Department of Accounting

Permanent URI for this collection

https://repository.udsm.ac.tz/handle/123456789/57

Browse

Now showing 1 - 14 of 14

Accounting Ethics: A Study of Professional independence Status of Accounting Firms in Botswana
(2004-09) Kitindi, Ernest G.
The purpose of this study was to determine if auditing firms in Botswana have begun to provide services beyond traditional auditing. It also sought to establish whether income from such services was significant compared to income from auditing, and whether audit firms in Botswana have in place mechanisms to assure quality audit work. In view of these, an attempt was made to establish the professional independence status of Botswana public auditors.Data for the study was collected from thirteen audit firms on the basis of the register of auditors maintained by the Botswana Institute of Accountants. The results showed that audit firms in Botswana provided other services beyond the traditional audit work. The collective income obtained from these other services exceeded that generated by professional audit work. We also found that audit firms had some mechanisms in place to ensure quality audit work. However, most of the audited companies did not use audit committees and the audit firms did not recommend their use. The evidence was not sufficient to explicitly judge independence, but the results suggested that perceived auditor independence could be affected.
Audit Quality Differences amongst Audit Firms in a Developing Economy: The Case of Uganda
(Emerald Group Publishing Limited, 2016-08-08) Kaawaase, Twaha K.; Assad, Mussa Juma; Kitindi, Ernest G.; Nkundabanyanga, Stephen Korutaro
Purpose To report findings of audit quality differences amongst audit firms in a developing country. Specifically, we examine the assumption of marked audit quality differences amongst large audit firms (Big 4s) and the Small and Medium Practices (SMPs). Design/methodology/approach First, we develop scales for assessing perceived audit quality in the financial services sector based on qualitative data obtained from 106 audit practitioners, 31 Credit Analysts and 13 Board members. We use NVivo© to analyse the 13 transcribed interviews and follow ‘cross-case analysis’ to visualise dimensions and scales of audit quality. Then we use measurement scales developed and obtain quantitative data from 183 board members and top executives in the financial services sector and test for perceived audit quality differences amongst audit firms using a Mann-Whitney U test. Findings Our findings suggest that audit quality is a multi-dimensional construct comprising of levels of discretionary accruals; compliance of audited accounts to accounting standards, law and regulations; and audit fees. Based on these measures, we find that Big 4 audit firms ensure more compliance with accounting standards, Law and other regulatory requirements than SMPs. However, taking all the three audit quality dimensions together reveals no significant differences in audit quality levels between Big 4 and SMPs. Research limitations/implications In terms of auditor selection and retention, it is important that audit firms are assessed based on their ability to constrain discretionary accruals, to produce audited accounts that comply with requirements of accounting standards, the law and regulations; and to examine the fees they charge in relation to quality of service, than on their size. Also, as the results of this study suggest that Big 4 audit firms might be needed for compliance with accounting standards, Law and other regulatory requirements, their audit ties in with the most basic level of auditing requiring probity and legality which, in practice, requires a low level of judgement to be exercised by those performing the audit. It might be useful for Big 4 and other audit firms to embark also on higher level of auditing requiring higher level of judgement. Future research may wish to examine auditing firms’ proclivity to higher-level judgment audit. Originality/value Previous research reveals no consistent way of measuring audit quality and has been inconclusive on the subject of audit quality differential amongst audit firms. We create audit quality scales which can be used in assessing perceived audit quality in a developing country context and provide initial evidence of no significant differences between large audit firms and the Small and Medium Practices regarding audit quality in Uganda.
Earnings Management on the Verge of Privatization: The Case of Air Botswana
(2006-12) Kitindi, Ernest G.
Privatization is often associated with a change in the management of the company, which means existing management might consider such news adversely. Available literature suggests that the management may respond by indulging in earnings management. This study seeks to establish whether this is applicable to the case of Air Botswana. Using data from Air Botswana, the first parastatal that was put in the privatization process, the study tests for evidence of earnings management in the period surrounding the announcement of privatization. The equality of performance and expenditure in the period prior to and after the privatization announcement was tested. The results largely suggest the absence of any significant difference in performance and expenditure between the two periods. Where differences are suggested, the change is for the betterment of the company. The study finds little evidence to suggest that management indulged in earnings management. However, the government action to restructure the company before inviting prospective investors is considered to be consistent with earnings management. It is opined that the findings of this study are indicative of what could be the situation surrounding privatization, and suggests a similar study at a later stage including more parastatals that are being privatized.
Economic Opportunity for Economic Development: The Linkage between Extractive MNCs and SMEs: The Case of Extractive Firms in the Gas Sector in Tanzania
(Maxwell Scientific Publication Corp, 2015) Nyello, Riziki M.; Chalu, Henry; Kitindi, Ernest G.
The linkage between extractive firms and local SMEs is so important in economic development of the country including SMEs development. Many people have engaged themselves in the running of SMEs and therefore the linkage with extractive firms will enable the broad participation of the local population in the oil and gas sector. However, the key issue is not on the linkage itself, but it is on what type of linkage is formed and how it is formed. With this fact, the study focused on two issues, namely to examine the type of linkages and identifying the strategies and policies used by extractive firms to promote the linkages with local SMEs. The study used two cases from extractive firms and one case of SMEs to support its findings. The findings revealed that the backward linkage is the type of linkage that exist in the gas sector and many SMEs link with the extractive MNCs through the indirect channel of backward linkage. Moreover, despite the fact that some extractive firms have policies and strategies that guide their linkage with local firms, the strategies and policies do not explicitly guide the linkage with SMEs rather they focus on the local firms in general. Therefore the study, among others, recommends that the extractive firms must develop policies and strategies that will aim at promoting the backward linkage with local SMEs. Additionally, the extractive firms are advised to develop the selective procurement procedures that will be in favour of local SMEs without undermining the need of delivering products that meet the predetermined quality standards.
Essential Skills for Accounting Graduates: The Accounting Practitioner's Perspective
(African Journal of Finance and Management, 2006) Kitindi, Ernest G.; Mgaya, Klodwig V.
This study was undertaken to collect the views of practicing accountants in Botswana on a number of skills considered essential for any graduate in Accounting. Questionnaires were delivered to 250 accountants employed by various organisations in the country. Responses were received from 69 practicing accountants. These accountants were of the view that Accounting lecturers tend to be out oftouch with market and competitive expectations because they are isolated from business professionals. Of the essential skills expected for accounting graduates, financial accounting was found to be the most critical technical skill, knowledge of Accounting packages and spreadsheet software were the most critical IT skills, and analytica1Jcritical thinking was found to be the most critical vocational skill. The study concludes that tertiary institutions should try to design their curricula to ensure that their accounting graduates possess the essential skills expected in the Botswana market.
Examining Career Orientations of Information Systems Personnel in an Emerging Economy Context
(2008-12) Mgaya, Klodwig V.; Uzoka, Faith M. E.; Kitindi, Ernest G.; Shemi, Alice
A number of studies on career orientations of information systems (IS) personnel have focused on developed countries. This study attempts to examine career anchors of IS personnel from the perspective of a developing country, Botswana. The results of the study show that IS personnel in Botswana exhibit career orientations similar to those identified in literature. However, there are some variations, which are attributed to cultural and socio-economic peculiarities. The study indicates that life style does not feature as a significant career anchor in Botswana. The dominant career anchors include organizational stability (security) and sense of service (service). Gender, age, and educational qualifications tend to moderate the career anchors significantly; thus creating a partition of the anchors across demographic groups.
Gender Inequality in The Information Systems Workforce: Challenges And Implications for Management In Botswana
(2004-12) Mgaya, Klodwig V.; Shemi, Alice; Kitindi, Ernest G.
This paper reports on a research that examined the types of gender-based inequalities of information systems (IS) personnel in Botswana. Questionnaires were distributed to 243 IS employees in 48 organisations in Botswana who are employed at levels of computer programmer and above. One hundred and four questionnaires were completed and returned. The results show that the percentage of female employees in IS is smaller compared to the national average of women employees. Female employees also think that they are not fairly treated in promotions and that their employers do not value their contributions. Female employees are also unhappy with many other issues about their career and the percentage of those who might quit their jobs at the earliest opportunity is higher than that of male employees. Challenges and implications for management are also discussed.
Information needs of Lending and Financing Institutions in Tanzania: an exploratory study
(African Journal of Finance and Management, 1997) Kitindi, Ernest G.
Investors and bankers use information from financial statements. Financial information enables them to make sound investment decisions and to assess investment opportunities. Studies involving investors and investment analysts conducted in the developed economies of Europe and the USA, among others, sought to determine the type of information sought by those investor The studies also sought to determine the extent to which financial statements were used, or relied on. This study sought to identify the information needs of /ending and financing institutions in Tanzania by determining the type of information they sought, and its use by these institutions, as well as the importance attached to the various components of the corporate annual report. The results obtained suggest that these institutions seek information on future prospects of enterprises, and the most recent financial statements are considered important in evaluating current and potent!a investment opportunities. Further, the balance sheet and the Statement of Source and Application of Funds are regarded the most highly compared to the Income Statement and parts of the corporaterate annual report.
The irrelevance of Financial Statements from Parastatals in Tanzania
(African Journal of Finance and Management, 1999) Kitindi, Ernest G.
The use of financial statement information has been well documented. It is expected to facilitate decision making pertinent to the user. However, financial statement information is useful only ifir is available on time. This study sought to establish whether financial statement from Tanzania parastatals were availed on time, and if nor, whether the delay was significant. Using the Normal Approximation Rule to rest for significance in mean time difference, it was found that parastatals delayed in releasing financial statements. The difference in mean time for their release was found to be significant at the 1 percent significance level. It is thus concluded that informacion provided by financial statements from Tanzanian parastatals was no longer relevant at the time it was available. Decisions made on the basis of that information, it is argued, were misguided.
IT Skills of Academics and Practising Accountants in Botswana
(2008-01) Mgaya, Klodwig V.; Kitindi, Ernest G.
Information Technology (IT) skills are important for practising accountants and accounting educators. This paper reports on a study done to evaluate the levels of IT skills of practising and accounting educators in Botswana, as well as their views on the important IT skills for practising accountants. A questionnaire was administered to 27 accounting lecturers and 250 practising accountants. Respondents were asked to indicate their IT skills levels as well as their views on the important IT skills that practising accountants should have. The results show that the self-reported IT skills of practising and accounting educators are lower than what they think practising accountants should have.
Lending Decision Making and Financial Information: The Usefulness of Corporate Annual Reports to Lenders in Botswana
(2007-01) Kitindi, Ernest G.; B.A.S, Magembe; A, Sethibe
This study sought to determine the usefulness of annual report information to lenders in Botswana with a view to establishing whether users of financial statement information derive any utility from information presented in the Corporate Annual Report (CAR). The findings on the basis of analysis of responses from seven lenders suggest that financial statement information is required by formal lenders in making the lending decision. The most recent Annual Report (AR) appears to be the most favoured. Formal lenders in Botswana make greater use of the income statement than other components of the annual report. Finally, formal lenders in Botswana regard the audit report as being important to their lending decisions. Notes to the financial statements are not particularly used by these institutions. Also not used is the report from the chairman or directors.
The Small and Micro Enteprise Audit in Tanzania:is it Worth the Effort?Evidence from an Exploratory Study
(African Journal of Finance and Management, 2000) Kitindi, Ernest G.
The audit of small and micro-enterprises has, for a long time, been of concern to many academics and practitioners alike. Arguments have abounded as to whether the small enterprise audit was worthwhile or not. Though both views existed, it was apparent that small enterprise auditors did face problems in the small audit, albeit in different forms and magnitude. Some countries allow small enterprises to go unaudited. In the UK, a financial reporting standard for smaller entities has been promulgated in an attempt to mitigate some of the problems. This paper presents findings of an exploratory study conducted in Tanzania in relation to problem met by small and micro-enterprise auditors. The study was motivated by the fact that, whereas elsewhere the small audir problem is apparent and being dealt with in variow ways, in Tanzania there is an apparent lack of knowledge to any problems and their effect on the auditor's work. The study thus sought, inter alia, to confirm the existence of small audit problems, the nature of their incidence, and their impact on the audit work. This was done by soliciting responses to a number of potential audit problems. The results suggest that most of the problems investigated did not occur frequently although some were significant to the auditor's work. A tentative conclusion is that, though small enterprises in Tanzania have similar characteristics to those elsewhere, the incidence of SME audit problems is perceived differently in the country.
Stay Or Quit: IT Personnel Turnover in Botswana
(2011-05) Uzoka, Faith M. E.; Mgaya, Klodwig V.; Shemi, Alice; Kitindi, Ernest G.; Akinnuwesi, Boluwaji
Information Technology (IT) has become a major driver of business functions of organizations. Recruiting and retaining competent IT personnel has become a key managerial function. A number of studies (especially in the developed world) have focused on IT personnel issues such as career orientations, recruitment, and turnover. This study contributes to the literature on IT personnel turnover intentions from a developing country perspective. The results of the study indicate that majority of the IT personnel either intend to leave their jobs for another or uncertain about whether or not to leave their jobs. Job satisfaction and growth opportunities are key influences on turnover intention. Career satisfaction, supervisor support, organization commitment, length of service, and age did not contribute significantly to turnover intention.
The Timeliness of the Botswana Parastatal Annual Reports:1994-1998
(African Journal of Finance and Management, 2000) Iwisi, Dominick S.; Kitindi, Ernest G.
The corporate annual report is commonly used by business entities ro convey information ro interested persons. An important component of the report are the financial statements and the auditors report. Since rhe report is a primary source of'informarion for shareholders, iris desirable rhar this information is provided on a timely basis. The report should also be of a quality, desirable for meaningful decisions ro be made. This study investigated the time it took parastatals in Botswana to have the annual report available. It also embarked on establishing the quality of the accounts, as indicated by the auditor's opinion report. The results suggest that on average, the Botswana parastatal required 5.35 months to avail the report. This compares unfavourably to other developed countries. However, compared ro some other developing countries, rhe results for Botswana parasrarals are impressive

Browse

Browsing Department of Accounting by Author "Kitindi, Ernest G."

Results Per Page

Sort Options