Difficulties of maintaining integrity, independence and moral responsibility in accounting practices.
Mistakes and misconduct in accounting practice can cause business failure and achieve bad standards.
Deep Penetration of unethical practice of accounting in organizations.
Sometimes complying the ethics seems irrelevant.
Research Problem / Research Question
1. Does the accounting practice get affected by the ethics at all?
2. Do codes of conduct formed of ethics address the issues that surround the ethical practices?
3. What role does ethics education play in professional accounting practices?
4. What influence the deviation from the proper ethical practice in an organization?
Research Aim and Objectives
1. To understand the need of practising ethics in the professional accounting
2. To evaluate and assess different ethical problems in accounting practice and how ethics mitigates this problem.
3. To find out the norms and code of conduct that helps in bringing positive effect on accounting practices.
4. To understand the different ethical dilemmas that become an issue in ethical accounting practices.
5. To recognize the effect of leadership and management on the conduct of codes for practising accounting
Keywords for Literature Review
Ethics: In a wide definition, ethics is a set of principles or moral values.
Accounting practices: Accounting practices mean the set of rules and way of performing accounting.
Code of Ethics: A specific set of rules and moral values defined in order to implement the ethics properly is Code of Ethics.
Ethical Dilemma: In the process of applying the ethics in the work process, there can be several obstacles in doing so. This is known to be Ethical Dilemma.
Professional: A practical and optimal approach to handling a business or a firm for the betterment of the organization is being called professional.
Accountancy: A field of study which deals with the recording, classifying and reporting financial information.
Responsibility: A state of having an obligation towards the work allocated to a person. Integrity: The quality of being honest and following strong moral principles. Confidentiality: A value which stops the leakage of valuable and sensitive information Norms and Morals: A valuable judgements and principles differentiating right from the wrong.
Corporate governance: A set of rules and principles with which a company forms its compliance framework which will allow the proper and legal process of organization.
Data Collection Plan
This research will adhere the research method which will do the study of the stated research problem and research questions. To achieve the aims and objectives of the study the design will be structured in such a way that will also be based on the question of this research. A proper, objective and the orderly process will be implemented which will generate the required data from the sampled group.
1. Sampling: A sample size of accountants in public practice, government, trade, vocation and academics will be used. The data collection will be done with the questionnaire.
2. Questionnaires: The structured questions will be used for the data collection. The responses will be mostly on the multiple-choice types. The questionnaire will be broadly grouped into two sections. First will contain questions related to the respondent’s background like their age, sex, experience and type of their organization and so on. Whereas, the second section will include the ethical practices and measures which will help in understanding the respondent’s knowledge of ethical issues and how the way they have been dealing with it in their daily work schedule.
3.Data Analysis: The answers to these questions will be evaluated and interpreted and even calculated to understand the ethics assisting proper accounting practice and the research problems and objectives will be answered by this data.
1. Accounting ethics-related issues can be very sensitive and can cause several concerns. Consent from several accounting practices needs to be adhered to distribute the questionnaires.
2. Because of the sensitivity of the information, the respondents need to be promoted and be protected and data needs to be handled confidentially.
3. It is required to focus on defending the respondents who will take part in the research.
4. As the sensitivity of the information, the questionnaire that is answered by the respondents should be allowed to deal with it according to their own capacity as per their own time and as per their own will.
5. The questions, as well as respondents, should be kept anonymous.
6. Also, as per the norms and business confidentiality, a permission needs to be asked from the respondent’s firm and needs to assure them that no confidential information will be issued in this report.
- Australian accounting standards are developed and implemented by AASB (Australian Accounting Standards Board) that the business entities complying with Australians Corporations Act 2001 need to follow.
- The main objective of AASB is to participate and contribute effectively in the development of a single set of accounting standards at a global level.
- This is because the development of a uniform set of accounting standards will promote integrity among the companies globally and also improve transparency in the business practices.
- The non-compliance with IFRS standards can have a negative impact on the global competitiveness of the Australia companies.
- This can reduce the capital inflows from the foreign market impacting their profitability.
- The adoption with IFRS seems to improve the quality and comparability within the Australian financial reporting
- The consistency in the accounting practices will tend to develop ethical accounting that is critical for the development of country’s companies
Research Problem /Research Questions
- Does the adoption of IFRS by the publicly listed Australian companies have positive outcome on the investors and analyst?
- What is the impact on the value relevance of financial reports after the adoption IFRS in the Australian financial reporting?
- Does the adoption of IFRS helps in promotion of comparability of Australian entities’ within the financial reporting practices?
- What is perception of senior personnel in public listed companies of Australia after the adoption of the IFRS and benefits received by the public companies?
Research Aims and Objectives
- To understand the impact on the quality of Australian financial reporting after the adoption of IFRS
- To understand the impact on the comparability of Australian financial reporting after the adoption of IFRS
- To gain the knowledge about the benefits that investors and analysts have received after the adoption of IFRS by the publicly listed companies
- To conduct the survey from the senior personnel of Australian publicly listed companies in order to capture their perception on the impact of IFRS adoption
Keywords for Literature Review
- Accounting Ethics: It can be described as the application of moral values and judgments to the field of accountancy. There are unique set of ethical codes and practices developed for accounting professionals that they need to comply.
- Accounting Standards: The set of rules and regulations that accounting professionals need to follow at the time of carrying out accounting functions
- Accounting Quality: It can be described as the effectiveness of accounting practices in adequately measuring the underlying economic performance of a firm.
- Accounting Comparability: It is regarded as one of the major quality of accounting information. Accounting information can be stated to be comparable when the accounting standards and policies are applied in consistency from one accounting period to another.
- Reliability: Accounting information can be stated to be reliable if it can be used in decision-making process by end -users.
- Financial Reporting: It is carried by developing financial statements by a company to represent the financial status or position of a company
Publication details of relevant articles for literature review
Duarte, A. 2015. IFRS Adoption and Accounting Quality: A Review. Journal of Business & Economic Research 2(2), pp. 104-123.
Chua, Y. and Cheong, C. 2012. The Impact of Mandatory IFRS Adoption on Accounting Quality: Evidence from Australia. Journal of International Accounting Research 11(1), pp. 119-146.
Jeanjean, T. and Stolowy, H. 2008. Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption. Journal of Accounting & Public Policy.
Liu, C. The Impact of IFRS on Accounting Quality in a Regulated Market: An Empirical Study of China. Journal of Accounting, Auditing & Finance 26(4), pp. 659–676.
Data Collection Plan
The present research will adopt the use of mixed research method to address its aims and objectives effectively. The mixed research method adopts the use of both primary and secondary data for addressing the research question. It will implement the use of deductive research approach as it will move from exploring general to reaching specific findings. The major steps used in data collection process are as follows:
Sampling: A sample size of accountants in public practice, governance and trade will be used. The primary data will be collected with the use of questionnaire method.
Questionnaire: It will mainly consist of close-needed questions to facilities easy and quick collection of responses from the target population. The questionnaire will be divided into two sections, that are, general and specific questions.
Data Analysis: The primary data collected with the use of questionnaire will be analyzed with the use of graphical method of data analysis. Also, the primary findings will be supported by the key themes extracted from literature review.
- As there are many ethics issues related to the accounting and its governance as they are sensitive and also creates several problems if does not handle properly. So in order to make proper regards to the ethical considerations related with accounting various consents have been taken from accounting bodies in order to conduct the questionnaires.
- The information gathered from the respondents is considered to be sensitive that requires to be protected and data must be handled confidentially. Information regarding the respondents need not be disclosed.
- As respondents have their own will to answer the questionnaire and as per their own convenience. It means there should not be any force and misconduct while taking up the questionnaire from the senior personnel of public listed companies. Each and every data of respondents must be kept secretly and must not be disclosed without the prior permission from concerned respondent.
- There will be partiality while selecting the respondents and questions must be kept anonymous.
- There is need to give proper credit to the authors and scholar who’s data has been used to conduct the literature review. There is need to do proper citation each source whose work has been used to complete this research work.
- There is need to maintain the integrity, confidentially, accuracy and reliability of the information so that it cannot further used for private purpose and any other matter whatsoever.