Theses and Dissertations (Accounting)

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Tax avoidance and its relation to accounting conservatism
(University of Pretoria, 2024-02-08) Stiglingh, M. (Madeleine); De Villiers, Charl Johannes; Smith, Christelle; wilcojs@unisa.ac.za; Wilcocks, Jolani Suné
This thesis explores the relationship between tax avoidance and accounting conservatism for publicly listed corporate taxpayers, and whether the relationship differs for conditional and unconditional accounting conservatism. The start of the study followed an archival research design in that it reviewed the literature on research performed in the fields of tax avoidance and accounting conservatism and its two forms. These concepts, both grounded in agency theory, were considered with specific reference to the determinants, and consequences of both tax avoidance and accounting conservatism, as well as the measures used to quantify these phenomena. Then, multivariate regression analyses were performed to explore the relation between tax avoidance and the two forms of accounting conservatism (conditional and unconditional conservatism). The analyses used data for publicly listed United States firms for a period of 26 years, available to the public from the Datastream database. Tax avoidance was measured using non-cash flow based and cash-flow based effective tax rate measures. Accounting conservatism was measured using the NONACC measure (an accruals-based measure) for unconditional conservatism, and the CSCORE measure (an earnings/stock relation measure) for conditional conservatism. The augmented Basu model was also used to establish the relation between tax avoidance and conditional conservatism. The results suggest a negative relation between unconditional conservatism and tax avoidance, and a positive relation between conditional conservatism and tax avoidance. This research provides conceptual frameworks for, and advances the measures of, tax avoidance and accounting conservatism and improves the understanding of the relationship between these phenomena which could assist in identifying firms prone to tax avoidance.
Approaches to digital learning and authentic assessment in accounting education
(University of Pretoria, 2022) Coetzee, Stephen; Schmulian, Astrid; cecile.jansevanrensburg@up.ac.za; Janse van Rensburg, Elsie Cecilia
This thesis reports on the use of various approaches to authentic assessment and learning, enabled by digital technologies, in an undergraduate competency-based accounting course, for the purpose of developing student competencies. Research paper 1 documents the design and development of an authentic assessment for learning to develop students’ digital creativity competence. The students’ digital creative outputs and the students’ experiences of developing these outputs were analysed. Despite the outputs primarily demonstrating a low level of digital creativity competence, the students were positive towards the assessment and suggested that they had gained deeper knowledge and understanding of the objective of financial reporting and appreciated the authenticity of the assessment. Research paper 2 reports on the incorporation of Mobile Instant Messaging (MIM) in assessments to enable students to socially construct knowledge and develop their collaborative problem solving competence. The extent, timing and content of the MIM communications were influenced by the nature and stake of the assessment. The students’ experiences of the use of MIM during assessments was positive. This was attributed to the learning opportunities, and collaboration and teamwork afforded by MIM. MIM further added assessment authenticity, accessibility and equitability. The description of the development and implementation of an Instant Messaging Assessment Tool (IMAT), to facilitate MIM during assessments, can subsequently inform the development of similar assessments in other settings. Research paper 3 reports on the use of an online social annotation platform (OSAP) to contribute towards developing students’ reading comprehension of International Financial Reporting Standards (IFRS) in preparation for lifelong learning. The nature of the students’ text-based interactions revealed high levels of collaboration with students asking and answering questions. The students’ experiences of collaboratively reading and annotating study material using an OSAP, were positive. The use of an OSAP, in preparation for lifelong learning, enabled the students to collaborate and interact with their peers, motivated them to read their study material before class, and improved their comprehension of their study material. In each instance, the digitally enabled authentic assessment for learning, that forms part of a programme of assessments, afforded the students opportunities to collaboratively construct their knowledge and develop a specific competence.
The effect of changes in the accounting for loan loss provisions on managers' decisions
(University of Pretoria, 2022) Badenhorst, Wessel; Rupert, Tim; maryke.scheun@up.ac.za; Scheun, Maryke
This study provides evidence of the effect of the change in the accounting for loan loss provisions from allowing low levels of professional judgement, to a new standard that permits managerial judgement and discretion in the measurement and application of loan loss provisions. The International Financial Reporting Standard (IFRS) 9 introduces an ‘expected credit loss’ model that takes into account reasonable and supportable forward-looking information. Under IFRS 9 it is no longer necessary to have ‘objective evidence’ of impairment before a provision is recognised as was the requirement of the International Accounting Standard (IAS) 39. The change to greater discretion in measuring loan loss provisions makes this event particularly useful to examine the impact of accounting standards that allow more judgement and discretion on managerial behaviour. I used an experiment to examine whether the expected credit loss model of IFRS 9 leads to an increase in earnings management compared to the incurred credit loss model of IAS 39. Using a banking environment setting, the experiment manipulated the presence versus absence of earnings management incentives and IFRS 9 versus IAS 39 accounting standard. I contributed to the literature by demonstrating that the change from IAS 39 to IFRS 9 achieved the objective of allowing more managerial discretion without causing increased earnings management.
A management control systems approach to integrated reporting
(University of Pretoria, 2021) De Villiers, Charl Johannes; stefan.bezuidenhout@up.ac.za; Bezuidenhout, Stefanus Cornelius (Stefan)
Integrated reporting is a process based on integrated thinking which results in the periodic publication of an integrated report by an organisation. An integrated report is a report to stakeholders on the strategy, performance and activities of an organisation presented in a manner that allows stakeholders to assess the ability of the organisation to create and sustain value over time. According to prior literature, a good quality integrated report has various benefits, although the preparation of the report can be challenging. Management Control Systems (MCSs) could enhance the organisation’s ability to prepare a good quality integrated report, however, it is unclear how MCSs support the processes required to prepare an integrated report. This research is motivated by literature which encourages further investigation into the interaction between MCSs and integrated reporting. This research provides case study evidence from a single case study of a South African telecommunications company, to gain a better understanding of how MCSs facilitate the preparation of an integrated report. This study uses a theoretical framework on MCSs that separates managerial intentions for controls from employee perceptions of controls. The study is embedded in the interpretive paradigm, acknowledging that a manager’s reality is socially constructed, and therefore explores how those who work with integrated reporting understand and interpret the role of MCSs in the integrated reporting process. The empirical data for the study comprises in-depth semi-structured interviews with employees and documentary evidence available from the case site. The findings of this research reveal that strategy is used as a MCS in the integrated reporting process. Strategic boundary controls, such as open-plan offices, and operational boundary controls, such as organisational culture, facilitate the preparation process of the integrated report. Operational performance controls, such as the performance management system, and strategic performance controls, such as the strategy planning process, further facilitate the preparation process of the integrated report. The significance of this qualitative study is that it provides an understanding of how strategy and the MCSs associated with strategy, support the integrated reporting process. This study gains an understanding of the role of MCSs in the preparation process of an integrated report. Furthermore, this study contributes to existing literature regarding the use of MCSs in the preparation of the integrated report. This research also enables companies to have a better understanding of the whole concept of integrated reporting through the investigation of the underlying relationships with MCSs.
Social and cognitive dimensions of language in the learning of introductory accounting
(University of Pretoria, 2019) Stainbank, Lesley J.; Carstens, Adelia; u04264061@tuks.co.za; Smith, Sonnette Elizabeth
In South Africa, introductory accounting students for whom English is an additional language face two linguistic barriers. Besides dealing with the social practices of communicating in academic English as the medium of instruction in higher education, students studying in English as an additional language (EAL) also have to acquire the language of accounting. The rationale for this thesis is threefold: first, it is based on my personal experience, as well as research findings by other scholars, regarding the linguistic barriers facing first-year accounting students with EAL; second, it is my perception that in the context of accounting education, language learning is mainly viewed as a neutral instrument of communication, which students studying in EAL are expected to master through remedial academic literacy courses; and third, there are very few empirical studies in the discipline of accounting that investigate the social and cognitive dimensions of language in the learning of accounting and that considers it the responsibility of accounting educators to make the norms and context of accounting language apparent to students. The purpose of this research was to consider the impact of social and cognitive dimensions of language in the learning of introductory accounting in English as an additional language. The theoretical framework combines an Interactionist perspective of Second Language Acquisition, which considers the social environment in which learning takes place, with Cognitive Load Theory (CLT) and the Cognitive Theory of Multimedia Learning (CTML). CLT accounts for students’ prior knowledge (including language proficiency) levels when designing effective instructional practices, and the CTML is based on the assumption that learning is enhanced when we build mental representations from words and pictures. A mixed methods design was used, comprising a qualitative interview analysis and two experimental studies. Three independent yet related studies were conducted to fulfil the main aim of the research. The first study (chapter 2) explores the individual and social learning experiences of firstyear accounting students studying in EAL. The findings highlight the importance of formal and social interaction for students with EAL to deal effectively with the academic literacy requirements of studying accounting in the first year at university. The outcomes of the interview study provided the impetus for the two experimental studies that consider the effectiveness of different instructional practices in assisting students with diverse language backgrounds to access the language used in introductory accounting topics. The first experiment (chapter 3) tested the effect of using everyday language versus accounting language and the provision of formulas on students’ ability to transfer their knowledge of basic Cost-Volume-Profit analysis to application problems. The results indicate that students with EAL benefit more from the use of everyday language than students with English as a first language. The optimal condition for transfer performance was providing everyday language without formulas. For the second experiment (chapter 4), a whiteboard animation was created to explain the concepts in the accounting equation by means of pictures and coloured blocks. The instructional efficiency of the animation was tested using a voice-over PowerPoint presentation as the control. All students enjoyed the animation more than the control presentation. The animation reduced the extraneous cognitive load of Grade 12 accounting students with EAL. The effect of both the test and control presentations were more beneficial for Grade 12 accounting students with EAL and for students without Grade 12 accounting. The findings have implications for accounting educators in recognising the social and cognitive aspects of language use on learning in introductory accounting, particularly for students studying in EAL. This awareness should translate into pedagogical practices being adapted to accommodate the learning needs of students studying accounting through EAL.
The impact of pre-undergraduate preparation courses in accounting on academic performance
(University of Pretoria, 2018) De Villiers, Charl Johannes; u04241150@tuks.co.za; Joynt, Corlia Maria
This study provides a thick description of an Accounting bridging course and it examines the impact of this pre-university course on the academic performance of students in a first-year introductory Accounting course at a South African university. Several control variables (such as taking Accounting at school, performance in mathematics at school, learning self-efficacy, motivation to learn and student motivation) were taken into account to determine the impact of the course on students’ performance in various assessments of the first-year Accounting course. Propensity score matching and Heckman’s procedure were used to compensate for selection bias. The findings show that there is a positive association between students’ attendance of this pre-university course and their academic performance in Module test 1.
Corporate social responsibility disclosure assurance and financial performance : a cross-country study
(University of Pretoria, 2018) De Villiers, Charl Johannes; deklerk.marna@gmail.com; De Klerk, Marna Catharina
The study evaluates in a cross-country setting whether corporate social responsibility (CSR) assurance represents a signal of the quality of CSR disclosure to investors. As part of this objective, the study also evaluates whether the associations of CSR disclosure and CSR assurance with subsequent financial performance are in the same or in opposite directions. Agency Theory and information asymmetry considerations are used as basis to develop testable hypotheses. The first step is to test the association between CSR disclosure and subsequent financial performance. Next, the association between third-party assurance provided on CSR disclosure and subsequent financial performance is evaluated. The two market-based measures of financial performance chosen are share price and market-to-book ratio. The two accounting-based measures of financial performance used are actual future cash flows and actual future profitability. The study examines a sample based on the 100 largest firms from different countries included in KPMG’s 2008, 2011 and 2013 international surveys of CSR reporting practices. The measures of CSR disclosure and CSR assurance used are based on data collected by KPMG, as an independent and credible source. The overall findings show that CSR assurance does not represent a signal of the quality of CSR disclosure to investors and that the associations of CSR disclosure and CSR assurance with market-based measures of financial performance are in opposite directions. CSR disclosure included in a firm’s annual report at a level higher than the sample mean has a positive association with market-based measures of financial performance. These results are driven by firms in environmentally non-sensitive industries.1 CSR assurance has a negative association with market-based measures of financial performance. Additional tests suggest that this negative association is driven by firms in non-sensitive industries from countries where some form of CSR disclosure is required, or is in the process of being mandated. The results are robust to various additional tests. Associations of CSR disclosure and CSR assurance with accounting-based measures of financial performance are mostly not significant for the one- to three-year-ahead periods. Prior studies on the association between CSR disclosure and market-based measures of financial performance have provided inconsistent results. In respect of CSR assurance, limited prior archival studies have been conducted on the association between CSR assurance and market-based measures of financial performance. Prior research on CSR assurance did not evaluate whether associations could be different for firms in environmentally sensitive industries compared to firms in environmentally non-sensitive industries. Prior research also did not control for country-level institutional strength and country-specific characteristics. Analysing CSR disclosure together with CSR assurance in a study using the same underlying financial data made it possible to evaluate whether associations of CSR disclosure and CSR assurance with financial performance are in the same or in opposite directions.
Approaches to social constructivist accounting education
(University of Pretoria, 2018) Coetzee, Stephen; u02571625@tuks.co.za; Schmulian, Astrid
A competency-based approach to teaching, learning and assessment that focuses on the development of competencies that are essential for success in the accounting profession, has been proposed for accounting education. Rooted in social constructivism, this thesis reports on three competency-based approaches to accounting education. Paper 1 explores undergraduate accounting students’ perceptions of their experience of team teaching and suggests that the respondent students assessed the teaming and equal status models of team teaching positively. The students were statistically significantly more positive about the advantages of the teaming model than the equal status model. The teaming model provides students with lectures that, from their perspective, are more interesting, aid the students’ understanding, and provide students with faster and more individualized support than the equal status model. In adopting the teaming model, teachers should, however, consider sources of possible confusion and intimidation. Paper 2 discusses the development of two Messenger bots using Chatfuel, a visual development environment for developers that do not have any programming or coding knowledge. Informed by social constructivist learning, the content of the messages sent to the students was carefully scripted and personalized, to encourage anthropomorphism on the part of the student users. The majority of the respondent student users expressed their overall satisfaction with the Messenger bots. The methodology applied in the development of the different bots can be used by instructors in developing their own Messenger bots, to support their teaching and their students' learning. Paper 3 reports on the development, and the students’ perceptions of their experience, of a Team Assessment with Immediate Feedback (TAIF), in which immediate formative feedback is provided to the students by their peers and the assessment instrument (the IF-AT_ form). Results of the quantitative and qualitative data, collected in a survey, suggest that the majority of the students experienced the TAIF positively. The study provided some initial evidence that a team assessment in a culturally diverse student cohort may enhance intercultural collaboration. Team assessments may also contribute towards re-establishing the link between professional accounting education and practice.
The mandatory adoption of International Financial Reporting Standards and financial statement comparability : South African evidence
(University of Pretoria, 2017) Venter, Elmar R.; Stiglingh, M. (Madeleine); smithc@unisa.ac.za; Smith, Christelle
In this study, I examine whether the mandatory adoption of International Financial Reporting Standards (IFRS) in a country where local Generally Accepted Accounting Principles (GAAP) is of similar quality to IFRS is associated with changes in the comparability of financial statements. I also investigate the sources of any changes in the comparability of financial statements. I use data from South Africa, where, word for word, prior to the mandatory adoption of IFRS, local GAAP was the same as IFRS, and enforcement remained unchanged. I use two different measures of comparability, one based on accounting data (accruals-cash flow measure) and the other based on both accounting data and market data (earnings-return measure). I compare South African firms with two different groups, namely other mandatory IFRS adopters and non-adopters. My data show evidence of an increase in the comparability of the financial statements of South African firms with those of both adopters (both measures) and non-adopters (the earnings-return measure) following the mandatory adoption of IFRS. In additional analysis, I found a global increase in the comparability of firms' financial statements that is consistent with market changes unrelated to IFRS adoption as one of the sources of the increase in comparability. Moreover, an incremental increase in the comparability of the financial statements of South African firms after the mandatory adoption of IFRS, relative to the increase in the comparability of the financial statements of non-adopting firms, is consistent with benefits from using the IFRS "label" and with the expanded IFRS network as sources of increased comparability.
Differences in accounting students' perceptions of their development of generic skills and emotional intelligence in a heterogeneous classroom
(University of Pretoria, 2016) Coetzee, Stephen; Schmulian, Astrid; marina.kirstein@up.ac.za; Kirstein, Marina
Aspiring professional accountants need to develop certain competencies comprising both technical knowledge and professional skills (also referred to as generic skills), during their initial professional development (IPD). However, despite interventions to develop these competencies, there is still a gap between employers' expectations and graduates' competencies. It has been argued that Emotional Intelligence (EQ) may be the missing link in the IPD of professional accountants. It has been suggested that instructors should adopt specific non-traditional pedagogical approaches to develop professional skills and EQ. The effectiveness of these approaches may, however, be compromised by the diversity in the classroom. Instructors should take cognisance of the demographic differences of the individuals within the student group and the impact of these differences on the development of professional skills and EQ, when selecting the pedagogical approaches. Instructors should also take cognisance of the interaction between demographic variables within the demographic groups. This dissertation explored demographic differences in students' perceptions of the professional skills developed at the end of their IPD. Statistically significant differences were noted between different demographic groups of students on whether they have developed professional skills. This dissertation further explored the differences in EQ between demographic groups of students. Statistically significant differences were not only noted in EQ between these demographic groups of students but also within these demographic groups. Although this dissertation considers South African students, the results may be of interest to other multicultural and multilingual environments, particularly environments that have a history of socio-economic inequity and racial injustice.
The conceptual framework for financial reporting represented in a Formal Language
(University of Pretoria, 2015) Van der Merwe, A.J.; Stegmann, N.; u02435950@tuks.co.za; Gerber, Thinus Cornelius
The objective of this thesis is to investigate how the use of ontology technologies, as utilised in computing, can contribute towards formulating a globally acceptable Conceptual Framework for Financial Reporting (global CFfFR). The ideal being pursued in the financial reporting domain is a single set of high quality, principle-based accounting standards which are globally recognised (Barth, 2013b; Bullen & Crook, 2005; Stein, 2015) guiding the provision of decision-useful information to the users of financial reports (IASB, 2010a). The CFfFR, published by the International Accounting Standards Board (IASB) (IASB, 2010a), was developed with the intention to provide guidance to users and preparers of financial reports and standard setters regarding the provision of decision-useful financial information (IASB, 2010a). Unfortunately, a clear, consistent and unambiguous world is not the reality, which preparers of financial reports and investors encounter when they compile and interpret financial reports governed by financial accounting standards (Bhimani, 2008; Schipper, 2003; Tweedie, 2007; Wüstemann & Wüstemann, 2010). This is a multi-disciplinary study, involving mainly the disciplines of accounting and computing, but also touching on philosophy and the philosophy of science. The multimethod qualitative study was performed adopting a research strategy utilised in the Information Systems (IS) discipline known as Design Science Research (DSR) (Vaishnavi & Kuechler, 2013). Three research techniques were used during the performance of the DSR Cycles. The research techniques were used to answer the three sub-research questions and finally the main research question. A systematic review was performed during DSR Cycle 1. DSR Cycles 2 and 3 involved interdisciplinary investigations, combining knowledge from philosophy, philosophy of science and computing to enhance knowledge in the main discipline i.e. accounting. The main research question was answered during DSR Cycle 4, when a domain ontology of the CFfFR was modelled. The CFfFR was modelled using the Ontology Life Cycle (OLC) (Neuhaus, Vizedom, Baclawski, Bennett, Dean, et al., 2013) developed in the knowledge representation (computing) discipline. Part of the findings was that it is possible to build a formal domain ontology of the CFfFR. The main contributions were made during the performance of DSR Cycle 4 (Chapter 7). A formal domain ontology of the CFfFR as artefact provided the most basic classes and relationships to facilitate decision-useful information. During the formalisation process, inconsistencies and unintended meanings within the CFfFR were identified. In conclusion, some areas for further research were identified.
South African accounting students' reading comprehension of the IASB's Conceptual Framework and selected International Financial Reporting Standards
(University of Pretoria, 2015) Coetzee, Stephen; Schmulian, Astrid; u04244184@tuks.co.za; Janse van Rensburg, Elsie Cecilia
This dissertation explores South African financial reporting students reading comprehension of the IASB s Conceptual Framework for Financial Reporting (Framework) and selected International Financial Reporting Standards (IFRS). In particular, this dissertation investigates differences in reading comprehension of various demographic groups, using the Cloze procedure. Analysis of differences in reading comprehension scores on the Framework revealed statistically significant differences between reading comprehension by language of instruction and the attendance, or not, of prior reading courses. When exploring the selected IFRS s, statistically significant differences were identified for prior academic performance, language of instruction, first language and enrolment in the Thuthuka programme. In a heterogeneous financial reporting class, where such differences between student groups are present, instructors may need to consider implementing differentiated instruction in developing reading comprehension. Although this dissertation considers South African students, the results may be of interest in other multicultural or multilingual environments, particularly where students also have diverse traits and backgrounds and have to comprehend learning material in a second language.
The understanding and use of interim financial reports by individual shareholders of South African listed retail companies for investment decisions
(University of Pretoria, 2013) Koornhof, Carolina, 1959-; Vorster, Q. (Quintus); Oberholster, J.G.I. (Johan Gerhardus Ignatius), 1962-
Since 2007, several studies have been conducted by international and national role players to establish whether the recent efforts to improve financial reporting have been successful. The respondents to the surveys used as part of these studies have indicated that more concise and less complex financial reports would be more understandable to users of financial reports. In view of the call for shorter and simpler financial reports, the fact that the understandability of financial reports appears to be a problem, as well as the fact that a limited amount of research on the understandability of interim financial reports has been done thus far, it was decided to investigate whether individual shareholders understand the context and content of interim financial reports which, per se, are supposed to be more concise and less complex financial reports presented by companies. The study entailed using a postal questionnaire in a survey of a sample of individual shareholders of three large South African listed retail companies to determine whether individual shareholders understand the context and content of interim financial reports, and whether they use these reports, among other sources, to make investment decisions. The study is based loosely on the high profile studies of Lee and Tweedie in respect of individual shareholders performed in the late 1970s. The primary research objective of the current study was to determine whether individual shareholders of South African listed retail companies understand the context and content of interim financial reports. It was found that understanding of these reports was generally limited. However, there is evidence that experience and training in the field of financial accounting improve shareholders’ understanding of the content of interim financial reports. Apart from questions on the demographics and investment objectives of individual shareholders, a number of other questions were also included in the questionnaire to address several secondary research objectives. The questions relating to the secondary research objectives were designed to gather information, inter alia, on how individual shareholders make investment decisions, sources of information used by individual shareholders when making investment decisions, additional information that should be included in interim financial reports, as well as the medium of communication through which individual shareholders would prefer to receive interim financial reports. The study has shown, amongst other things, that the majority of respondents to this study initiated their own investment decisions, that articles in the financial press are the most popular source of information when making investment decisions, and that individual shareholders still prefer to receive interim reports by post.
An assessment of the relationship between environmental and financial reporting by South African listed companies in the mining sector
(University of Pretoria, 2011-12-07) Vorster, Q. (Quintus); Venter, Elmar R.; envsustsol@mweb.co.za; Godschalk, Seakle Klaas Benne
The purpose of this study was to investigate the link between environmental reporting and financial reporting by listed South African mining companies in order to determine the degree of integration between these two processes. Many companies disclose environmental information in their financial report (FR) or in a stand-alone environmental (ER) or sustainability report (SR). However, the environmental information contained in these reports does not always satisfy the information needs of shareholders, analysts and investors. In most cases, it appears as if current ERs do not sufficiently reflect the business implications of environmental issues for companies, hence the lack of interest in such reports among investors and analysts. Although many analyses of ERs and FRs have been performed, there is a lack of evidence regarding the relationship between financial reporting and environmental reporting. In an attempt to address this gap in the literature, this study examined the current practice of relating environmental reporting to financial reporting of selected mining companies. The environmental components of sustainability reports (SRs) and the financial reports (FRs) of six of the largest South African mining companies were examined to assess the relationship between environmental and financial reporting. Forty-six environmental disclosure indicators relating to environmental information with business implications were identified from South African legislation, general accounting standards and best practice guidelines. The reports were examined using the indicators as benchmarks. The nature of disclosure for each indicator was recorded for each report. The level of linkage or integration regarding disclosures for the same indicator between the ER and its associated FR was assessed. Integration scores were determined for the main indicator categories, for individual indicators as well as for each company, based on seven potential levels of integration. The study concluded that, generally speaking, the current link between environmental reporting and financial reporting among the sample companies was very limited. The contribution of this study lies in the identification of a wide range of environmental disclosure indicators from a variety of sources, and the application thereof for assessing the relationship between environmental reporting and financial reporting.
A framework for improving the quality of management information
(University of Pretoria, 2009-11-24) Du Randt, S.L.; Cilliers, Gabriel le Roux
Good management information is critical to the success of any organisation. Without proper information, the organisation will starve and management will steer it towards its own destruction. Although management usually receives a constant flow of information every day, it does not necessarily serve its purpose. The information could be useful and contribute to good decision making. It could also be wrong, which could contribute to poor decisions and failure. Finally it could be available but inappropriate to the management of the organisation. Computer systems produce most of the management information in organisations. There are a variety of types of computer equipment and applications that could make a significant contribution to improve the quality of the information produced in an organisation. Improving the quality of the information could enhance the decisions and actions of management and therefore improve the results of the organisation. The objective of this study is to develop a framework for enabling managers to understand the attributes of quality information, and to identify appropriate computer equipment and applications to enhance the quality of information. The hypothesis is as follows: "Quality information is that information that can have a decisive impact on the decisions and action of the decision maker. It is feasible to identify the attributes of quality information. This research clarifies the main and supportive attributes of quality information. Computer equipment and applications, collectively known as computer tools, used and managed in an organisation contribute to enhance or impair quality information. These tools, and the role they can play to produce quality information, will be explained in this study. " To support the hypothesis the study is conducted in three phases. Phase 1 will establish the attributes of quality information. It commences by considering the historical development of computers and information. It explores the different driving forces that produced the technology of today and tomorrow. It then explores the nature and characteristics of information to develop an appreciation for the complexity and intricacies of information. This phase concludes by identifying the attributes of quality information: relevancy, accuracy, timeliness and comprehensibility. Phase 2 will assess the contribution of computer tools to produce quality information. The contribution that the computer equipment and applications make to enhance the attributes of quality information is described and evaluated. Computer tools are defined, and a method of assessing their contribution to enhance quality is designed and applied. The phase concludes with a summary of the contribution that the tools could make to enhance specific information components. The final phase produces a framework to evaluate the production of quality information. With a clear understanding on the one hand of the attributes of quality information, and, on the other hand of the contribution that different computer equipment and applications can make to improve the quality of information, a framework is developed to help managers to identify appropriate technology to improve the information on which they base their decisions. This framework could be used by information managers to improve the effectiveness of management's actions and decisions. The results of the study, it is submitted, support the stated hypothesis and add benefit to the practical application of information management.
The future horizons of accountancy education in South Africa : a review of the educational requirements until 1990
(University of Pretoria, 2010-11-15) Pistorius, Calie (Carl W.I.), 1958-; Wolman, Basil Sylvesta
Accountancy education in South Africa has been very controversial during the last few years and this controversy has led to objective self-examination by academics. It is acknowledged that there has been a substantial growth in the body of knowledge generally and that the accountancy profession has also been faced not only with a certain growth in the body of knowledge but also with a growth in society's expectations of the profession. These expectations could possibly include the expression of opinions on the fairness of profit forecasts and projected financial statements, including the underlying assumptions and opinions on management effectiveness. Possibly in order to accept greater responsibilities for the detection of fraud and the anticipated growth of society's expectations and greater utilisation of the computer, the future chartered accountant will be expected to be more proficient. This leads to the premise that a broader and less technique-oriented education is required for the future chartered accountant in South Africa. Developments overseas indicate that the profession in certain countries, plays a very active role in the final year of the accountancy education of its trainee accountants. In Australia the "Professional Year" is organised by The Australian Institute of Chartered Accountants. The candidates are evaluated on their performance during the "Professional Year" in assignments as well as their participation in classes, their attendance at the sessions and their successful completion of the final examination which is not regarded as a hurdle. In countries such as Canada and Scotland the institutes play an active role in promoting their own block-release courses. In Scotland the institute has its own lecturing staff, whereas in Canada in the province of Ontario, the Ontario Institute uses staff of the larger firms. In certain countries the final qualifying examination is intended to be difficult and case studies are used in the examination. In certain countries where the universities playa greater role in the educational process, the accountancy institutes are phasing out their own examinations. In other countries multiple-choice questions are set as a matter of expediency, where very large numbers of candidates are involved. In other countries, where the number of candidates is not too large, candidates do oral examinations and write theses as well. Complaints have been made about the length of the courses in South Africa, but in some countries accountants qualify between the age of 30 and 35 years. It is submitted that accountancy education in South Africa has been too technique-oriented and a happy medium between a conceptual and technique-oriented approach is required. University academics should play a more active role in research, and it is suggested that the Public Accountants' and Auditors' Board should give serious consideration to the possibility of reducing the number of contracting universities that are entitled to educate students for a Certificate in the Theory of Accountancy. The ultimate requirement for the profession is graduate entry, but in the interim entry standards must be improved and it is suggested that the profession create a trust fund utilising the Accounting Development Foundation, which could make bursaries available and thus make the profession more attractive to bright scholars. It is not envisaged that a detailed common body of knowledge should be prescribed, but more stringent conditions for the approval of contracting universities, should lead them to define the details themselves. This should not be stultifying, but should encourage research, which in the long run is in the interests of the profession. Communication between members of the profession and academics is essential to promote research and ensure the cross-fertilisation of ideas. It is also submitted that the final qualifying examination has had an undesirable effect on the teaching. This is because the proficiency of lecturers is generally measured by the success of the candidates in the final qualifying examination. A change in the format of the final qualifying examination is therefore imperative. A more case-study oriented examination is proposed. The value of the practical-experience requirement (articles) is questioned. It is submitted that for the practical ¬experience requirement to be meaningful, greater and more effective control of the quality of experience, to which the trainee accountant is exposed, is required. It is recommended that articles of clerkship or service contracts be dispensed with and that the training quotas of firms be more flexible, depending on circumstances. For the trainee accountant's experience to be meaningful it is necessary that his principal be kept up to date continuously with the latest developments which will result in greater emphasis being placed on required continuing education. The introduction of a quality review programme by the profession to improve the performance standards of its members is recommended. The abovementioned requirements, namely more effective control of practical-experience requirements, the introduction of a quality review programme and required continuing education as well as the fact that the decision making process in the accountancy profession is cumbersome and time-consuming necessitates a rationalisation of the controlling bodies in the profession. A questionnaire was designed to test the opinion of the respondents with regard to various controversial issues surrounding accountancy education. It appears that the profession does not want to accept greater responsibility for the possible extensions of the attest function and it can be stated that it favours the retention of the audits of private companies. It is thus obvious that certain changes are urgently required and the profession as well as academics will have to define its priorities very carefully. In the final analysis it must be borne in mind, that the profession must not overlook the public interest.
Voluntary employee reporting by the wholesale and retail companies listed on the Johannesburg Stock Exchange
(University of Pretoria, 2011-11-07) Venter, Elmar R.; 0731993312@mtnice.co.za; Loliwe, Thando
No abstract available. Copyright
The value relevance of mandatory IFRS adoption in South Africa
(University of Pretoria, 2011-11-07) Venter, Elmar R.; jared.g.ossip@gmail.com; Ossip, Jared Gidon
No abstract available. Copyright
Gedifferensieerde verslagdoening in Suid-Afrika (Afrikaans)
(University of Pretoria, 2010-10-25) Koornhof, Carolina, 1959-; koppeschaarzr@unisa.ac.za; Koppeschaar, Zanne Ronelle
AFRIKAANS: Die doel van rekeningkundige verslagdoening is om inligting te verskaf oor die finansiële stand, prestasie en veranderinge in die finansiële stand van ’n onderneming wat nuttig is vir ’n verskeidenheid van gebruikers om rasionele ekonomiese besluite te kan neem. Die probleem wat in hierdie studie aangespreek word, is die onvermoë van rekeningkundige inligting in finansiële state om aan die spesifieke behoeftes van die gebruikers van klein maatskappy finansiële state in Suid-Afrika te voldoen. Die studie behels ’n omvattende meningsopname van die behoeftes van gebruikers van klein maatskappy finansiële state in Suid-Afrika, ten einde aanbevelings vir die verbetering van die huidige rekeningkundige verslagdoeningstelsel ten opsigte van klein maatskappye te maak. Die empiriese ondersoek wat uitgevoer is, het die spesifieke inligtingsbehoeftes van die verskillende gebruikersgroepe van klein maatskappy finansiële state in Suid-Afrika bepaal deur gebruik te maak van vraelyste. Die data wat ingesamel is, vir doeleindes van die studie, het bestaan uit 434 voltooide vraelyste deur geregistreerde klein praktisyns, 212 voltooide vraelyste deur eienaars/bestuur van privaatmaatskappye, 5 voltooide vraelyste deur finansiële instellings, asook ’n onderhoud wat met die Suid-Afrikaanse Inkomstediens (SAID) gevoer is. Hierdie studie het getoon dat huidige rekeningkundige verslagdoeningsvereistes vir privaatmaatskappye nie aan die behoeftes van die gebruikers van hierdie maatskappye se finansiële state in Suid-Afrika voldoen nie. Die vereistes van die rekeningkundige standaard, IFRS for SMEs, wat gedurende 2007 in Suid-Afrika aanvaar is en op klein maatskappye van toepassing is, voldoen nie aan die inligtingsbehoeftes van Suid-Afrikaanse gebruikers nie. Gesien in die lig van die belangrike bydrae wat klein maatskappye tot die Suid-Afrikaanse ekonomie lewer, is die rekeningkundige verslagdoening van hierdie maatskappye noodwendig belangrik. Gebruikers van klein maatskappy finansiële state vereis dat huidige rekeningkundige verslagdoeningsvereistes verminder en vereenvoudig word, ten einde aan hulle spesifieke inligtingsbehoeftes te voldoen en om te verseker dat finansiële state betekenisvolle, relevante en betroubare inligting vir die gebruikers daarvan voorsien. ENGLISH: The objective of financial reporting is to provide information in regards with the financial position, performance and changes in the financial position of an entity that is useful for various users, enabling the users to form rational economical decisions. The problem that has been addressed in this study pertains to the inability of accounting information, produced in financial statements, to address specific needs of users of small company’s financial statements in South Africa. The study includes a comprehensive opinion survey of needs for users of small company’s financial statements in South Africa, in order to make recommendations for the improvement of the current accounting reporting standards for small companies. The empirical research performed within this study included the assessment of specific information needs for various user groups of small company’s financial statements in South Africa, by use of questionnaires. The data gathered for the purpose of this study consisted of 434 completed questionnaires by registered small practitioners, 212 completed questionnaires by owners of private companies, 5 completed questionnaires by financial institutions, as well as an interview with the South-African Revenue Services (SARS). The results of the study showed that the current reporting standards for private companies do not satisfy the needs of the users of these small company’s financial statements in South Africa. The requirements of the accounting standard, IFRS for SMEs, that was accepted in South Africa during 2007, applicable on small companies, does not satisfy the information needs of the South-African users. In the light that small companies make up an integral part of the South-African economy, the accounting reporting for these small companies is inevitably important. Users of small company’s financial statements require that the current reporting standards be reduced and simplified in order to address the users’ specific information needs and to ensure that the information in financial statements is meaningful, relevant and reliable for the users.
A fraud auditing approach for the regulator to detect investment fraud schemes
(University of Pretoria, 2011-10-04) Du Plessis, Danie E.; wendy.hattingh@gmail.com; Hattingh, Wendy
Investment managers are entrusted with clients assets and should act with due care and diligence when dealing with it. The regulation of investment managers does not preclude the possibility that they can defraud their clients. The question posed by this research is whether the regulator can as part of its risk-based supervision methodology apply a fraud auditing approach to identify possible investment fraud schemes. The regulatory mandate and powers to pro-actively detect fraud is considered as well as the changes required to the regulator’s methodologies.

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