compensation policy of the state. In particular, the Appraisal Methodology, developed by the Ministry of Economy and the State Property Fund of Ukraine and required for use by appraisers and forensic experts when assessing damages and lost profits, was approved. Based on the results of its implementation, it was determined that for an average successful agricultural enterprise, the lost profit could amount to up to 1.4 million USD annually. This confirms the hypothesis that, irrespective of direct damage, all businesses incur indirect losses due to the war. Thus, the findings demonstrate that the current normative approach, which dictates that indirect losses of enterprises are compensated only if direct damage is caused by military actions, is unjustified. The widespread neglect of these losses poses a threat to the implementation of a fair compensation policy. The article substantiates the necessity of implementing a mandatory assessment of such losses for all business entities independently, along with the introduction of separate reporting to establish an information base for future compensation policies. The research is based on the use of methods of analysis, synthesis, modeling, analogy and comparison. Calculation methods and forecasting methods were applied during the approbation of the appraisal Methodology. [ABSTRACT FROM AUTHOR]

Good companies do not commit fraud and provide accurate and relevant information. Therefore, financial reports must be made as well as possible in order to provide accu-rate information to its users. This research is quantitative in nature to analyze the influence of the Fraud Hexagon Theory which is proxied by sixteen variables, consist-ing of four variables from the stimulus element (financial targets, external pressure, financial stability, personal financial needs), three variables from the opportunity ele-ment (supervision ineffectiveness, auditor quality and nature of the industry), two variables from the rationalization element (auditor turnover and value accruals), two variables from the capability element (director turnover and CEO education), two variables from the ego element (CEO duality and the number of CEO photos in the annual report), and three variables from collusion elements (political connections, audit fees and collaboration with government projects) on fraudulent financial statements. This research uses secondary data with purposive sampling. In 2019-2022, there are 63 financial sector companies listed on the Indonesian Stock Exchange. The results of this research prove that financial targets, financial stability, supervisory ineffective-ness, nature of industry and CEO duality influence financial report fraud. [ABSTRACT FROM AUTHOR]

Through a comprehensive analysis of United States public firms, we explore the implications of mergers and acquisitions within the Financial Technology (Fintech) sector on a company's value and capital structure. The financial statements of financial institutions engaged in Fintech mergers and acquisitions differ significantly from those of other nonfinancial institutions involved in various high‐technology acquisitions. Our results indicate that when a financial company acquires a Fintech firm, it enhances the acquirer's overall firm value and cash holdings. Furthermore, these mergers and acquisitions within the high‐technology sector exert distinct influences on a company's leverage and cash flow. [ABSTRACT FROM AUTHOR]

The implementation of IFRS 17 in 2025 will impact the reporting of insurance contracts and potentially affect the calculation of Risk Based Capital (RBC) for insurance companies. This study evaluates how IFRS 17 affects insurance contract liabilities and solvency ratios in insurance companies, using a sizeable Indonesian life insurance company as a case study. The research covers traditional products, health insurance, and unit-linked products, with findings validated through interviews with actuarial or accounting heads from five other life insurance companies. The study reveals that liabilities for traditional insurance contracts increase, unit-linked product liabilities decrease, and short-term health insurance liabilities remain unchanged. These changes will impact RBC calculations even though IFRS 17 does not alter the inherent business risks of insurance companies. The study recommends that regulators adjust RBC calculations to ensure financial statements accurately reflect insurance companies' financial health and risks. [ABSTRACT FROM AUTHOR]

AbstractThe research objectives is to analyze factors impacting on accounting conservatism such as growth opportunity, return on equity, sales growth, return on assets, capital intensity, investment opportunity, financial distress, financial leverage, global diversification and uncertainty environment. In this study, accounting conservatism is equal to non-operating accruals. The authors used balanced data collected from 379 listed companies in Vietnam stock market in a 5-year period from 2017 to 2021. The authors compared 3 models including Pooled OLS, FEM and REM to choose the most appropriate one. The test results show that FEM is the most appropriate, but this model has the phenomenon of heteroscedasticity, so the authors used FGLS to test the hypotheses. The research results show that among the independent variables included in the model, there are five variables impacting on the accounting conservatism with statistical significance of 5%. The independent variable which is investment opportunity set has a positive impact on the accounting conservatism. In contrast, the independent variables including growth opportunities, return on assets, financial leverage, and uncertainty environment have a negative impact on the accounting conservatism. Besides, the other five variables of return on equity, sales growth, capital intensity, financial distress, global diversification have no impact on the accounting conservatism in terms of statistical significance.

Small and medium enterprises are the backbone of most African economies, contributing significantly to economic growth, employment creation, and sustainable development in these economies, yet the SMEs face survival challenges, with few going beyond five years. In Zimbabwe, SMEs drive employment creation, contribute to the gross domestic product (GDP), and promote livelihoods, alleviating poverty in a country where the formal sector is dwindling. As the country struggles to address economic challenges and strives to promote economic growth, the adoption of the IFRS for SMEs is pivotal for enhancing transparency, strengthening domestic revenue mobilization, attracting investment, and facilitating access to financing. This study investigates the factors influencing the adoption of International Reporting Standards for SMEs (IFRS for SMEs) in Zimbabwe. The research addresses a gap in the literature by comprehensively identifying factors that impact the adoption of the IFRS for SMEs reporting framework in a developing economy. This research utilizes stratified and cluster sampling techniques. The findings reveal that the needs of financial statement users, the legal structure of an SME, the level of accounting expertise within an SME, and the outsourcing of accounting services are key determinants of IFRS for SMEs usage in Zimbabwe. Keywords: IFRS; SMEs; Financial Statement; Zimbabwe

Purpose: The main purpose of the article is to identify and characterize the key audit matters (KAMs) indicated during an audit of the financial statements of the largest companies in the Polish market. Methodology/approach: We analyzed the KAMs presented in the verification of the consolidated financial statements of the 30 largest companies listed on the main market of the Warsaw Stock Exchange for 2014–2022. The total sample was 270 auditors’ reports. The basis of the methodology was empirical research; deductive and inductive reasoning were used to formulate the results. Findings: The number of KAMs reported in individual years did not fluctuate significantly, and the average number disclosed for one audit coincides with general global trends. The auditors reported the riskiest areas were for entities from the insurance sector, media and telecommunications, and the fuel industry. The most important KAMs include contingent liabilities, revenue, long-term assets, and goodwill. Research limitations/implications: The main constraint is the limited research sample relating only to the audit of the financial statements of WIG30 companies. However, it covers the largest entities for which auditors indicated the most KAMs and prepared their most extensive descriptions. Originality/value: The article concerns a relatively new research area for which there are few studies on the Polish market, which additionally have a narrow substantive scope. This paper comprehensively characterizes KAMs reported by auditors in the long term.

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Copyright of Gazi Journal of Economics & Business is the property of Gazi Journal of Economics & Business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Community Service & Empowerment is the property of Journal of Community Service & Empowerment and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Zeszyty Teoretyczne Rachunkowości is the property of Stowarzyszenie Ksiegowych w Polsce Rada Naukowa and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study purpose to explore and analysis the "characteristics of audit quality" through two questions: 1. what are the publication trends of audit quality-themed articles based on research contributors, and 2. what are the developments in research related to audit quality up to the present. The study employs a systematic literature review using keywords that describe the article topic coverage to identify trends in audit quality characteristics. The sample consists of 26 articles from the database SCOPUS from 2011 to 2020 on audit quality. The results indicate that University Utara Malaysia's contributions dominate among institutional contributors to the articles, article contributions are predominantly from Indonesia by country, and contributions are dominated by the International Journal of Economics Research based on journal source. The final results related to audit quality show variability with appropriate testing. This research empirically contributes to the development of literature and aids in analyzing audit quality-related research.

Purpose: The purpose of the article is to expand the discussion on the truth and fairness concept and faithful representation in financial statements, and to investigate how accounting practitioners perceive the qualitative characteristics of faithful representation. Methodology/approach: We conducted a questionnaire survey of public sector accounting practitioners. Findings: The perceptions of faithful representation are based on the International Federation of Accountants' and International Accounting Standards Board's conceptualizations of this attribute and the applicable legal regulations. In the opinion of ac-counting practitioners, faithful representation signifies that financial statements dis-close information that has been positively evaluated by control and audit authorities. Effectively, the accuracy of financial statements depends on the quality of accounting law in the public sector and the control process. The respondents knew and understood principle-based accounting but were more concerned with rule-based regulations. Research limitations/implications: The limitation of our study is the sample size, which only permitted an analysis of qualitative variables. The research is a pilot study and will be extended in future work. Originality/value: In Poland, a country governed by a code of law, the perception of faithful representation is oriented toward precise accounting and is based on legitimization by control and audit authorities demanding high-quality accounting legislation. This study confirms the importance of harmonizing accounting law in Poland. Principles-based standardization in the public sector should replace the existing detailed, technical legislature.

Research Question: To what extent earnings management operations are used by Romanian entities listed on a regulated market and what is the impact of these operations on the quality of reported financial information? Motivation: The financial statements reported by each entity are intended to provide useful information all the users, they are intended to describe clearly and honestly presents the financial position and performance and cash flows respectively. There are cases where, out of a desire to gain the trust of stakeholders (investors and other equity providers), some entities tend to commit manipulations in financial reporting using earnings management. Idea: The study aims to assess the extent to which the operations of earnings management are used by the Romanian entities listed on a regulated market and the impact of these operations on the quality assurance of the reported financial information. Data: This study was conducted based on the information collected from the annual financial statements of the entities that are listed on the Bucharest Stock Exchange, for the period between 2019-2021 Tools: The collected data were analyzed using the Jonse model based on the linear regression analysis. Findings: Using the Jones model based on the linear regression analysis, the results of the study indicate a distortion of the results presented by the analyzed companies, a solid reason being given by the negative effects of the Covid-19 pandemic with a strong impact on the economic environment. Contribution: This study provides an overview of the concept of earnings management based on information from the specialized literature. The analysis of earnings management practices was undertaken on the listed entities in Romania.

The article is devoted to comparing the composition and structure of financial statement forms of private sector entities according to national and international standards. It examines the list of economic entities obliged to submit reports according to IFRS, along with the information that must be disclosed in providing financial statements. The set of financial statements under national and international standards are revised, comparing the provisions of national and international standards regarding the statement of financial position and the statement of comprehensive income. [ABSTRACT FROM AUTHOR]

In the modern global business environment, the importance of effective management and informed strategic decisionmaking is becoming increasingly critical for the success of enterprises. To achieve these goals, information has become a key resource, and the use of Business Intelligence (BI) tools in the process of enterprise planning has gained significant importance. The research aims to identify and compare the practical capabilities of forecasting financial indicators using contemporary Business Intelligence tools. The formation of the net income indicator is a key component of strategic enterprise planning and requires a comprehensive analysis of internal and external factors. Various methods, such as regression analysis, time series models, and neural networks, are used for forecasting financial indicators. In this work, it is demonstrated that the selected forecasting methods have yielded positive results in identifying the dynamics of net income for TD «Kyivkhlib». The multiple linear regression model and the ARIMA model have shown similar forecasts for net income, predicting an increase by a factor of 2.03 with the first method and 2.017 with the second. A neural network also predicts an increase in net income but with a slower growth rate (2.93 times). The authors emphasize the role of Business Intelligence (BI) tools in the forecasting process of the enterprise's financial indicators. The use of BI platforms is analyzed, providing the ability to predict the company's future state, making BI an important component of strategic and economic analysis. While traditional forecasting methods based on correlation-regression analysis and time series construction are widely used, they have their limitations. They assume that past trends will remain constant in the future, but they may not always account for unforeseen events. The development of information technology has led to the use of more effective methods for intelligent data analysis in building forecasts. The use of genetic algorithms is a promising direction for modeling and forecasting financial indicators but requires the availability of appropriate data for each modeling variable. Comparing traditional forecasting methods with methods of intelligent data analysis can help understand their strengths and weaknesses and contribute to the development of hybrid forecasting tools that overcome the limitations of each method. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Visionida is the property of Universitas Djuanda and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Zeszyty Teoretyczne Rachunkowości is the property of Stowarzyszenie Ksiegowych w Polsce Rada Naukowa and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study aims to determine the effect of pressure, opportunity, rationalization, ability, arrogance, and Fraud Confirmation on financial statement fraud in mining sector companies listed on the Indonesia Stock Exchange in 2018-2021. The data used in this study are secondary data obtained from annual reports & reports. annual finance. By using purposive sampling technique, this study has a sample of 19 mining sector companies for 4 years, the observation data obtained is 76. The data analysis technique used is logistic regression analysis using SPSS 20 software. The results of this study indicate that the variables of pressure, opportunity, rationalization, the ability and arrogance to have no influence on fraudulent financial statements in mining sector companies listed on the Indonesia Stock Exchange in 2018-2021. Meanwhile, the variables of confirmation of fraud have an influence on fraudulent financial statements in mining sector companies listed on the Indonesia Stock Exchange in 2018-2021. [ABSTRACT FROM AUTHOR]

Copyright of Central Asian Economic Review is the property of Narxoz University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The authors have suggested analytical tools to evaluate levels of internal social responsibility by developing an aggregate set of indicators. The reference indicators values were substantiated on the basis of average industry ones, which provided an opportunity to determine the multiple coefficients. The suggested tools provide the opportunity to define enterprises’ tendency for change in the level of responsibility level by years. This research can have important practical impacts due to its quantitative assessment having been based on published financial statements. The study creates additional opportunities for stakeholders to evaluate current internal corporate social responsibility levels and predict their own development direction.

Houses of worship in Sorong City have not recorded financial reports according to standards and carry out bookkeeping using manual recording. Therefore, this activity aims to provide assistance in preparing financial reports for places of worship with the ISAK 35 standard. The method of implementing the service is carried out by giving presentations accompanied by direct interactive discussions between the implementing lecturer team and participants who come from members of the Religious Communication Forum in Sorong City. There are 30 partners involved in community service, consisting of 2 students, 3 lecturers, 5 administrators each of places of worship (churches, temples, mosques and monasteries) and 5 partners who assist in broadcasting worship. Based on the results of observations and interviews conducted by the service team using random sampling of participants, it can be concluded that implementing community service can provide new insights and knowledge for participants regarding the preparation of financial reports and an understanding of the importance of accurate and accountable reports. By taking part in assistance in preparing financial reports, apart from listening to explanations in preparing financial reports, the participants also held discussions regarding the obstacles faced in managing funds and reporting that is appropriate and easy to understand by users of financial reports and technology.

Globalization has resulted in the emergence of international markets and international investors. Thus, the number of people and institutions that constitute an enterprise's environment has increased. The importance of financial statements disclosed by enterprises increases as a result of this situation. Various actors in the environment evaluate the results of the activities and performance of enterprises through financial statements. Financial statements include certain qualitative characteristics, one of which is the ability to be compared. Inflation in countries where companies operate eliminates financial statement comparability. The purpose of this study is to analyze the impact of inflation on the financial statements of companies operating in the energy sector in Borsa Istanbul during the period between the first quarter of 2008 and the fourth quarter of 2022. It has been concluded, based on the results obtained, that inflation accounting should be applied in order for the financial statements to reflect the real financial situation of the companies. [ABSTRACT FROM AUTHOR]

Copyright of Jurnal Riset Akuntansi dan Bisnis Airlangga (JRABA) is the property of Universitas Airlangga and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Real earnings management comprises the intervention by managers intending to change business strategies or policies to achieve specific goals. The paper aims to examine trends and levels of real earnings management in the context of the COVID-19 pandemic in Vietnam. The study uses time series data, and the sample includes 1,800 observations from 2016 to 2021. The methods of the study are regression analyses of the real earnings management model. The results indicate that the COVID-19 pandemic positively and significantly affected real earnings management of companies listed on the Vietnamese stock exchange. The trends and levels of real earnings management in the context of the COVID-19 pandemic increase depending on the severity of the pandemic. In terms of applications, the study provides evidence that the quality of financial reporting is lower during the pandemic. Listed enterprises in Vietnam are using high financial leverage, leading to a higher vulnerability to shocks such as the pandemic. Therefore, the real earnings management technique mainly used by managers is operating cash flow adjustment by using income maximization strategies to increase the ability to borrow capital to maintain business operations. The study suggests that the choice of income maximization or income minimization strategy depends mainly on commitments with the capital provider (credit institutions), specific contexts, and economic factors.

Research aims: This study examines the relationship between the CEOs’ income and the quality of financial statements of industrial firms listed on the Ho Chi Minh Stock Exchange (HSX) during the three years from 2018 to 2020. Design/Methodology/Approach: This study investigated the influence of CEOs’ characteristics, particularly their income, on the quality of financial statements of listed firms in the Vietnamese industry by using features of information quality proposed by the International Accounting Standards Board (IASB). Ordinary Least Squares (OLS), Random Effects model (REM), Fixed Effects model (FEM), and Feasible Generalized Least Squares (FGLS) regressions were applied for empirical examinations. Research findings: The results of this study demonstrated that a CEO’s income positively affected the quality of corporate financial statements. Additionally, the analysis results confirmed the positive correlation between the firm’s size and the quality of disclosed reports, consistent with prior studies. However, this study uncovered that Big4 auditors did not influence the quality of financial statements. Theoretical contribution/Originality: This study contributes to the literature by providing a comprehensive perspective on the assessment of corporate financial statements quality and examining its association with the CEO’s income in the context of an emerging economy. Practitioner/Policy implication: The study is useful for investors and other financial statement users to assess the quality of corporate financial statements through the CEO’s profile; it also contributes as a scientific basis for firms to adjust the compensations offered to their CEOs. Research limitation: This study was limited by looking at the mono-directional impact of the CEO’s income on the financial statement quality. The following studies need a larger sample of industries and countries to strengthen the research findings. Also, further studies can broaden their perspectives to investigate the multidimensionality of this relation.

One of the recent trends in ESG (which stands for Environmental, Social, and Corporate Governance) is an attempt to combine sustainability and financial reporting through direct references to financial statement figures (cf. the ED IFRS S1, S2, the CSRD). This article aims to verify whether it is possible. For this reason, it was assumed that Key Audit Matters (KAMs) identified by financial statement auditors might be a valuable source of information. Identification of ESG-related KAMs by auditors may prove that ESG information is directly traceable to a financial statement and, thus, quantifiable. The empirical part was based on 142 audit reports on the consolidated financial statements for 2021. The sample focused on ESG-related capital groups with the parent entity listed on the Warsaw Stock Exchange. 292 KAMs were obtained, among which 38 (13.01% of the sample) were identified as ESG-related (32 Environmental, 1 Social, and 5 Governance). This research paper: (1) confirms that it is possible to link ESG matters and their outcomes directly to financial statement categories, (2) shows that some areas could be more challenging to quantify, for example, social or governance aspects which may not be seen directly as a financial statement category, (3) comments on KAMs as a good information source if well-written. The article underlines that any attempts to combine sustainability and financial reporting might be demanding. The ESG-exposed businesses are privileged here as their financial statements naturally present ESG-related categories. However, it raises further questions about the presentation, comparability, and integrated reporting quality of all entities, which will have to consider financial and ESG linkages in the future. This article does not answer these questions, is limited to the perspective of KAMs, and, thus, touches only on identified financial statement categories. The article, with its findings, may be important to standard-setters, companies, and other researchers contributing to ESG, financial reporting, and financial audit.

MSMEs, resilient and resistant to the economic crisis, can absorb labour, thereby reducing unemployment. Therefore, activities for MSMEs are needed to develop their business in a better direction. Tlogo Hamlet business actors still need to pay more attention to recording reports; there is no separation between personal money and business money, and lack of knowledge about the benefits of recording simple financial statements. The purpose of implementing community service activities in Education Report Recording for MSMEs in Tlogo Hamlet, Sutopati Kajoran Village, is to provide education and assistance to MSMEs related to recording financial statements, how to record and their benefits for businesses. Assisting MSMEs in implementing bookkeeping in their daily activities. The PAR (Participatory Action Research) method is the method of implementing this community service. To solve existing problems, the activities carried out consist of investigations, actions, and reflections. Inquiry is the stage where the team searches for problems and needs, which can obtain the main problems and programs needed. Action is the stage carried out to carry out the program, which consists of two activities: forming partnerships and implementing activities needed by partners. Partners in implementing this service consist of MSMEs actors, women farmer groups, and PKK groups. The reflection stage is the stage that shows the results of activities and reviews activities that have been carried out. The results of the community's implementation and research are aware of the benefits, understanding and increased knowledge about the importance of recording simple financial statements for business actors. This service activity implies that MSMEs actors, especially in Tlogo Hamlet, Sutopati Kajoran Village, can understand good ways of entrepreneurship through financial records to make it easier for them to develop achievements and know progress through cash inflow and outflow transaction activities.

The study assesses the roles, duties, and responsibilities of the auditor that led to the so-called audit expectation gap in Nigeria with a focus on the capital market. The objective of the studies is to assess if indeed audit expectation gap in Nigeria exists. The study uses the chi-square distribution to ascertain the argument. It was observed that the collapse of many companies across the world was occasioned by corporate governance failure as most financial statements prepared by these firms were satisfied okay by the auditors but yet the companies later went underground thereby resulting in the audit expectation gap argument. Among other things, the study recommends that the relevant professional bodies should collaborate with auditors and educate the users of financial statements to understand the duties and responsibilities of the auditor towards narrowing it performance gap. Also, audited financial statements should be presented manner that people can read and understand the reports. Keywords: Audit Expectation Gap; Auditors; Financial Statement; Prevention of Fraud; Nigeria