...1. Introduction Directors play vital role in corporate governance in which their poor management will lead to a significant change of shareholders value, measured by the company share prices. For example, ABC Learning Centre share price dropped 60% in 2 hours after it announced its profit fell 42% (Couriermail 2008). The purpose of this report is to outline the reasons of the collapses of ABC Learning Centre, Centro Properties Ltd and Hastie Group and the main financial disclosure issues raised. This report also includes amendments done by the Australian regulator to prevent such collapses and a discussion of directors’ duties to ensure the true and fair view of financial statements. 2. Brief background and the cause of financial problem 3.1 ABC Learning Centre In 2008, the ABC wrote off a loss of $437million, an amount which exceeds total profits of $300million in previous years (Schwab 2008). This means that ABC was indeed making losses since it was listed in 2001. The problem arose when new audit company, Ernst &Young, the new appointed audit team, found out that the company had reported payments from the developers as normal revenue hindering the fact that most centres were actually losing money. Moreover, an approximately of $206million indirect subsidy from the Federal Government via Child Care Benefit were reported (Rush & Downie 2006). Another problem is that its intangible assets consisted of various operating licenses worth $3.05billion...
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...The Role of Experience in Professional Skepticism, Knowledge Acquisition, and Fraud Detection Recent notable instances of accounting fraud have led to regulator and public concern over the failure of experienced auditors to detect frauds prior to the issuance of a company’s financial statements. In response, the AIPCA has issued a new auditing standard, SAS 99, Consideration of Fraud in a Financial Statement Audit, in an effort to help auditors better assess fraud risk, detect fraud symptoms, and sharpen professional judgment as to whether a fraud has actually been committed in a firm. The purpose of this term paper is to examine the role of experience in increasing professional skepticism, knowledge acquisition, and ability to detect fraud. We suggest that the typical audit environment does not provide auditors with the type of experience, i.e., practice and feedback with fraud, which is necessary for successful fraud detection. Results of an experiment indicate that audit novices who have received practice and feedback with fraud detection exhibit a higher level of skepticism and knowledge about fraud and are better able to detect a fraud when it exists than individuals with typical audit experience. 1 I. INTRODUCTION The apparent inability of auditors to detect financial statement fraud has prompted regulators, practitioners, and academics to examine the question, “Why do experienced auditors often fail to detect fraud?” There are several factors that...
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...JOURNAL OF MANAGEMENT ACCOUNTING RESEARCH Volume Fifteen 2003 pp. 95–116 Practice Developments in Budgeting: An Overview and Research Perspective Stephen C. Hansen The George Washington University David T. Otley Lancaster University Wim A. Van der Stede University of Southern California Abstract: Practitioners in Europe and the U.S. recently have proposed two distinct approaches to address what they believe are shortcomings of traditional budgeting practices. One approach advocates improving the budgeting process and primarily focuses on the planning problems with budgeting. The other advocates abandoning the budget and primarily focuses on the performance evaluation problems with budgeting. This paper provides an overview and research perspective on these two recent developments. We discuss why practitioners have become dissatisfied with budgets, describe the two distinct approaches, place them in a research context, suggest insights that may aid the practitioners, and use the practitioner perspectives to identify fruitful areas for research. INTRODUCTION udgeting is the cornerstone of the management control process in nearly all organizations, but despite its widespread use, it is far from perfect.1 Practitioners express concerns about using budgets for planning and performance evaluation. The practitioners argue that budgets impede the allocation of organizational resources to their best uses and encourage myopic decision making and other dysfunctional budget games....
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...LIST OF CONTRIBUTORS Solomon Appel Robert H. Ashton Reza Barkhi Metropolitan College of New York, New York, NY, USA Fuqua School of Business, Duke University, Durham, NC, USA Pamplin College of Business, Virginia Polytechnic Institute and State University, Blacksburg, VA, USA School of Management, University of Michigan-Dearborn, MI, USA College of Business Administration, San Diego State University, San Diego, CA, USA Department of Accounting, University of Arkansas at Little Rock, AR, USA Zicklin School of Business, CUNY – Baruch College, New York, NY, USA Belk College of Business, University of North Carolina at Charlotte, NC, USA College of Business and Economics, West Virginia University, Morgantown, WV, USA RSM Erasmus University, Department of Financial Management, Rotterdam, The Netherlands Mohamed E. Bayou Chee W. Chow Cynthia M. Daily Harry Z. Davis Nabil Elias Arron Scott Fleming Frank G. H. Hartmann vii viii LIST OF CONTRIBUTORS Fred A. Jacobs Frances Kennedy James M. Kohlmeyer, III Leslie Kren John Y. Lee Michael S. Luehlfing Adam S. Maiga School of Accountancy, Georgia State University, Atlanta, GA, USA Department of Accountancy and Legal Studies, Clemson University, SC, USA College of Business, East Carolina University, Greenville, NC, USA School of Business, University of Wisconsin, Milwaukee, WI, USA Lubin School of Business, Pace University, Pleasantville, NY, USA School of Professional Accountancy, Louisiana Tech University, LA...
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...Handbook of Management Accounting Research Volume 3 Edited by CHRISTOPHER S. CHAPMAN Imperial College London, UK ANTHONY G. HOPWOOD University of Oxford, UK MICHAEL D. SHIELDS Michigan State University, USA AMSTERDAM – BOSTON – HEIDELBERG – LONDON – NEW YORK – OXFORD PARIS – SAN DIEGO – SAN FRANCISCO – SINGAPORE – SYDNEY – TOKYO Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively visit the Science and Technology Books website at www.elsevierdirect.com/rights for further information Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for...
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...GROUP INTERACTION JOURNAL ARTICLES Compiled by Lawrence R. Frey University of Colorado at Boulder Aamodt, M. G., & Kimbrough, W. W. (1982). Effects of group heterogeneity on quality of task solutions. Psychological Review, 50, 171-174. Abbey, D. S. (1982). Conflict in unstructured groups: An explanation from control-theory. Psychological Reports, 51, 177-178. Abele, A. E. (2003). The dynamics of masculine-agentic and feminine-communal traits: Findings from a prospective study. Journal of Personality and Social Psychology, 85, 768-776. Abele, A., Gendolla, G. H. E., & Petzold, P. (1998). Positive mood and in-group—out-group differentiation in a minimal group setting. Personality and Social Psychology Bulletin, 24, 1343-1357. Aberson, C. L., Healy, M., & Romero, V. (2000). Ingroup bias and self-esteem: A meta-analysis. Personality and Social Psychology Review, 4, 157-173. Abougendia, M., Joyce, A. S., Piper, W. E., & Ogrodniczuk, J. S. (2004). Alliance as a mediator of expectancy effects in short-term group psychotherapy. Group Dynamics: Theory, Research, and Practice, 8, 3-12. Abraham, A. (1973a). Group tensions as measured by configurations of different self and transself aspects. Group Process, 5, 71-89. Abraham, A. (1973b). A model for exploring intra and interindividual processes in groups. International Journal of Group Psychotherapy, 23, 3-22. Abraham, A. (1974-1975). Processes in groups. Bulletin de Psychogie, 28, 746-758. Abraham, A., Geffroy, Y., & Ancelin-Schutzenberger...
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...SAGE India website gets a makeover! Global Products Enhanced Succinct Intuitive THE Improved Interactive Smart Layout User-friendly Easy Eye-catching LEADING WORld’s LEADING Independent Professional Stay tuned in to upcoming Events and Conferences Search Navigation Feature-rich Get to know our Authors and Editors Why Publish with SAGE ? World’s LEADING Publisher and home and editors Societies authors Professional Academic LEADING Publisher Natural World’s Societies THE and LEADING Publisher Natural authors Societies Independent home editors THE Professional Natural Societies Independent authors Societies and Societies editors THE LEADING home editors Natural editors Professional Independent Academic and authors Academic Independent Publisher Academic Societies and authors Academic THE World’s THE editors Academic THE Natural LEADING THE Natural LEADING home Natural authors Natural editors authors home World’s authors THE editors authors LEADING Publisher World’s LEADING authors World’s Natural Academic editors World’s home Natural and Independent authors World’s Publisher authors World’s home Natural home LEADING Academic Academic LEADING editors Natural and Publisher editors World’s authors home Academic Professional authors Independent home LEADING Academic World’s and authors home and Academic Professionalauthors World’s editors THE LEADING Publisher authors Independent home editors Natural...
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...2014 ANNUAL REport Focused Performance Financial Calendar Contents Year ended 31 December 2014 1 With you all the way 2 Report from the Chairman and the Managing Director & CEO 07 MAY 2015 Annual General Meeting 4 Year ending 31 December 2015* 24 AUGUST 2015 Half year results and interim dividend announcement 08 SEPTEMBER 2015 Record date for interim dividend entitlement 30 SEPTEMBER 2015 Interim dividend payable if declared 22 FEBRUARY 2016 Full year results and final dividend announcement 08 MARCH 2016 Record date for final dividend entitlement 31 MARCH 2016 Final dividend payable if declared * These dates are subject to change. Corporate Governance Statement 16 2014 Financial Report for Caltex Australia Limited 17 Directors’ Report 62 Consolidated income statement 63 Consolidated statement of comprehensive income 64 Consolidated balance sheet 65 Consolidated statement of changes in equity 66 Consolidated cash flow statement 67 Notes to the financial statements 67 1. Significant accounting policies 76 2. Revenue and other income 76 3. Costs and expenses 77 4. Income tax expense 79 5. Dividends 79 Basic and diluted earnings per share 6. 80 7. Receivables 81 8. Inventories 81 9. Other assets 81 10. Other investments 82 11. Intangibles 83 12. Property, plant and equipment 85 13. Payables 85 14. Interest bearing liabilities 86 15. Provisions 86 16. Issued...
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...This week's graded topics relate to the following Terminal Course Objectives (TCOs): A | Given an organizational requirement to conform business practices to both the law and best ethical practices, apply appropriate ethical theories to shape a business decision. | I | Given specified circumstances of a business decision to expand to international markets, determine what international legal requirements or regulatory controls apply. | Topics for This Week's Discussion * Introduce yourself to your professor and the rest of the class. (not graded) * Thread over TCO A/I (graded) * Ethics and Patent Rights Post 9/11 (graded) * Q & A Forum for your questions and comments (not graded) | | There is a drop down arrow next to the "Select a Topic" box. Click on this arrow to select topics for discussion. | ------------------------------------------------- Top of Form Select a Topic: Bottom of Form The World Bank Situation (graded) | Class, please read Chapter 2, problem 5 from the Jennings text, p. 72. This week, we will discuss the Wolfowitz situation at the World Bank. Consider the questions at the end of the problem as you make comments in the threads this week. What are the ethics here? Was Wolfowitz trying to do the right thing? Does that make a difference ethically? Throughout the week, I will bring in further questions. Be sure to read the lecture and the international ethics article stated in your reading for the week as well. | ...
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