Effects of exposure to unethical practices on the personal attitudes of accountants in small accounting firms

We investigate how exposure to unethical practices affects the personal attitude of accountants in small accounting firms towards unethical behaviours. This is an important topic for business because accountants in small accounting firms are in a position to influence the behaviour of the large number of businesses they serve. The main independent variable is a measure of exposure to a variety of different types of unethical practices. A regression involving the exposure variable onto personal attitude is carried out using data from owners/managers of small accounting firms in Australia. Findings confirm a negative relationship between the amount of exposure and personal attitude towards questionable practices: increased exposure to questionable ethical behaviour is related to an increase in the level of acceptance of unethical behaviour. While such a finding is not unexpected, it suggests that other strategies need to be pursued to encourage ethical behaviour.

Does calibration reduce variability in the assessment of accounting learning outcomes?

Reliable, consistent assessment process that produces comparable assessment grades between assessors and institutions is a core activity and an ongoing challenge with which universities have failed to come to terms. In this paper, we report results from an experiment that tests the impact of an intervention designed to reduce grader variability and develop a shared understanding of national threshold learning standards by a cohort of reviewers. The intervention involved consensus moderation of samples of accounting students’ work, with a focus on three research questions. First, what is the quantifiable difference in grader variability on the assessment of learning outcomes in ‘application skills’ and ‘judgement’? Second, does participation in the workshops lead to reduced disparity in the assessment of the students’ learning outcomes in ‘application skills’ and ‘judgement’? Third, does participation in the workshops lead to greater confidence by reviewers in their ability to assess students’ skills in application skills and judgement? Our findings suggest consensus moderation does reduce variability across graders and also builds grader confidence.

Aboriginal and Torres Strait Islander People in the accounting profession : an exploratory study

The aim of this article is to explore the role that accounting skills and accounting qualifications may play in entering fields that have been virtually closed to Aboriginal and Torres Strait Islander (ATSI) people. It is acknowledged in the literature that accounting processes and accountants have historically had a domineering and detrimental impact on marginalised groups, such as ATSI peoples. However, we propose an alternative viewpoint using a Bourdieun perspective and theorise that accounting skills and accounting qualifications (capital) can open doors to powerful organisations and institutions (fields). As this is an exploratory study, we have limited our analysis to one key aspect of the Bourdieun framework, namely that of field. To that end, we examine accounting and other organisations that have traditionally closed their doors to marginalised groups in society. Interviews were conducted with ATSI people who have successfully gained entry into the field of the accounting profession, in an effort to understand the experiences and barriers they faced and to investigate the role that accounting skills plays in enabling ATSI people access to fields and decision-making positions that have traditionally been inaccessible to them.

The role of accounting in building financial capacity of Indigenous Australians.

 This study investigated the empowering and/or disempowering role that accounting can play in the building of financial capacity of Indigenous Australians.

Use of illicit tobacco following introduction of standardised packaging of tobacco products in Australia: results from a national cross-sectional survey

ABSTRACT
Objectives: To assess whether following standardisation of tobacco packaging in Australia, smokers were, as predicted by the tobacco industry, more likely to use illicit tobacco.
Methods: National cross-sectional telephone surveys conducted continuously from April 2012 (6 months before implementation of plain packaging (PP)) to March 2014 (15 months after) using responses from current cigarette smokers (n=8679). Changes between pre-PP, the transition to PP and PP phase were examined using logistic regression models.
Results: Among those whose factory-made cigarettes were purchased in Australia, compared with pre-PP, there were no significant increases in the PP phase in use of: ‘cheap whites’ (<0.1%; OR=0.24, 95% CI 0.04 to 1.56, p=0.134); international brands purchased for 20% or more below the recommended retail price (0.2%; OR=3.49, 95% CI 0.66 to 18.35, p=0.140); or packs purchased from informal sellers (<0.1%; OR=0.24, 95% CI 0.04 to 1.47, p=0.124). The prevalence of any use of unbranded illicit tobacco remained at about 3% (adjusted OR=0.79, 95% CI 0.58 to 1.08, p=0.141).
Conclusions: While unable to quantify the total extent of use of illicit manufactured cigarettes, in this large national survey we found no evidence in Australia of increased use of two categories of manufactured cigarettes likely to be contraband, no increase in purchase from informal sellers and no increased use of unbranded illicit ‘chop-chop’ tobacco.

The power of Australian small accounting firms’ unethical exposure

Purpose– The purpose of this paper is to investigate small business owner/manager’s exposure to unethical behavior, and to examine the influence of unethical exposure on organizational intention to implement ethical policies and practices.

Design/methodology/approach– Using a sample of 209 Australian small accounting firms with a path analysis, this paper adopts a modified ethical decision-making model to test the relationship between exposure and personal attitudes toward unethical behavior, and the relationship between exposure and intentions to implement ethical policies and practices at firm level.

Findings– The results show that increased exposure to unethical behavior triggered stronger personal attitudes with small accounting firm owners/managers tending toward accepting unethical behavior. In contrast, at the firm level, more exposure to unethical behavior creates cautious overtones and motivates owners/managers to take action and implement more ethical policies, with the underlying aim of addressing serious ethical issues.

Research limitations/implications– The study tests the ethical decision-making model but focuses only on three constructs (i.e. exposure, attitude and response). The aim is to examine whether extensive exposure to unethical behavior would change personal attitudes toward accepting such behavior, and whether unethical exposure would trigger firm owner/managers to take action and address the ethical dilemma by establishing some ethical guidelines. Other important variables (such as subjective norm, personal locus of control) embedded in the ethical decision-making model should be included in future research.

Practical implications– The study draws attention to ethical dilemmas encountered by many small accounting professionals and their organizations. It addresses the importance of upholding the ethical standard and avoiding the extensive exposure to unethical behavior. It also emphasizes the needs for small businesses to establish some ethical policies and practices.

Originality/value– The paper is purposely set out to reduce the gap in studying how small accounting firms make decisions in implementing their ethical policies and practices to address the rampant ethical dilemma faced by their employees as a result of many corporate scandals and financial crises of the past decade. The results are particularly valuable for small accounting firm owners/managers. The findings also have educational and policy implications.

Relevance of traditional management accounting in the public sector

 The major reforms that the Australian public sector went through in the early 1980s were characterised by a stress on efficiency and effectiveness. The reforms led to the import of a private sector mangement philosophy to the public sector, including private sector based management accounting techniques. It is this import that motivated the critical theoretical discussion presented in this paper concerning the applicability of traditional private sector management accounting techniques in the public sector. The paper sets out the pros and cons of such application and provides directions for future research.

Chinese students’ perceptions of the teaching in an Australian accounting programme – an exploratory study

This exploratory study is designed to elicit and understand the views of Mainland Chinese students concerning their learning experience in an Australian accounting education programme. The article contributes to the literature by investigating the issues and implications associated with international students’ perceptions of teaching, as little research has been undertaken in this context. Data were obtained from focus group interviews at two Australian universities, comprising students who had no prior experience of Western education. Based on an adaptation of Ramsden's 2003 model [Learning to teach in higher education (2nd ed.). London: Routledge], the data show that the students’ educational experience in China has a direct and negative influence on their perceptions of the teaching and learning experience in Australia. The negativity is particularly strong for entry-level students but dissipates to some extent with time. Issues concerning teachers’ enthusiasm, commitment, delivery skills and students’ expectations also emerged as important factors affecting student perceptions.

A longitudinal study of the association of adolescent polydrug use, alcohol use and high school non-completion

AIMS: Failure to complete high school predicts substantial economic and social disadvantage in adult life. The aim of this study was to determine the longitudinal association of mid-adolescent polydrug use and high school non-completion, relative to other drug use profiles. DESIGN: A longitudinal analysis of the relationship between polydrug use in three cohorts at grade 9 (age 14-15 years) and school non-completion (reported post-high school). SETTING: A State-representative sample of students across Victoria, Australia. PARTICIPANTS: A total of 2287 secondary school students from 152 high schools. The retention rate was 85%. MEASUREMENTS: The primary outcome was non-completion of grade 12 (assessed at age 19-23 years). At grade 9, predictors included 30-day use of eight drugs, school commitment, academic failure and peer drug use. Other controls included socio-economic status, family relationship quality, depressive symptoms, gender, age and cohort. FINDINGS: Three distinct classes of drug use were identified-no drug use (31.7%), mainly alcohol use (61.8%) and polydrug use (6.5%). Polydrug users were characterized by high rates of alcohol, tobacco and cannabis use. In the full model, mainly alcohol users and polydrug users were less likely to complete school than non-drug users [odds ratio (OR) = 1.54, 95% confidence interval (CI) = 1.17-2.03) and OR = 2.51, 95% CI = 1.45-4.33), respectively, P < 0.001]. These effects were independent of school commitment, academic failure, peer drug use and other controls. CONCLUSIONS: Mid-adolescent polydrug use in Australia predicts subsequent school non-completion after accounting for a range of potential confounding factors. Adolescents who mainly consume alcohol are also at elevated risk of school non-completion.

Australian government budget balance numbers: the hybrid nature of public sector accrual accounting

Purpose - The purpose of this paper is to analyse the nature and comparability of budget balance (surplus/deficit) numbers headlined by the Australian Commonwealth Government and the governments of the six Australian States and the two Australian Territories. It does this in the context of the transition to Australian accounting standard AASB 1049 Whole of Government and General Government Sector Financial Reporting. Design/methodology/approach - A case study research method is adopted, based on a content/documentary analysis of the headline budget balance numbers in the general government sector budget statements of each of the nine governments for the eight financial years from 2004-2005 to 2011-2012. Findings - Findings indicate some variation in the measurement bases adopted and a number of departures from the measurement bases prescribed in the reporting frameworks, including AASB 1049. Findings also reveal that none of the nine governments have headlined a full accrual based budget balance number since the implementation of AASB 1049 in 2008. Research limitations/implications - While the study focuses on the Australian general government sector environment, it has significant implications in highlighting the ambiguity in the government budget balance numbers presented and the monitoring and information asymmetry problems that can arise. Research findings have wider relevance internationally in highlighting issues arising with the public sector adoption of accrual accounting. Practical implications - The paper highlights the manner in which governments have been selective in the manner in which they present important budget aggregates. This has important practical and social implications, as the budget balance number is one of the most important measures used to evaluate a government's fiscal management and responsibility. Originality/value - The paper represents the first detailed examination of aspects of the effect of the transition to AASB 1049.