Journal of Accounting & Organizational Change

Exploring Russian central government accounting in its context : Table of Contents

Konstantin Timoshenko, Pawan Adhikari — Sat Oct 17 08:00:42 BST 2009

Abstract:
Purpose – The purpose of this paper is to contribute to knowledge about Russian public sector accounting in times of change by exploring the emergence of a new way of accounting for Russian central government. Design/methodology/approach – In this paper, accounting is viewed as a social and institutional practice. A frame of reference guided by three theoretical perspectives is elaborated on. This troika incorporates a system approach to accounting, an accountability approach, and an institutional approach. Document search represents the major method of collecting data for this paper. Findings – This paper suggests that launching a nascent version of Russian central government accounting is better comprehended in terms of legitimacy rather than in terms of instrumentality. Research limitations/implications – This paper focuses on the appearance of up-to-date accounting provisions at macro-level and does, therefore, have limitations with regard to scope. This makes it intellectually rewarding to link the central government initiatives with endeavours to implement them at different levels of government and in specific public sector organizations. Originality/value – Bearing in mind, the lack of consistent research efforts on the topic in Western English-language literature, this paper strives to bring rather “alien” Russian central government accounting into the international arena for the purposes of cross-national comparisons and wide-ranging discussions. It also contributes to the literature dealing with the role of international organizations in the reform of public sector accounting.

The role of internal auditors in ERP-based organizations : Table of Contents

Haider H. Madani — Sat Oct 17 08:00:42 BST 2009

Abstract:
Purpose – The purpose of this paper is to develop a theoretical framework that will help to examine the role of internal auditors (IAs) in enterprise resource planning (ERP) based organizations. An ERP integrates all organizational functions in one powerful system that drives the organization strategically and also presents new challenges to the internal audit function. Design/methodology/approach – A literature review is undertaken to highlight the role of IAs in an ERP environment. Findings – The framework depicts the new relationships which the ERP system requires between the IAs and five associated groups: software vendors, information systems, information technology managers, ERP users, and consultants. ERP also gives interanl auditors an enabling technology to advise management on the implications of ERP for risk-intelligence. Research limitations/implications – This is a conceptual paper that has implications for internal auditing practice. Academic researchers will find this framework to be useful for testing it in the field. Practitioners will also benefit from this model when assessing the role of IAs in an ERP environment. Originality/value – Prior research in the auditing field has overlooked this issue. This paper will attempt to fill such an apparent gap in prior research and will help motivate further research in this field.

Voluntarism versus regulation: Lessons from public disclosure of environmental performance information in Norwegian companies : Table of Contents

Even Fallan, Lars Fallan — Sat Oct 17 08:00:42 BST 2009

Abstract:
Purpose – The purpose of this paper is to explore the development of environmental disclosure during periods of voluntarism and during periods with changed statutory requirements. More specific, the question is how volume and content variety of environmental disclosure in financial statements are immediately affected by statutory regulations. Design/methodology/approach – In order to compare the effects of such regulations with the development in environmental disclosure during periods without any changes in statutory requirements, a longitudinal study is conducted to test five specific hypotheses. A quasi-experiment with pre- and post-testing of disclosure volume and content variety is carried out to test the effects of the statutory changes. Findings – The most important lesson from this paper is the significance of the voluntary approach to improve the variety of environmental disclosure. The present paper supports the claim of voluntarism that companies will meet the heterogeneous requirements of their stakeholders without any governmental regulations. No statutory regulations are needed to make the companies increase and adapt their environmental disclosure to the demand from their stakeholders and legitimate their existence towards society. The present paper has revealed that the regulation approach has a significant, immediate effect on mandatory environmental disclosure only, and that companies do not fully comply with such statutory regulations. Research limitations/implications – There is no universal notion of voluntarism. Different countries and societies have different legal requirements and political cultures regarding voluntarism. That is, voluntary reporting in Norway is affected by the national statutory requirements and may be underpinned by a certain set of societal responsibilities that may or may not exist elsewhere. Further research is needed to see whether these findings are readily generalized or whether they should only be interpreted in light of local considerations. Originality/value – This is the first comprehensive study of the development of environmental disclosure in Norwegian companies. A total of 822 financial statements and annual reports, during the period between 1987 and 2005, are analysed.

The institutional pillars of management accounting function : Table of Contents

Marko Järvenpää — Sat Oct 17 08:00:42 BST 2009

Abstract:
Purpose – The purpose of this paper is to theorize the institutional pillars of management accounting function. Design/methodology/approach – The paper adopts a comparative case study approach. Findings – Institutional pillars of management accounting are explored on the basis of two longitudinal case studies. Competitive/economic forces and three analytical elements of institutional theory are composing institutions: regulative, normative and cultural-cognitive pillars. Each element is important, and all of them may work in combination, but they operate through distinctive mechanisms and processes. This paper illustrates how they provide the basis for compliance, order and the legitimacy of not the whole organization, nor of the management accounting systems but of the management accounting function. This “organizational legitimacy” of management accounting function may provide one potential additional explanation for the change and stability of management accounting in organizations. Originality/value – This paper creates an institutional interpretation of accounting change or stability at the level of an accounting function. It illustrates how the pressure for change or stability in management accounting is collectively constituted in organisations, how it is given meaning and how individuals are making sense of things, i.e. how accounting is institutionally embedded.