JournalTOCs

Accounting Theory and Practice
Number of Followers: 8

This is an Open Access Journal

Open Access journal
ISSN (Print) 2538-8762 - ISSN (Online) 1822-8682
Published by Vilnius University

[38 journals]

Intentional bankruptcies and methods of detection
- Authors: Gintarė Juškaitė
  Pages: 3 - 3
  Abstract: Bankruptcy can happen to any company, but it is very difficult to identify intentional bankruptcies that are carried out for personal gain. Currently, there is no precise methodology for identifying intentional bankruptcies, so the process depends on the skills and qualifications of the investigator. The purpose of this research is to provide a method for identifying intentional bankruptcies after examining fraud in the financial statements and their impact on the probability of bankruptcy. The paper identifies the main methods of fraud bankruptcy detection, distinguishing forensic science as the main method for doing so. The paper conducts research, which was modeled on research conducted by other authors to test the effectiveness of bankruptcy prediction methods and the effectiveness of financial indicators in detecting fraud. The research evaluated the trends of the Altman Z'-Score model and the application of binary logistic regression analysis to a sample of intentional and unintentional bankruptcies. The regression analysis provided a model for determining intentional bankruptcies and identified the following indicators: net profit/assets, liabilities/assets, liabilities/equity, and Altman Z'-Score. An independent t-test was also performed to show the differences in the means of financial ratios between intentional and unintentional bankruptcies. The results of the T-test indicated that it is important to calculate and evaluate the following additional indicators: current assets/assets, receivables/income. The results of the research may help to identify the likelihood of intentional corporate bankruptcies and thus facilitate the sophisticated methods used to date.
  PubDate: 2023-01-12
  DOI: 10.15388/batp.2022.47
Assessment of the Impact of Airlines External Environmental Factors on the
Probability of Bankruptcy Risks in the Context of the COVID-19
- Authors: Kastytis Senkus, Irma Kamarauskienė, Samanta Šedytė
  Pages: 1 - 1
  Abstract: The paper analyses which external environmental factors had the greatest impact on the probability of airline bankruptcy risk in the pre-pandemic and pandemic periods. In view of the strengths and weaknesses of the models selected and presented, the Altman Z 'score model was chosen for the study. It has been modified by recalculating the coefficients for the model's weighted indicators. The investigation included environmental macroeconomic statistics and financial data of 49 airlines in the airline sector over the span of ten years (2011-2021). The correlation method has identified the severity of external factors in connection with bankruptcy risks during the pre-pandemic and pandemic timeframe and has established a correlation between fluctuations in the risk of bankruptcy of the airline sector and environmental factors. Based on the results obtained, conclusions were drawn on the link between external environmental factors and changes in the sector’s bankruptcy risk score in the context of the COVID-19 pandemic. The results of the comparative analysis method showed that the influence of environmental factors analysed in Europe, North America, South America, and Oceania differs due to the predominance of business culture in the region. Overall, however, legal factors had the biggest negative impact on the sector before the COVID-19 pandemic (2011-2018), while other factors (passengers, competitors, labour force, and creditors) were weakly correlated with the likelihood of bankruptcy risk. During the COVID-19 pandemic, the most positive relationship between creditors intensified.
  PubDate: 2022-11-16
  DOI: 10.15388/batp.2022.45
Identification of Material Misstatement and Specific Risk Factors in an
Audit of Financial Statements
- Authors: Deimantė Žukauskaitė, Dalia Daujotaitė
  Pages: 2 - 2
  Abstract: Recently, due to the changing geopolitical situation, economic instability and vulnerability, practicing auditors are facing new challenges that affect the identification and assessment of risks of material misstatement of financial statements. The purpose of the research is to identify the main factors affecting the risk of material misstatement and specific risks (fraud, accounting estimates, and going concern) that auditors should consider when deciding on the level of the risk of material misstatement of financial statements. To achieve the goal, two tasks were set: to compile lists of factors affecting the risk of material misstatement and specific risks; conduct a questionnaire survey to confirm the compiled lists. The following research methods were used during the research: content analysis and systematization of scientific and normative literature, comparison, logical analysis, questionnaire survey and summarization. As a result of the research, lists of the main factors determining the risk of material misstatement and specific risks were compiled, the completeness of which was confirmed during a questionnaire survey of auditors and auditor assistants working in Lithuanian audit companies. The results of the research show the necessary need for a more thorough assessment of specific risks. Compiled lists of factors determining the risk of material misstatement and specific risks can be useful for auditors of audit companies to assess the risk of material misstatement of financial statements.
  PubDate: 2022-12-22
  DOI: 10.15388/batp.2022.46
The Influence of Attitudes, Perception of Control and Internal Control
System on Whistleblowing Intention with Legal Protection as a Moderation
Variable (study on PT Kereta API Indonesia) title
- Authors: Dona Primasari, Lego Wasapodo, Muhammad Thareq Ilhami
  Pages: 4 - 4
  Abstract: This study aims to determine, analyze, and test the effect of attitudes, perceptions of control, and internal control systems on whistleblowing intentions with legal protection as a moderating variable. This type of research is survey research with a quantitative approach. The population in this study were employees who worked at PT Kereta Api Indonesia Daop 5 Purwokerto. The sample selection used purposive sampling method. The results of this study indicate that: 1) Attitude has a significant effect on the intention to take whistleblowing action. 2) Perceived control has no effect on the intention to take whistleblowing action on employees PT Kereta Api Indonesia Daop 5. 3) The internal control system has no effect on the intention to take whistleblowing action. 4) Legal protection cannot moderate the effect of attitudes on intentions to take whistleblowing actions. 5) Legal protection cannot moderate the influence of perceptions of control on the intention to take whistleblowing actions. 6) Legal protection cannot moderate the influence of the internal control system on the intention to take whistleblowing action.
  PubDate: 2022-12-30
  DOI: 10.15388/batp.2022.48
The effect of digital maturity level of workplace on perceived employee
well-being as moderated by locus of control
- Authors: Asta Stankevičienė , Ramunė Budrionytė, Vilma Baniulienė
  Pages: 5 - 5
  Abstract: Choices, determined by an employee's locus of control, affect their perceived well-being. But there is a lack of research that shows whether locus of control acts as a direct factor or a moderator. The aim of the research was to determine the effect of the level of digital maturity of the workplace on the perceived well-being of employees as moderated by the locus of control in the banking sector of Lithuania. The analysis and synthesis of scientific literature, as well as information interpretation and generalization were applied in the research. A survey of 232 employees of Lithuanian commercial banks was conducted. Descriptive statistics methods, significance tests, polynomial regression analysis were used for data analysis and formulation of conclusions. We found that locus of control moderates the relationship between employee perceived well-being and the salience of digital tools and the use of digital tools, although the relationship was weak. Employees with the dominance of internal locus of control believe that the importance of digital tools in their work is high and important, compared to the frequency of using these tools. Employees with an external locus of control tend to use digital tools more and feel greater psychological well-being when they use them to complete assigned tasks. Respondents with a high internal locus of control more often occupy high positions in the organisation, have subordinate employees and work with more complex digital tools. They are not concerned with the abundance or frequency of use of tools, but with the necessary functionality and capabilities. Therefore, the perceived psychological well-being of such employees is more influenced by the significance of digital tools.
  PubDate: 2022-12-30
  DOI: 10.15388/batp.2022.49
Undergraduate Business Students’ Perceptions of Accounting Practices
and Profession
- Authors: Aleksandra Pečiūrienė
  Pages: 1 - 1
  Abstract: Attraction of advanced students interested in studying at HEIs for an accounting major degree internationally remains a constant challenge to the accounting profession since the 1990s. To meet the demands it faces, the profession needs to be attractive for students who have the potential to become both technically competent professionals with good analytical abilities and communicative team players, able to understand the expanding business environment and think creatively. Unfortunately, there is a risk that potential students may possess false perceptions of accounting practices and profession. The aim of the research is to explore the perceptions of accounting of the students enrolled in the studies for non-accounting major degree of Professional Bachelor in Business Administration at Lithuanian HEIs. Foremost, the paper analyses the studied assessing approaches and tools used in the notable prior research on the topic. This is followed by the revealed methodology and analysed findings for the research carried out. One of the more important discovers was that the female students assessed the accounting significantly as more definite, boring, precise, and compliance driven than male students. Even considering the abovementioned differences, the results of the perception factors’ analysis strongly suggest that the surveyed students despite their gender in the mass hold traditional stereotypical perceptions of accounting. Due to sufficient number of the surveyed students, findings in overall are applicable to the target group of the research. Finally, the paper provides conclusions, limitations and insights for feasible further research in the study area.
  PubDate: 2022-02-28
  DOI: 10.15388/batp.2022.40
Identification of key qualitative characteristics used to assess the
significance of misstatements identified in the financial statements
- Authors: Audrius Masiulevičius
  Pages: 2 - 2
  Abstract: Financial statements may be misstated for quantitative reasons, such as mathematically incorrect reporting of assets, liabilities or other. Misstatements in the financial statements may also be qualitative. It is the qualitative characteristics of the misstatement that reflect the significance of the misstatement not for mathematical magnitude, but for other reasons, such as changes in profitability trends or illegal activities. To date, auditors have dedicated more attention to the quantitative characteristics of misstatements and the qualitative characteristics have not been adequately assessed. And although the problem is well known to scientists and practitioners, little action has been taken to date. The objective of the study reflected in this article is to identify the key qualitative characteristics that auditors should consider in deciding the significance of the misstatements identified in the financial statements. A list of fifteen key qualitative characteristics was compiled during the study and the completeness of the list was confirmed by an expert survey. The list of key qualitative characteristics will not only assist the auditors in deciding on the significance of the misstatements identified but may also be used in further research to deepen the scientific knowledge of the qualitative characteristics.
  PubDate: 2022-05-04
  DOI: 10.15388/batp.2022.41
Peculiarities of the use of indirect costs allocation method, based on the
assignment of indirect costs to departments
- Authors: Daiva Tamulevičienė, Jonas Mackevičius, Ermina Liubinaitė
  Pages: 3 - 3
  Abstract: No costing method can guarantee that cost accuracy will be 100% correct. This is primarily due to the problem of attributing indirect costs to the cost of a product or service. However, in recent decades, most of the research on the allocation of indirect costs has focused on Activity Based Costing (ABC) method, which is too complex and too costly for many companies. In contrast, research into the method of allocating indirect costs to departments has been unduly reduced. This method, often referred to as the traditional approach, is popular with the vast majority of companies and, if properly applied, would result in a reasonably accurate allocation of indirect costs to the cost of goods and services. The objective of the study is to reveal the peculiarities of the application of indirect cost allocation method based on the assignment of indirect costs to departments, with a view to improving the efficiency of the use of this method in the assignment of indirect costs to the cost of goods or services. The paper examines the peculiarities of the traditional method of allocating indirect costs, proposing not only a sequence for allocating these costs, but also the criteria for selecting the basis for the allocation of indirect costs, alternative methods of allocating indirect costs to production units, and the principles for calculating the indirect cost rate. All of this would allow enterprises to apply the indirect cost allocation method, based on assignment oh indirect cost to departments, much more effectively, both in financial accounting, for the purpose of determining cost of sales for the preparation of financial statements, and in management accounting, for the purpose of making various management decisions.
  PubDate: 2022-07-13
  DOI: 10.15388/batp.2022.42
Solving the Terminology Problem of Accounting Manipulations (Earnings
Management and Creative Accounting)
- Authors: Diana Bachtijeva
  Pages: 4 - 4
  Abstract: The work presents a variety of terms that name accounting manipulations. After analyzing scientific sources and conducting an analysis of the bibliographic data of the publications presented on the Web of Science website, the terminology problems prevailing in foreign and Lithuanian literature are revealed. This terminology brings a lot of confusion when dealing with the problem of accounting manipulations. The article examines the reasons for the use of different terms, presents the results of the conducted expert assessment. Experts appreciated the phenomenon – accounting manipulations that affect the amount of profit. They named associations derived from the terms "earnings management" and "creative accounting" used in Lithuanian literature. According to experts, the Lithuanian term that best reflects the phenomenon is manipulative accounting. The article presents the definition of manipulative accounting, which is constructed on the basis of the literature analysis.
  PubDate: 2022-08-18
  DOI: 10.15388/batp.2022.43
Evaluation of Salaries and Their Factors in Lithuania
- Authors: Rasa Subačienė, Gintarė Bruzdeilynaitė
  Pages: 5 - 5
  Abstract: Salaries and wages are widely analysed in legal, economic and social dimensions. Remuneration reflect many aspects, therefore, they play a significant role for the individual, for whom it is often the main source of livelihood, for the company, for which the compensation of the employee's work is both business expenses and elements of business execution, and for the state, which directly influences wages through its regulatory mechanisms and for which the amount of salary is an important indicator of society's standard of living. The purpose of the study is to evaluate the salaries forms and systems applied in Lithuanian companies and the factors affecting them. To achieve the goal, the methods of scientific literature analysis, information grouping, systematization, and generalization were applied. A questionnaire survey was conducted in Lithuania in order to assess the forms and systems of salaries and the factors affecting them. The results of the study show that internal factors have the greatest influence on wages. External factors of greatest impact are the salary level in the region/country, labour market conditions, and the impact of the government. In Lithuanian companies, the time based form of salaries is most widely used, the unit based form is used in 19%, and the mixed form - in 26% of all companies. The research results show that the trends in the development of salaries’ systems are aimed at developing the employee's individual abilities, promoting his motivation to achieve both personal and company results, compensation for the work performed on different forms, with the purpose to achieve maximum definiteness, clarity and objectivity of the systems.
  PubDate: 2022-09-06
  DOI: 10.15388/batp.2022.44