European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals

Information Technology

Disclosure of Intellectual Capital in Annual Reports: An Empirical Study of the Listed Companies in Bangladesh (Published)

As the world economy is experiencing a transition from industrial to knowledge economy, intellectual capital (IC) has become a prominent feature of business transactions and discourse. Interest in IC and IC disclosure is rising in developed and developing countries. At present, Intellectual Capital Disclosure (ICD) is done voluntarily by very few leading corporations all around the world. Omission of ICD may adversely influence the quality of decisions made by users of accounting information or lead to material misstatements. Hence, rising importance of IC has necessitated insightful studies. With this background in mind, the study of 25 Bangladeshi knowledge based companies listed in Dhaka Stock Exchange (DSE) from Information Technology considered to be highly knowledge intensive has been undertaken in order to find out the disclosure level of recording and reporting of intellectual capital through content analysis of their corporate annual reports. It is evident from the study that level of intellectual capital reporting in the Bangladeshi companies is negligible and intellectual capital reporting has not received any preference or priority for the mentors of these corporations. On the basis the findings, the study recommends national and international accounting regulatory bodies to develop specific and uniform standard on identifying, measuring and reporting IC.

Keywords: Information Technology, Intellectual Capital, Knowledge-based Economy, Tangible Assets

The Strategic Perspective of Intellectual Capital Accounting and Increased Market Value to Business Organizations in the Knowledge Society (Published)

The importance of this study status enjoyed by the accountant in creating additional positive flows directly, and indirect contribution in rising in the capital markets through the creation of an enabling environment capable of overcoming the problems facing professional activities and services for accountants and insurance company and shareholder requirements efficiently and effectively. This development led to a change in the Outlook for accounting work which was considered a service center because it was limited to logging operations and Fund, and with modern developments have changed the perception of the accounting strategy as a profit center and Given to the accountant of suggestions for alternatives to investment and finance operations and undermine the risk gap as a missed in negotiating with all parties, such as optimization of the advertising side of accounting resulting creation flows additional profit and effective contribution in shaping strategic plans which reflect positively on the market capitalization of the business. The main results of the researcher are: The changing perception of intellectual capital accounting strategic axis produce about profits and flows and actual additions contribute to increasing the market value of the business, and this changed perception of accounting service center to profit center. Successful organizations are able to address the gaps and shortcomings in the efficiency of the accounting staff and see how willing those cadres to deal with sophisticated technologies.

Keywords: Business Organizations, Information Technology, Intellectual Capital, Market Value

Effects of Information Technology and Organizational Culture on the Performance of Accounting Information Systems (Survey in Bank “X” Branch Offices in Bandung) (Published)

The purpose of this study is to (1) find out the description of information technology, organizational culture and the performance of accounting information system of Bank ‘X’ in Bandung. (2) to determine how much is the influence of technology on the performance of Accounting Information system (3) To find out how much is the influence of organizational culture on the Performance of Accounting Information system. (4) To find out how much is the influence of information technology and organizational culture on the performance of accounting information systems. This study is expected to contribute to developing knowledge and solving problems. The methods used are descriptive method and verification method. The analysis unit for this study is a bank branch office in Bandung. Statistical data analysis uses multiple regressions. Based on the study result descriptively, information technology, organizational culture and the performance of Accounting Information System in Bank “X” of Bandung is good but, verivicatively it turns out that information technology has a significant effect on the performance of accounting information system, while organizational culture does not significantly affect the performance of accounting information system.

Keywords: Information Technology, Organizational Culture and the Performance of Accounting Information Systems (AIS)

Information Technology, Audit Evidence and Financial Performance of an Organization (Published)

Financial information is expected to inform its stakeholders about an organization concerning the best objective decision making options. Most financial statements appear misleading occasioned by inappropriate application of discretionary accruals which falsify financial information. It is on this note that the research was carried out to further investigate the assertion. The research design adopted seventy (70) manufacturing companies contained in the stock exchange fact book of 2013 .The basis of this selection was on companies industrial output on yearly ratings by Manufacturing Association of Nigeria (MAN). The period of study covered seven years i.e. 2007 to 2013. In the Nigerian Stock Exchange Calendar, 2007 marked the end of the period of boom in stock trading after which the stock market experienced a near collapse in the stock prices to date. Findings revealed that the combination of electronic and manual sources of evidence complemented by the audit committee oversight function have positive significant effects on the financial performance of companies. Specifically, audit committee was found to have significant impact on financial performance of the entities via effective corporate governance. In particular, boards of firms that have functional and effective audit committee appear to have effectively oversee the financial transactions of the firms, and managers generally agree to comply with the board directives as prescribed. The evidence confirmed that audit committee, when constituted mostly of independent or non-executive directors, have a restraining effect on unauthorized actions of executive managers. It was concluded that the complementary role of IT, audit evidence and audit committee, ensure effective financial disclosure and by extension the financial position of an organization. It was therefore recommended that to ensure credibility of financial statement performance, the application of IT, audit evidence and the contribution of the audit committee be handled professionally. These should also be disclosed appropriately in the financial statement.

Keywords: Audit Committee, Audit Evidence, Financial Performance, Information Technology

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