Proceedings of the 5th International Conference on Accounting, Auditing, and Taxation (ICAAT 2016)

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49 articles
Proceedings Article

(paper withdrawn) Signaling Theory Embedded in the Throughput Model to Examine the Governance of How External Auditors Rely on Internal Audit Function

Waymond Rodgers, Ibrahim Albawwat
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...
Proceedings Article

The Analysis of Indicators of Long-Term Prosperity Companies from Automotive Based on Predictive Finance Indicators

Hana Scholleová
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....
Proceedings Article

The Use of the Square of Opposition in Accountant's Professional Judgement

Viatcheslav Y. Sokolov
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...
Proceedings Article

Financial Performance of Czech Sugar Refineries: Case Study Testing the Post-Crisis Period 2010-2013

Jiří Strouhal, Petra Štamfestová
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 ...
Proceedings Article

Accounting Fraud and Accounting Standards: The Case of Toshiba's Fraudulent Accounting

Daisuke Suzuki, Junpei Yamada
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...
Proceedings Article

Perception of Management Accounting and Controlling by Polish Authors in Publications in 1990-2016

Anna Szychta, Justyna Dobroszek
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...
Proceedings Article

Application of Benford's Law for Fraud Detection in Financial Statements: Theoretical Review

Mihkel Tammaru, Lehte Alver
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...
Proceedings Article

Conception and Periodisation of Fraud Models: Theoretical Review

Maria Vassiljev, Lehte Alver
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...
Proceedings Article

From Craft to Institution: Institutional Analysis and the Medieval Accounting History

Olga Volkova
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...
Proceedings Article

Factors of Possible Risk Prediction for Financial Statement Falsification in Banking Sector of Russian Federation

Genrietta Soboleva, Sofya Soboleva, Dina Lvova
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...
Proceedings Article

Accounting Measurement Matrices: Subject and Values

Elena Abdalova, Svetlana Karelskaia
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...
Proceedings Article

Profitability Measurement and Analysis in Estonian Business Practice

Maret Branten, Jaan Alver
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,...
Proceedings Article

Update on Tax Control Practice in Latvia in the Scope of VAT Directive 2006/112/EC

Inta Brūna, Jūlija Pouha
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...
Proceedings Article

Integrated Reporting: A Story of Stakeholder Accountability

Chisinga Chikutuma
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....
Proceedings Article

Thin Capitalization: Financial Innovation Versus Tax Rules

Ivan Darushin, Natalia S. Voronova
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...
Proceedings Article

Mimetics from France to Cameroon: A New Approach to State Control through Taxation and Statistics

Jean-Guy Degos, Guy Djongoué
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...
Proceedings Article

Application of Professional Judgement by Russian and European Companies in Determining the Scope of Consolidation

Natalia Generalova, Ekaterina Popova
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...
Proceedings Article

The Special Tax Regime as a Factor of Business Activity in Modern Russia

Svetlana Gorbushina, Tatiana Dyukina
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...
Proceedings Article

Profit per Employee Analysis (Based on Four Major Estonian Supermarket Chains in 2010-2014)

Mark Gofaizen, Paavo Siimann, Jaan Alver
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...
Proceedings Article

Specific Features of Depreciation Accounting at the End of the 12th - Early 13th Centuries

Marina Gurskaya, Mikhail Kuter, Armina Papakhcian, Artem Musaelyan
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...
Proceedings Article

History and Future of Auditing in Russia

Iurii Guzov, Olga Strelnikova, Viktoriia Iaremchuk
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...
Proceedings Article

Performance Information Disclosure at the Estonian Universities

Toomas Haldma, Kristi Ploom, Anneli Lorenz
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...
Proceedings Article

Possible Financial Reporting Challenges Faced by Governing Bodies of Public Schools in South Africa

Moses Thabang Hlongoane
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...
Proceedings Article

Customer Concentration and Profitability in Private Healthcare Companies

Riikka Holopainen, Mervi Niskanen, Sari Rissanen
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...
Proceedings Article

Tax Potential of a State: Development Factors

Viktor V. Ivanov, Natalia V. Pokrovskaia, Nadezhda A. Lvova
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...
Proceedings Article

Historical Milestones within Public Sector Accounting in Modern Russia

Nataliya G. Ivanova, Valeria I. Pilipenko
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,...
Proceedings Article

Investment Trends of Latvian Pension Funds After the 2008 Financial Crisis

Jekaterina Jefremova, Iveta Mietule
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...
Proceedings Article

Taxation of Private Foundations and Game Theory

Urmas Kaarlep
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...
Proceedings Article

Are More Formal Performance Management Systems More Successful?

Tarmo Kadak, Erkki Laitinen
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...
Proceedings Article

Development of the Accounting Profession Illustrated by the History of Russian Accounting Societies

Svetlana N. Karelskaia, Viatcheslav Y. Sokolov, Ekaterina I. Zuga
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...
Proceedings Article

Professional Ethics in Accounting: Case Studies in Lifewide Lifelong Learning Programmes

Anna Karmańska
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,...
Proceedings Article

Problematic Issues of Cost Accounting Policies in Russian Companies

Olga D. Kaverina, Polina M. Lebedeva, Tatiana O. Terenteva
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...
Proceedings Article

Altman Z-Score Model for Bankruptcy Forecasting of the Listed Lithuanian Agricultural Companies

Vaiva Kiaupaite-Grushniene
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....
Proceedings Article

Reporting Obligations of Companies Listed on Newconnect - Scope, Irregularities in Completion and Their Consequences

Katarzyna Klimczak
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...
Proceedings Article

Accounting and Analysis: Current Challenges and Trends

Valery V. Kovalev, Vitaly V. Kovalev
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...
Proceedings Article

Depreciation Accounting in Francesco Datini's Companies

Mikhail Kuter, Marina Gurskaya, Ripsime Bagdasarian, Angelina Andreenkova
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,...
Proceedings Article

The Formation of Accounting Education in Russia

Alexander V. Kuznetsov, Marina Gurskaya, Mikhail Kuter
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...
Proceedings Article

How to Present 'Financial Health' Analysis More Visual and Understandable for Stakeholders: Model, Configuration, Techniques

Svitlana Kuznetsova, Andriy Kuznetsov
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...
Proceedings Article

Harmonization of Accounting Practices: The Case of Accounting for PPE in Lithuanian Non-Listed Companies

Renata Legenzova, Asta Gaigalienė, Inesa Vilkaitė
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...
Proceedings Article

Predicting the Risk of Encountering Financial Difficulties by the Example of Estonian Municipalities

Pirgit Lohk, Paavo Siimann
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...
Proceedings Article

Reflections on the Accounting Profession in Russia in the Late Nineteenth - Early Twentieth Century

Irina N. Lvova, Dina A. Lvova
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....
Proceedings Article

Unconventional Tax Mechanisms in a Secular State: Prospects of Adaptation in Russia

Nadezhda A. Lvova, Natalia V. Pokrovskaia, Viktor V. Ivanov
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...
Proceedings Article

Tax Transparency - an Analysis of the Luxleaks Firms

Johannes Manthey, Dirk Kiesewetter
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...
Proceedings Article

Diagnostic of Company's Financial Crisis as an Insolvency Prevention Measure

Iveta Mietule, Alona Klodāne
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...
Proceedings Article

Taxation System in Poland: Ways of Reducing the Tax Gap

Małgorzata Mierzejewska
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...
Proceedings Article

Russian Public Sector Accounting: The Case of Experimental Estate Konskaya Volya (1893-1905)

Dmitry Nazarov, Marina Sidorova
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...
Proceedings Article

The Role of Accountant in Estonian Enterprise: Survey of Students Opinion

Monika Nikitina-Kalamäe, Natalja Gurvitsh
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...
Proceedings Article

Accounting Policies and Procedures in the Preparation of the Annual Report

Ave Nukka, Malle Kasearu
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...
Proceedings Article

Brand Valuation from the Balance Sheet Law Perspective

Katarzyna Petelska
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...