Ethics and Sustainability in Accounting and Finance, Volume III (Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application)

This book continues the discussion on recent developments relating to ethical and sustainable issues in accounting and finance from the book , Volumes I and II, looking into topics such as the importance of good governance in accounting, tax, auditing and fraud examination, ethics, sustainability, environmental issues and new technologies and their effects on accounting and finance, focusing in particular on environmental and sustainability reporting in the oil and gas and banking sectors. The book also considers the growing importance of audit quality in this time of the COVID-19 pandemic Acknowledgement Contents Editor and Contributors List of Figures List of Tables Part I Introduction 1 Introduction Chapter: Announcements by Related Institutions (CAQ, PCAOB, FRC, IFAC) on Auditing in COVID Times References Part II Good Governance in Accounting, Tax, Auditing, Fraud Examination 2 Is a Determination and Application of Joint Audit Procedures of Financial Statement and Tax Certification Audits Possible? 2.1 Introduction 2.2 Literature Review for Joint Audit 2.3 Joint Audit Approach on Audit Procedures 2.3.1 Integration of Audit Procedures—Joint Audit 2.3.2 Joint Audit Procedures in Account Base 2.3.3 Joint Audit Assumptions for All Accounts 2.4 The Method Used for the Study—Survey 2.5 Survey Results 2.6 Results 2.6.1 Interaction Between Financial Statement Audit and Tax Certification Audit 2.6.2 Joint Audit Procedures Between Financial Statement Audit and Tax Certification Audit 2.6.3 Increase in Time Savings and Efficiency with Joint Audit Procedures 2.6.4 Contributions of Joint Audit Procedures to Professionals 2.6.5 Contributions to Social Sciences Appendix References 3 The Transition from Self-Regulation to Public Oversight in the Independent Audit: An Investigation of Developments by Accounting Sub-Culture 3.1 Introduction 3.2 Social Role of Independent Audit 3.3 Self-Regulation Structure of Independent Audit 3.3.1 Criticism of the Self-Regulation Structure 3.3.2 Peer-Review Systems 3.4 Transition to Public Oversight in Independent Audit 3.5 Developments in Turkey About Audit 3.5.1 Public Oversight Board in Turkey (KGK) 3.5.2 Criticisms of Turkish POB (KGK) 3.6 Literature 3.6.1 Self-Regulation and Public Oversight Literature 3.6.2 Accounting and Culture Literature 3.7 Values of Accounting Sub-Cultures 3.8 Research of Public Oversight Systems and Accounting Sub-Culture Relations 3.8.1 Comparison of Public Oversight Systems of Countries 3.8.2 Proposed Cultural Values for Public Oversight Systems 3.8.3 Conclusion 3.9 For the Further Studies References 4 Creating Auditable Environment: An Approach Towards Eliminating Fraud Opportunities 4.1 Introduction 4.2 Auditability Concept 4.2.1 Making Things Auditable 4.2.2 Level of Auditability 4.2.3 Auditability Triangle 4.3 Auditable Environment and Management Responsibilities 4.3.1 What is Corporate Governance? 4.3.2 Creating Culture of Honesty, Openness, and Assistance 4.4 Challenges in Creating Auditable Environment 4.4.1 Committed and Sustained Leadership 4.4.2 Effective Plan to Correct Internal Control Weakness 4.4.3 Competent Financial Management Workforce 4.4.4 Accountability and Effective Oversight 4.4.5 Cost and Time Constraints 4.5 Conclusions References 5 How to Secure a Country’s Sustainability from the Venom of Corruption? 5.1 Introduction 5.2 Anti-corruption Efforts in Malaysia 5.2.1 Anti-corruption Laws 5.2.2 Anti-corruption Agency 5.2.3 National Policies in Preventing Corruption 5.3 Design-Reality Gap Model as the Lens 5.4 Methodology 5.5 Result 5.5.1 Designers of Anti-corruption Initiatives 5.5.2 The Process of Designing Anti-corruption Initiatives 5.6 Conclusion References 6 The Determinants of Audit Committee Effectiveness: An Empirical Work on Turkish Financial Industry 6.1 Introduction 6.2 Characteristics of an Effective Audit Committee 6.3 Background Information on the Turkish Financial Industry 6.4 The Data and Methodology 6.5 Discussion on the Empirical Findings 6.6 Concluding Remarks References Part III Ethics and Sustainability in Finance 7 An Analytical Study of Financial Status of Masala Bonds Issuing Companies 7.1 Introduction 7.2 Literature Review 7.3 Objectives of the Study 7.3.1 Data Analysis and Finding 7.4 Housing Development Finance Corporation (HDFC) 7.5 To Evaluate the Change in Company’s Performance on the Basis of EPS (Earning Per Share) 7.6 Conclusion References 8 Information Asymmetry Problematic and Voluntary Disclosure in Companies 8.1 Introduction 8.2 The Concept of Information 8.2.1 The Concept of Information Asymmetry 8.2.2 Problems Caused by Information Asymmetry 8.2.3 Methods to Reduce Information Asymmetry 8.3 The Concept of Public Disclosure 8.3.1 Mandatory Disclosure 8.3.2 Voluntary Disclosure 8.4 An Application at Borsa İstanbul for Voluntary Disclosure and Information Asymmetry Problematic 8.5 Findings 8.6 Summary and Discussion References 9 The Financial Crisis Phenomenon and the 2008 Global Finance Crisis 9.1 Introduction 9.2 Financial Crisis Phenomenon 9.2.1 Types of Financial Crisis 9.2.2 Financial Crisis Reasons 9.2.3 Financial Crisis Models 9.2.4 Central Banks and Financial Stability 9.3 Global Financial Crisis and Reasons for Emergence of the Crisis 9.3.1 Liquidity Excess and Degradation of Mortgage Loan Structures 9.3.2 Inconsistency in Interest Structure 9.3.3 Bubble Increases in Housing Sector 9.3.4 Difficulty in Securities Funding 9.3.5 Expansion of Credit Derivatives Markets 9.3.6 Problems in the Credit Rating Process 9.4 Conclusion References Part IV New Technologies In Accounting and Finance 10 Impact of AI and Block Chain on Accounts, Finance, Valuations and Auditing—Indian Perspective 10.1 Introduction 10.2 Changes Required to Be Done While Audit 10.3 Block Chain and Audit 10.4 Learn from Experience 10.5 Auditing, Artificial Intelligence (AI) Revolution and Kurzweil DPU 10.6 AI Concept and Kurzweil Law 10.7 Literature Review 10.8 Conclusion References 11 From Conventional Methods to Contemporary Neural Network Approaches: Financial Fraud Detection 11.1 Introduction 11.2 What Is Fraud? 11.3 Progress of Financial Fraud Perspectives 11.3.1 Traditional Approaches 11.3.2 Legal Regulations to Prevent Financial Fraud 11.3.3 Evolution of Fraud Detection 11.4 Conclusion References Part V Environmental Issues in Accounting and Finance 12 Sustainability Reporting in the Oil and Gas Sector: Implementation in Greece 12.1 The Global Reporting Initiative 12.1.1 GRI in the Oil and Gas Industry 12.1.2 Laws About Oil and Gas Reports Publishing 12.1.3 Standard Disclosures 12.2 Analysis of the Results 12.2.1 Hellenic Petroleum 12.2.2 Motor Oil Hellas 12.2.3 Elinoil 12.2.4 Jetoil 12.2.5 AegeanOil 12.2.6 Public Gas Corporation 12.2.7 Zenith Gas 12.2.8 M&M Gas 12.3 Conclusions References 13 Global Climate Risk Index and Firm Performance: Evidence from Turkish Firms 13.1 Introduction 13.2 Climate Change: Impacts and Risks 13.3 Impact of Climate Change Risk on Economies 13.3.1 Stern Review: The Economics of Climate Change 13.3.2 Germanwatch: Global Climate Risk Index (CRI) 13.4 The Impact of Climate Change Risk on Firms 13.5 Firm Performance and Climate Change Risk 13.6 Studies of TCFD and SASB 13.7 Literature 13.8 Data and Methodology 13.9 Empirical Results 13.10 Conclusion and Further Research References 14 Roles of Accountants and Scientists in the Assurance of Greenhouse Gas Statements 14.1 Introduction 14.2 How GHG Assurance is Linked to Sustainable Development Goals? 14.3 Regulation, Standards and Assurance of GHG 14.4 Why Do Companies Use Assurance Services? 14.5 The Types of Assurance Providers 14.6 The Types of Assurance Statements 14.7 Conclusions References 15 Recruitment Techniques by Auditing Companies 15.1 Introduction 15.2 Conceptual Framework 15.3 Auditing Profession 15.4 Recruitment Process 15.5 Literature Revıew 15.6 Analysis 15.6.1 Collection Method 15.6.2 Study Population and Sample 15.6.3 Analysis Method 15.7 Findings 15.8 Result References Appendix A Original PwC Questionnaire Appendix B Descriptive Statistics of Observed Variables Appendix C Correlation Matrix of Model 1 Appendix D Correlation Matrix of Model 2 Appendix E Results of the Analysis Index